Edmonton Real Estate Blog

There has been some strengthening in Alberta’s resale market, said Lai Sing Louie, regional economist for CMHC in Calgary. “We’re expecting that the second half (of the year) will be much stronger than the first half,” he said. Most markets in Alberta have turned into balanced ones, added Louie. In the first quarter, they were generally buyers’ markets. Louie said low mortgage rates have been a big factor in spurring residential sales. “Affordability has improved quite significantly,” he said. “We’ve also seen some government incentives to encourage first-time homebuyers and that’s helped. And I also believe that people who have been waiting to see how the markets move finally have the confidence now to go into the marketplace and buy.”
2010 average price forecast for Alberta $343,200.

Source: Calgary Herald – Friday, August, 28 2009

Edmonton, September 2, 2009: Residential sales through the Edmonton and Area Multiple Listing Service® in August were lower than the number posted in July but higher than sales the previous August. There were a total of 1,673 sales last month as compared to 2,277 in July (a monthly record) and 1,541 in August 2008.

“Although sales numbers cooled a bit after record sales in June and July, we are still experiencing the strength of the market in Edmonton,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “Our members continue to report high buyer interest. Although sales in the fall are slower than the spring, buyers are looking for a home and sellers can reach them through the MLS® System.”

Prices for Single Family Dwellings climbed steadily all year and peaked in July at $372,741. The average* SFD sold for $366,788 in August, down 1.6 percent from the previous month. The current price is just $2,400 lower than average prices in August 2008.

Condominium prices were also down in August; dropping less than one percent to $242,035 on average in August from $244,265 in July. By comparison, the average price for a condo in August 2008 was $251,048. The average price has come down because of the increased amount of lower priced product that has entered the market rather than the value of a particular property being marked down.

Duplex and row house properties sold on average for $294,007 and the combined Average Residential Price was $318,321 in August; down 3.3% from $329,207 in August 2008.

“Our market is operating normally,” said Ponde. “There is a balance between buyers’ and sellers’ expectations and, while prices fluctuate seasonally, there are no major price swings. The strong inventory and activity levels result in moderation and stability.”

The average days-on-market was 48 in August; up two days from July. At the end of August there were 6,445 residential properties active on the MLS® System.

Highlights of MLS® System activity

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

* Average prices indicate market trends only. They do not reflect actual prices, which may vary

Source: The Canadian Press  Link: http://www.edmontonsun.com/news/canada/2009/08/26/10619921.html

TORONTO — The Frigidaire division of Electrolux Canada Corp. said Wednesday it is voluntarily recalling nearly 43,000 stoves sold throughout Canada and the United States over a seven-year period.

The company issued warnings about safety hazards related to its Frigidaire and Kenmore Elite freestanding electric ranges with rotary knobs and digital displays. Frigidaire said the stoves’ elements may heat up without being turned on, fail to cool down after being turned off, or heat to different temperatures than those specified by users.

The recall covers 42,955 units — 22,125 Kenmore stoves and 20,830 ranges bearing the Frigidaire brand.

The company said models sold in Canada have not been linked to any serious injuries or property damage, but added there have been six minor incidents south of the border.

The affected ranges were sold across Canada between June 2001 and September 2008 through a variety of retailers.

Sears Canada, which sold the units in its brick-and-mortar stores and through online and hardcopy catalogues, said it would conduct free repairs for any concerned customers.

Frigidaire, which is offering the same service, urged consumers to stop using the stoves immediately until repairs are completed.

Customers are encouraged to contact Frigidaire at 1-877-609-7857, or phone Sears Canada at 1-866-691-9948.

Below is the list of model numbers affected by the recall, as provided by Frigidaire. Model and serial numbers are located inside the drawer at the base of the unit on the righthand side of the frame.

Kenmore Elite Model Numbers Beginning Serial Number Rangemwith these Letters and Numbers

C970-68802 VF122xxxxx to VF831xxxxx

C970-68803

C970-68804 or

C970-68808

C970-68809 NF122xxxxx to NF806xxxxx

C970-68830

C970-68832

C970-68833

C970-69803

C970-69804

C970-69808

C970-69809

Frigidaire

CGLEFM97DB VF122xxxxx to VF831xxxxx

CGLEFM97DS

CPLEF398AC or

CPLEF398DC

CPLEFM99EC NF122xxxxx to NF806xxxxx

CPLEFZ98GC

PGLEF388CS

PGLEF388ES

Well I am glad to be back from taking a 4 day long weekend, and we are back working and here to give you the update on the Edmonton Real Estate Market.

As of this morning there were 2,215 single family dwellings listed in Edmonton proper.  That number has been remaining fairly stable as of late which is a nice sign to see.  In the last 30 days there has been 938 sales of single family dwellings.  Again this has been a fairly stable number.

With those listings and sales that would give us a listing to sales ratio of 2.36:1, which would be a slight increase over last week.  However, this is still well below the 4:1 ratio that we need in Edmonton for a stable or neutral market.  This would indicate that we should continue to see an increase in valuations.

Now is definitely the time to buy before prices continue to go up.

At the mid-point of the year, the REALTORS® Association of Edmonton is confident that the local real estate market has regained stability. The 9,741 sales of residential properties sold through the Multiple Listing Service® in the first six months surpassed the six month year-to-date figure for last year (9,567) and residential sales in June set a new record for the month. Residential sales in June totalled 2,552 units which surpassed the 2007 record of 2,203 units sold and was the third best month for unit sales in MLS® System history.  

“Buyer confidence, especially among first time buyers, was evident in Edmonton despite lingering economic concerns in other markets,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “When mortgage rates looked like they might start to rise, many potential buyers locked in lower mortgage rates and then went searching for a qualifying home.”

Listing activity slowed slightly from last month (down 0.03%) with 3,179 residential listings. The strong sales drove the sales to listing ratio to 80% from 68% last month. Prices continue to climb with one month increases of 0.6% for single family dwellings and 1% increases for condominiums. The average* SFD sold for $369,859 in June as compared to $367,672 in May or $351,870 on January 1. Condominiums sold for $247,071 on average in June; up from $244,734 in May and $234,286 at the start of the year. At the end of 2008 Q2, SFDs sold for $381,384 and condos sold for $262,365.

“Last year prices fell from the high point in March. This year prices have just continued to climb,” said Ponde. “Prices typically decline slightly in the second half of the year but the drop, if it occurs, will not be precipitous.”

The average days on market was 60 days or more early in the year but dropped to 49 in June; another indicator of buyer enthusiasm. At the end of June there were 6,785 residential properties active on the MLS® System (2.65 month supply at current sales volumes) which offers a wide range of choice for those eager buyers.

Highlights of MLS® activity

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

Source: The Realtors Association of Edmonton

The Edmonton real estate market continues to improve.  Currently there are 2,017 single family homes listed on MLS in Edmonton proper.  That is a drop from last week and is supporting the fact that there is a shortage of good quality listings.

In the past 30 days there were 884 sales.  Not the 1,000 sales that I would be looking for to happen in a normal market but with current inventory level is still a good number.

With those numbers that gives us a listing to sales ratio of 2.28:1.  Again a drop in the listing to sales ratio indicating that we are going to see continued upward pressure on valuations.

Buyers beware waiting to buy, and get into the market before prices go up any further.

It always amazes me how much difference a week can make.

As of this morning there were 2,081 single family homes listed on MLS in Edmonton proper which is a drop from last week.  I was really hoping to see an increase in the inventory available for the consumers out there.

The other interesting fact that surprised me was the number of sales in the last 30 days in single family homes in Edmonton with 840.  That was also a drop from lasts week when I was expecting it to increase which would have a been a healthy sign.

The only good news out there is the fact with those numbers we still have a listings to sales ratio of 2.48:1 which remains constant from the previous week.  For the market to really start to show it’s is on a healthy recovery we are going to need to see the number of listings and sales rise proportionally.

So lets all hope the numbers increase for next week.

Weekly rate minder provided by: Souchita Rattanarasy Dominion Lending Centres Optimum 780-932-2225. Apply online : www.dlconline.com

Well you can’t say that I didn’t warn you.  The value of homes in Edmonton are on the rise, specially in the lower prices ranges.

As of this morning there were 2,337 single family homes listed as active in Edmonton proper.  In the previous 30 days there were 943 single family homes sold.  That would give us a listing to sales ratio of 2.48:1, which again is a lower ratio than the previous week. ( ratios taken on Monday morning have a tendency of being a little higer than those taken of Fridays.  Reason being with realtors now loading new listings into the system manually themselves can do so over the weekend but the sales that have occured over the weekend are not processed untill the business week.)

What that indicates to me is that if this trend continues the valuation recovery may happen quicker and be more pronounced than I originally had forcasted.

Should we be surprised??

Wow it is amazing how quickly the market can change.  Maybe we should not be so surprised, as I was astounded at how quickly the market changed back in May/June 2007.

In the recent weeks in working with buyers for homes under $350,000 it has been a real challenge.  If they were nice homes and priced well they were either sold or by the time we had a chance to write up an offer we were competing with other offers.  As usual, with multiple offers the homes end up selling for more than they were asking for originally.

At the time of my writing this article (June 03, 2009) in Edmonton proper there are 2,289 single family homes listed for sale.  In the past 30 days there has been 1,028 single family sold in Edmonton proper.  That would give us a listing to sales ratio of 2.23:1. 

In the last several weeks that ratio has dropped even further every week and is well below the 4:1 ratio we need in Edmonton for a balanced market.  So there is no doubt in my mind that valuations are rising and they are rising at a rate much higher than the average selling price is rising.  Remember there is a big difference between average selling price and valuations.

Average selling price reflects what the average individual is willing and capable of paying for a home.  Most people go to their bank or mortgage broker and find out how much of a mortgage they can qualify for and that is what they go out and buy.

However, valuation is a reflection of what you are getting for that dollar and that is what is really changing.  If you are thinking of buying and waiting then you are going to end up with a lesser home for the same amount of money.  So you better act now before prices go up higher. 

This is even more important for someone who is thinking of upgrading to a bigger or more expensive home.  Think of it this way: Your home is worth $300,000 and the home you are going to buy is worth $500,000.  Valuations rise by 10% which would mean your home went up $30,000 in value.  This sounds appealing but the home you were going to buy has now gone up $50,000.  Waiting ultimately cost you $20,000 on your mortgage.

Also it should be noted that right now the greatest increases in valuations are homes under the $350,000 price range as it represents 56.81% of all the single family homes sold.  The second highest group is the $350,000 – $450,000 price range representing 26.07% of the single family homes sold.  And finally the over $450,000 price range representing 18.68 %

Even though at the moment the greatest increases are the homes under $350K, we will soon see the valuations of the higher price ranges start to increase as the sellers of these homes under $350K are now in the market in the higher price ranges. 

For those of you who have been following my blog (http://Blog.FindMyHouse.ca) you should not be surprised at what is currently happening, as I have been forecasting this for weeks!

Ultimately what I am saying is stop waiting for the bottom as it’s already come and gone,  and get out and buy now.

And that is my two cents… Serge