Edmonton Real Estate Blog

The residential home inventory on the Edmonton Multiple Listing Service® (MLS® System) rose 16% in January. Typically just over 1,800 homes in the Edmonton CMA (census metropolitan area) come onto the market in January. Last month’s listings of 1,842 were higher than the 783 listed in December. Sales figures (adjusted) of 885 properties (820 reported) were higher than a typical January and higher than sales in December and January 2013. The increased inventory of 3,537 (up from 3,049 in December), kept prices stable in all housing categories.

Compared to December, the all-residential average3 price of $347,847 was down just $1,226 or
-0.16%. Single family detached (SFD) home prices were down 1.5% at $416,344. Condominiums were priced on average3 at $230,463 (down 1.5%) and duplex/rowhouses showed the biggest movement and were down 5.3% at $336,220.

“Price stability and more property available for sale results in a balanced market,” said REALTORS® Association of Edmonton, President Greg Steele. “Right now both buyers and sellers have time to consider all their options and housing needs. More homes are listed every day and your REALTOR® can advise you of a suitable property as soon as it comes available.”

The residential sales-to-listing ratio was 45% and the average days-on-market was 61 days in January compared to 73 days in January 2013. There have been four property sales over a $1 million already this year but half of the SFDs sold in January were sold at or below the median price of $385,000.

“Strong economic indicators such as low unemployment, higher hourly wages and positive in-migration all support an optimistic view of the Edmonton and area housing market,” said Steele. “Consumers are confident in their economic future and prepared to risk a first-time or move-up purchase. Low rental vacancies and the potential for higher rental rates are also attracting investors into the market.”

There are 3,200 REALTOR® members of the REALTORS® Association of Edmonton. Consumers can view all the properties listed on the Edmonton MLS® System at www.EdmontonHomesForSale.biz and review advertised properties in the Real Estate Weekly.

Unless you’re a real estate expert, you probably look at the market and think things are pretty confusing. Even a bit crazy! You hear news about “bubbles bursting”, “higher or lower home sales in a particular month”, “new home starts” that are up or down, and on and on it goes.

It’s a lot of news and a lot of jargon.

If you’re thinking of selling your home within the next year or two, you will want to understand what’s happening in the market so you can make the right decisions and get a clear sense of what to expect. So, how do you make sense of it all?

That’s where a good REALTOR® can help.

Even if you don’t have any definite plans to move in the near future, a REALTOR® who is an expert in the local marketplace can help you understand what homes in a particular neighbourhood are selling for, and what you can expect to get should you decide to list your property.

Getting to know a REALTOR® also means you’ll have a trusted expert to talk to from time to time, when you have real estate-related questions.

You’ll have someone you can think of as “Your REALTOR®”.

Plus, when the time comes to sell your property, you won’t have to deal with a stranger. Instead, you’ll be able to work with a REALTOR® that you know well — and who knows YOU. Overall, that will make the buying and selling process go more smoothly and more successfully.

Looking for a good REALTOR® who wants to get to know you? Call today!

Sales of residential property through the Edmonton Multiple Listing Service® (MLS®) System in 2013 in the Edmonton CMA were almost eight percent higher than in 2012. From 2011 to 2012 the number of sales increased 6.2%. There were 17,055 residential sales reported in 2013 as compared to just 15,812 in 2012.

Sales were up in all residential categories with 10,487 SFDs sold in 2013 (up 3.4%) along with 5,059 condominiums (up 14.7%) and 1,144 duplex/rowhouses (up 18.2%). First-time buyers accepted the condo lifestyle as a way to get into the housing market. Compared to 2012, the percentage of SFDs sold dropped from 64% to 61.5% of total sales while condo sales increased from 28% to 30%.

The higher sales numbers were driven by the strong local labour market, continuing low mortgage rates, and a stable pricing environment. The 12-month, all-residential average price in 2013 was $350,208, a modest 2.95% increase over the 2012 price of $341,891. Median prices increased from $331,000 from $323,000, only a 2.48% lift, indicating that there was increased activity at the mid-market price point this year.

“REALTORS® report that there has been a shortage of lower-priced homes all year which has pushed value conscious buyers up-market or into condos,” said REALTORS® Association of Edmonton, President Greg Steele. “New home builders are trying to fill the void by building more condos and single family homes at lower price points.”

The all-year sales-to-listing ratio was 69% with average day-on-market at 53 days. The active market was highlighted by a year-end inventory of just 3,049 properties: a drop of 1,000 from the month previous.

During the month of December, the price of a single family detached property rose 4.4% from $405,826 in November to $423,544 in December. Condo prices dropped 2.4% in December to $234,967 while duplex/row house prices shot up 9.8% to $358,978 (following a marginal uptick the month previous).  Overall, the average all-residential prices was up just 1.1% to $350,208 when compared to the previous month. December sales (adjusted for late reported sales) were: SFD – 471, condo – 271, duplex/row house – 45, and total residential sales 805.

“Now that the hectic holiday season is over, listing and sales activity will pick up as it always does,” said Steele. “Buyers are urged to take advantage of the low mortgage rates while market conditions are favourable and to consult with their REALTOR® about the advantages of a resale home or condo in any of the communities in or around Edmonton.”

Source: Realtors Association of Edmonton

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz

Source: Dominion Lending Centres Newsletter

To View & Search All MLS Listed Houses for Sale Visit Us At:
www.EdmontonHomesforSale.biz

Serge Bourgoin
Senior Managing Partner
Team Leading Edge
RE/MAX ELITE
780-995-6520

Sincerely Yours,

The local housing market will not feel any pressure from the recent mortgage rate increases, according to the REALTORS® Association of Edmonton. Several of the major banks increased their mortgage rates in August because of changes in the bond market. The higher rate will increase the monthly payments on a typical mortgage or decrease the total amount that a buyer can borrow from their financial institution.

“Buyers applying for a mortgage now may have to buy a slightly less expensive property than before because their qualification amount may be lower,” said President Darrell Cook. “In the short term, any reduction in the number of buyers will be made up by the potential buyers becoming more motivated to buy before their pre-approval period ends.”

The all-residential average* price in the Edmonton CMA in August was up a quarter of a percent from last month at $351,455. The average price for a single family detached (SFD) property in the Edmonton Census Metropolitan Area (CMA) in August was $416,494, up 1.5% from July but up 5.4% from a year ago. Condominium average prices were also up by 0.9% at $244,675. Duplex/row house prices rallied in August after a price dip in July at $337,745 (up 2.1%).

As compared to August 2012, prices of all types of residential property were up: SFD up 5.4%, condos up 3.8%, and duplex/rowhouses up 12.1%. The all-residential average price was up 3.7% over the same time last year.

“Our market continues to exhibit strong fundamentals,” said Cook. “Rental vacancy rates are low at about 1.2%, new home starts are up and weekly take-home pay rates are the highest in Canada. The upward pressure on housing prices will be moderated by the seasonal decreases as we approach winter.” Despite the increases, housing prices in Edmonton continue to be affordable, mainly because of the higher average incomes.

The sales-to-listing ratio of 65% was the result of 2,299 residential listings and 1,490 residential sales in August. The inventory of available homes on the Edmonton MLS® System was down from 5,834 units in July to 5,557 units in August. It took 53 days on average to sell a home in the Edmonton area.

The total value of MLS® sales YTD is the highest it has been in five years at $5.8 billion as a result of stronger sales numbers and higher prices overall.

Source: Realtors Association of Edmonton

Edmonton, August 2, 2013: Sales of residential properties are up in double digit increments in all categories when compared to last year, according to the REALTORS® Association of Edmonton. Total residential sales in July were up 24.9% year-over-year with 1,875 sales (1,736 reported). Sales figures are adjusted to account for unreported transactions at month end. Prices were also up year-over-year in all categories.

The average price for a single family detached (SFD) property in the Edmonton Census Metropolitan Area (CMA) in July was $410,372, down 0.5% from June but up 3.4% from a year ago. Condominium average prices dropped 7.4% m/m but were up 2.6% y/y at $242,516. Duplex/row house prices were up 8.6% y/y (down 2.8% m/m) at $330,906. The all-residential average price in the Edmonton CMA in July was $350,726 (down 2.5% m/m, up 3.3% y/y).

“These are the highest figures for July that we have seen since 2009,” said President Darrell Cook. “Prices and sales have peaked for the year and the month-over-month numbers are lower than June but when compared to last year our market is very robust. Although listings are up over the same time last year, our inventory has slipped by almost 250 units. Going forward, some buyers may have to consider compromises to find their new home in this market.”

The sales-to-listing ratio of 68% was the result of 2,543 residential listings and 1,736 residential sales in July. The total value of real estate sales through the Edmonton Multiple Listing Service® System in July was $814 million; up 18% from July 2012.

Environics Analytics, a Toronto-based data analytics firm, reported last week that the average net worth of an Edmontonian was $433,970 in 2012, up 1.6% from 2011 as compared to the Canadian average net worth of $400,151.*

“Despite the rain and flooding in Alberta last month, the housing market has thrived,” said Cook. “Edmonton has jobs, housing options, and an economy that is attracting newcomers to the city and ensuring that current residents have an appealing lifestyle.”

The average days-on-market was down one from July 2012 at 49 days, which means that an average sale was completed in about a month and a half.

Source: Realtors Association of Edmonton

We are heading into a strong spring market. In the last 30 days we have seen an increase in sales. In the last 30 days we have seen 801 single family homes sold in in Edmonton proper.

Currently in Edmonton proper we have 2,164 single family dwellings for sale. which is about average for this time of year.

This now gives us a listings to sales ratio of 2.7:1 which is far below the 4:1 that creates a balance market.

With a ratio that is considerable below the 4:1 need for a balanced market is a strong indicator that their is strong upward pressure on valuations. Expect the cost of homes to be going up.

If you are thinking of buying this year buy now and save yourself potentially thousands of dollars.

If you are ready to buy call us here at Team Leading Edge 780-634-8151 or visit us at www.EdmontonHomesForSale.biz

Source: Realtors Association of Edmonton

Edmonton is the second-best market in the country to invest in housing, says real estate analyst Don Campbell.
“Population growth is strong, job growth is strong and things are supporting this market quite nicely, said Campbell, founding partner of the Real Estate Investment Network, a business that provides resources and information on real estate to members.
“It doesn’t look like it’s going to be another ‘07 where it just got into pure frenzy, but I think you’ll see late this year and early 2014 — which is a year behind Calgary as always — that the market will really start to push up.”
Home-buying demand will start taking off late this year while prices will begin rising next spring, Campbell says.
He bases that prediction on a formula where demand and prices come about 18 months after increased rents, which in turn follow decreased vacancies, increased demand for rental housing and growing population. All of those are triggered by earlier economic and job growth.

“We’re going to see a lot of listings come on during this year as well,” Campbell said, noting a current undersupply of listings.
Investors who bought too many properties in 2007, 2008 and 2009 will see the increased buying demand as a chance to sell, he said.
“The market’s barely moved in Edmonton as far as value. It’s a good window of opportunity before it starts to heat up again to get into the market. From an investment point of view, your rents are going up.”
He said when suites go vacant, landlords will raise rents by $150 to $200 per month.
“That will make renters think twice about renting rather than buying and that will happen over the next 12 or 18 months.”
Edmonton is second only to Calgary as the best place to invest in Canada in residential real estate. Campbell rates Hamilton as third because of its diversifying economy and job growth. Campbell was in Edmonton to promote his latest book The Little Book of Real Estate Investing in Canada. Royalties from the book go to Habitat for Humanity.

By Bill Mah, Edmonton Journal
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