Year-over-year prices remain stable
Decline in unit volumes typical of mid-summer market

Edmonton, August 2, 2017: In the Edmonton Census Metropolitan Area (CMA), all-residential unit average prices for July 2017 are down 2.44% compared to June 2017, but only down 0.11% relative to July 2016.

Average sale prices for single family homes decreased both month-over-month and year-over-year, decreasing to $446,892, down 1.51% compared to June 2017 and down 0.44% relative to July 2016. Average prices for duplexes/rowhouses and condominiums were stable in June. Average prices for condominiums rose in July 2017 to $261,861. This represents a 0.68% increase compared to June 2017, and a 2.18% increase compared to July 2016. Duplexes and rowhouses average price decreased to $343,883. This represents a 1.87% decrease from June 2017, and a 2.48% decrease from July 2016.

The number of all residential units reported sold was 1,622. Although this represents a month-over-month decrease of 13.12%, it also reflects a year-over-year increase of 0.37%. Single family unit sales were 1,003 units, representing a decrease of 15.86% compared to June 2017 and an increase of 0.60% compared to July 2016. Reported condominium sales were 415, which is down 9.98% month-over-month and down 3.04% year-over-year. There were 181 duplex/rowhouse unit sales in July 2017, which is down 41.04% compared to June 2017 but is up 9.70 compared to July 2016.

“It’s typical for unit sales to slow in July, which is shown in the year-over-year comparison,” says James Mabey, REALTORS® Association of Edmonton Chair. “Inventory is still strong for buyers, and marginal adjustments in year-over-year prices indicate a stable market for sellers.”
In July, inventory was 8,756, which was an increase of 2.04% compared to June 2017, and an increase of 10.70% compared to July 2016. Total new residential listings in June were 3,114, down 9.13% from June 2017 and up 8.43% from June 2016.
“Sellers must remain patient but mindful of their positioning in the market with many options for buyers to consider, so consulting with their REALTOR® to remain competitive is essential,” says Mabey.

The all-residential average days-on-market was 53 days, holding steady from June 2017 and three days shorter than July 2016. On average, single family detached homes sold in 48 days, condominiums sold in an average 60 days and duplex/rowhouses sold in 55 days.

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MLS® System Activity for July 2017

1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold 
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses. 
6 Includes residential, rural and commercial sales

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3 Average prices indicate market trends only. They do not reflect actual changes for a particular property, which may vary from house to house and area to area. Sales are compared to the month end reports from the prior period and do not reflect late reported sales. The RAE trading area includes communities beyond the CMA (Census Metropolitan Area) and therefore average and median prices may include sold properties outside the CMA. For information on a specific area, contact your local REALTOR®.

The REALTORS® Association of Edmonton (Edmonton Real Estate Board), founded in 1927, is a professional association of real estate Brokers and Associates in the greater Edmonton area. The Association administers the Multiple Listing Service®, provides professional education to its members and enforces a strict Code of Ethics and Standards of Business Practice. The Association also advertises property listings and publishes consumer information on the Internet at YEGisHome.ca and ereb.com, as well as in the Real Estate Weekly and REALTOR.ca. REALTORS® support charities involving shelter and the homeless through the REALTORS® Community Foundation.

Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®).

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Contact

REALTOR.ca

REALTORS® Community Foundation

Real Estate Weekly

Real Estate Council of Alberta

©2011 REALTORS® Association of Edmonton 14220 112 Avenue, Edmonton, Alberta T5M 2T8T: 780-451-6666 TF: 1-888-674-7479 F: 780-452-1135 
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You’ve been saving for awhile, weighing your options, looking around casually. Now you’ve finally decided to do it—you’re ready to buy a house. The process of buying a new home can be incredibly exciting, yet stressful, all at once. Where do you start? It is essential you do your homework before you begin. Learn from the experiences of others, do some research. Of course, with so many details involved, slip-ups are inevitable. But be careful: learning from your mistakes may prove costly. Use the following list of pitfalls as a guide to help you avoid the most common mistakes.

1. Searching for houses without getting pre-approved by a lender: Do not mistake pre-approval by a lender with pre-qualification. Pre-qualification, the first step toward being pre-approved, will point you in the right direction, giving you an idea of the price range of houses you can comfortably afford. Preapproval, however, means you become a cash buyer, making negotiations with the seller much easier.

 

2. Allowing “first impressions” to overly influence your decision: The first impression of a home has been cited as the single most influential factor guiding many purchasers’ choice to buy. Make a conscious decision beforehand to examine a home as objectively as you can. Don’t let the current owners’ style or lifestyle sway your judgment. Beneath the bad décor or messy rooms, these homes may actually suit your needs and offer you a structurally sound base with which to work. Likewise, don’t jump at a home simply because the walls are painted your favourite colour! Make sure you thoroughly the investigate the structure beneath the paint before you come to any serious decisions.

 

3. Failing to have the home inspected before you buy: Buying a home is a major financial decision that is often made after having spent very little time on the property itself. A home inspection performed by a competent company will help you enter the negotiation process with eyes wide open, offering you added reassurance that the choice you’re making is a sound one, or alerting you to underlying problems that could cost you significant money in both the short and long-run. Your Realtor can suggest reputable home inspection companies for you to consider and will ensure the appropriate clause is entered into your contract.

 

4. Not knowing and understanding your rights and obligations as listed in the Offer to Purchase: Make it a priority to know your rights and obligations inside and out. A lack of understanding about your obligations may, at the very least, cause friction between yourself and the people with whom you are about to enter the contract. Wrong assumptions, poorly written/ incomprehensible/ missing clauses, or a lack of awareness of how the clauses apply to the purchase, could also contribute to increased costs. These problems may even lead to a void contract. So, take the time to go through the contract with a fine-tooth comb, making use of the resources and knowledge offered by your Realtor and lawyer. With their assistance, ensure you thoroughly understand every component of the contract, and are able to fulfill your contractual obligations.

 

5. Making an offer based on the asking price, not the market value: Ask your Realtor for a current Comparative Market Analysis. This will provide you with the information necessary to gauge the market value of a home, and will help you avoid over-paying. What have other similar homes sold for in the area and how long were they on the market? What is the difference between their asking and selling prices? Is the home you’re looking at under-priced, overpriced, or fair value? The seller receives a Comparative Market Analysis before deciding upon an asking price, so make sure you have all the same information at your fingertips.

 

6. Failing to familiarize yourself with the neighbourhood before buying: Check out the neighbourhood you’re considering, and ask around. What amenities does the area have to offer? Are there schools, churches, parks, or grocery stores within reach? Consider visiting schools in the area if you have children. How will you be affected by a new commute to work? Are there infrastructure projects in development? All of these factors will influence the way you experience your new home, so ensure you’re well-acquainted with the surrounding area before purchasing.

 

7. Not looking for home insurance until you are about to move: If you wait until the last minute, you’ll be rushed to find an insurance policy that’s the ideal fit for you. Make sure you give yourself enough time to shop around in order to get the best deal.

 

8. Not recognizing different styles and strategies of negotiation: Many buyers think that the way to negotiate their way to a fair price is by offering low. However, in reality this strategy may actually result in the seller becoming more inflexible, polarizing negotiations. Employ the knowledge and skills of an experienced realtor. S/he will know what strategies of negotiation will prove most effective for your particular situation.

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Edmonton, February 2, 2017: Reported unit sales for all residential listings in the Edmonton Census Metropolitan Area (CMA) were strong in January, increasing 19.4% compared to the same month in 2016. Reported unit sales were also up relative to December 2016, increasing by 3%.

Unit prices were consistently stable with only modest decreases across each category. Compared to January 2016, condominium prices increased 8.7% and duplex/rowhouses increased 8%. Both categories decreased only slightly relative to December 2016, with condominiums down 0.37% and duplex/rowhouses down 0.46%. The average price of a single family home remained stable at $416,859, which is down 0.49% relative to January 2016, and down 0.97% compared to December 2016.

“2017 has started strong, with an increase in year over year unit sales and prices remaining stable,” said James Mabey, REALTORS® Association of Edmonton Chair. “While it is still early in the year, the rise in sales suggests that consumer confidence in the housing market is on the rise.”

The average days on market for all residential listings increased, which is typical for the winter season. Single family homes average days on market was 68, compared to 62 days on market in the previous month. Condominium average days on market increased to 82 relative to 80 days in December 2016. Duplex/rowhouses continue to be popular, with the average days on market decreasing to 68 days, which is 10 days faster than in December 2016.

All residential inventory decreased 2.7% compared to January 2016, and increased by 7.4% relative to December 2016. While the overall listings for January more than doubled compared to December 2016, from 1,067 to 2,185, they decreased year-over-year by 7.6% when compared to January 2016.

“REALTORS® always look forward to fresh inventory in the spring. Inventory was a big story in 2016, so it is positive to see more seasonally-appropriate inventory for 2017,” said Mabey.

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MLS® System Activity for January 2017

1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold 
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses. 
6 Includes residential, rural and commercial sales

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CMHC to Increase Mortgage Insurance Premiums

OTTAWA, January 17, 2017 — CMHC is increasing its homeowner mortgage loan insurance premiums effective March 17, 2017. For the average CMHC-insured homebuyer, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment.

“We do not expect the higher premiums to have a significant impact on the ability of Canadians to buy a home,” said Steven Mennill, Senior Vice-President, Insurance. “Overall, the changes will preserve competition in the mortgage loan insurance industry and contribute to financial stability.”

Capital requirements are an important factor in determining mortgage insurance premiums. The changes reflect OSFI's new capital requirements that came into effect on January 1st of this year that require mortgage insurers to hold additional capital. Capital holdings create a buffer against potential losses, helping to ensure the long term stability of the financial system.

During the first nine months of 2016:

  • The average CMHC-insured loan was approximately $245,000.
  • The average down payment was approximately 8%.
  • The average gross debt service ratio (GDS) was 25.6%. To qualify for CMHC insurance, a homebuyer’s GDS should not exceed 32% of their total monthly household income.
Down payment between 5% and 9.99%
Loan Amount $150,000 $250,000 $350,000 $450,000 $550,000 $850,000
Increase to Monthly Mortgage Payment $2.82 $4.70 $6.59 $8.47 $10.35 $15.98

Based on a 5 year term @ 2.94% and a 25 year amortization

*Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount.

Premiums are calculated based on the loan-to-value ratio of the mortgage being insured. The premium can be paid in a single lump sum but more frequently is added to the mortgage principal and repaid over the life of the mortgage as part of regular mortgage payments. Additional details and scenarios are included in the backgrounder below.

CMHC regularly reviews its premiums and sets them at a level to cover related claims and expenses while also reflecting the regulatory capital requirements.

CMHC is Canada’s most experienced mortgage loan insurer. Our mortgage loan insurance enables Canadians to buy a home with a minimum down payment starting at 5%. As a Crown corporation, CMHC is the only mortgage insurer whose proceeds benefit all Canadians.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For additional highlights please see the attached backgrounder.

For more information, follow us on TwitterYouTubeLinkedIn and Facebook.

Information on This Release:

Karine LeBlanc
Media Relations
613-740-5413
kjleblan@cmhc-schl.gc.ca

Backgrounder

  • CMHC’s standard mortgage loan insurance premiums will be changing as follows:
Loan-to-Value RatioStandard Premium (Current)Standard Premium (Effective March 17, 2017)
Up to and including 65% 0.60% 0.60%
Up to and including 75% 0.75% 1.70%
Up to and including 80% 1.25% 2.40%
Up to and including 85% 1.80% 2.80%
Up to and including 90% 2.40% 3.10%
Up to and including 95% 3.60% 4.00%
90.01% to 95% - Non-Traditional Down Payment 3.85% 4.50%
Down payment between 10% and 14.99%
Loan Amount $150,000 $250,000 $350,000 $450,000 $550,000 $850,000
Increase to Monthly Mortgage Payment $4.94 $8.23 $11.52 $14.81 $18.10 $27.98

Based on a 5 year term @ 2.94% and a 25 year amortization

Down payment between 15% and 19.99%
Loan Amount $150,000 $250,000 $350,000 $450,000 $550,000 $850,000
Increase to Monthly Mortgage Payment $7.06 $11.75 $16.46 $21.16 $25.86 $39.96

Based on a 5 year term @ 2.94% and a 25 year amortization

  • During the first nine months of 2016
    • Nearly 50% of CMHC’s transactional mortgage loan business were for loans of less than $300,000
    • Nearly 95% of CMHC’s transactional mortgage loan business were for loans of less than $600,000
    • Less than 1% of CMHC’s transactional mortgage loan business were for loans of more than $850,000
  • CMHC follows OSFI guidelines for federally regulated mortgage insurers in Canada.
  • Calculating the gross debt service ratio (GDS) allows potential homebuyers to estimate the maximum home-related expenses they can afford to pay each month.

GDS = Principal + Interest* + Property Tax + Heat
Monthly Income

*Interest is calculated using the qualifying rate

  • Mortgage loan insurance helps protect lenders against mortgage default and enables consumers to purchase homes with a minimum down payment of 5% with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price.
  • CMHC’s new premium rates will be effective for new mortgage loan insurance requests submitted on or after March 17, 2017. The current mortgage loan insurance premiums will apply for applications submitted to CMHC prior to this date, regardless of the closing date. As is normal practice, complete borrower and property details must be submitted to CMHC when requesting mortgage loan insurance.
  • The changes do not impact mortgages currently insured by CMHC.
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The Liberal government has announced sweeping changes aimed at ensuring Canadians aren’t taking on bigger mortgages than they can afford in an era of historically low interest rates.

The changes are also meant to address concerns related to foreign buyers who buy and flip Canadian homes.

 

Below is a breakdown of the four major changes Finance Minister Bill Morneau announced Monday.

The current rules

Buyers with a down payment of at least 5 per cent of the purchase price but less than 20 per cent must be backed by mortgage insurance. This protects the lender in the event that the home buyer defaults. These loans are known as “high loan-to-value” or “high ratio” mortgages.

In situations in which the buyer has 20 per cent or more for a down payment, the lender or borrower could obtain “low-ratio” insurance that covers 100 per cent of the loan in the event of a default.

Mortgage insurance in Canada is backed by the federal government through the Canada Mortgage and Housing Corp. Insurance is sold by the CMHC and two private insurers, Genworth Financial Mortgage Insurance Company Canada and Canada Guaranty Mortgage Insurance Company. The federal government backs the insurance offered by the two private-sector firms, subject to a 10-per-cent deductible.

 

The change

Expanding a mortgage rate stress test to all insured mortgages.

What it is

As of Oct. 17, a stress test used for approving high-ratio mortgages will be applied to all new insured mortgages – including those where the buyer has more than 20 per cent for a down payment. The stress test is aimed at assuring the lender that the home buyer could still afford the mortgage if interest rates were to rise. The home buyer would need to qualify for a loan at the negotiated rate in the mortgage contract, but also at the Bank of Canada’s five-year fixed posted mortgage rate, which is an average of the posted rates of the big six banks in Canada. This rate is usually higher than what buyers can negotiate. As of Sept. 28, the posted rate was 4.64 per cent.

Other aspects of the stress test require that the home buyer will be spending no more than 39 per cent of income on home-carrying costs like mortgage payments, heat and taxes. Another measure called total debt service includes all other debt payments and the TDS ratio must not exceed 44 per cent.

Who it affects

This measure affects home buyers who have at least 20 per cent for a down payment but are seeking a mortgage that may stretch them too thin if interest rates were to rise. It also affects lenders seeking to buy government-backed insurance for low-ratio mortgages.

 

Why

The government is responding to concerns that sharp rises in house prices in cities like Toronto and Vancouver could increase the risk of defaults in the future should mortgage rates rise.

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The change

As of Nov. 30, the government will impose new restrictions on when it will provide insurance for low-ratio mortgages.

What it is

The new rules restrict insurance for these types of mortgages based on new criteria, including that the amortization period must be 25 years or less, the purchase price is less than $1-million, the buyer has a credit score of 600 and the property will be owner-occupied.

Who it affects

This measure appears to be aimed at lowering the government’s exposure to residential mortgages for properties worth $1-million or more, a category of the market that has increased sharply in recent years in Vancouver and Toronto.

Why

Vancouver and Toronto are the two real estate markets that are of most concern for policy makers at all levels of government. These measures appear to be targeted at those markets.

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The change

New reporting rules for the primary residence capital gains exemption.

 

What it is

Currently, any financial gain from selling your primary residence is tax-free and does not have to be reported as income. As of this tax year, the capital gains tax is still waived, but the sale of the primary residence must be reported at tax time to the Canada Revenue Agency.

Who it affects

Everyone who sells their primary residence will have a new obligation to report the sale to the CRA, however the change is aimed at preventing foreign buyers who buy and sell homes from claiming a primary residence tax exemption for which they are not entitled.

Why

While officials say more data are needed, Ottawa is responding to extensive anecdotal evidence and media reports showing foreign investors are flipping homes in Canada and falsely claiming the primary residence exemption.

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The change

The government is launching consultations on lender risk sharing.

What it is

Currently, the federal government is on the hook to cover the cost of 100 per cent of an insured mortgage in the event of a default. The federal government says this is “unique” internationally and that it will be releasing a public consultation paper shortly on a proposal to have lenders, such as banks, take on some of that risk. The Department of Finance Canada acknowledges this would be “a significant structural change to Canada’s housing finance system.”

Who it affects

Mortgage lenders, such as banks, would have to take on added risk. This could potentially lead to higher mortgage rates for home buyers.

Why

The federal government wants to limit its financial obligations in the event of widespread mortgage defaults. It also wants to encourage prudent lending practices.

 

Source: 

 OTTAWA — The Globe and Mail
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For release: November 2, 2016

Year-over-year sales up and prices holding for October
Supply remains balanced in favour of both buyers and sellers; prices stay stable.
Edmonton, November

 

Supply remains balanced in favour of both buyers and sellers; prices stay stable.

Edmonton, November 2, 2016: Edmonton’s housing market remains constant for another month with residential unit sales increasing in October by 5.5% year-over-year (YoY). Single family unit sales increased by 7.1% YoY, condominium unit sales were down 3.9% YoY, and duplex/rowhouse unit sales climbed 17.4% over reported unit sales in October of 2015.

“The housing market in Edmonton continues to experience relative stability, with increased sales and steady prices year-over-year for October,” said Steve Sedgwick, Chair of the REALTORS® Association of Edmonton. “We typically see the market slow during the colder months, so it is encouraging to see us moving into late fall with strong numbers.”

A single family home in the Edmonton Census Metropolitan Area (CMA) sold for an average of $423,755, which is down 1.6% from September and down 1.75% YoY. Condominium prices were up year-over-year by 0.5% and down by 2.3% month-over-month. Duplex/rowhouse average prices also decreased 7.7% from the previous month and 6.9% from October 2015. However, all residential property prices were mostly unchanged in October, only down 0.64% compared to 2015.

“We’re seeing buyers who are confident in the future of the Alberta economy, and we are heading towards a solid finish to 2016,” Sedgwick said. “Residential unit sales across all categories are down 6% year-to-date compared to last year, however, our prices remain stable.”

The average days on market increased in October, which is typical for this time of year. In total, 1,265 units sold in October, with the average residence in the Edmonton CMA needing only 61 days to sell. Single family detached homes sold on average in 57 days, 3 days longer than September, and condominiums sold in 65 days, which was unchanged from the previous month. Duplexes/rowhouses needed an extra week, selling on average within 67 days in October compared to 60 in September. In October, there were 2,147 new listings available in the Edmonton area, down from 2,272 listings that came on the market in October 2015. With sales up over last year for October, the reported sales to listing ratio moved from 53% to 59%, indicating balance in the market.

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MLS® System Activity (for all-residential sales in Edmonton CMA1)

1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold 
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses. 
6 Includes residential, rural and commercial sales

Source: Edmonton Real Estate Board

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Edmonton, June 2, 2016: Unit sales for single family detached homes were up 19.3% from April and up 3.8% year-over-year, with 1,119 selling in May across the Edmonton Census Metropolitan Area (CMA). Unit sales of duplexes and rowhouses increased 37.2% over April, and 23.03% over May 2015 with 203 units sold in the month. Condo sales were up 5.3% month-over-month, but down 18.2% year-over-year. All-residential sales at 1,771 were up more than 18% from April and down less than 1% compared to May of last year.

“Consumer confidence amongst home buyers in Edmonton and surrounding areas remains strong and is reflected by increased unit sales in the single family detached and duplex/rowhouse categories,” REALTORS® Association of Edmonton Chair Steve Sedgwick said. “Relative to other markets in Alberta, Edmonton’s resale housing market is solid.”

Total new listings were down less than 1% relative to last month and 2.5% compared to May 2015, with 3,233 new properties coming onto the market in May. The sales-to-listing ratio for single family detached homes was 61% for May 2016, up 10% from April and on par with May 2015. The sales-to-listing ratio for duplex/rowhouses was 73%, down 13% from May 2015 but up 22% from last month. Condo properties are entering a buyer’s market, with a 40% sales-to-listing ratio, up 2% from last month, but down 13% from last year.

The average single family detached home in the Edmonton CMA sold for $440,573 in May, virtually on par with April’s average price of $439,982, but down almost 3% compared to the average price of $453,748 in May 2015. Average condo prices at $254,555 are up over 1% month-over-month, and almost flat to last year. Duplex/rowhouse average prices increased compared to both the previous month and May 2015, up 3% and 1.5% respectively.

“While new listings coming onto the market were down this May compared to 2015, inventory continues to remain strong with more than 8,000 residential properties on the market at month’s end,” Sedgwick said. “The fact that we haven’t seen a significant decline in prices is giving buyers more assurance. They are making purchases based on market stability and good selection.”  

In May, the all residential average days-on-market was 54 days, up 14 days from April and up 8 days relative to May 2015. On average, single family detached homes sold in 51 days in May, while condominiums and duplex/rowhouses sold in an average of 59 days.

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MLS® System Activity (for all-residential sales in Edmonton CMA1)

1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold 
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses. 
6 Includes residential, rural and commercial sales

Source: Realtor's Association of Edmonon

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I sold a builder spec  home to a client of mine a few months ago and it occurred to me that many people have never gone through this process before.  As a former home builder I know that dealing with deficiencies is common place when custom building homes for clients. However when someone is buying a new spec home through a builder they may not be aware of how to deal with deficiencies.  I like to write into the purchase contract that the builder and client will have a walkthrough prior to possession to jointly identify any building deficiencies that need to be addressed. These can then all be documented and signed by both the builder and the buyer that they will be rectified. I like to do the walkthroughs with my clients as I have the experience to both notice what needs to be addressed as well as identify those items which are within the acceptable tolerance level. As  a result I can play an effective role as a mediator while ensuring my client’s needs are being addressed. An example of this is in the picture to the left. During my review I noticed a piece of finish trim was missing on the shower valve creating a void where water could enter the wall system and cause significant damage. This was brought to the builder’s attention and promptly addressed. In many  cases deficiencies are addressed prior to closing requiring another walk through to confirm. However in some cases it may not be possible to address them prior to possession. In these cases the lawyers can holdback a portion of the funds to ensure the builder comes back to rectify. 

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Multiple offers happen in even the toughest markets. In most cases they are typically driven by an attractive list price on a very desirable property usually newer on the market. As a seller it is the ideal scenario as it encourages buyers to make their initial offer as attractive as possible to avoid losing the property to another buyer. As a buyer it can be difficult as any room for negotiation is typically gone.  

 

Although it sounds complicated to have multiple offers coming in on one property the process is relatively simple. When a realtor is working with a buyer that has interest in a property that agent typically calls the listing agent to advise them that their client is going to be submitting an offer on the property. At that point the buyer’s agent will ask the listing agent if he/she expects to be receiving any other offers on the property at or around the time his/her client’s offer is being presented. If the answer is ‘yes’ then a multiple offer situation exists. The buyer’s agent will ensure the client is aware that other offer(s) are coming in so the buyer understands the situation. It is the listing agent’s responsibility to notify all buyer’s agents that are writing competing offers on the property at or around the same time that a multiple offer situation exists to ensure a level playing field.

 

There is no limit on the amount of offers that can be presented however some offers will have a timeline as to when they must be responded to or they become null and void. In most multiple offer scenarios there are 2-4 offers being considered. The seller has the right to see all offers that come in before deciding which offer they are going to deal with. The term ‘deal with’ refers to accepting or countering an offer. The seller can accept or counter only one offer to avoid selling the property to more than one buyer. In most cases the seller will deal with the most attractive offer to them in terms of price, terms, possession date, inclusions and conditions. The seller’s agent will notify that buyer’s agent that they have either chosen to accept the deal as written which makes it the successful offer or that the seller has provided that particular buyer a counter proposal. Remember that only one offer can be countered by the seller. If the buyer agrees to the changes the seller has made via the counter offer this would now become a successful offer. In either case, after an offer was accepted the agents with the other competing offers would be notified that their offers were not successful.

 

The seller would have identified an order of desirability for the remaining unsuccessful offers and the buyer’s agents would be told what place their offer came in (2nd, 3rd, 4th, etc.). Starting with second place, the unsuccessful buyers would be asked if they would like to be placed in a backup position should something cause the accepted offer to become null and void. This provides the sellers with an alternative should the first deal collapse for some reason as well as the unsuccessful buyers with a chance at the property should the first deal fall apart. In most of these cases the unsuccessful buyers would also have to alter the price and terms of their initial proposal to be accepted as a back up offer. 

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Edmonton, March 2, 2016: Residential inventory saw another significant increase in February, surpassing 6,000 listings on the market, ending the month with 6,681 properties for sale on the MLS® System for the Edmonton Census Metropolitan Area (CMA). That’s a 16.17% increase over last month, and 33.41% more homes listed for sale than February 2015. Sales for February were up 36.54% month-over-month at 837 compared to 618 in January, but 10.1% lower than the 931 properties that sold during the same time last year.

 

“Sales numbers are increasing consistent with seasonal trends,” REALTORS® Association of Edmonton Chair Steve Sedgwick explains. “Relative to 2015, potential buyers have more inventory to choose from. Despite this inventory growth, prices have moderated only slightly compared to last year, so home owners and sellers can maintain some confidence that housing prices are remaining stable.”

 

February brought strength back to the average all-residential selling price, ending the month at $363,266, which is 6.93% higher month-over-month and virtually on par with this same time last year. Prices in all categories saw an increase in the Edmonton CMA market compared to just one month ago. Single family house prices averaged $419,940, virtually flat to last month (up 0.24%) but down 2.79% year-over-year (YoY). Condo properties sold for an average of $247,090, up 8.83% over last month, and down just 1.32% YoY. The biggest average price gain came in the duplex/rowhouse category, with the price in February finishing at $354,386, up 8.41% and 1.24% compared to January 2016 and February 2015, respectively.

 

February’s average days-on-market for all housing types dropped to 57, down from 71 in January but up from 48 YoY. On average, condos sold in 57 days last month, that’s down significantly from the 85 days it took in January, but still higher than the 49 days in February 2015.

 

“Buyers are still taking their time to consider all of their options before purchasing a new home,” Sedgwick said. “But with warmer weather just around the corner, clients are reaching out to their REALTOR® for support as the busy spring buying season approaches.”   

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Source: Edmonton Real Estate Board public statistics

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A recent announcement from the Finance Minister of Canada stating that the minimum down payment has been increased from 5% to 10% as of February 15, 2016 has been misunderstood by many members of the public. The truth is 5% is still an acceptable down payment for most residential home purchase valued under $500,000. The difference is that for any purchase over $500,000 and less than $1,000,000 only the amount ABOVE the $500,000 must have 10% down payment.

 

The difference is actually minimal as show in the following example:

 

Purchase price: $600,000.

 

Previous down payment amount: 5% = $30,000

New down payment amount: 5% of $500,000 ($25,000) + 10% of $100,000 ($10,000) = $35,000

Difference: $35,000 - $30,000 = $5,000

 

 

As shown by this example the difference in minimum down payment amount has changed relatively little. This being said, it still is a new rule which may effect some purchasers. 

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Edmonton, February 2, 2016: Residential inventory continues to remain strong, as January closed out with 5,751 properties for sale on the MLS® System for the Edmonton Census Metropolitan Area (CMA). That’s an increase of 39.2% over this time last year, and 13.03% up over last month. Sales for January were down however, with 618 properties selling in the first month of 2016, down 13.32% month-over-month, and 7.21% lower year-over-year (YoY).

“Sales volumes are down, relative to the same time last year,” REALTORS® Association of Edmonton Chair Steve Sedgwick explains. “It is likely that home buyers are responding to current economic uncertainties. Although prices have dropped slightly, they remain stable. Growth in inventory may create more opportunities for potential buyers, and given the low interest rates, we remain optimistic about market growth as we head into the spring buying season.”

Prices in all categories saw a decline in the Edmonton CMA market as many lower priced properties sold in January. The all-residential price ended the month at $339,714, down 7.2% from December and 6.3% YoY. Single family house prices averaged $418,928, down 1.3% and 1.2% from the previous month and YoY, respectively. Condo properties sold for an average of $227,052, down 8.8% over last month and 10.3% YoY. And the increasingly popular duplex/rowhouse category, which held steady for much of 2015, took the biggest average selling price decrease, coming in at $326,885, down 12.7% from the previous month and down 13.6% from the same time last year.

January’s average days-on-market rose to 71, up from 62 in December and 58 in January 2015. The increase is mainly attributed to the increased days-on-market for condos, which sat at 85 for January, up from 62 from last month and 61 YoY.

“The increase in the average days on market just appears to reflect that buyers are taking time to consider their options before purchasing a new home,” Sedgwick said. “Clients are looking to their REALTOR® for advice and guidance as they navigate their own individual situations.”

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MLS® System Activity (for all-residential sales in Edmonton CMA1)

1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold 
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses. 
6 Includes residential, rural and commercial sales

 

Information obtained from the Edmonton Real Estate Board Web Site: http://www.ereb.com/News&Events/LatestMarketStatistics.html

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Last month my son's hockey team had the pleasure of competing in The City Of Edmonton's Minor Hockey Week, one of the largest hockey tournament's in Canada. I was very fortunate to have been asked to play on the Edmonton Oiler's Alumni Team against the media as a kick off game for the tournament. What a thrill it was! 

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Looking for something very specific in a certain area or areas? With my New Listing Email Service you can have the newest listings with all the criteria you are looking for sent directly to you as soon as what your are looking for hits the market.


Just email me at bcyr@shaw.ca and let me know what you're looking for and in which area(s). Please be as specific as possible.  I can have the latest MLS listings automatically sent to you through my expedited MLS service as soon as they hit the market. Just let me know and I would be happy to help!

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And how you ask does your favorite realtor get to hold the coveted Holy Grail of the CFL? Simple answer...connections. A good friend of ours works for the Eskimos and offerred us the opportunity to go and see it. I could not resist. It's actually lighter than it looks, has a few dings in it and the players names from the early years are very hard to read no doubt due to all the handling its had by people over the years. I'm not going to lie....I felt pretty special holding it...a once in a lifetime experience no doubt. 

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The question is, “are open houses truly effective in selling homes?” My answer here is an unequivocal “yes”!

 

I’m often asked my opinion about open houses and I’ve never wavered in my answer. I truly believe that they are an effective home selling tool. The fact is, whether you are selling a home a car or a book, the more people you get looking at something the better the chance you have at selling it – AND - for the most amount of money possible.

 

Open Houses are an effective way to get more people out and looking at a home in the most time efficient way. Here’s a few reasons why:

 

Comfort: There are some home buyers who are simply more comfortable going to a public open house than they are in making an appointment to see a home.

 

Curiosity often leads to buying: Some home buyers don’t want to make an appointment to see a home because they have not fully committed to buying and are ‘just curious’ so they are reluctant to make an appointment. I can assure you that almost every realtor has sold at least one home to someone who really wasn’t looking to move but saw a home they loved and could not resist.

 

Lack of time: With our busy lives many people find it easier to view a home when they have a window of time such as anytime between 2-4pm on Sunday to see it rather than a specific appointment.

 

Busy agents: Sometimes it can be difficult for a realtor to show their client several homes on a certain day or time. Open houses allow the flexibility for agents to encourage their home buying clients to go out and look at several homes on their own. Then if there is something they like the agent can take them back to a specific home for a more in depth viewing.

 

Exposure: All open houses are advertised therefore through the ads and signage alone the home is being exposed to more people.

 

Efficiency: When a realtor books an appointment to view a home that is listed for sale he/she usually requests a one hour time window to show the home to one client. So the seller cleans and prepares the home, leaves to allow the showing then returns usually an hour or so after the showing. So in 3 hours of the seller's time 1 client has seen the home. With an open house, the home is cleaned and prepared then multiple buyers can view the home over the 2 hour window.

 

The reality is selling your home is an intrusive process. However having as many possible potential buyers in your home is a necessity in helping the home sell quicker and for the most amount of money possible. I put my clients at ease by telling them how I conduct safe, supervised open houses. In those rare cases where a client does not wish to have one for their own reasons I of course respect that and use every other means at my disposal to market the home effectively. --by Brian Cyr

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For decades, the Canadian home buying mantra was "Bigger is better." In the 1940s, average home size was well under 1,000 square feet. By the mid-1970s, the average home size grew to 1,075 square feet, growing rapidly in the 1980s, and peaking in the mid-2000s at 2,300 square feet.

But that trend has reversed. In its most recent survey, the Canadian Home Builders Association pegged the average new home size at 1,900 square feet.

Does downsizing pique your interest?

Whether you're an empty nester, looking for less upkeep, want an urban dwelling, or just ready for a change, downsizing to a smaller home may be the right decision.

 

Is Downsizing Right for You?

If you're considering moving into a smaller home, here are some great questions to answer:

• Which rooms do you use the least in your home? Which ones do you use the most?

• Do you need a big garage, or could you use less space - and less clutter?

• Where in your home do you spend the most time when you're awake?

• What about your home do you consider irreplaceable, and what is more of a luxury?

Knowing what you're willing to live with (or without!) is a good start to determining whether downsizing is right for you.

 

Two Crucial Tips for Downsizing Your Home

Downsizing your home can streamline your life, but the process itself can be stressful.

Here are two tips to make the journey smoother:

1. Get rid of all the "stuff" you really don't use: you won't have the luxury of keeping everything, so take some time to clean house.

2. Enlist some help. Whether it's hiring an organizing expert or just calling in a favour from a friend, a neutral eye can do wonders as you start consolidating your belongings - and deciding what stays and what goes.

Two More Great Downsizing Tips

Are you getting ready to downsize?

Here are two more great tips:

1. Consider donating some of your belongings to a registered charity. It's a great way to simultaneously give back and clear some space. You may also be able to receive a charitable donation tax credit.

2. Go digital: Your camera can capture memories so you can let go of some physical items that have been sitting around in boxes.

 


How much money can downsizing save you?

Downsizing your home will make your life a bit easier, sure, but it also can make it less expensive. Consider:

• Your mortgage: For most people, a smaller home means a smaller mortgage payment. After all, space costs money!

• Real estate taxes: Typically when your home costs less, your taxes are less. Moving into a smaller home can mean a smaller impact on your wallet come tax season.

• Utilities: When you downsize, your utility bills are lower - sometimes significantly.

• Maintenance: Remember, less is more. You'll spend less each year on everything from cleaning supplies to yard upkeep to home repairs.

One Unexpected Way Downsizing Saves

You may not realize it, but taking care of a bigger home simply takes more time. When you downsize, you're not only reducing your household expenses, you're saving time, and that means more time for yourself.

It's one of the best, most unexpected benefits of rightsizing your life.


The Downside of Downsizing: What to Avoid

Before you downsize, it's important to look before you leap. Here are two potential pitfalls to consider:

1. Not being emotionally ready: All the planning, pruning and packing may not completely prepare you to say goodbye to your current home. Before you move, work through the emotional consequences of your decision.

2. Avoiding that claustrophobic feeling: Moving to a smaller home can be a bit shocking if you've spent years living in a larger space. To avoid the panic that all your stuff "won't fit," prune and purge before your move.

You're Ready to Downsize

You've done the math, gone through your belongings, and now you're ready to take the leap and begin looking for a smaller home. Congratulations!

What's the next step to take? Call me!

As your local RE/MAX agent, I'm available to help you find a house that fits you perfectly. Let's get started today.

 

 

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Interest Rate Sheet: Last Update: Dec/18/2015


BEST 5 YEAR CLOSED 2.59%

 

BEST 5 YEAR VARIABLE 2.20%

 

Lender 1 Year - 2 Year- 3 Year - 4 Year - 5 Year -    
  *Specials *Specials *Specials *Specials *Specials 7 Year 10 Year
Best Rates 2.29 2.19 2.34 2.54 2.69 3.44 3.84
               
Radius Financial 2.89 2.64 2.64 2.74 2.79    
ATB Financial 2.74 2.64 2.59 2.69 2.89 4.54  
Bridgewater 4.8 4.7 4.8 5.25 5.25    
Canadiana 2.29 2.29 2.34 2.54 2.79    
CMLS 2.29 2.24 2.39 2.59 2.79 4.34 4.84
Coast Capital 2.25 2.3 2.55 2.69 2.79 3.49 4.39
Community  Savings 2.89 2.99 2.99 2.99 2.79    
Equitable 2.39 2.29 2.34 2.54 2.74    
Envision Credit Union 2.94 2.99 2.99 2.99 2.79 4.25 4.75
First National 2.29 2.24 2.44 2.64 2.79 3.44 3.84
Home Trust 2.69 2.24 2.39 2.59 2.79    
ICICI Bank 3.15 3.65 3.64 3.69 2.89    
Industrial Alliance     3.19 3.39 2.69 5.4 5.4
B2B Bank 3.14 3.14 3.85 4.64 4.79 5.95 6.75
MCAP 2.89 2.39 2.49 2.59 2.89 4.19 4.49
Meridian 3.09 3.09 3.55 3.29 2.89 5.95 6.29
Merix 2.29 2.29 2.34 2.54 2.79 6.25 6.45
National Bank 2.94 2.54 2.59 2.79 2.94 3.54 3.94
Optimum 2.69 2.59 2.69 2.99 3.29    
RMG Mortgages 2.89 3.09 2.49 2.59 2.69    
Scotia 2.94 2.44 2.64 2.79 2.99 3.64 4.14
Servus 3.09 3.04 3.44 3.94 4.79    
Street Capital 2.29 2.19 2.34 2.54 2.79    
TD Canada Trust 2.89 2.29 2.49 2.69 2.89 3.39 3.79
VanCity 2.84 2.94 3.19 2.99 2.99 3.89 4.29
XCEED     2.64   3.04    
               
Interest rates, terms, products and promotions are subject to change without notice              
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Edmonton’s housing market saw strong sales numbers in November. November’s all residential reported sales were down only 2.9% year-over-year (YoY), a notable improvement compared to October 2015 numbers which saw a 15% drop compared to October 2014. The average residential sales price in November for the Edmonton Census Metropolitan Area (CMA) dipped slightly by 3.1% YoY, however average year-to-date prices in November 2015 remain strong year-to-date (YTD) and are up 1.5% compared to November 2014 YTD.

 

“The warm fall weather we saw in November, coupled with healthy inventory numbers, were key factors in keeping buyers active in the market,” explains Geneva Tetreault, Chair of the REALTORS® Association of Edmonton. “During a time of year where we generally see the market slow down, consumers demonstrated confidence in the Edmonton and Area market.”

 

Average days on market for single family homes stayed virtually stagnant at 56 days, the same as October and up only one day (55) from November 2014. Condominiums averaged 62 days on market while duplex/rowhouses took an average of 57 days to sell, an increase YoY of 7 and 10 days respectively.

 

A single family home in the Edmonton CMA sold for an average of $432,862; down 1.4% from October and down 2.62% YoY. Duplex/rowhouses also dropped to an average of $339,454 – down 5.5% from the previous month and down 3.5% from November 2014. However, the average price for condominiums ($253,618) was up 3.8% over last month. All residential properties average price sat at $369,559, down a modest 0.59% from October. 

 

All residential active inventory remains strong with 6,043 residential properties available in the Edmonton CMA at the end of November, down from October by 9% but still up over last November by 55%.  

“While we continue to see strong inventory numbers, there are noticeably fewer listings coming onto the market in the fall, compared to our peak in the spring when we had more than 7,300 residential properties available,” said Tetreault. “We expect to see the average price to continue to adjust itself due to the slower winter sales season and higher inventory levels, as we approach 2016.”

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1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold 
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses. 
6 Includes residential, rural and commercial sales

 

Information Courtesy of the Alberta Real Estate Board

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Copyright 2017 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.