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

In the first six months of the year, housing prices in the Edmonton Census Metropolitan Area (CMA) showed slow, steady increases. According to the REALTORS® Association of Edmonton, the all-residential average price was up 5.6% from the average price on December 31, 2012. Compared to June 2012, the current average price is up 4.2%.

“Economic conditions in the Edmonton area are generally positive and this is reflected in our local housing market,” said President Darrell Cook. “Prices have risen slowly through the first six months and there is nothing in our local economic trends to indicate that this period of stability will change.”

The average all-residential price for the Edmonton CMA in June was $359,631. This was up 0.8% from May 2013. The average price of a single family property in June was $412,269, up 2.3% from last June when the price was $402,840. Condominium prices followed a similar path with June prices at $261,854 compared to a year ago at $240,822.

The inventory of available residential properties on the MLS® System has increased over the past two quarters and is currently at 6,078 properties. Never-the-less, this is still lower than the inventory of 6,435 homes recorded at the end of June 2012.

“Higher prices and a shortage of inventory in some categories have limited the number of sales,” said Cook. “We are seeing some instances of multiple offers, however buyers looking at higher priced properties are taking their time to study the market with their REALTOR® before making an offer on the property that matches their needs.”

The all-residential sales figures for June are down 1.5% year-to-date when compared to 2012 with 8,664 sales so far in 2013 as compared to 8,792 in 2012. There were 1,840 residential properties of all types sold in the Edmonton CMA in June and 1,800 sold in June 2012. Single family detached sales of 1,080 were off 4.9% from last year. Condominium sales were up in the first half because of a lack of lower priced single family properties. There were 470 condo sales in June compared to 536 in June 2012. There were 116 duplex/row house properties sold in June. Note: all sales numbers are estimated to reflect late reported sales.

The average days-on-market for all residential property was up to 47 days from 45 days in May and the sales-to-listing ratio was 63% in June,

up from 53% last month.

Source: REALTORS® Association of Edmonton

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

www.EdmontonHomesforSale.biz

The average housing prices quoted by the Board are influenced by two factors. If the prices paid on particular properties are rising then it will push up the average price. But if the actual prices are constant, the average could still increase because of the product mix in the period.

Right now there is a shortage of attractive, lower priced homes in this market because the low interest rates and increased migration have created a demand for housing for entry level buyers. Existing home owners are also taking advantage of the lower interest rates and the equity gain since 2006 and are buying in more expensive neighbourhoods. With less homes sold at the low end, the average price is pushed up as current owners move up-market to find a home. The relative number of homes sold in the $450 – 650k price range increased from 12.2% to 14.5% year-over-year while the percentage of homes under $300,000 dropped from 40.7% of the market to 38.2%.

It is important that REALTORS® explain this phenomenon to their sellers so that they don’t have unrealistic pricing expectations. The increase in average price may not increase the market value of a particular property. Just because the market is rising, does not mean that buyers will pay more than the market price in a given neighbourhood for a home. The CMA will reveal if prices for comparable homes are rising with the market or are showing a more moderate rate of increase.

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
© Copyright The Edmonton Journal

CALGARY — Members of Generation Y strongly desire a house of their own but they’re pessimistic about their ability to do so, according to a new Royal LePage Real Estate survey released on Wednesday.

The survey, which was conducted by Leger Marketing, said 80.9 per cent of the Generation Y (born between 1980 and 1994) respondents said they have plans to move to another primary residence at some point in the future with 39 per cent stating a move is planned within the next two years.

However, the majority of the young generation feel pessimistic about their ability to own a home because of current house price affordability as 44.2 per cent ‘somewhat agree’ with this feeling and 28.3 per cent ‘strongly agree’.

“While Generation Y is more likely to rent their primary residence at this stage in their lives, they do not see this as desirable long-term solution,” said the real estate firm. “An overwhelming 85.7 per cent disagreed with the statement that ‘I do not desire to own a property in my lifetime as renting is preferable to me’.”

Of those who are planning a move, 55.1 per cent of Generation Y intend to purchase their next primary residence while 32.6 per cent plan to rent.

mtoneguzzi@calgaryherald.com

Twitter.com/MTone123
Source: MARIO TONEGUZZI, CALGARY HERALD MARCH 20, 2013

Edmonton’s Macewan Area Real Estate Listings and Sales statistics from your Team Leading Edge Macewan specialist… Serge Bourgoin

To view and search all Edmonton and are MLS listed homes for sale visit us at www.EdmontonHomesForSale.biz

The market is really heating up in Edmonton. Tonight I wrote an offer above asking price on a property that only been on the market for 2 days and we were not the successful bidder. You need to act fast and possible significantly above asking price.

To view and search all Edmonton and are MLS listed homes for sale visit us at www.EdmontonHomesforsale.biz

Are you targeting the right Alberta market?

If you want to succeed in the 2013-2014 real estate market, you must understand the current Canadian Homebuyers Trends. According to the Canadian Homebuying Trends Survey conducted last December, the top two demographics purchasing real estate in Alberta are: couples and families. As a result, the majority of future homeowners are between 18 and 54 years of age. Below are other survey results we found interesting:

• 50% of Albertan homebuyers believe housing values will rise in their area- 34% believe they will remain the same
• 45% of Albertan homebuyers are earning $50,000 to $99,999 while 38% are earning over $100,000
• 58% of Albertan homebuyers are spending between $250,000 and $500,000 on a home
• 32% are making more than a 30% down payment

In Canada almost one in five purchasers is single- 45% of the single homebuyers are women. This could be a direct consequence of the increased number of women with advanced education, such as college diplomas and degrees. Two years ago, 72% of Canadian women between 25 and 44 years of age had completed post-secondary education, in contrast to 65% of men. These young professionals have: established careers, financial independence, and success- as a result they are approaching the real estate industry and seeking homeownership.

To view & search MLS listed homes visit us at www.EdmontonHomesForSale.biz

Source: http://news.redmantech.ca/2013/03/201314-canadian-homebuyers-trends/

It hasn’t been the worst winter we’ve seen in Edmonton, but we’re all still anxiously waiting for spring to arrive. This year, the Real Estate market in the area decided not to wait, and began showing signs of spring in February. Sales and listings always heat up as the weather warms, but this year, buyers and sellers came out of hibernation just a little early. In February, we saw listing activity increase by 10% over January. Sales activity was even stronger, increasing 18.2% over the first month of the year. That puts our sales-to-listing ratio for the month at about 55%, 4% higher than the same time last year. While that means fewer properties were listed than sold, there’s still more than four months’ worth of supply available. With strong prices fueling activity, we can expect to see more sellers make the decision to enter the market in the coming months.
Things always tend to heat up in real estate as we hit spring. This year, spring sales activity seems to have arrived just a little ahead of spring weather. To get the best sense of which way the wind is blowing in real estate and what it could mean for you, talk to your local REALTOR® –here when life happens.

Source: Real Estate Association of Edmonton