First Time Buyer Tax Credit
It's that time of year and many people are not aware that the government of Canada is offering a tax credit to first time home buyers. You can qualify for the tax credit even if you bought your second home in some cases. In addition, if you bought a home to accomodate a person with a disability you can qualify for the tax credit. The CRA put out this video that explains it all:
Edmonton Real Estate Market Weekly Update – March 16/12
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 531 (486, 483, 351)
# Sales: 235 (231, 256, 184)
Ratio: 44% (48%, 53%, 52%)
# Price changes: 211 (192, 186, 146)
# Expired/Off Market Listings: 124 (102, 216, 70)
Net loss/gain in listings this week: 172 (153, 11, 97)
Active single family home listings: 2525 (2371, 2279, 2244)
Active condo listings: 1569 (1525, 1430, 1422)
Homes 4-week running average: $379k ($377k, $374k, $371k)
Condos 4-week running average: $236k ($234k, $228k, $225k)
The REALTORS® Association of Edmonton is reporting 666 sales so far this month for the Greater Edmonton Area, which should put us around 1400-1500 for the month (below average for March). We were expecting pretty strong sales in March so we'll have to see how the second half of the month goes.
Edmonton real estate prices
Edmonton real estate listings and sales
Have a great weekend!
$100 Off
Price Reduced
On a recent post one of our regular readers was lamenting about a Calgary real estate agent who reduced their listing by $100.00. He added that real estate agents will do all kinds of tricks to get clients. In fairness, I don’t know anything about the situation or the agent but of course I’ve got my 2 cents to throw in.
First of all I don’t know whether the $100 it was client directed or something the agent came up with. Having a lot of clients I can tell you they don’t all think the same or have the same strategies - the diversity in personalites is immense. I have had clients list their properties at $301,000 - a huge mistake in this day and age of internet search - but ultimately the decision is theirs. I too have had clients request weird amounts for price reductions (and even stranger amounts for counter offers, but that's a whole other topic). However, when you think about what the seller and agent did by reducing their price by $100.00, while annoying it is actually a little savvy depending on what they are trying to do.
For example, MLXchange (the REALTOR® interface with MLS® data in Edmonton and Calgary) will automatically email that property out to buyers who have searches set up by their agents (if the agents have selected the option to inform their clients of properties that are reduced in price). This is one of several options that agents have available to them when setting up their clients searches.
So if the property in question was getting lots of looks and activity but its starting to slow down (we track all the online activity of our properties on REALTOR.ca, www.EdmontonRealEstate.pro and countless othersites) then they may have wanted people to take another look who have recently seen the property. If on the other hand there is little to no activity on the property, and they want to get an offer on it, then they are probably pissing into the wind so to speak if their intention is to actually sell the property.
I do know that it's my job to do what I can for my clients, and that sometimes means thinking outside of the box. As long as its allowed, it I don’t see the problem with it, although in this case it's probably not what I would've recommended.
Edmonton Real Estate Market Weekly Update – March 9, 2012
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 486 (483, 351, 450)
# Sales: 231 (256, 184, 202)
Ratio: 48% (53%, 52%, 45%)
# Price changes: 192 (186, 146, 163)
# Expired/Off Market Listings: 102 (216, 70, 119)
Net loss/gain in listings this week: 153 (11, 97, 129)
Active single family home listings: 2371 (2279, 2244, 2207)
Active condo listings: 1525 (1430, 1422, 1388)
Homes 4-week running average: $377k ($374k, $371k, $368k)
Condos 4-week running average: $234k ($228k, $225k, $219k)
Reading The Edmonton Journal on my ipad this morning there were no fewer than 16 articles about our warming economy and expected labour shortages. I don't know if all those articles were in the print edition, but there is certainly a feeling that we are going to buck the international trend for the next while. There is always a lag between job growth and real estate market growth, so it may take awhile to see any affects on our real estate market. In addition, numbers released yesterday by CMHC show home builders in the greater Edmonton area are quite busy adding new inventory which will further increase housing supply.
Edmonton real estate listings and sales
Edmonton real estate prices
Have a great weekend!
Value is a Matter of Perspective
It's tough on young people starting out. Over the years I’ve helped hundreds of people buy their first home, and inevitably mom and dad show up in the picture at some point and the outcome never surprises me. As a father I understand that they want to protect their offspring, and some ask some very relevant questions while others... well lets just say you can tell they love their kids.
Recently I had one such experience where one of the parents told me quite emphatically the property my client wanted to buy in Westmount was WAY over priced. I’m a seasoned negotiator and have been in this position before so I didn’t bite all they way. I explained why I thought it was in the value range, but I could tell they were having none of that. It reminded me of that cartoon where you see the buyer who sees the home as a phone booth, the agent sees it for what it is and the seller sees it as the Taj Mahal.
Anyway, my client loved the property and was pretty disheartened and decided not to make an offer that night but she did call me a couple of days later ready to move forward on it. Unfortunately that very night while we debated the value of the home, the sellers and another buyer came to terms only $3000 thousand less than the list price.
Part of the process of looking at homes, is getting a feel for the market and understanding the current value of homes. After a few times out even the greenest buyers can start to pick out the over and under priced homes. When the parents come on the scene at the last minute, they haven't had the benefit of the research their children have put in to finding a home. So, if your parents are going to have a say in the home you purchase, be sure to bring them along on some of the house hunting trips, so they can get a feel for what is available in your price range.
Edmonton Real Estate Market Reader Poll Results
Last week we posted a poll asking our readers what they thought would happen with the real estate market in Edmonton. It seems to me our readers are more optimistic than in the past - I've posted last year's results as well:
1. The 2012 spring market in Edmonton will be:
- Good 44%, Last year 31%
- Average 34%, Last year 31%
- Below average 15%, last year 27%
- Hot, hot, hot! 7%, Last year 11%
So last year 42% thought the market would be above average or hot, while this year that number is up to 51%. The "below average" thinkers dropped almost in half.
2. In 2012 mortgage rates will:
- Stay about the same - 69%, Last year 48%
- Rise - 30%, last year 45%
- Decrease 2%, Last year 3%
- Skyrocket 0% last year 2%
3. The total sales for 2011 in Edmonton will be:
- Higher 43%, last year 40%
- About the same 36%, Last year 29%
- Lower 21%, last year 30%
A slight movement towards higher sales this year, but nothing major.
4. Compared to other markets in Canada, Edmonton's real estate market will:
- Perform better than average 79%, last year 64%
- Be about average 16%, last year 28%
- Be below average 5%, last year 5%
While our readership may not be able to agree on the direction of the market, we can almost all agree that Edmonton will do better than the rest of the country.
5. At this time next year the average residential sale price in Edmonton will be:
- Higher 57%, last year 43%
- About the same 26%, last year 20%
- Lower 16%, 36%
A lot more people think prices will rise this year than last year.
As always, the interesting results come through the comments. Here is what our readers had to say about the 2012 housing market in Edmonton:
- Nationally, affordability may be affected by any Federal changes to mortgage insurance, both for first time home buyers and investors caught with overpriced homes from 2007. However, this may also positively impact a tighter rental market in and around Edmonton. Who will still be cash flow positive.
- Like it or not, there is a "bust" coming on planet Earth. We know that Europe will be the first affected, but like a cancer, it will spread to the rest of the world. As much as we don't want to see it here, Alberta will also be deeply affected. We need to keep our eyes peeled on the Middle East, i.e. Iran and Israel, and of course, the U.S.. We might be OK for the rest of this year, but that's about it. With over 7 billion people on the earth, something needs to give. This will happen "suddenly". God bless and protect Canada.
- Oil above $100, Keystone getting approved, American economy struggling north. Labour increase will need condos/homes at the lower/mid range or will rent (most arriving will not have deep pockets).Should dry up current excess inventory unless developers go crazy.
- Basing most of my answers off of Don Campbells forecast of low unemployment, migration steady and general affordability of yeg comparatively speaking
- Prices will continue to rise and there will be more resales later in the year than normal with prices staying at spring highs. Rental market will start to get very tight by summer increasing the resale market into the fall of 2012.
- This year will look pretty much like last year.
- Everything points to a better relative performance in 2012 than other Canadian markets, except maybe Calgary, Saskatoon, and Regina. Although Sask housing prices have already skyrocketed whereas Alberta prices have not. So it all looks good here for 2012 - as long as they don't overbuild again.
- Low inventories may continue for a few months but new confidence in the trade up market will entice those who have been putting a move off due to uncertain times. The move up market will start to wake up. An influx of people will keep prices on a modest rise. Low priced product will continue to be hot, but prices in this segment will certainly rise by year's end.
- Homes will need to be priced right in order to sell. To many over priced listings flooding the market. I sell new homes for a living, And am finding many people are building due to the fact they can get a larger new home for less then what is available on the resale side.
- The Edmonton real estate market will out-perform the rest of the country due to strong employment and in-migration.
Edmonton Real Estate Market Weekly Update – Mar. 2/12
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 483 (351, 450 465)
# Sales: 256 (184, 202, 193)
Ratio: 53% (52%, 45%, 42%)
# Price changes: 186 (146, 163, 147)
# Expired/Off Market Listings: 216 (70, 119, 89)
Net loss/gain in listings this week: 11 (97, 129, 183)
Active single family home listings: 2279 (2244, 2207, 2123)
Active condo listings: 1430 (1422, 1388, 1317)
Homes 4-week running average: $374k ($371k, $368k, $366k)
Condos 4-week running average: $228k ($225k, $219k, $213k)
Three sets of stats in two days, I think that about covers it!
Edmonton real estate listings and sales
Edmonton real estate prices
Have a great weekend!
Greater Edmonton Real Estate Prices on the Rise in February
It's beginning to look at lot like... 2010. For the second month in a row sales were right in line with two years ago in the greater Edmonton area, according to numbers released by the REALTORS® Association of Edmonton today. There were 1305 residential sales in the Greater Edmonton Area in February up significantly from 958 last month and 1154 last year.* In our annual report we forecasted 1340 sales for February - not too far off.
Edmonton real estate sales
The average residential sale price increased to $329,911 from $318K last month and $313K last year. This is the second highest average price on record for February in the Greater Edmonton Area (the highest was in 2008 when it was $336k - that's a $7k difference for those who like to comment that prices have plummeted by 10's of 1000's of dollars).
Average real estate price
There were 5976 listings on the market at the end of the month compared to 5303 last month and 6389 last year still in the "new normal" range.
2649 new listings came on the market in February, compared to 2441 last month and 2587 last year. This is slightly above average but we will have to wait and see what happens next month to get a clearer picture for the supply side of the market.
Edmonton real estate listings
*We adjust the residential sales total for the current month to account for unreported sales. Every month 6% of sales on average are not reported to the Association in time for the monthly report. The following month the numbers are updated to reflect the total sales during the previous month. That means the current month always looks worse compared to previous months. So far our adjusted numbers have been far closer to the actual numbers than those reported by the Association each month (so far on average I am off by 4 sales whereas the association is under reporting by 73 sales on average each month).
Edmonton Real Estate Market Picks up in February
Our preliminary report shows that real estate stats were up in almost every category in Edmonton in February. Single family homes lead the way - there were 581 Single Family Home Sales in February compared to 450 last month and 485 last year.
Edmonton home sales
In February there were 264 Condo Sales up from 184 last month and similar to 267 last year. Condo sales are still below average in Edmonton while single family homes are selling as expected.
Edmonton condo sales
In February the Average Sale Price for Single Family Homes was $373,041.00 up from $362K last month and $362K last year. The Median Sale Price for Single Family Homes was $347,500 in February, up from $340K last month and $337,500 last year. Even though condo sales were not strong, prices rebounded in February after a pretty big dip last month. The Average Sale Price for Condos was $227,381 in February up from $210K last month but down from $231K last year. The Median Sale Price for Condos was $215,500 in February up from $200K last month and $213K last year.
Edmonton real estate prices
The Average Price per Square Foot for Single Family Homes was $256 - up from $249 last month and $250 last year. The Average Price per Square Foot for Condos was $223 up from $210 last month and the same as last year.
Edmonton price per square foot
Based on our experiences this month we are not surprised to see the jump in average prices. We expect to see further gains next month, especially if inventory continues to creep slowly upwards (as opposed to jumping up suddenly).
As always, this is our preliminary report on the real estate market in Edmonton, and our final report will follow when the final numbers are released by the REALTORS® Association.
Edmonton Real Estate Market Poll
Last year we polled our readers, asking if they had any predictions for the real estate market for 2011, and we got some really interesting responses. We've created a poll again for this year, please take a minute and answer our short poll. We will discuss the results of the poll on the blog next week. Here are some of the most interesting comments on the poll from last year:
- New construction will be on smaller lots with less "real" amenities. The "features" of new homes will all be fit and finish, glitzz and glamour rather than long term features (garages, finished basements, extra bedrooms, landscaping) that really add value to a resale down the road.
- Demand for workers will tend to shift people to Alberta once again. Once people believe the bottom of the market was reached and the swing back up has momentum (even if the speed is not fast), then the trade-up market will get back on track. I don't see this happening until mid-year, but you never know and it could happen in the spring.
- Condo sales will heat up, especially in the mid and high level marketplace as aging suburban residents who have been putting off the move will want to respond to the improving market conditions by trading up and even down.
- I think the excitment will even be lower then the past few years. People just don't care like they did in 2006 and 2007. Users on blogs might be higher but thats just the realestate market breaking through online. Real estate will go back to being a home not a money making machine.
- Edmonton will muddle through the next two years better than most cities. It's 2013 and 2014 when things get interesting.
- 2011 should be a repeat of 2010 with the exception that prices will dip by at the most 10%, made evident in first half of year. This should bring the resale prices at a bottom. Finally!
- Lots of inventory, an average number of buyers with prices trending lower than the prices at the same time in 2010.
Take our 2012 Market Predictions Poll!