Edmonton Real Estate Blog

As one year draws to an end, forecasters try to lay out the major trends for the New Year. Targeted subjects include oil, gas, gold and copper prices; bank interest lending rates; federal and provincial government deficits; and, certainly, real estate trends. Forecasters are not omniscient; nevertheless, they try to be as accurate as possible.

Steve Davidson has written that ‘Forecasting future events is often like searching for a black cat in an unlit room that may not even be there.’ In other words, this sage believed that future events, like cats, can prove to be very elusive!

Winston Churchill would wholeheartedly agree with this assessment. He once said, ‘I always avoid prophesying beforehand because it is much better to prophesy after the event has already taken place.’

Some of the forecasters of the 2010 Edmonton Real Estate market might want to take Churchill’s advice. One reliable source (CMHC) told us a year ago to expect an annual average price increase of about 4% in 2010 which would put us about equal once again with the 2008 average annual home price. Moreover, they fortified their prediction with the bold prediction that there would be a lower housing inventory this year than last.

How did this somewhat optimistic outlook work out? Let the following chart detailing the activity from January-November, 2010 speak for itself:

EDMONTON REAL ESTATE COMPARISON 2008-2010
Year 2008 2009 2010
Single Family Home Listings 21,894 16,736 19,077
Condominium Listings 11,352 8,638 9,278
Single Family Home Sales 10,789 11,745 9,825
Condominium Sales 4,705 5,121 4,411
Sales-to-Listing Ratio 49% 70% 51%
Avg. Sales Price (SF) $377,121 $364,480 $378,326
Avg. Sales Price (Condo) $228,569 $236,652 $229,603
Avg. Days on Market (SF) 56 50 47
Avg. Days on Market (Condo) 58 57 52
Total Units Listed 38,299 29,787 31,137
Total Units Sold 17,049 19,016 15,400

The most popular price ranges were $150,000-375,000. This range accounted for 2/3 of all sales.

What does 2011 hold for Edmonton Real Estate? Probably much the same as 2010. With interest rates starting to climb, buyers should be anxious to become a homeowner while the rates are still affordable and the home prices attractive. Generally, prices may see a modest gain of 3-4% although I defer to Winston Churchill about the certainty of the statement!.

If you own a home in Edmonton, there are some simple steps you can take to save you money and ensure your safety.

First, once a year have your furnace, hot water heater and gas fireplaces inspected by your gas supplier. It is a free service that must be scheduled in advance. If there are any difficulties, they will be identified to you. It is a good idea to pre-purchase a couple of 36 inch Honeywell Thermo-couplers (about $9 each at Home Hardware) and have these available. If one is needed at the time of inspection or later when an appliance shuts down, the gas company technician will replace it at no additional charge. Without it, you will face a $75 charge! Obviously, it is a good investment.

Second, ensure that your smoke alarms are in working order. Test them frequently. It could save your life!

Third, make sure that you have a carbon monoxide detector properly installed near any gas appliance. CO is the ‘silent killer’ and you don’t want to be another victim.

Fourth, check the weather stripping around all exterior doors. If you can see daylight looking from the insight out, it is time to change them. They should not be painted over as this will harden them and nullify their effectiveness.

Fifth, check on the amount of attic insulation you have. Adding several inches is reasonably affordable and will greatly reduce your heat loss and your monthly bill.

Sixth, consider upgrading your inefficient older gas furnace with a new high efficient one. It will save you money over the long haul and will make your home more sale-able should that become an issue.

Seventh, before winter arrives, check the caulking around all windows. Re-caulk where necessary. It will seal possible heat loss from the home.

Eighth, consider replacing your windows with energy-efficient ones. The monthly gas savings will be noticeable! Again, it will increase the price you will receive should you decide to sell.

Ninth, if you have a wood-burning fireplace, have it regularly inspected by a certified professional. Have the chimney cleaned regularly.

Tenth, check the grading around the house. If it has sunk and the rainwater accumulates around the foundation, expect leaking and expensive-to-repair problems are near at hand. Create a positive flow away from the house by getting some clay and redoing the landscaping around the foundation. Lengthen the downspouts and make sure the water runs AWAY from the house.

Finally, it is important to have a certified electrician check out your wiring–particularly if you are purchasing a home and that home has aluminum wiring A home inspector provides this service although you might want a second opinion if there appears to be potential problems.

Eleventh, clean the house gutters at least once a year and ensure that they are running with blockages or leaks.

Twelfth, if you have wood windows, make sure that they are painted on a regular basis. A little time spent in such maintenance will length their lifespan and function by years.

Edmonton home owners, a little time spent in regular maintenance and inspection can provide you with many worry-free years in your home!

The Edmonton Real Estate market continues to move rather slowly. The lending rates remain low and desirable. One could wish that more buyers would cash in on the soft prices and ample inventory. At the end of November, the residential inventory numbered 6,982 which included 1,860 properties that came on stream in the same month. Total residential sales numbered 1,120. This means that only about 1 in 5 homes sold in the month of November.
The average number of days on market was 63, up from 50 one year ago. The average sales price for single family homes in November was $362,657; condos registered an average monthly value of $229,603. The average sales price year to date for single family homes is $378,326 and for condos is $241,837.

Now that we are entering the Christmas season, the market normally tails off for 6 weeks or so. Only time will tell how the market responds in 2,011 although indicators point to a slow, steady growth of 4-6% in 2011.

If you are considering selling a home in Edmonton or area, there are some important details to keep in mind.  A legally married spouse cannot sell their place of residence without the consent of the other spouse.  A ‘legally married’ couple includes a separated couple who is not yet legally divorced; it does not include common law relationships.  It may include same-sex couples.

The ‘Dower Act’ kicks in when the seller is legally married but there is only ONE NAME on TITLE and either the seller and his/her spouse has resided in that property at any time since the marriage [even one night there is enough to trigger dower rights!].

In order for a ‘one name on title’ home to sell where the seller is legally married, the spouse not on title will have to sign a Dower Consent and Acknowledgment at the time the Listing Contract is signed, at the Time when an Offer to Purchase is in the works and when the Land Transfer is being finalized.

Obviously, one would want to consult with their Alberta Real Estate lawyer to understand their rights BEFORE signing any document!

The Edmonton Real Estate market continues to favor the buyer. There is a huge inventory; sales are down. Many buyers look for motivated sellers who will accept a significantly reduced offer.

Consider the following Edmonton MLS data for Oct 2010 with Oct 2009 comparables in brackets:

I.  SINGLE FAMILY HOMES

Listings                                                         1,344 (1,205)

Sales                                                                   686 (965)

Sales to Listing Ratio                                  51% (80%)

Average Days on Market                             60 (50)

Average Sales Price                         $365,691 ($367,125)

Year to Date Avg Sales Price       $379,673 ($363,948)

II. CONDOS

Listings                                                          671 (696)

Sales                                                               305 (447)

Sales to Listing Ratio                              45%  (64%)

Average Days on Market                          63 (56)

Average Sales Price                      $235,894 ($238,054)

Avg. Year to Date Sales Price    $242,954 ($240,705)

A quick examination of this data will show that each month more homes/condos are listed than sell.  This amounts to ‘expired listings’ and/or a growing inventory.

Prices are generally showing only small fluctuations up and down.  If you are moving laterally in the market [buying and selling], there is never a bad time to move in the Edmonton marketplace.