Edmonton Real Estate Blog

In a recent research study done my MoneySense magazine Edmonton ranked 8th best city to live in Canada beating Calgary by a country mile at 16th place.

Motivated by a strong Canadian dollar and what they perceive as bargain U.S. home prices, as many as 1 in 5 Canadians say they’d consider purchasing property in the U.S. 　

A new survey for BMO Bank of Montreal and conducted by Leger Marketing reveals that as home prices have dropped in the regions of the U.S. which are traditional destinations for Canadian snowbirds, interest in purchasing U.S. property has risen. 　

Want to know which Canadians to target? 　Regionally, those in Alberta (31 percent), British Columbia (28 per cent), and the Prairie Provinces (27 per cent) are most interested buying property in the U.S.　

Bank of Montreal suggests that Canadians wanting to purchase in the United States should consider the questions shown below. 　While some of these are lifestyle questions which the prospects will have to answer for themselves, to answer other questions, a REALTOR’s input will be valuable. 　If you want to tap into this market, make sure you are knowledgeable and can refer prospects to tax advisors and others as needed. 　

Questions for Canadians Considering Purchasing in the United States:

• What states and neighborhoods fit your needs?
• Since you are responsible for property maintenance, consider how easily you can access your property from your Canadian home throughout the purchasing process and after acquisition.　
• Consider flights and airlines, if you can fly there direct, and the cost.　
• Research and even ask locals about the community to ensure it suits your needs.　
• What to consider when financing the purchase with a U.S. based financial institution?
• It is important to be aware of the differences in mortgage financing and how interest is charged in the U.S.　
• What mortgage money is available to international buyers?
• Furthermore, understand the impact of penalties and withholding taxes if and when you decide to sell your home in the U.S.　
• Do you understand the status of the property?
• Understand the terms of the property. For instance, is it labeled as short-sale or on foreclosure?　
• The status of the property can have a variety of implications. Be sure to consult an expert before making any buying decisions.　
• How will you use your property?
• Is your purchase for investment or lifestyle purposes? This will affect where you buy and how you hold the property. Also, understand the options available and what will benefit you in the long run.　
• If your purchase is for income purposes, keep in mind that renting your property means added responsibility. Research the possibilities of increased utility usage, property management needs and the vacancy rate in the area to ensure you’re prepared. Investment properties can be subject to taxation in two countries, so make sure you speak to a taxation specialist.　
• How much time will you spend south of the border? Consider how many months of the year you’ll be living there so that your purchase reflects your lifestyle.Be aware that there are rules regarding the amount of time you can spend in the U.S. before being considered a U.S. resident and subject to paying income tax.　

Canadian new home prices rose more than expected in January and hit a record high, but the pace of growth was the slowest since March, adding to evidence that the housing sector is starting to cool.

But that was nation wide and things are a little different here in Alberta. There is just too much going on in the oil and gas industry that going to keep the Alberta economy very strong.

So I do expect prices of homes but new and resale to rise during the balance of this year and next year as well.

It is looking like the Edmonton real estate market is improving. As of this morning there were 2,188 single family homes for sale in Edmonton proper. More importantly there has been 557 sales in the previous 30 days. That gives us a lsting to sales ratio of 3.93:1 which is basically at the level we need for the market the stabilize and become neutral. With this kind of ratio we can expect prices valuations to stop falling and normalize.

I anticipate as we get more along into our spring marketplace that we might see this ratio drop and if we do expect valuations to start to rise again. So if you are thinking of buying to hesitate do it now, especially before the mortgage rule changes on March 18th.

After selling 2 homes in the last 7 days I am really starting to feel that the Edmonton Real Estate market is starting to pick up.

This could be do to the fact that many people are trying to buy before the March 18th deadline for the change in mortgage rules. But I also have to attribute it to a all the economic developement that is starting to happen in Edmonton now and scheduled for the year 2012.

The Edmonton rea estate market should be booming again and I see prices increasing again in the incoming 18 months as well as I expect interest rates to increase and we see economic recovery happening and we see the Bank of Canada trying to curb any inflationary pressures by raising interest rates.

This make now the best time to buy for the next 2 years before prices in Emdonton go up and before interest rates also go up.

The more you know about the best way to reach a goal, the more
likely you are to get the result you want. So, whether you’re hunting
for a new job, assembling a backyard BBQ, or training for a 3 mile
run, you’ll want to use a proven process to help you get there.
That certainly holds true when shopping for a new home.
There is a proven process to getting the home you want, in the
neighborhood you want, at a price you can afford. Here are
the highlights:

1. Get Ready
There’s a lot you must do before you pack your energy snacks in the
car and go looking at homes. If you own your current home, you
must prepare that property for sale. You should also get financing
for a new home pre-approved, so you know exactly how much you
can afford.

2. Go shopping
Your next step is to view the right homes currently available on the
market. It’s a good idea to make a wish list of property and
neighborhood features you’re looking for in a new home. You may
not be able to get everything you want, but you can probably come
pretty close.

3. Make an offer
When you see a home you like, the first thing you’ll need to do is to
make an offer. This can be tricky especially if there are other
interested buyers.

4. Get an inspection
Always get the home checked out by a qualified home inspector. A
property may have issues, such as a foundation leak, that are not
obvious during a viewing.

5. Prepare for the move
Once you’ve made the purchase, you need to arrange for moving
and deal with other details, such as utilities, telephone, mail
forwarding and so forth.

Want a smooth home buying process? Call today at 780-634-8151 or visit us at www.findmyhouse.ca

Just like I have been telling you would happen the market has changed from a buyer’s market to a seller’s market.

As of today there were 2,126 single family homes listed on the Multiple Listing System (MLS ®) in Edmonton proper. That is an increase of 92 listings from last weeks inventory level of 2,034

More importantly there was 535 homes sold on the Multiple Listing System (MLS ®) in Edmonton proper in the previous 30 days. That is an increase of  106 sales from last week’s number of 429 sales.

This gives us a listing to sales ratio of 3.97:1 which is a significant drop from las weeks and is now marginally below the 4:1 ratio that is the benchmark for a neutral and balanced market.

I say we are swinging over to a seller’s market beause I expect that ratio to continue to drop even lower in the next few weeks and we are going to see upward pressure on home valuations.

If you are thinking of buying then the sooner you make that move the better price that you will get.  With all that is driving the Edmonton economy at this time I continue to expect the Edmonton Real Estate market to continue to grow stronger.

Well folks I am back from my trip to China and I am here to let you know what is happening to the Edmonton real estate market.

As of today “Valentine’s Day” there are 2, 034 single family dwellings for sale in Edmonton proper. That is a much lower number of listings than we were seeing at the end of last year which I see as a positive sign.

However in the last 30 days there has been only 429 single family dwellings sold in Edmonton proper. This is also a drop from the volume of sales that we were seeing at the end of 2010.

This gives us a listing to sales ratio of 4.74:1.  That ratio is still a little bit high.  If you remember we need a ratio of 4:1 for a neutral or balanced market.  So based on this ratio in the short term I still expect that there will be some downward pressure on valuations and only those homes that are priced very competitively are going to be the ones that sell.

I think that we might see this change soon as we see the buyers come back to the market as we get deeper into this early spring market.

As we enter our spring marketplace we are seeing the market continue to be strong.  As of this afternoon April 08, 2010 there are 2,348 single family homes listed in Edmonton proper.  That is up slightly from last week’s number of 2,240 available homes for sale.

In the past 30 days we have seen 749 single family homes sold.  That is up from last week’s number of 661 sales in the previous 30 days.  That is a significant increase for a one week period.

What is more important is the listings to sales ratios.  That ratio is now 3.13:1, lower than the 3.31:1 ratio that we had the previous week.  This indicates to me that we are still going to see continue upward pressure on valuations.

If you are thinking about buying this year you might want to consider buying right away.  You have two threats that you have to consider if you have been thinking of buying.  Firstly, we know that there is pressure for prices to continue to go up.  Waiting will mean you will have to pay more for that home you want.  Secondly, there is the expectation that interest rates will go up again this summer.  If this happens it will make your mortgage payments more expensive and will reduce the amount of a mortgage that you will be able to qualify for.  The new mortgage rule changes require that you be approved at the 5 year rate regardless which term you choose.

If you are thinking about moving up to a larger, more expensive home, again you want to make the move as soon as possible.  Yes, your home will go up in value, but your future home will have gone up more significantly that your current home.  The end result is that you will have to carry a larger mortgage by waiting for your home to get to a higher value.

This is my two cents for this month.  

If you have any questions please don’t hesitate to call.  I would love to help you. (780) 634-8151

Edmonton, April 6, 2010: Housing figures released by the REALTORS® Association of Edmonton for March and the first quarter of 2010 show that resale housing prices are up; listings and sales are up.

“There is consumer confidence in this market and both buyers and sellers appear eager to enter the housing market,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Prices are up about 10% from a year ago and sellers are eager to take advantage. Buyers are aware of higher mortgage rates ahead and are getting into the market before the rates rise.”

Single family residences in the Edmonton area sold on average* for $388,473 in March which is up 4.7% from February and 11% from a year ago. Condominium prices rose by 8.4% month-over-month and 10.5% year-over-year. The average condominium sold for $252,416 in March. Duplex and rowhouse prices (at $313,836) dropped a third of a percent in March but were up 10.4% from a year ago. The average residential price was $343,607 (up month-over-month by 8.5%).

Sales also demonstrated the optimism of the marketplace. 3,728 residential listings in March were up over 30% from a year ago and up 246% in the first quarter. Residential sales of 1,571 properties in March were up 15.1% from a year ago and 77.3% in the first quarter. Sales were up from 1,307 in February: a 20.2% increase. The March sales-to-listing ratio was 42%; down from 52% in February.

“Seller activity has boosted the inventory to 6,770 residential properties,” said Westergard. “I am less concerned about available inventory now than I was at the beginning of the year. I think the market has reached a balance between buyers and sellers.”

All major banks raised their fixed mortgage rates in late March and the Bank of Canada has warned that interest rates will rise again after the second quarter. Many buyers are hurrying to lock in rates and find a home before the more stringent qualification requirements for mortgages come into effect on April 19. Alberta will not be influenced by the GST harmonization taking place in Ontario and BC so we may not see the sales slump in the second quarter that is expected in those two provinces.

The average days-on-market in March was 41 as compared to 47 in February.

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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: REALTORS® Association of Edmonton