Tuesday, March 02, 2010
Wednesday, February 10, 2010
Housing prices remain stable in January: listing activity doubles in Edmonton
February 2, 2010:
Single family homes sold through the Edmonton Multiple Listing Service® System sold on average for the same amount in January as at year-end while condominium prices dipped 2%. Month-to-month sales slowed by 6.8% as compared to December but the number of new listings in January doubled the December numbers.
The average* residential price was $314,783 for January, down 1.4% from last month and down just 0.7% from a year ago.
Single family home prices on average were stable increasing minutely from $366,761 in December to $367,747 in January.
Condominium prices dipped just 2% in the month from $244,174 to $239,006. Duplex and rowhouse prices were up 1.5% to $300,563.
“There will be month-to-month fluctuations in prices for all types of properties,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “We expect that the local market will continue to be robust and prices will trend upwards through the year.”
Compared to December, housing sales were down in January with 524 single family sales and 288 condominium sales. Total residential sales were 884 units – 154 ahead of last January.
There were 2,199 residential listings added during January resulting in a 40% sales-to-listing ratio and a month-end inventory of 4,864 homes. The average days-on-market was 57 days. Total sales (including residential, commercial and rural properties) in January were valued at $315 million (up 19% from last year).
“While the low prices may have motivated some buyers, the continuing low interest rates are probably a bigger factor for first time and repeat buyers,” said Westergard. “The inventory increase shows that current owners are poised to enter the market and to offer their homes for sale. Buyers and sellers should consult their REALTOR® to work out an appropriate strategy for their situation.”
February 2, 2010:
Single family homes sold through the Edmonton Multiple Listing Service® System sold on average for the same amount in January as at year-end while condominium prices dipped 2%. Month-to-month sales slowed by 6.8% as compared to December but the number of new listings in January doubled the December numbers.
The average* residential price was $314,783 for January, down 1.4% from last month and down just 0.7% from a year ago.
Single family home prices on average were stable increasing minutely from $366,761 in December to $367,747 in January.
Condominium prices dipped just 2% in the month from $244,174 to $239,006. Duplex and rowhouse prices were up 1.5% to $300,563.
“There will be month-to-month fluctuations in prices for all types of properties,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “We expect that the local market will continue to be robust and prices will trend upwards through the year.”
Compared to December, housing sales were down in January with 524 single family sales and 288 condominium sales. Total residential sales were 884 units – 154 ahead of last January.
There were 2,199 residential listings added during January resulting in a 40% sales-to-listing ratio and a month-end inventory of 4,864 homes. The average days-on-market was 57 days. Total sales (including residential, commercial and rural properties) in January were valued at $315 million (up 19% from last year).
“While the low prices may have motivated some buyers, the continuing low interest rates are probably a bigger factor for first time and repeat buyers,” said Westergard. “The inventory increase shows that current owners are poised to enter the market and to offer their homes for sale. Buyers and sellers should consult their REALTOR® to work out an appropriate strategy for their situation.”
Wednesday, January 27, 2010
REALTORS® predict stable housing market in 2010
Edmonton, January 13, 2010: Larry Westergard, President of the REALTORS® Association of Edmonton predicted a stable year ahead for the local housing market. He was addressing 1,000 REALTORS® and their guests at the annual Housing Forecast Seminar at the Shaw Conference Centre .
REALTORS® expect that sales figures, which have drooped in the last two years, will follow the trend established in the last half of 2009 and continue to climb. “Edmonton has a robust economy and consumer confidence is high,” said Westergard. “We anticipate sales of about 21,000 units in 2010 which is up 10.5% from the 19,000 residential properties sold in 2009.”
Prices for single family homes and condominiums will remain stable. Average prices for single family homes will vary through the year within a small range. “Prices in the spring are always higher than January or December,” explained Westergard. “Month-to-month variations, both up and down, can be expected, but overall we expect prices to rise about five percent.” The average price in December 2010 is expected to be $385,000 as compared to $367,000 today.
The resale condo market is feeling pressure from the new condos being built and that will keep prices in check for the next year. Condo prices are expected to remain flat with no significant increase in the year-long average price. Buyers can expect to pay $244,000 (on average) for a condominium next year – about what they would have paid in 2009.
There were just 4,037 residential properties available for sale through the MLS® System at year end and Westergard warned that if inventory figures remain low it could tilt the market in favour of sellers and cause prices to rise higher than expected. On the other hand, if mortgage rates go up it could prevent some potential buyers from entering the market and put downward pressure on prices.
“REALTORS®, homeowners and sailors all want calm seas and smooth sailing,” said Westergard. “It appears to be a stable market ahead with strong sales prospects will make the ride comfortable for everyone.”
Edmonton, January 13, 2010: Larry Westergard, President of the REALTORS® Association of Edmonton predicted a stable year ahead for the local housing market. He was addressing 1,000 REALTORS® and their guests at the annual Housing Forecast Seminar at the Shaw Conference Centre .
REALTORS® expect that sales figures, which have drooped in the last two years, will follow the trend established in the last half of 2009 and continue to climb. “Edmonton has a robust economy and consumer confidence is high,” said Westergard. “We anticipate sales of about 21,000 units in 2010 which is up 10.5% from the 19,000 residential properties sold in 2009.”
Prices for single family homes and condominiums will remain stable. Average prices for single family homes will vary through the year within a small range. “Prices in the spring are always higher than January or December,” explained Westergard. “Month-to-month variations, both up and down, can be expected, but overall we expect prices to rise about five percent.” The average price in December 2010 is expected to be $385,000 as compared to $367,000 today.
The resale condo market is feeling pressure from the new condos being built and that will keep prices in check for the next year. Condo prices are expected to remain flat with no significant increase in the year-long average price. Buyers can expect to pay $244,000 (on average) for a condominium next year – about what they would have paid in 2009.
There were just 4,037 residential properties available for sale through the MLS® System at year end and Westergard warned that if inventory figures remain low it could tilt the market in favour of sellers and cause prices to rise higher than expected. On the other hand, if mortgage rates go up it could prevent some potential buyers from entering the market and put downward pressure on prices.
“REALTORS®, homeowners and sailors all want calm seas and smooth sailing,” said Westergard. “It appears to be a stable market ahead with strong sales prospects will make the ride comfortable for everyone.”
Wednesday, December 05, 2007
Housing prices tumble even as inventory decreases
Edmonton, December 4, 2007: The REALTORS® Association of Edmonton reports that housing prices in Edmonton suddenly dropped in November. The largest monthly drop in single family prices so far this year was 3.2% in August. The drop in November was 5. 3%. The residential inventory is still high as compared to historical levels but has dropped throughout November. There were 8,667 residential properties available on the Multiple Listing Service® at the end of the month.
“Home sellers have come to realize that the current market is very price sensitive. If a property is not priced right for this market it may languish in the listings,” said Carolyn Pratt, President of the REALTORS® Association. “Buyers currently have lots of options available and are being selective about homes they consider.” She stressed that REALTORS® using the MLS® can provide the most comprehensive and accurate market prices and current neighbourhood pricing trends.
Single family dwellings listed on the Multiple Listing Service® sold on average* for $376,267 in the Edmonton area in November. Condominiums on MLS® sold on average for $252,277 (down 4.0%) and the more volatile duplex/rowhouse prices were down 15.4% and sold for $311,193 on average. The average residential sales price (which includes all types of residential property) was down 6.5% from last month at $325,060.
“As the current listings become sold or are withdrawn the current inventory will drop. As we move into the spring with a more normal inventory, we expect that prices will again begin to rise slowly," said Pratt.
Typically, homes sold more slowly with the average days-on-market up a week to 51 days. The sales-to-listing ratio was higher than October at 45% and total residential volume for November was $397 million; down 10.6% from the same month last year. The total MLS® sales figure for the year to date was $7.9 billion and will be a record setting $8 billion by the end of the year.
Edmonton, December 4, 2007: The REALTORS® Association of Edmonton reports that housing prices in Edmonton suddenly dropped in November. The largest monthly drop in single family prices so far this year was 3.2% in August. The drop in November was 5. 3%. The residential inventory is still high as compared to historical levels but has dropped throughout November. There were 8,667 residential properties available on the Multiple Listing Service® at the end of the month.
“Home sellers have come to realize that the current market is very price sensitive. If a property is not priced right for this market it may languish in the listings,” said Carolyn Pratt, President of the REALTORS® Association. “Buyers currently have lots of options available and are being selective about homes they consider.” She stressed that REALTORS® using the MLS® can provide the most comprehensive and accurate market prices and current neighbourhood pricing trends.
Single family dwellings listed on the Multiple Listing Service® sold on average* for $376,267 in the Edmonton area in November. Condominiums on MLS® sold on average for $252,277 (down 4.0%) and the more volatile duplex/rowhouse prices were down 15.4% and sold for $311,193 on average. The average residential sales price (which includes all types of residential property) was down 6.5% from last month at $325,060.
“As the current listings become sold or are withdrawn the current inventory will drop. As we move into the spring with a more normal inventory, we expect that prices will again begin to rise slowly," said Pratt.
Typically, homes sold more slowly with the average days-on-market up a week to 51 days. The sales-to-listing ratio was higher than October at 45% and total residential volume for November was $397 million; down 10.6% from the same month last year. The total MLS® sales figure for the year to date was $7.9 billion and will be a record setting $8 billion by the end of the year.
Monday, November 05, 2007
Resale housing market maintains stability
Edmonton, November 5, 2007: Edmonton’s housing market maintained stable through October with small changes in average prices for most types of residential property. Multiple Listing Service® inventory dropped slightly to 9,577 residential properties available on October 31.
“REALTORS® report that sales activity was very slow at the beginning of October,” said Carolyn Pratt, President of the REALTORS® Association. “But activity picked up as the month progressed and the current market reality came clear to both buyers and sellers.” After single family dwelling prices peaked in May, many consumers waited for the direction of the market to become clear before committing to a home purchase. “Sellers, eager to market their house before prices dropped too far, listed their homes with high expectation,” said Pratt. “Buyers, on the other hand, took their time selecting a property to purchase in the hopes that prices would drop further.”
Single family dwellings listed on the Multiple Listing Service® sold on average* for $397,198 in the Edmonton area in October. This is down just 0.6% from last month. Condominiums on MLS® sold on average for $262,875 (down 2.9%) and duplex/rowhouses were up 18.7% and sold for $367,964 on average (just 55 units sold). Increased duplex/rowhouse sales drove the average residential sales price (which includes all types of residential property) up 1% from last month at $347,668.
Buyers had plenty of choice in October. New listings were down 5.25% from last month with 3,745 residential properties, and higher residential sales of 1,276 (up 22.5% from September), lowered the MLS® inventory slightly to 9,577 in the Edmonton area. Twenty-six (26) percent of the available single family homes were vacant and an additional 9.3 percent were new homes which have never been occupied. There were 970 vacant condominiums (30% of total condos available) plus 185 (5.7%) new condos being offered by REALTOR® clients.
“An empty property often indicates that the seller is motivated to sell," said Pratt. "The owner may have moved into a newer home and is carrying two mortgages or may not be able to find a tenant at rental rates required to cover the higher purchase price.” She also advised that an owner may not be in a rush to sell a second, vacant home if it was mortgage free.
The average days on market was up one to 44 days. Sales-to-listing ratio was higher than September at 34% and total residential volume for October was $443 million; down 15.2% from the same month last year. Total MLS® sales for the year to date was still at a record level of $7.4 billion because of strong sales in the first half of the year.
Edmonton, November 5, 2007: Edmonton’s housing market maintained stable through October with small changes in average prices for most types of residential property. Multiple Listing Service® inventory dropped slightly to 9,577 residential properties available on October 31.
“REALTORS® report that sales activity was very slow at the beginning of October,” said Carolyn Pratt, President of the REALTORS® Association. “But activity picked up as the month progressed and the current market reality came clear to both buyers and sellers.” After single family dwelling prices peaked in May, many consumers waited for the direction of the market to become clear before committing to a home purchase. “Sellers, eager to market their house before prices dropped too far, listed their homes with high expectation,” said Pratt. “Buyers, on the other hand, took their time selecting a property to purchase in the hopes that prices would drop further.”
Single family dwellings listed on the Multiple Listing Service® sold on average* for $397,198 in the Edmonton area in October. This is down just 0.6% from last month. Condominiums on MLS® sold on average for $262,875 (down 2.9%) and duplex/rowhouses were up 18.7% and sold for $367,964 on average (just 55 units sold). Increased duplex/rowhouse sales drove the average residential sales price (which includes all types of residential property) up 1% from last month at $347,668.
Buyers had plenty of choice in October. New listings were down 5.25% from last month with 3,745 residential properties, and higher residential sales of 1,276 (up 22.5% from September), lowered the MLS® inventory slightly to 9,577 in the Edmonton area. Twenty-six (26) percent of the available single family homes were vacant and an additional 9.3 percent were new homes which have never been occupied. There were 970 vacant condominiums (30% of total condos available) plus 185 (5.7%) new condos being offered by REALTOR® clients.
“An empty property often indicates that the seller is motivated to sell," said Pratt. "The owner may have moved into a newer home and is carrying two mortgages or may not be able to find a tenant at rental rates required to cover the higher purchase price.” She also advised that an owner may not be in a rush to sell a second, vacant home if it was mortgage free.
The average days on market was up one to 44 days. Sales-to-listing ratio was higher than September at 34% and total residential volume for October was $443 million; down 15.2% from the same month last year. Total MLS® sales for the year to date was still at a record level of $7.4 billion because of strong sales in the first half of the year.
Thursday, October 04, 2007
Lower resale housing prices create choice for home buyers
Edmonton, October 3, 2007: In 2006, and the first half of 2007, the super heated economy in Alberta caused housing prices to rise steadily. Panicked home buyers were forced to make decisions quickly from a severely limited selection of houses and condos. At the end of the third quarter of 2007 buyers are more relaxed as they contemplate slightly lower prices and three times the choice of a year ago.
“Every market has fluctuations and this market is still correcting after a dramatic upswing.” said Carolyn Pratt, President of the REALTORS® Association. “Right now buyers can take advantage of prices that are below the peak of last May. Sellers, on the other hand, are still realizing significant equity gains from prices that are still 23.5% above this time last year.” Single family dwellings rose 74% in price from January 2006 to May 2007. SFD prices have settled back just six percent since then.
According to the REALTORS® Association of Edmonton, single family dwellings listed on the Multiple Listing Service® sold on average* for $399,555 in the Edmonton area in August. This is down just 1% from last month. Condominiums on MLS® sold on average for $270,745 (up 0.6%) and duplex/rowhouses were down 6% and sold for $310,110 on average. The average residential sales price (which includes all types of residential property) was down 0.15% from last month at $344,286.
The sales-to-listing ratio in September was 26% with 3,952 residential listings and 1,042 sales. As a result, the residential inventory increased 7.4% from August 2007. There were 9,918 homes available at the end of September as compared to 9,185 at the end of August. Average days-on-market in September was up seven to 43 days.
At the end of the third quarter, year-to-date sales were down slightly compared to last year. Total residential sales were 17,188 units, down 1.5% from the same time last year with a YTD sales-to-listing ratio of 52%.
“The Edmonton MLS® is still the best place to advertise or find homes for sale in this market," said Pratt. "The amount of data on current prices and market conditions gathered and shared by over 3,200 REALTORS® cannot be matched by any other market source.” She advised buyers to watch MLS®.ca and consult with their REALTOR® to keep up with the hundreds of homes listed and sold each day and price adjustments on existing inventory.
The north central quadrant of the city was the most active with 83 SFD sales while the Central and northwest regions were the least active with just 18 sales each. Central also offered the most affordable single family homes with median sales below $300,000. An average priced house in the southwest was priced at $517,106. Outside the City of Edmonton, St. Albert was the most active community with 38 SFD sales and the highest average price of $497,380. Six homes sold in Morinville where the average price was just $327,333.
View stats at http://www.ereb.com/marketactivity/September2007.html
Edmonton, October 3, 2007: In 2006, and the first half of 2007, the super heated economy in Alberta caused housing prices to rise steadily. Panicked home buyers were forced to make decisions quickly from a severely limited selection of houses and condos. At the end of the third quarter of 2007 buyers are more relaxed as they contemplate slightly lower prices and three times the choice of a year ago.
“Every market has fluctuations and this market is still correcting after a dramatic upswing.” said Carolyn Pratt, President of the REALTORS® Association. “Right now buyers can take advantage of prices that are below the peak of last May. Sellers, on the other hand, are still realizing significant equity gains from prices that are still 23.5% above this time last year.” Single family dwellings rose 74% in price from January 2006 to May 2007. SFD prices have settled back just six percent since then.
According to the REALTORS® Association of Edmonton, single family dwellings listed on the Multiple Listing Service® sold on average* for $399,555 in the Edmonton area in August. This is down just 1% from last month. Condominiums on MLS® sold on average for $270,745 (up 0.6%) and duplex/rowhouses were down 6% and sold for $310,110 on average. The average residential sales price (which includes all types of residential property) was down 0.15% from last month at $344,286.
The sales-to-listing ratio in September was 26% with 3,952 residential listings and 1,042 sales. As a result, the residential inventory increased 7.4% from August 2007. There were 9,918 homes available at the end of September as compared to 9,185 at the end of August. Average days-on-market in September was up seven to 43 days.
At the end of the third quarter, year-to-date sales were down slightly compared to last year. Total residential sales were 17,188 units, down 1.5% from the same time last year with a YTD sales-to-listing ratio of 52%.
“The Edmonton MLS® is still the best place to advertise or find homes for sale in this market," said Pratt. "The amount of data on current prices and market conditions gathered and shared by over 3,200 REALTORS® cannot be matched by any other market source.” She advised buyers to watch MLS®.ca and consult with their REALTOR® to keep up with the hundreds of homes listed and sold each day and price adjustments on existing inventory.
The north central quadrant of the city was the most active with 83 SFD sales while the Central and northwest regions were the least active with just 18 sales each. Central also offered the most affordable single family homes with median sales below $300,000. An average priced house in the southwest was priced at $517,106. Outside the City of Edmonton, St. Albert was the most active community with 38 SFD sales and the highest average price of $497,380. Six homes sold in Morinville where the average price was just $327,333.
View stats at http://www.ereb.com/marketactivity/September2007.html
Tuesday, September 11, 2007
Growing inventory reintroduces spring housing prices
Edmonton, September 5, 2007: Single family homes in the Edmonton area are selling, on average, for just slightly more than last March. There were 747 SFDs sold through the Multiple Listing Service® in August at an average price of $403,757. This is down 3.2% from the average price of $417,150 in July 2007. The average price in March was $398,476.
For the second month in a row, the inventory of available homes on the MLS® set a new record for the Edmonton market. There were 9,185 homes of all types available as of August 31, 2007. Residential sales (1,299) were below the 2,079 figure for August 2006 and the five year average of 1,657 units. The unusually high inventory has accumulated because of higher than average property listings since May. There were 4,331 residential properties listed in August which is up 63% from the previous August (2,657). The sales-to-listing ratio was just 30% down from 35% last month.
“Eventually, every house will find a buyer,” said Carolyn Pratt, President of the REALTORS® Association. “In this market, buyers have a lot of choice. Sellers must be creative in their marketing and ensure that their home is shown in the best light to capture the attention of potential buyers.” She advised sellers to ask their REALTOR® for advice on home staging or small renovations that might improve the appeal of their home. “Often a few hundred dollars to fix some minor imperfections can result in a faster sale,” she said. “People buy with their hearts as well as their wallets and sometimes the price is irrelevant when someone falls in love with a property.”
Condominium average prices fell by just 1% to $269,139 from $271,908 last month. Duplex and rowhouses dipped 2.8% to $329,764. After rising 2% in July, the average residential price dipped 2.84% in August to $344,792 and the median price was $380,000 in the greater Edmonton area.
“Every homeowner or potential home buyer is keeping their eye on the housing market right now,” said Pratt. “REALTORS® are optimistic and see any price dips as temporary and within the normal range for this market.” She urged buyers and sellers to explore all their options with their REALTOR® and heed their advice which is based on daily contact with the marketplace. “This market changes rapidly and two years or two weeks could require a different marketing approach. Even a homeowner with prior experience of buying or selling a home needs professional representation to understand the new (and changing) forces that drive this market.”
Edmonton, September 5, 2007: Single family homes in the Edmonton area are selling, on average, for just slightly more than last March. There were 747 SFDs sold through the Multiple Listing Service® in August at an average price of $403,757. This is down 3.2% from the average price of $417,150 in July 2007. The average price in March was $398,476.
For the second month in a row, the inventory of available homes on the MLS® set a new record for the Edmonton market. There were 9,185 homes of all types available as of August 31, 2007. Residential sales (1,299) were below the 2,079 figure for August 2006 and the five year average of 1,657 units. The unusually high inventory has accumulated because of higher than average property listings since May. There were 4,331 residential properties listed in August which is up 63% from the previous August (2,657). The sales-to-listing ratio was just 30% down from 35% last month.
“Eventually, every house will find a buyer,” said Carolyn Pratt, President of the REALTORS® Association. “In this market, buyers have a lot of choice. Sellers must be creative in their marketing and ensure that their home is shown in the best light to capture the attention of potential buyers.” She advised sellers to ask their REALTOR® for advice on home staging or small renovations that might improve the appeal of their home. “Often a few hundred dollars to fix some minor imperfections can result in a faster sale,” she said. “People buy with their hearts as well as their wallets and sometimes the price is irrelevant when someone falls in love with a property.”
Condominium average prices fell by just 1% to $269,139 from $271,908 last month. Duplex and rowhouses dipped 2.8% to $329,764. After rising 2% in July, the average residential price dipped 2.84% in August to $344,792 and the median price was $380,000 in the greater Edmonton area.
“Every homeowner or potential home buyer is keeping their eye on the housing market right now,” said Pratt. “REALTORS® are optimistic and see any price dips as temporary and within the normal range for this market.” She urged buyers and sellers to explore all their options with their REALTOR® and heed their advice which is based on daily contact with the marketplace. “This market changes rapidly and two years or two weeks could require a different marketing approach. Even a homeowner with prior experience of buying or selling a home needs professional representation to understand the new (and changing) forces that drive this market.”
Thursday, August 09, 2007
Average housing prices increase despite record inventory
Edmonton, August 7, 2007: The average residential price increased 1.9% in July driven by price increases of 2.5% for condominiums. The average residential price includes all types of housing listed and sold on the Multiple Listing Service® operated by the REALTORS® Association of Edmonton. July listings were double the number in July 2006 and inventory reached an all-time record level of 8,183 homes as of July 31. Last year at this time there were just 1,856 homes available.
There was no change in the average price* of a single family residence in July. The average price of $417,150 was just $115 less than the price in June. Condo average prices rose to $271,908 from $265,172 last month (up 2.5%). Duplex and rowhouses dipped 1% to $339,417. The average residential price was $354,718 and the median price was $395,000 in the greater Edmonton area.
“Buyers have a large selection of homes to choose from and they are taking more time to make a decision,” said Carolyn Pratt, President of the REALTORS® Association. “Sellers cannot just throw their property on the market and wait for a sale; they now have to develop a strong marketing plan with their REALTOR® to realize the best value for their property.” The average days on market was 30 days in July as compared to 25 in June.
The large inventory is a result of a high number of properties being listed for sale and slower than usual sales in July. There were 4,463 residential properties listed in July as compared to 2,230 in July 2006. Total sales of 1,565 properties in July was the lowest figure in the past five years. Just 882 single family dwellings sold in July (1,190 in July 2006) and 553 condominium sales (down from 602 in July 2006) represents a growing share of the total market at 27.8%. The slower July has not dampened annual sales which are still up 9.8% over the same time last year.
“The housing market is changing rapidly right now and only a REALTOR® who is active in the market every day can help you determine an appropriate buying or selling strategy," said Pratt. "Timing, pricing and advertising are just three elements of a marketing strategy. Your REALTOR® can also advise on neighbourhood specific trends and amenities, eye-catching improvements you can make to improve ‘curb appeal’ and which specialists you need for repairs, financing and legal services.” Only REALTORS® can list a property for sale on mls.ca; the largest real estate web site in Canada.
Five communities in and around Edmonton had average prices for single family homes higher than the overall average. They were Southwest Edmonton at $573,428, West Edmonton at $528,072, St. Albert at $483,491, Sherwood Park at $482,344 and Southeast Edmonton at $419,082
Edmonton, August 7, 2007: The average residential price increased 1.9% in July driven by price increases of 2.5% for condominiums. The average residential price includes all types of housing listed and sold on the Multiple Listing Service® operated by the REALTORS® Association of Edmonton. July listings were double the number in July 2006 and inventory reached an all-time record level of 8,183 homes as of July 31. Last year at this time there were just 1,856 homes available.
There was no change in the average price* of a single family residence in July. The average price of $417,150 was just $115 less than the price in June. Condo average prices rose to $271,908 from $265,172 last month (up 2.5%). Duplex and rowhouses dipped 1% to $339,417. The average residential price was $354,718 and the median price was $395,000 in the greater Edmonton area.
“Buyers have a large selection of homes to choose from and they are taking more time to make a decision,” said Carolyn Pratt, President of the REALTORS® Association. “Sellers cannot just throw their property on the market and wait for a sale; they now have to develop a strong marketing plan with their REALTOR® to realize the best value for their property.” The average days on market was 30 days in July as compared to 25 in June.
The large inventory is a result of a high number of properties being listed for sale and slower than usual sales in July. There were 4,463 residential properties listed in July as compared to 2,230 in July 2006. Total sales of 1,565 properties in July was the lowest figure in the past five years. Just 882 single family dwellings sold in July (1,190 in July 2006) and 553 condominium sales (down from 602 in July 2006) represents a growing share of the total market at 27.8%. The slower July has not dampened annual sales which are still up 9.8% over the same time last year.
“The housing market is changing rapidly right now and only a REALTOR® who is active in the market every day can help you determine an appropriate buying or selling strategy," said Pratt. "Timing, pricing and advertising are just three elements of a marketing strategy. Your REALTOR® can also advise on neighbourhood specific trends and amenities, eye-catching improvements you can make to improve ‘curb appeal’ and which specialists you need for repairs, financing and legal services.” Only REALTORS® can list a property for sale on mls.ca; the largest real estate web site in Canada.
Five communities in and around Edmonton had average prices for single family homes higher than the overall average. They were Southwest Edmonton at $573,428, West Edmonton at $528,072, St. Albert at $483,491, Sherwood Park at $482,344 and Southeast Edmonton at $419,082
Sunday, July 15, 2007
Housing Market Regains Balance from Spike in Listings
Residential inventory on the Multiple Listing Service® spiked to near record highs in June as the number of listings soared according to the REALTORS® Association of Edmonton. Total inventory at the end of June 2007 was 6,367 residential properties. Residential inventory at the end of July 1994 set a record at 7,747 properties available. June, September, October and November that year were also record months for number of listings.
Sales remained strong as buyers took advantage of a wider selection of homes available. At the midpoint for the year 13,282 residential properties have been sold through the MLS® valued at almost $4.5 billion. That is 1,712 more properties than the same time last year.
The average price* of a single family residence fell 2% in June to $417,265 erasing most of the gains made last month. Condo prices fell slightly to $265,172 on average. Duplex and rowhouses sold for an average price of $342,836 (down 1.3%).
“The Edmonton housing market has achieved some balance after 18 months of rapidly increasing prices and low inventory,” said Carolyn Pratt, President of the REALTORS® Association. “Our members have reported a number of price reductions and less multiple offer situations than we have faced in the recent past.”
“The fundamentals of the Edmonton market are still strong and should sustain steadily rising prices for all classes of property,” said Pratt. “Even if prices dip slightly in one or two months, homeowners will still have realized phenomenal growth in the value of their homes.” The market has shown remarkable price increases since the end of 2005. The average residential price in the Edmonton market area has risen 73.9% in the past 18 months.
Average prices in other major cities continue to top Edmonton prices. In May (the last month available) the average price for all types of residences was: $591,722 in Greater Vancouver, $429,298 in Calgary and $382,689 in Toronto. In Fort McMurray you can find a home for just $562,200 on average. The all-residential average price for Edmonton in May was $354,410 and $348,056 in June.
There were 4,982 residential properties listed on the Edmonton MLS® in June with 2,203 sales. The sales-to-listing ratio was 44%. Average days on market increased slightly from 22 to 25 days. Inventory increased dramatically from 4,485 residential properties available on June 1 to 6,367 available at the end of the month.
Residential inventory on the Multiple Listing Service® spiked to near record highs in June as the number of listings soared according to the REALTORS® Association of Edmonton. Total inventory at the end of June 2007 was 6,367 residential properties. Residential inventory at the end of July 1994 set a record at 7,747 properties available. June, September, October and November that year were also record months for number of listings.
Sales remained strong as buyers took advantage of a wider selection of homes available. At the midpoint for the year 13,282 residential properties have been sold through the MLS® valued at almost $4.5 billion. That is 1,712 more properties than the same time last year.
The average price* of a single family residence fell 2% in June to $417,265 erasing most of the gains made last month. Condo prices fell slightly to $265,172 on average. Duplex and rowhouses sold for an average price of $342,836 (down 1.3%).
“The Edmonton housing market has achieved some balance after 18 months of rapidly increasing prices and low inventory,” said Carolyn Pratt, President of the REALTORS® Association. “Our members have reported a number of price reductions and less multiple offer situations than we have faced in the recent past.”
“The fundamentals of the Edmonton market are still strong and should sustain steadily rising prices for all classes of property,” said Pratt. “Even if prices dip slightly in one or two months, homeowners will still have realized phenomenal growth in the value of their homes.” The market has shown remarkable price increases since the end of 2005. The average residential price in the Edmonton market area has risen 73.9% in the past 18 months.
Average prices in other major cities continue to top Edmonton prices. In May (the last month available) the average price for all types of residences was: $591,722 in Greater Vancouver, $429,298 in Calgary and $382,689 in Toronto. In Fort McMurray you can find a home for just $562,200 on average. The all-residential average price for Edmonton in May was $354,410 and $348,056 in June.
There were 4,982 residential properties listed on the Edmonton MLS® in June with 2,203 sales. The sales-to-listing ratio was 44%. Average days on market increased slightly from 22 to 25 days. Inventory increased dramatically from 4,485 residential properties available on June 1 to 6,367 available at the end of the month.
Sunday, July 08, 2007
Housing Market Regains Balance from Spike in Listings
Further Evidence that Housing Market is Achieving Balance.
Edmonton July 5, 2007: Further evidence of the rebalancing of the Edmonton housing market was released by the REALTORS® Association of Edmonton this afternoon. Unlike many sales in the past year and a half, most homes sellers who sold their single family home in June accepted a lower price than they were asking for to complete the transaction.
There were 801 single family homes sold in the City of Edmonton through the Multiple Listing Service® in June 2007.
76.4% or 612 homes were sold for less than their list price
11.2% or 90 homes were sold for the exact price expected by the seller
12.3% or 99 homes were sold for more than the list price
The average sale price for homes sold below list were discounted by about $12,500.
Homes sold above list gained an average of $8,760 for the seller.
By comparison, in July 2006, just 66% of homes sold under the list price and 23.6% of homes sold were sold for more than the asking price. In September 2006, 65.8% of single family homes sold below the list price and 19% of homes sold for more than the list price.
For more information regarding the real estate market and the current value of your home please do not hesitate to contact Shami Sandhu or any member of his team.
Further Evidence that Housing Market is Achieving Balance.
Edmonton July 5, 2007: Further evidence of the rebalancing of the Edmonton housing market was released by the REALTORS® Association of Edmonton this afternoon. Unlike many sales in the past year and a half, most homes sellers who sold their single family home in June accepted a lower price than they were asking for to complete the transaction.
There were 801 single family homes sold in the City of Edmonton through the Multiple Listing Service® in June 2007.
76.4% or 612 homes were sold for less than their list price
11.2% or 90 homes were sold for the exact price expected by the seller
12.3% or 99 homes were sold for more than the list price
The average sale price for homes sold below list were discounted by about $12,500.
Homes sold above list gained an average of $8,760 for the seller.
By comparison, in July 2006, just 66% of homes sold under the list price and 23.6% of homes sold were sold for more than the asking price. In September 2006, 65.8% of single family homes sold below the list price and 19% of homes sold for more than the list price.
For more information regarding the real estate market and the current value of your home please do not hesitate to contact Shami Sandhu or any member of his team.
Monday, June 11, 2007
2007 SPRING RENTAL MARKET SURVEY
In late 2006, CMHC announced that a Rental Market Survey (RMS) will also be conducted in the Spring, to provide clients with a timely update of key rental market trends. The Spring RMS was conducted in April 2007 and survey results are being released today.
Unlike the Fall survey, the Spring survey results are only available for the total of each major centre surveyed, not for smaller geographic zones within that centre. As a result, CMHC's Rental Market Reports for major centres are only available in the Fall.
CMHC's semi-annual Rental Market Statistics report, which provides key rental market survey results for each of Canada's major centres, is the easiest way for you to obtain this information.
Click here to access the Spring 2007 Rental Market Statistics report:
http://www03.cmhc-schl.gc.ca/b2c/b2c/mimes/esub/64725/64725_2007_B01.pdf
In late 2006, CMHC announced that a Rental Market Survey (RMS) will also be conducted in the Spring, to provide clients with a timely update of key rental market trends. The Spring RMS was conducted in April 2007 and survey results are being released today.
Unlike the Fall survey, the Spring survey results are only available for the total of each major centre surveyed, not for smaller geographic zones within that centre. As a result, CMHC's Rental Market Reports for major centres are only available in the Fall.
CMHC's semi-annual Rental Market Statistics report, which provides key rental market survey results for each of Canada's major centres, is the easiest way for you to obtain this information.
Click here to access the Spring 2007 Rental Market Statistics report:
http://www03.cmhc-schl.gc.ca/b2c/b2c/mimes/esub/64725/64725_2007_B01.pdf
Saturday, June 09, 2007
Single Month Residential Sales of Over $1 Billion Sets New Benchmark
Edmonton, June 4, 2007: Pessimistic market watchers are peering into the future for any sign of a market slowdown in Edmonton. According to the REALTORS® Association of Edmonton the market remains buoyant with a billion dollars worth of residential sales in May.
The total year-to-date value of property sales through the Edmonton Multiple Listing Service® at the end of May has already surpassed the 2005 year end total.
Year-to-date residential unit sales are up.
Average prices for all types of housing are up.
Average days-on-market is still low.
“Home sellers are upbeat about the steadily increasing prices and short selling cycles,” said the President of the REALTORS® Association. “Homebuyers, on the other hand, are pleased that the inventory has increased and their range of housing choices has improved.” There were 4,485 residential properties available on the MLS® at the end of May as compared to 3,151 last month: a 42% increase.
The average price* of a single family home rose 3% (to $426,028) in May but sales dropped 2.3% from the same month last year as buyers choose condos over single family homes. Condominium prices rose 1.9% to $266,100 on average with 993 sales in May. Duplex and rowhouse sales were 111 units for an average price of $347,257 (up 1.8%).
Single family sales represent 59% of residential sales with condos making up 36%. In 2005 SFDs had 70% of the sales and condos were just 26.8%. Duplex/rowhouse sales are now 4% up from 2.9% in May 2005.
“Rising prices are forcing buyers to explore their housing options. People are being priced into the condo market,". "May figures demonstrate that the trend has not yet abated." She urged both buyers and sellers to consult a REALTOR® before venturing into the market. “With the average price of a single family dwelling rising by over $400 a day, you need the latest market figures that only a REALTOR® can provide.”
There were 4,850 residential properties listed on the MLS® in May with 2,839 sales. The sales-to-listing ratio was 59%. Average days on market remained the same as last month at 22 days.
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact Shami Sandhu @ 701-2500.
Edmonton, June 4, 2007: Pessimistic market watchers are peering into the future for any sign of a market slowdown in Edmonton. According to the REALTORS® Association of Edmonton the market remains buoyant with a billion dollars worth of residential sales in May.
The total year-to-date value of property sales through the Edmonton Multiple Listing Service® at the end of May has already surpassed the 2005 year end total.
Year-to-date residential unit sales are up.
Average prices for all types of housing are up.
Average days-on-market is still low.
“Home sellers are upbeat about the steadily increasing prices and short selling cycles,” said the President of the REALTORS® Association. “Homebuyers, on the other hand, are pleased that the inventory has increased and their range of housing choices has improved.” There were 4,485 residential properties available on the MLS® at the end of May as compared to 3,151 last month: a 42% increase.
The average price* of a single family home rose 3% (to $426,028) in May but sales dropped 2.3% from the same month last year as buyers choose condos over single family homes. Condominium prices rose 1.9% to $266,100 on average with 993 sales in May. Duplex and rowhouse sales were 111 units for an average price of $347,257 (up 1.8%).
Single family sales represent 59% of residential sales with condos making up 36%. In 2005 SFDs had 70% of the sales and condos were just 26.8%. Duplex/rowhouse sales are now 4% up from 2.9% in May 2005.
“Rising prices are forcing buyers to explore their housing options. People are being priced into the condo market,". "May figures demonstrate that the trend has not yet abated." She urged both buyers and sellers to consult a REALTOR® before venturing into the market. “With the average price of a single family dwelling rising by over $400 a day, you need the latest market figures that only a REALTOR® can provide.”
There were 4,850 residential properties listed on the MLS® in May with 2,839 sales. The sales-to-listing ratio was 59%. Average days on market remained the same as last month at 22 days.
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact Shami Sandhu @ 701-2500.
Wednesday, May 30, 2007
Canadian home ownership rates on the rise
Many Canadian households have moved from renting to home ownership during the past two decades, according to new report from Statistics Canada. Almost 70 per cent of Canadians were home owners in 2005, a significant increase compared to about 60 per cent in 1986.
The report says low interest rates, attractive financing options and strong economic conditions have encouraged Canadians to buy, even though home prices are increasing at a much faster pace than rentals. The Canadian Real Estate Association notes that the national Home Buyers’ Plan, which was launched in 1992, has also helped thousands of first-time home buyers access home ownership over the past 15 years.
The biggest shifts toward home ownership were in Alberta, Manitoba and Saskatchewan, where housing markets have soared to unprecedented heights in recent years. The only provinces where home ownership didn’t increase were Newfoundland and Labrador, and PEI.
The Statscan study found that households that turned from renting to owning tended to have higher incomes. As a result, Canada's pool of renters is comprised of more by low-income households than it used to be. The fastest-growing segment of the residential rental market has been households in the bottom 20 per cent of the income distribution, or the lowest income quintile.
The study also showed that elderly people are playing a larger role in the rental market than they did two decades ago. Younger households, married couples with children and lone-parent households are playing a lesser role.
As the population ages, older households will likely represent an even higher proportion of renters. If so, landlords might be expected to provide better accommodation for aging renters, such as special facilities or equipment.
The study also found that, due to an aging stock of apartments, residential landlords devoted 14 per cent of their operating expenses to repair and maintenance costs in 2004. (CREA 30/05/07)
Many Canadian households have moved from renting to home ownership during the past two decades, according to new report from Statistics Canada. Almost 70 per cent of Canadians were home owners in 2005, a significant increase compared to about 60 per cent in 1986.
The report says low interest rates, attractive financing options and strong economic conditions have encouraged Canadians to buy, even though home prices are increasing at a much faster pace than rentals. The Canadian Real Estate Association notes that the national Home Buyers’ Plan, which was launched in 1992, has also helped thousands of first-time home buyers access home ownership over the past 15 years.
The biggest shifts toward home ownership were in Alberta, Manitoba and Saskatchewan, where housing markets have soared to unprecedented heights in recent years. The only provinces where home ownership didn’t increase were Newfoundland and Labrador, and PEI.
The Statscan study found that households that turned from renting to owning tended to have higher incomes. As a result, Canada's pool of renters is comprised of more by low-income households than it used to be. The fastest-growing segment of the residential rental market has been households in the bottom 20 per cent of the income distribution, or the lowest income quintile.
The study also showed that elderly people are playing a larger role in the rental market than they did two decades ago. Younger households, married couples with children and lone-parent households are playing a lesser role.
As the population ages, older households will likely represent an even higher proportion of renters. If so, landlords might be expected to provide better accommodation for aging renters, such as special facilities or equipment.
The study also found that, due to an aging stock of apartments, residential landlords devoted 14 per cent of their operating expenses to repair and maintenance costs in 2004. (CREA 30/05/07)
Friday, April 06, 2007
2006 Pricing Trends Continue into First Quarter 2007
Edmonton, April 4, 2007: The Edmonton Real Estate Board announced today that the average* price of a single family dwelling (SFD) in the Edmonton area increased over 6% in March. Single family homes have increased 16.5% this quarter to continue a trend that started in 2006. The average selling price for the 1,263 SFDs sold in March was just under $400,000.
“It is clear that housing prices have not yet peaked in the Edmonton area,” said Carolyn Pratt, president of the EREB. “The spring season is always very active for REALTORS® and we do not anticipate that the pace of price increases will slow until early summer.”
The SFD average price was $398,476 in March, up from $375,412 in February. A slight drop in condominium prices meant that the average price for all types of housing was up just 1.25%. Last March the average residential price was $220,124 and this March it was $325,339: an increase of 47.8% over the past 12 months. Condo prices dropped back slightly (-0.22%) from $247,266 in February to $246,719 in March. Condo prices are much more volatile than single family dwellings; dropping suddenly but rebounding the next month.
“There are lots of stories about the slowdown or reversal of certain American housing markets,” said Pratt. “But all markets are local and Edmonton is unique in that the fundamentals of low interest rates, strong demand, low inventory, steady in-migration and high consumer confidence are still driving our local economy.” The inventory of available housing (2,574 residences at the end of March) has slowly increased from a low point last May (1,857 units) but is just one month supply. There were 2,359 residential sales in March with 3,091 new listings.
The strength of the Edmonton market is also shown by the commercial MLS® sales. The value of apartment buildings sold in March 2007 quadrupled the previous March. The total value of commercial sales in the first quarter was more than double the value at the same point in each of the last three years. Total commercial sales for March were $33.2 million and $101.9 million for the first three months combined.
Prices in four surrounding communities were higher than the market average. Sherwood Park, St. Albert, Fort Saskatchewan and Spruce Grove all had average SFD prices over $400,000. Morinville had an average price of $320,600 down from $338,442 in February.
Edmonton, April 4, 2007: The Edmonton Real Estate Board announced today that the average* price of a single family dwelling (SFD) in the Edmonton area increased over 6% in March. Single family homes have increased 16.5% this quarter to continue a trend that started in 2006. The average selling price for the 1,263 SFDs sold in March was just under $400,000.
“It is clear that housing prices have not yet peaked in the Edmonton area,” said Carolyn Pratt, president of the EREB. “The spring season is always very active for REALTORS® and we do not anticipate that the pace of price increases will slow until early summer.”
The SFD average price was $398,476 in March, up from $375,412 in February. A slight drop in condominium prices meant that the average price for all types of housing was up just 1.25%. Last March the average residential price was $220,124 and this March it was $325,339: an increase of 47.8% over the past 12 months. Condo prices dropped back slightly (-0.22%) from $247,266 in February to $246,719 in March. Condo prices are much more volatile than single family dwellings; dropping suddenly but rebounding the next month.
“There are lots of stories about the slowdown or reversal of certain American housing markets,” said Pratt. “But all markets are local and Edmonton is unique in that the fundamentals of low interest rates, strong demand, low inventory, steady in-migration and high consumer confidence are still driving our local economy.” The inventory of available housing (2,574 residences at the end of March) has slowly increased from a low point last May (1,857 units) but is just one month supply. There were 2,359 residential sales in March with 3,091 new listings.
The strength of the Edmonton market is also shown by the commercial MLS® sales. The value of apartment buildings sold in March 2007 quadrupled the previous March. The total value of commercial sales in the first quarter was more than double the value at the same point in each of the last three years. Total commercial sales for March were $33.2 million and $101.9 million for the first three months combined.
Prices in four surrounding communities were higher than the market average. Sherwood Park, St. Albert, Fort Saskatchewan and Spruce Grove all had average SFD prices over $400,000. Morinville had an average price of $320,600 down from $338,442 in February.
Sunday, February 11, 2007
Realty Executives takes a dip for Edmonton's Food Bank.
On January 14th the Realty Executives hosted the Annual Polar Bear Dip in support of Edmonton's Food Bank.
Jumpers braved the near zero temperatures of the outdoor pool at the Royal Glenora Club to collect pledges that totalled $12,000 for the Food Bank. The pool-side was packed with media and well-wishers wanting to witness this extreme event.
Members of the organising commitee met presented a $12,000 cheque to the Food Bank's Jack Little and Tamisan Bencz.
To view more pictures please click here.
http://www.edmontonsun.com/PhotoGalleries/polarplunge/2007/01/14/3363176.html
Shami Sandhu and Dina Marsa are very proud to volunteer their time to this Realty Executives commitee and the Edmonton's Food Bank.
Friday, February 09, 2007
Year starts quickly for resale home sellers
Edmonton, February 5, 2007: The year started quickly for REALTOR® members of the Edmonton Real Estate Board indicating that the housing market in Edmonton has not yet crested. A blistering year last year saw average single family and condo prices rise 52%.
“Sales are typically sluggish at the beginning of the year,” said Carolyn Pratt, president of the EREB. “But REALTORS® have been kept busy in January with increased sales and higher average prices.” Residential sales in January were up 32% from January 2006 and up 45% from December. There were 1,554 residential sales last month with 2,043 listings.
The average price* of a single family dwelling continued its steady climb. At $357,325, the average price was up 4.5% from December prices and up a remarkable 51.9% from last January. Condominium prices rose a more moderate 2.5% to $233,175; a 74.3% increase from January 2006 prices. Duplex and rowhouse prices went down just $1,030 from last month.
Total residential sales through the Edmonton Multiple Listing Service® in January were $472 million, double what they were at this time last year. Strong commercial and rural sales drove the total Board sales in January to exceed last year’s total sales by 107%.
Inventory increased slightly with a sales to listing ratio of 76%. There were 2,025 homes in inventory at the end of January, up just 13 units from the end of December. The average days on market was 33 up from 30 days in December.
“I cannot stress strongly enough how important it is to use a REALTOR® when you want to buy or sell a home in this unique market,” said Pratt. “Only a REALTOR® can give you the best advice on current market pricing and condition to enable you to get the best value for your home.
** This article courtesy of Edmonton Real Estate Board
Edmonton, February 5, 2007: The year started quickly for REALTOR® members of the Edmonton Real Estate Board indicating that the housing market in Edmonton has not yet crested. A blistering year last year saw average single family and condo prices rise 52%.
“Sales are typically sluggish at the beginning of the year,” said Carolyn Pratt, president of the EREB. “But REALTORS® have been kept busy in January with increased sales and higher average prices.” Residential sales in January were up 32% from January 2006 and up 45% from December. There were 1,554 residential sales last month with 2,043 listings.
The average price* of a single family dwelling continued its steady climb. At $357,325, the average price was up 4.5% from December prices and up a remarkable 51.9% from last January. Condominium prices rose a more moderate 2.5% to $233,175; a 74.3% increase from January 2006 prices. Duplex and rowhouse prices went down just $1,030 from last month.
Total residential sales through the Edmonton Multiple Listing Service® in January were $472 million, double what they were at this time last year. Strong commercial and rural sales drove the total Board sales in January to exceed last year’s total sales by 107%.
Inventory increased slightly with a sales to listing ratio of 76%. There were 2,025 homes in inventory at the end of January, up just 13 units from the end of December. The average days on market was 33 up from 30 days in December.
“I cannot stress strongly enough how important it is to use a REALTOR® when you want to buy or sell a home in this unique market,” said Pratt. “Only a REALTOR® can give you the best advice on current market pricing and condition to enable you to get the best value for your home.
** This article courtesy of Edmonton Real Estate Board
Friday, January 12, 2007
Astonishing Year in Real Estate
EREB, January 4, 2007: The Edmonton Real Estate Board released year end numbers today for what has been an astonishing year. The number of sales through the Multiple Listing Service® broke all previous records even as prices for all residential property soared.
“Edmonton caught up with other major markets in the country this year,” said Madeline Sarafinchan, EREB President. “No one anticipated the dramatic rise in prices although Edmonton real estate has been undervalued for the last few years.” Higher than anticipated sales were driven by a heated Alberta economy and housing demands from residents and newcomers to Edmonton.
Average housing prices as compared to December 2005 were markedly up. An average priced single family home sold for $225,130 last December but had risen 51.9% in price by year end. Condo prices advanced 52.4% over the year from $149,254 to $227,428. All residential property combined was up 48.65% when comparing December figures. When averaged over all twelve months, the average residential selling price went up 29.38% from $193,934 to $250,915.
Rising prices did not slow down residential sales. MLS® sales were up 19% in 2006 over the previous year. 25,393 residential properties were listed and 21,984 were sold resulting in a sales-to-listing ratio of 87%. The total MLS® (including rural, recreational, industrial and commercial properties) had 25,316 properties sold and valued at over $6.6 billion.
“This time last year I predicted that inventory would be a concern,” said Sarafinchan. “Inventory has declined through the year and we enter the new year with just 2,012 residential properties available. That is 882 less than last year at this time.” Fifty more properties were sold last month than were listed resulting in a December sales-to-listing ratio of 105%. One month sales have exceeded listings just twice in recent years. The previous occurrence was in May 2006.
In December the average days on market was up slightly to 30 days. There are
3,104 members of the Edmonton Real Estate Board available to help buyers and sellers with their real estate transactions.
Out in the country, rural sales were strong in 2006 with total rural, recreational and acreage sales of $768 million. The strong economy provided opportunities for some homeowners to invest in recreational properties. At the same time more buyers sought rural properties to avoid the intense competition and rising prices in the urban areas.
Commercial sales through the Multiple Listing Service® also set records in 2006. Total sales of $318 million eclipsed the previous year end total sales record of $277 million set in 2003.
EREB, January 4, 2007: The Edmonton Real Estate Board released year end numbers today for what has been an astonishing year. The number of sales through the Multiple Listing Service® broke all previous records even as prices for all residential property soared.
“Edmonton caught up with other major markets in the country this year,” said Madeline Sarafinchan, EREB President. “No one anticipated the dramatic rise in prices although Edmonton real estate has been undervalued for the last few years.” Higher than anticipated sales were driven by a heated Alberta economy and housing demands from residents and newcomers to Edmonton.
Average housing prices as compared to December 2005 were markedly up. An average priced single family home sold for $225,130 last December but had risen 51.9% in price by year end. Condo prices advanced 52.4% over the year from $149,254 to $227,428. All residential property combined was up 48.65% when comparing December figures. When averaged over all twelve months, the average residential selling price went up 29.38% from $193,934 to $250,915.
Rising prices did not slow down residential sales. MLS® sales were up 19% in 2006 over the previous year. 25,393 residential properties were listed and 21,984 were sold resulting in a sales-to-listing ratio of 87%. The total MLS® (including rural, recreational, industrial and commercial properties) had 25,316 properties sold and valued at over $6.6 billion.
“This time last year I predicted that inventory would be a concern,” said Sarafinchan. “Inventory has declined through the year and we enter the new year with just 2,012 residential properties available. That is 882 less than last year at this time.” Fifty more properties were sold last month than were listed resulting in a December sales-to-listing ratio of 105%. One month sales have exceeded listings just twice in recent years. The previous occurrence was in May 2006.
In December the average days on market was up slightly to 30 days. There are
3,104 members of the Edmonton Real Estate Board available to help buyers and sellers with their real estate transactions.
Out in the country, rural sales were strong in 2006 with total rural, recreational and acreage sales of $768 million. The strong economy provided opportunities for some homeowners to invest in recreational properties. At the same time more buyers sought rural properties to avoid the intense competition and rising prices in the urban areas.
Commercial sales through the Multiple Listing Service® also set records in 2006. Total sales of $318 million eclipsed the previous year end total sales record of $277 million set in 2003.
Tuesday, November 14, 2006
Pace of real estate sales cools with the weather
Edmonton, November 2, 2006: As usual at this time of year, the pace of real estate sales has cooled according to the Edmonton Real Estate Board. Average prices* for single family dwellings inched up in October while condo prices dropped slightly from the previous month. As a result the average residential price dropped 0.75 percent to $276,641.
More homes were sold in October than September even though listings were down 10%. “It appears that housing prices have stabilized for the time being,” said Madeline Sarafinchan, EREB President. “The inventory remains below historic levels which means that residential pricing is still competitive. Buyers and sellers should work closely with their REALTOR® to establish an effective pricing strategy based on the most recent neighbourhood and market trends.”
The average price for a single family dwelling on the Edmonton MLS® in October was $326,292, up 1.3% from last month. Condo prices were down 1.6% from September and sold on average for $208,962. Duplexes and rowhouses sold on average for $282,551 (up 1.26%).
At the end of October there were 2,555 residential properties available as compared to 3,806 last October. The average days-on-market was 23 days; the same as last month but down from 42 a year ago. There were 1,890 residential sales in October – a slight increase from the one month sales in September (1,844).
Despite the snow, reminders of the scorching summer linger in the total number of sales. Year-to-date residential sales have already exceeded the 2005 year end total sales by 1,333 units with two months still to go this year.
“After the frantic pace of the past year the market is regaining balance,” said Sarafinchan. “Panic buying is reduced and buyers have a little more time to consider a home purchase. At the same time sellers are pleased with the relatively fast turnover of good looking, well-priced property.”
The number of homes selling below their list price is another indicator of the market rebalancing. In October, 65% of single family dwellings sold below their list price. They sold on average in 33 days. Houses which sold over their list price were on the market for just 16 or 17 days on average and represent just 19% of single family dwellings sold. Sarafinchan noted that the number of sales attracting multiple offers seems to be down although no exact figures are available.
The strength of the Alberta economy is also reflected in commercial sales. The number of commercial properties sold through the Board is up 12.5% for the year. Apartment sales are up from 44 to 94 properties (YTD through October) and land sales are up from 90 to 132. Sales of investment property and leases also show growth this year. Total value of commercial property sold to date is up 68% to a total of $247 million.The total value of commercial land sold so far this year is over $50 million as compared to $39 million in 2004.
Edmonton, November 2, 2006: As usual at this time of year, the pace of real estate sales has cooled according to the Edmonton Real Estate Board. Average prices* for single family dwellings inched up in October while condo prices dropped slightly from the previous month. As a result the average residential price dropped 0.75 percent to $276,641.
More homes were sold in October than September even though listings were down 10%. “It appears that housing prices have stabilized for the time being,” said Madeline Sarafinchan, EREB President. “The inventory remains below historic levels which means that residential pricing is still competitive. Buyers and sellers should work closely with their REALTOR® to establish an effective pricing strategy based on the most recent neighbourhood and market trends.”
The average price for a single family dwelling on the Edmonton MLS® in October was $326,292, up 1.3% from last month. Condo prices were down 1.6% from September and sold on average for $208,962. Duplexes and rowhouses sold on average for $282,551 (up 1.26%).
At the end of October there were 2,555 residential properties available as compared to 3,806 last October. The average days-on-market was 23 days; the same as last month but down from 42 a year ago. There were 1,890 residential sales in October – a slight increase from the one month sales in September (1,844).
Despite the snow, reminders of the scorching summer linger in the total number of sales. Year-to-date residential sales have already exceeded the 2005 year end total sales by 1,333 units with two months still to go this year.
“After the frantic pace of the past year the market is regaining balance,” said Sarafinchan. “Panic buying is reduced and buyers have a little more time to consider a home purchase. At the same time sellers are pleased with the relatively fast turnover of good looking, well-priced property.”
The number of homes selling below their list price is another indicator of the market rebalancing. In October, 65% of single family dwellings sold below their list price. They sold on average in 33 days. Houses which sold over their list price were on the market for just 16 or 17 days on average and represent just 19% of single family dwellings sold. Sarafinchan noted that the number of sales attracting multiple offers seems to be down although no exact figures are available.
The strength of the Alberta economy is also reflected in commercial sales. The number of commercial properties sold through the Board is up 12.5% for the year. Apartment sales are up from 44 to 94 properties (YTD through October) and land sales are up from 90 to 132. Sales of investment property and leases also show growth this year. Total value of commercial property sold to date is up 68% to a total of $247 million.The total value of commercial land sold so far this year is over $50 million as compared to $39 million in 2004.
Thursday, October 19, 2006
New mortgage insurer enters Canadian market
AIG CEO suggests 50-year mortgages on the way
AIG United Guaranty became the third company to provide mortgage insurance in Canada in mid-October. Canada Mortgage and Housing Corp. currently handles 70 per cent of the mortgage insurance market in Canada, while private insurer Genworth Financial Canada covers the remaining 30 per cent. Two additional companies are expected to enter the market in 2007.
“We have seen significant activity in the Canadian mortgage insurance industry over the past six months in anticipation of increased competition,” said AIG United Guaranty President and CEO Andy Charles.
Included in AIG United Guaranty's current product offering is insurance for no down payment mortgages, and a “more affordable” insurance product for borrowers whose credit scores have been affected by adverse conditions.
Investors with a 10 per cent down payment will be able to get insurance on rental properties of one to four units. The company is also offering products with 30, 35 and 40-year amortization periods, as well as identity theft insurance coverage.
Charles predicted in an interview that 50-year amortization periods for mortgages would be offered in the Canadian marketplace. He added that AIG United Guaranty has no immediate plans to insure mortgages amortized over 50 years.
A recent report by CIBC World Markets shows that Canada's sub-prime mortgage sector increased by 50 per cent during the first half of 2006, and grew by almost five times the rate of traditional lending. CREA cautions that the report did not provide the actual number of sub-prime mortgages used to generate the statistics.
Sub-prime or "non-conforming" mortgages are often assumed to be inherently riskier than more traditional forms of borrowing. Lenders provide home loans to new immigrants who don't have a Canadian credit history, mortgages for the self-employed who can't easily prove their income, or loans for people who have a bad credit rating. Borrowers are often offered longer repayment periods or lower down payment options, and pay higher rates of interest.
AIG CEO suggests 50-year mortgages on the way
AIG United Guaranty became the third company to provide mortgage insurance in Canada in mid-October. Canada Mortgage and Housing Corp. currently handles 70 per cent of the mortgage insurance market in Canada, while private insurer Genworth Financial Canada covers the remaining 30 per cent. Two additional companies are expected to enter the market in 2007.
“We have seen significant activity in the Canadian mortgage insurance industry over the past six months in anticipation of increased competition,” said AIG United Guaranty President and CEO Andy Charles.
Included in AIG United Guaranty's current product offering is insurance for no down payment mortgages, and a “more affordable” insurance product for borrowers whose credit scores have been affected by adverse conditions.
Investors with a 10 per cent down payment will be able to get insurance on rental properties of one to four units. The company is also offering products with 30, 35 and 40-year amortization periods, as well as identity theft insurance coverage.
Charles predicted in an interview that 50-year amortization periods for mortgages would be offered in the Canadian marketplace. He added that AIG United Guaranty has no immediate plans to insure mortgages amortized over 50 years.
A recent report by CIBC World Markets shows that Canada's sub-prime mortgage sector increased by 50 per cent during the first half of 2006, and grew by almost five times the rate of traditional lending. CREA cautions that the report did not provide the actual number of sub-prime mortgages used to generate the statistics.
Sub-prime or "non-conforming" mortgages are often assumed to be inherently riskier than more traditional forms of borrowing. Lenders provide home loans to new immigrants who don't have a Canadian credit history, mortgages for the self-employed who can't easily prove their income, or loans for people who have a bad credit rating. Borrowers are often offered longer repayment periods or lower down payment options, and pay higher rates of interest.
Thursday, September 14, 2006
Edmonton housing prices continue upward climb
Prices of Edmonton real estate continued their steady climb after a brief respite in July. The average residential selling price rose 5.56 percent in August after a less than one percent increase in July. The average* price for a single family dwelling climbed 4.34 percent last month and condos breached the $200,000 barrier for the first time in Edmonton.
According to the Multiple Listing Service®, the average price for single family dwellings in August was $316,480. Average condominium prices went up 6.3% in a month to $200,644 in August. Duplexes and townhouses sold for $262,327 on average – an increase of 14.7% from last month.
“Despite price increases, we have experienced a record number of sales each month this year,” said Madeline Sarafinchan, EREB President. “This proves that homes in Edmonton are still affordable and available for most buyers.” Along with a record number of residential sales in August, listings on the MLS® were up 19% from last month and the inventory of available properties on MLS® rose from 1,856 in July to 2,138 (up 15%) in August. “Indications are that the market is cooling slightly and sales will not be as torrid as they have been so far this year,” she said.
August sales have increased each year and this year’s sales of 2,079 residential properties in August set a new record for the month. The sales numbers for categories of single family dwellings, condos and duplexes also broke existing records. Record sales combined with record prices have driven total MLS® volumes to new heights. Total MLS® volume so far this year is $4.43 billion which exceeds the 2005 year-end volume of $4.25 billion. Total residential unit sales are at 83% of last year’s sales even before the end of the third quarter.
“Edmonton is unique in North America right now,” says Sarafinchan. “Housing has been undervalued and we are catching up to prices in other major centres. We seem to have broken through a psychological barrier and buyers are beginning to accept the pricing realities that we have witnessed in other centres.
Prices of Edmonton real estate continued their steady climb after a brief respite in July. The average residential selling price rose 5.56 percent in August after a less than one percent increase in July. The average* price for a single family dwelling climbed 4.34 percent last month and condos breached the $200,000 barrier for the first time in Edmonton.
According to the Multiple Listing Service®, the average price for single family dwellings in August was $316,480. Average condominium prices went up 6.3% in a month to $200,644 in August. Duplexes and townhouses sold for $262,327 on average – an increase of 14.7% from last month.
“Despite price increases, we have experienced a record number of sales each month this year,” said Madeline Sarafinchan, EREB President. “This proves that homes in Edmonton are still affordable and available for most buyers.” Along with a record number of residential sales in August, listings on the MLS® were up 19% from last month and the inventory of available properties on MLS® rose from 1,856 in July to 2,138 (up 15%) in August. “Indications are that the market is cooling slightly and sales will not be as torrid as they have been so far this year,” she said.
August sales have increased each year and this year’s sales of 2,079 residential properties in August set a new record for the month. The sales numbers for categories of single family dwellings, condos and duplexes also broke existing records. Record sales combined with record prices have driven total MLS® volumes to new heights. Total MLS® volume so far this year is $4.43 billion which exceeds the 2005 year-end volume of $4.25 billion. Total residential unit sales are at 83% of last year’s sales even before the end of the third quarter.
“Edmonton is unique in North America right now,” says Sarafinchan. “Housing has been undervalued and we are catching up to prices in other major centres. We seem to have broken through a psychological barrier and buyers are beginning to accept the pricing realities that we have witnessed in other centres.
Friday, September 01, 2006
New home price rise fastest since 1989
Financial Post, August 11, 2006
Canadian new-home prices rose at their fastest pace since 1989 in June, led by Alberta, where an energy boom has led to a housing shortage. New home prices jumped 1.4% during the month and have gained 9.8% in the 12 months ended in June, Statistics Canada said. Prices in Calgary jumped 49%. The shortage of equipment, staff and homes in Alberta has fuelled consumer prices and helped push the annual inflation above the Bank of Canada’s 2% target for seven consecutive months. The central bank paused last month after raising the benchmark lending rate seven times since September, and indicated it may not need to raise rates again this year. “These numbers are definitely going to get the banks attention,” Andrew Pyle, an economist with Scotia Capital in Toronto, said. Still, rising home prices won’t be enough to change the central bank’s thinking on keeping the main interest rates at the current level of 4.25% he said.
Financial Post, August 11, 2006
Canadian new-home prices rose at their fastest pace since 1989 in June, led by Alberta, where an energy boom has led to a housing shortage. New home prices jumped 1.4% during the month and have gained 9.8% in the 12 months ended in June, Statistics Canada said. Prices in Calgary jumped 49%. The shortage of equipment, staff and homes in Alberta has fuelled consumer prices and helped push the annual inflation above the Bank of Canada’s 2% target for seven consecutive months. The central bank paused last month after raising the benchmark lending rate seven times since September, and indicated it may not need to raise rates again this year. “These numbers are definitely going to get the banks attention,” Andrew Pyle, an economist with Scotia Capital in Toronto, said. Still, rising home prices won’t be enough to change the central bank’s thinking on keeping the main interest rates at the current level of 4.25% he said.
Thursday, August 03, 2006
NOT TOO LATE : DO EVERYTHING HUMANLY POSSIBLE TO GET INTO THE MARKET!
STILL BEST INVESTMENT FOR MANY - DAVID BACH
With Canada's real-estate boom not expected to go bust for the foreseeable future, a personal-wealth expert and bestselling author is recommending that prospective homebuyers do "everything humanly possible to get into the market."
Despite skyrocketing prices across most of the country, real estate is still the best investment many of us will make, said David Bach, author of The Automatic Millionaire Homeowner.
STILL BEST INVESTMENT FOR MANY - DAVID BACH
With Canada's real-estate boom not expected to go bust for the foreseeable future, a personal-wealth expert and bestselling author is recommending that prospective homebuyers do "everything humanly possible to get into the market."
Despite skyrocketing prices across most of the country, real estate is still the best investment many of us will make, said David Bach, author of The Automatic Millionaire Homeowner.
"It's an acknowledged fact that renters have an average net worth of less than $2,000 while homeowners on average have a net worth exceeding $140,000. So it's imperative that people seeking to increase their net worth get into the real-estate market," said Bach.
"Even in the Toronto market, where prices have skyrocketed in recent years, it's possible to get in if you consider making a 25- to 30-minute commute from where prices are more affordable."
For the vast majority of people, their home is the largest asset they will ever invest in and it's become a huge part of their retirement nest egg, with many retiring off the equity in their home by downsizing. Bach, who is also an adviser to Scotiabank on financial issues and trends, warns, however, that real estate is not a riskless transaction, and "location has much to do with that. There's been a huge appreciation in real-estate values in Vancouver, Toronto, Edmonton and Calgary, but that isn't true everywhere."
Bach said the biggest myth about buying real estate is that "you need a large down payment, where in actual fact you can get in with five per cent down or even less.
"And it's relatively painless to save for a down payment if you feel more comfortable with one. I call it the latte factor. Just think about the small items you buy every day without thinking -- lattes, muffins or lunch -- and imagine how much you could save if you cut some of them out. Within two years, that could be a $10,000 down payment to get you started."
Bach said there's unlimited interest in the real-estate market because, "unlike the stock market, real estate is something you get to enjoy and live in."
ScotiaBank senior economist Adrienne Warren said she believes that high prices can be sustained in the long term. "Stable interest rates are seemingly here to stay, and that attracts long-term housing investment," said Warren. "And our strong dollar versus most other currencies is attracting more foreign investment from those who see Canada as a very affordable market."
© The Vancouver Province 2006
Thursday, July 20, 2006
MORTGAGE RATES UPDATED
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month 6.40% 5.75%
1 year closed 6.55% 5.25%
2 year closed 6.65% 5.35%
3 year closed 6.75% 5.45%
4 year closed 6.80% 5.45%
5 year closed 6.95% 5.50%
6 year closed 7.05% 5.70%
7 year closed 7.10% 5.60%
10 year closed 7.55% 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month 6.40% 5.75%
1 year closed 6.55% 5.25%
2 year closed 6.65% 5.35%
3 year closed 6.75% 5.45%
4 year closed 6.80% 5.45%
5 year closed 6.95% 5.50%
6 year closed 7.05% 5.70%
7 year closed 7.10% 5.60%
10 year closed 7.55% 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
Tuesday, July 11, 2006
NEW HOME CONSTRUCTION MAINTAINS SIZZLING PACE
Edmonton - According to preliminary fugures released today by Canada Mortgage and Housing Corporation (CMHC), total residential housing starts across the capital region acheived their best June performance on record. Total housing starts across the Capital region achived their best june performance on record. Total housing starts in the Edmonton Census Metropolitan Area (CMA) increased 31 percent from 1,183 units in June 2005 to 1,547 units in June 2006. Six months into the year, total new home construction is 14 per cent ahead of activity reported during the first half of 2005.
To read the rest of this article from CMHC please Click Here.
Edmonton - According to preliminary fugures released today by Canada Mortgage and Housing Corporation (CMHC), total residential housing starts across the capital region acheived their best June performance on record. Total housing starts across the Capital region achived their best june performance on record. Total housing starts in the Edmonton Census Metropolitan Area (CMA) increased 31 percent from 1,183 units in June 2005 to 1,547 units in June 2006. Six months into the year, total new home construction is 14 per cent ahead of activity reported during the first half of 2005.
To read the rest of this article from CMHC please Click Here.
Tuesday, June 27, 2006
MORTGAGE RATES UPDATED
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.40% - 5.75%
1 year closed - 6.55% - 5.25%
2 year closed - 6.65% - 5.35%
3 year closed - 6.75% - 5.45%
4 year closed - 6.80% - 5.45%
5 year closed - 6.95% - 5.50%
6 year closed - 7.05% - 5.70%
7 year closed - 7.10% - 5.60%
10 year closed - 7.55% - 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 26, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.40% - 5.75%
1 year closed - 6.55% - 5.25%
2 year closed - 6.65% - 5.35%
3 year closed - 6.75% - 5.45%
4 year closed - 6.80% - 5.45%
5 year closed - 6.95% - 5.50%
6 year closed - 7.05% - 5.70%
7 year closed - 7.10% - 5.60%
10 year closed - 7.55% - 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 26, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
Wednesday, June 21, 2006
Mortgage to have 40-year amortization
Offering will not be insured
Wells Fargo & Co. is launching a new mortgage product with a 40-year amortization period – the first of its kind for Canadians. The offering will not be insured, however, suggesting the rate could be higher than typical mortgages.
Longer-term amortizations mean monthly payments are lower, giving younger people, or those with poor credit histories a way to purchase a house that otherwise they couldn't afford. But it also means people can end up paying thousands of dollars more in interest, and can be faced with payments long after they retire.
"People who can't afford a house at 25 years maybe shouldn't be jumping in at 40 years," said Benjamin Tal, senior economist at CIBC World Markets. "They're basically shifting the risk, but they're also carrying longer mortgages and are more vulnerable to economic shocks."
Taking a mortgage worth $300,000, an interest rate of 6.5% and a 25-year term, the monthly payment is $2,009.48, while the total interest paid over the entire term is $302,914.
If the rate and mortgage value are kept the same and the amortization period is 40 years, the monthly payment falls to $1,737.96. But the total interest paid jumps to $534,413.
For years, the longest amortization period available to Canadians was 25 years.
But in March, the Canada Mortgage and Housing Corporation said it would insure 30-year terms, and Genworth Financial Canada said it would insure 35-year terms.
When a loan isn't insured, such as the Wells Fargo one will be offering, the lender usually charges a default insurance premium, which is factored into the rate. The company already offers a similar product in the United States.
Offering will not be insured
Wells Fargo & Co. is launching a new mortgage product with a 40-year amortization period – the first of its kind for Canadians. The offering will not be insured, however, suggesting the rate could be higher than typical mortgages.
Longer-term amortizations mean monthly payments are lower, giving younger people, or those with poor credit histories a way to purchase a house that otherwise they couldn't afford. But it also means people can end up paying thousands of dollars more in interest, and can be faced with payments long after they retire.
"People who can't afford a house at 25 years maybe shouldn't be jumping in at 40 years," said Benjamin Tal, senior economist at CIBC World Markets. "They're basically shifting the risk, but they're also carrying longer mortgages and are more vulnerable to economic shocks."
Taking a mortgage worth $300,000, an interest rate of 6.5% and a 25-year term, the monthly payment is $2,009.48, while the total interest paid over the entire term is $302,914.
If the rate and mortgage value are kept the same and the amortization period is 40 years, the monthly payment falls to $1,737.96. But the total interest paid jumps to $534,413.
For years, the longest amortization period available to Canadians was 25 years.
But in March, the Canada Mortgage and Housing Corporation said it would insure 30-year terms, and Genworth Financial Canada said it would insure 35-year terms.
When a loan isn't insured, such as the Wells Fargo one will be offering, the lender usually charges a default insurance premium, which is factored into the rate. The company already offers a similar product in the United States.
Saturday, June 10, 2006
Current Mortgage Rates
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combinationof mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the typeof mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.10% - 5.60%
1 year closed - 6.25% - 5.15%
2 year closed - 6.35% - 5.25%
3 year closed - 6.45% - 5.30%
4 year closed - 6.55% - 5.30%
5 year closed - 6.75% - 5.30%
6 year closed - 6.55% - 5.50%
7 year closed - 7.15% - 5.40%
10 year closed - 7.35% - 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 1, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.For more details please call him at (780) 440-9313
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combinationof mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the typeof mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.10% - 5.60%
1 year closed - 6.25% - 5.15%
2 year closed - 6.35% - 5.25%
3 year closed - 6.45% - 5.30%
4 year closed - 6.55% - 5.30%
5 year closed - 6.75% - 5.30%
6 year closed - 6.55% - 5.50%
7 year closed - 7.15% - 5.40%
10 year closed - 7.35% - 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 1, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.For more details please call him at (780) 440-9313
Single month property sales top previous record by 22%
Edmonton: REALTORS® are riding the crest of a real estate wave as the market continues to shatter previous records. Property sales through the Edmonton Real Estate Board Multiple Listing Service® (MLS®) set a new single month record. In June 2005 the bar was set at 2,448 properties sold in a month. May 2006 sales totalled 3,002 properties: a 22.6% increase.
“Record sales are causing our housing inventory to turn over faster than ever,” said Madeline Sarafinchan, EREB President. “Like many manufacturers, REALTORS® are adopting new ‘just-in-time’ inventory techniques. Computer software provided by the Board, and available only to REALTORS®, can advise clients about a property that meets their needs within minutes of it coming onto the market.” Up to 180 homes are listed on the MLS® each day and new listing advisories are broadcast every 15 minutes.
“REALTORS® found homes for over 2,500 families last month and they continue to meet the demand despite the urgency of this market,” said Sarafinchan. At the end of May there were just 1,857 residential properties in the MLS® inventory and properties sold on average in just 20 days (down from 46 days last May).
The average price* for single family dwellings in May rose to $282,208: a 6.27% increase from April. Condo prices were up 6.14% to $172,553. Duplex and rowhouse prices were up from $221,941 last month to $225,624 in May.
Average residential prices in the Edmonton area are up 23% from this time last year. “Other markets in Canada may be less dynamic,” said Sarafinchan. “But properties come available in all parts of the region and are still reasonably priced compared to other major centres in Canada and Alberta. If I have one piece of advice to give, it’s stay in close touch with your REALTOR® to ensure that you get the best assistance and most up-to-the-minute market information.”
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact Shami Sandhu.
Edmonton: REALTORS® are riding the crest of a real estate wave as the market continues to shatter previous records. Property sales through the Edmonton Real Estate Board Multiple Listing Service® (MLS®) set a new single month record. In June 2005 the bar was set at 2,448 properties sold in a month. May 2006 sales totalled 3,002 properties: a 22.6% increase.
“Record sales are causing our housing inventory to turn over faster than ever,” said Madeline Sarafinchan, EREB President. “Like many manufacturers, REALTORS® are adopting new ‘just-in-time’ inventory techniques. Computer software provided by the Board, and available only to REALTORS®, can advise clients about a property that meets their needs within minutes of it coming onto the market.” Up to 180 homes are listed on the MLS® each day and new listing advisories are broadcast every 15 minutes.
“REALTORS® found homes for over 2,500 families last month and they continue to meet the demand despite the urgency of this market,” said Sarafinchan. At the end of May there were just 1,857 residential properties in the MLS® inventory and properties sold on average in just 20 days (down from 46 days last May).
The average price* for single family dwellings in May rose to $282,208: a 6.27% increase from April. Condo prices were up 6.14% to $172,553. Duplex and rowhouse prices were up from $221,941 last month to $225,624 in May.
Average residential prices in the Edmonton area are up 23% from this time last year. “Other markets in Canada may be less dynamic,” said Sarafinchan. “But properties come available in all parts of the region and are still reasonably priced compared to other major centres in Canada and Alberta. If I have one piece of advice to give, it’s stay in close touch with your REALTOR® to ensure that you get the best assistance and most up-to-the-minute market information.”
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact Shami Sandhu.
Saturday, June 03, 2006
KPMG RANKS EDMONTON AS TOP MAJOR CITY!
As you know, housing costs are quickly increasing in Edmonton, due in part to the number of people moving to the area. This study from KPMG shows Edmonton as the least expensive place in Western Canada to run a business.
This could mean more business will open up offices here, increasing the number of jobs and therefore the number of people relocating here and in a round about way could further increase the demand for housing...here is the article:
Edmonton has the lowest business costs of any major city (500,000-plus population) in Western Canada … and western North America, according to an independent report released by KPMG.Edmonton is second only to Saskatoon, Saskatchewan in comparison with 31 cities of all sizes evaluated in western North America. And Edmonton is second only to Quebec City, Quebec in comparison with 20 global cities with populations between 500,000 and one million.Business costs are expressed as an index, with the United States being assigned the baseline index of 100. An index less than 100 indicates lower costs than the U.S. Edmonton’s business cost index is 93.3 … just 3.2 points from the top-ranked Canadian city (Sherbrooke, Quebec).
All 17 business operations measured in Edmonton have low index ratings, ranging from clinical trials (85.9) to telecommunications (96.8). Eight of these business types in Edmonton —advanced software, telecom equipment, specialty chemicals, food processing, pharmaceuticals, medical devices, electronics assembly and shared services centres — are ranked among the top-10 globally for cost-effectiveness.
The 2006 Competitive Alternatives study measured 27 cost components — including labour, taxes, real estate and utilities — as applied to business operations in nine countries: Canada, France, Germany, Italy, Japan, the Netherlands, Singapore, the United Kingdom and the United States.
Business cost comparisons were provided for 95 cities in these countries based on start-up and operational costs for 17 types of businesses over a 10-year planning horizon.
As you know, housing costs are quickly increasing in Edmonton, due in part to the number of people moving to the area. This study from KPMG shows Edmonton as the least expensive place in Western Canada to run a business.
This could mean more business will open up offices here, increasing the number of jobs and therefore the number of people relocating here and in a round about way could further increase the demand for housing...here is the article:
Edmonton has the lowest business costs of any major city (500,000-plus population) in Western Canada … and western North America, according to an independent report released by KPMG.Edmonton is second only to Saskatoon, Saskatchewan in comparison with 31 cities of all sizes evaluated in western North America. And Edmonton is second only to Quebec City, Quebec in comparison with 20 global cities with populations between 500,000 and one million.Business costs are expressed as an index, with the United States being assigned the baseline index of 100. An index less than 100 indicates lower costs than the U.S. Edmonton’s business cost index is 93.3 … just 3.2 points from the top-ranked Canadian city (Sherbrooke, Quebec).
All 17 business operations measured in Edmonton have low index ratings, ranging from clinical trials (85.9) to telecommunications (96.8). Eight of these business types in Edmonton —advanced software, telecom equipment, specialty chemicals, food processing, pharmaceuticals, medical devices, electronics assembly and shared services centres — are ranked among the top-10 globally for cost-effectiveness.
The 2006 Competitive Alternatives study measured 27 cost components — including labour, taxes, real estate and utilities — as applied to business operations in nine countries: Canada, France, Germany, Italy, Japan, the Netherlands, Singapore, the United Kingdom and the United States.
Business cost comparisons were provided for 95 cities in these countries based on start-up and operational costs for 17 types of businesses over a 10-year planning horizon.
Monday, May 29, 2006
Housing market remains animated through April
Edmonton, May 2, 2006: The Edmonton Real Estate Board reports that the resale housing market remains animated. The booming economy and high demand are causing housing prices to rise beyond forecast expectations. In January EREB forecast that residential sales would remain at last years record levels but that prices would rise 8%. So far this year sales have risen 12.4% and prices are 18% ahead of the same time last year.
“This market is nothing like the 80’s boom,” said Madeline Sarafinchan, EREB President. “Prices are increasing steadily but housing is not overpriced. Mortgage rates remain low and consumer confidence is high.” She added that there is no increase in foreclosures and resale property retains its value because it is priced well below new construction.
Inventory levels for resale housing are lower than typical. The MLS® residential inventory at the end of April was 2,219 as compared to 4,810 last year. As a result sales are animated and buyers are forced to make decisions quickly when they see an attractive property.
Average days on market in April was just 23 days. Slightly slower than March (19 days) but still half of last year’s April figure of 46 days.
The average price* for single family dwellings rose 3.7% over March to $265,557. Condo prices were up 3.6% to $162,565. Average prices on duplexes and rowhouses finally topped $200,000 at $221,941 up from $193,000 last month.
The average residential price hit a new all time high of $226,846 in April (up 3.0% from the previous month).
Over 40% of single family homes on MLS® sold at or over the list price in April. “In the market today you need to have a sophisticated pricing and negotiation strategy,” said Sarafinchan. Last April less than 15% of sales met or exceeded the list price. “Solid, reliable information about recent sales and neighbourhood trends can only be obtained from your REALTOR® who has records of 91% of the residential sales in Edmonton.”
Complete Article @ http://www.ereb.com/marketactivity/April2006.html
Edmonton, May 2, 2006: The Edmonton Real Estate Board reports that the resale housing market remains animated. The booming economy and high demand are causing housing prices to rise beyond forecast expectations. In January EREB forecast that residential sales would remain at last years record levels but that prices would rise 8%. So far this year sales have risen 12.4% and prices are 18% ahead of the same time last year.
“This market is nothing like the 80’s boom,” said Madeline Sarafinchan, EREB President. “Prices are increasing steadily but housing is not overpriced. Mortgage rates remain low and consumer confidence is high.” She added that there is no increase in foreclosures and resale property retains its value because it is priced well below new construction.
Inventory levels for resale housing are lower than typical. The MLS® residential inventory at the end of April was 2,219 as compared to 4,810 last year. As a result sales are animated and buyers are forced to make decisions quickly when they see an attractive property.
Average days on market in April was just 23 days. Slightly slower than March (19 days) but still half of last year’s April figure of 46 days.
The average price* for single family dwellings rose 3.7% over March to $265,557. Condo prices were up 3.6% to $162,565. Average prices on duplexes and rowhouses finally topped $200,000 at $221,941 up from $193,000 last month.
The average residential price hit a new all time high of $226,846 in April (up 3.0% from the previous month).
Over 40% of single family homes on MLS® sold at or over the list price in April. “In the market today you need to have a sophisticated pricing and negotiation strategy,” said Sarafinchan. Last April less than 15% of sales met or exceeded the list price. “Solid, reliable information about recent sales and neighbourhood trends can only be obtained from your REALTOR® who has records of 91% of the residential sales in Edmonton.”
Complete Article @ http://www.ereb.com/marketactivity/April2006.html
GST cuts will impact both residential and commercial property sales.
Edmonton, May 4, 2006: The one per cent reduction in the GST announced in the federal budget will have an impact on commercial real estate transactions after July first.
“A reduction in the GST rate is also good news for anyone who buys or leases a commercial property,” says Mark Thiessen, the Winnipeg REALTOR® who is also Chair of the National Commercial Council of The Canadian Real Estate Association.
Keith Morrissey, Commercial Division Manager of the Edmonton Real Estate Board explains that when the GST was introduced, it immediately added seven per cent to the costs of occupancy of leased premises. “It also added seven per cent to the purchase price of commercial real estate, or value proportion thereof for commercial and residential mixed properties. This is extremely important to note for businesses that do not collect GST, as this is a direct cost.”
The federal budget announced that the one per cent reduction in the GST will take effect July 1. If the property is not transferred until after that date, a six per cent GST rate will apply.
Commercial REALTORS® were disappointed that the federal budget did not address the government’s election promise to introduce a rollover of capital gains tax on the sale of assets when the proceeds are reinvested within six months. “We appreciate that everything can’t be done in one budget,” said Morrissey. “We expected some assurances in the budget document that the government will deliver on this promise.”
“The Canadian Real Estate Association has conducted extensive research on the benefits of a rollover of capital gains tax to small-scale investment in real estate,” Thiessen added. “We look forward to working with the federal government on the design of a capital gains reinvestment plan that will provide broad economic benefits.”
Edmonton, May 4, 2006: The one per cent reduction in the GST announced in the federal budget will have an impact on commercial real estate transactions after July first.
“A reduction in the GST rate is also good news for anyone who buys or leases a commercial property,” says Mark Thiessen, the Winnipeg REALTOR® who is also Chair of the National Commercial Council of The Canadian Real Estate Association.
Keith Morrissey, Commercial Division Manager of the Edmonton Real Estate Board explains that when the GST was introduced, it immediately added seven per cent to the costs of occupancy of leased premises. “It also added seven per cent to the purchase price of commercial real estate, or value proportion thereof for commercial and residential mixed properties. This is extremely important to note for businesses that do not collect GST, as this is a direct cost.”
The federal budget announced that the one per cent reduction in the GST will take effect July 1. If the property is not transferred until after that date, a six per cent GST rate will apply.
Commercial REALTORS® were disappointed that the federal budget did not address the government’s election promise to introduce a rollover of capital gains tax on the sale of assets when the proceeds are reinvested within six months. “We appreciate that everything can’t be done in one budget,” said Morrissey. “We expected some assurances in the budget document that the government will deliver on this promise.”
“The Canadian Real Estate Association has conducted extensive research on the benefits of a rollover of capital gains tax to small-scale investment in real estate,” Thiessen added. “We look forward to working with the federal government on the design of a capital gains reinvestment plan that will provide broad economic benefits.”
Current Mortgage Rates
Rates Effective May 23, 2006 and subject to change.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
MORTGAGE RATES
TERM / MARKET RATE* / BEST RATE†
6 month 6.10% 5.55%
1 year closed 6.25% 5.15%
2 year closed 6.35% 5.20%
3 year closed 6.45% 5.30%
4 year closed 6.55% 5.30%
5 year closed 6.75% 5.30%
6 year closed 6.55% 5.50%
7 year closed 7.15% 5.40%
10 year closed 7.35% 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 4.85% !!!!
Bank Prime Lending Rate is currently 5.75%.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.
For more details please call him at (780) 440-9313
Rates Effective May 23, 2006 and subject to change.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
MORTGAGE RATES
TERM / MARKET RATE* / BEST RATE†
6 month 6.10% 5.55%
1 year closed 6.25% 5.15%
2 year closed 6.35% 5.20%
3 year closed 6.45% 5.30%
4 year closed 6.55% 5.30%
5 year closed 6.75% 5.30%
6 year closed 6.55% 5.50%
7 year closed 7.15% 5.40%
10 year closed 7.35% 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 4.85% !!!!
Bank Prime Lending Rate is currently 5.75%.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.
For more details please call him at (780) 440-9313
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