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
Monday, May 29, 2006
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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