Edmonton Real Estate Blog

In the light of the sub-prime disaster in the USA, Federal Finance Minister Jim Flaherty announced yesterday that he is considering two major changes to the way home mortgages are delivered in Canada. First, the 5% minimum cash down-payment may be increased. This falls on the heels of the cancellation of the no-cash down mortgage. Secondly, the time to pay out a mortgage may be reduced from the present 25 year [300 month] limit. Buyers in the last couple of years have benefited from 30 and even 35 year amortization limits.

Edmonton home buyers, looking to purchase a home or condo in the next while, need to keep these musings in mind. It may well mean that you will need more cash up front in order to qualify. It may also mean that, with higher monthly payments due to a shorter paydown period, you will pay less interest over time but, in the immediate, have to settle for a home less than what you might have expected.

As always, securing a 90-120 day written mortgage pre-approval at today’s attractive rates only makes sense to the wise and informed buyer!

There is a mood of optimism in the air as 2010 projections are tabled for the Edmonton Real Estate Market! RE/MAX Real Estate has said that the rebound in the local marketplace will continue with modest increases in sales and prices. Average home prices should rise 3% by year’s end making the average home price about $330,000. The number of homes sold is predicted to rise by 2% to a grand total of 21,000. The housing inventory is expected to remain relatively stable with a three or four month supply. The market conditions will remain relatively balanced with a slight advantage going to the seller. First time home-buyers are expected, once again, to drive the 2010 Edmonton marketplace.

Realtors deeply appreciate referrals that are sent to them by past clients, friends or business associates. There is usually an immediate credibility that has been established by way of the person who does the referring.

That past client or friend has been impressed with your level of service, your expertise and people skills to pass your name along. They expect that the realtor will treat their client with the superior level of service they so appreciated!

Any realtor must treat that referred client with the highest level of priority and service. Otherwise, that referral stream will likely dry up very quickly as the person referred shares their disappointment with the one who referred them.

Watching the apparent pain and disappointment in Jesper Parnevik, the Swedish professional golfer, as he was being interviewed about his role in introducing his former nanny, Elin, to Tiger Woods brought the risk of referring into clear relief. Now Jesper regrets the day he and his wife made that introduction. He said he owes Elin an apology.

I take all my Edmonton referrals seriously for three reasons: 1. I want to ensure that the referring party never receives any negative feedback about my performance; 2. I want to ensure that my new client is fully satisfied in the their home purchase; 3. I want to enlist that new client as another member of my referral network. Unmistakably, it is well worth my time to offer all my clients a superior level of service.

Check out my websites at www.edmonton-real-estate-info.com and www.edmonton-homesearch.com.

With one month to go, the number of units sold in Edmonton has already exceeded the total sales for 2008. 20,355 sales have already been registered in 2009. Obviously the local market is a strong one.

The average sale price in November of a single family home was $368,018, up 1.5% over a year ago. Novemeber’s average condo price was $231,684.

The sales to listing ratio for the month of November was 67%, meaning that, while 1,894 properties were listed for sale, 1,261 sold. The total inventory at month’s end was 5,226 which is about a 4 month supply. Homes sold on an average of 48 market days compared to 63 days a year ago.

Buyers are showing confidence in the market especially with low mortgage interest rates. The latest 5 year closed rate is 4.09%! In other words, with an annual income of $80,000, on approved credit and without any other debt load, a buyer could qualify for a 35 year mortgage of $350,000 with a monthly repayment obligation of $1908.

If you are a serious buyer and are tired of paying exorbitant monthly rent, now would be the time to become your own landlord and invest in YOUR FUTURE!

You have heard the expression: ‘Life is fragile. Handle with care’? It is a sobering expression that calls us to attention.

Recently I heard the story of a successful businessman who was just completing his new home and anticipated moving into it shortly with his family. Then the unforeseen happened. He was tragically killed by a drunk driver!

Unfortunately there was no insurance on the financing for the new home. His widow was left with the financing challenge of owning two houses and the responsibility of paying both sets of financing. This added burden only added to the stressful grief adjustments she had to make.

Therefore, it seems prudent that when you set a mortgage in place, you also take out a ‘term’ insurance policy for the same amount. Accordingly, should any one of the signatories on the policy be faced with the issues of the widow above, the mortgage amount would be covered and with the proceeds of the term insurance policy paid out. If nothing happens to the signatory[ies] and the mortgage gets paid out, the term insurance policy can then be safely cancelled.

To me, it seems most prudent to look ahead and prepare for anything that might happen given the fragility of life!