RE/MAX Edmonton Real Estate News

Major media outlets are reporting on the RBC Economics “Housing Trends and Affordability Report” released this past week, dissecting the information to glean what it could mean for the economic future of the Canadian real estate market. The report, proving most promising to Alberta buyers, showed a softening market in the region.

As explained by RBC, the aim of the report is to “capture the proportion of median pre-tax household income required to service the cost of a mortgage on an existing housing unit at going market prices, including principal and interest, property taxes and utilities.” Essentially it details to Canadians the state of the economy in major markets and how that stacks up against real estate trends of the same area.

Chart from RBC’s report showing nationwide affordability change over the past 30 years.

The report initially highlights declining oil and gas prices as a key influence in real estate trends, especially in regions like Alberta, where there is a strong economic reliance on those primary industries.

As stated by RBC,

We had previously reported last winter during February’s oil skid on the market’s ability to remain immune, with residential sales figures continuing to rise or at very least stabilizing. Now, nearly six months later, we are only starting to see the effect of one industry over another.

Chart contrasting nationwide affordability with provincial level rates.

The slight market decline currently underway in Alberta is creating an ideal climate for homebuyers with the Edmonton and Calgary areas “show[ing] the biggest improvement in affordability in the first quarter”.

RBC also attributes mortgage cuts, starting early in 2015, to the steadying of markets through the early stages of the oil skid, as it created affordability for buyers in the face of skyrocketing sale prices and a declining economy.

In the province, it was reported that RBC’s affordability measures fell by 1% for two-storey homes, 0.7% for bungalows and 0.6% for condominiums. It is indicated by RBC that these levels are “attractive” when compared both historically and cross provincially, and strongly suggest a stabilizing of real estate activity.

Overall, RBC is expecting that “balanced demand-supply conditions in the majority of local markets will continue to support generally modest price increases and fairly stable levels of affordability. The likelihood of small price declines in markets dependent on the oil industry suggests that home ownership costs may fall further in Alberta”.

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The Edmonton Real Estate Board has released their sales statistics for May, and while not totally unpredictable, they shows an interesting mix of trends. Though previous months coming into spring have all been strongly affected by inventory, this major factor has started to stabilize in the face of rising list prices.

Though the city currently has nearly 30% more residential properties listed, the market has begun to show signs of plateauing in this trend– which showed a 2% decrease in new listings this May compared to the same time last year.  Now, well into June, this slight decline is expected to continue into the later summer months.

Days on market is a key factor in this slowing trend. With previously skyrocketing inventory, sales were forced to slow, causing an even greater surplus. Now with a saturated market, economy dictated that inventory would eventually begin decreasing.

“As expected, the average days on market is up four days year-over-year and one day over last month at 45. We can expect this number to continue to grow due to slower sales and higher inventory.” describes REALTORS® Association of Edmonton President Geneva Tetrault.

The EREB latest market report details that the May average for days on market was 43 for single family homes, 49 for condominiums, and 45 for row and duplex housing.

However, historically summer is generally the busiest time for real estate, and sales trends are starting to reflect the seasonal change coming into June. May 2015 reported 1,784 residential sales, showing a 12% increase from April 2015. Due to market inventory, year over year trends are still showing decreases in reported sales from the same time last year. Overall residential sales are down 10% when compared with May of  2014, with the exception of duplex and row housing which has increased 4% – likely influenced by Edmonton’s booming infill initiative. Tetrault comments,

“Last month we were down 13% year-over-year in all residential sales. This month we are down less than 10%. We expect this trend of increased sales to continue as confidence in the stability of the market grows.”

Tetrault goes on to explain current sales figures,

“We are still seeing multiple offers in popular price brackets. The fact that we haven’t seen a decline in prices is giving buyers more assurance. They are venturing back into the market with the feeling that prices won’t plummet any time soon.”

Sale prices showed a steady incline well into May, with the overall residential average at $381,111, a 2% increase from the same time last year. Single family dwellings showed a 3% increase whilst condominiums were up 2% year over year. Conversely to inventory sales figures, duplex and row housing showed a slight decline in pricing, down around 2% from May 2014

Tetrault concludes,

“People are continuing to take advantage of low interest rates and a greater selection in the marketplace. We are moving into our busiest season for real estate. Your local REALTOR® can help you find what you are looking for in the neighbourhood that best suits your needs.”

If you are interested in buying or selling an Edmonton property, CLICK HERE to connect with an experienced agent.

Boasting an average of 325 days of sunshine yearly it’s easy to see why Edmonton, the lovingly dubbed ‘Festival City’, thrives in summertime. Throngs of Edmontonians clamour to find any and every reason to celebrate outdoors, taking advantage of the heat (finally!), and twilight that lasts until well past 11 pm.

When you’ve spent a bulk of the year with cabin fever, waiting for snow to melt so you can leave the house in comfort, it’s hard to imagine a better place to emerge than Edmonton. With events, festivals, and cultural activities every day it’s easy to see why so many choose to stay in the city all summer long. Here are just of few of our favourite, and sometimes forgotten, gems to experience this summer in our fair city:

Freewill Shakespeare Festival 

Freewill Shakespeare Festival

Formerly known as the ‘River City Shakespeare Festival’, the newly monikered theatre company is now well into its 27th season. Much to the delight of Edmontonians and our great need to be outside, the company performs every summer at the outdoor Heritage Amphitheatre in Hawrelak Park. Their modern and creative take on old classics create an accessible experience for a wide range of audiences, while the idyllic nature setting makes for an ideal evening out. The company is producing two plays this summer, Coriolanus and As You Like It, running June 23 to July 19th.

Catch a Baseball Game

Edmonton Prospects Baseball Club

Gone are the days of taking in an Edmonton Trappers Game with a few friends in old John Ducey Park, but did you know the city still has a thriving team in the Western Major Baseball League? The Edmonton Prospects are a collegiate summer team that have played out of Telus field since moving there in 2012. With the exception of a handful of away games, you can catch them multiple times per week all summer long, for as little as $14 a person.

Movies on the Square

Scotiabank® Movies on the Square

Every Tuesday in August, Scotiabank^® hosts a free, family friendly, movie night in Churchill Square. The 3 story inflatable screen can be seen from all corners of the square, just bring a chair if you like and take in the outdoor cinematic experience. The first 300 people to arrive even get free popcorn!

Taste of Edmonton

Taste of Edmonton

For 31 years Taste of Edmonton has been one of the City’s most popular summer events. With new fare every year it’s hard for the this festival not to say fresh. Boasting the city’s newest and trendiest eateries, side by side with classic favourites, the festival provides a chance for foodies and non foodies alike to sample Edmonton’s best restaurant offerings all in one place. This year the festival will be held July 22-25 in Centennial Plaza (located at the corner of 100 Street NW and 101a Avenue NW).

Edmonton International Street Performers Festival

Edmonton International Street Performers Festival. Image Credit: Metro News

Renowned in the international theatre scene, the Street Performers Festival is the longest running celebration devoted exclusively to street theatre. Crowds are drawn to music, magicians, children’s and adult entertainers, juggler’s and fire breathers, the list goes on. With something for everyone it’s easy to see why this event has gained such popularity amongst locals and tourists. The festivities can be caught July 3-12 this year in Churchill Square.

Fort Edmonton Park

Fort Edmonton Park

This living history museum captures the glory and grandeur of pioneer life in Edmonton. It is a stunning recreation of the prairie life experienced by settlers and many of our ancestors, presented in an educational yet entertaining way. Hosting special events all throughout the summer, the park truly comes alive. Every Thursday the historic yet fully functioning cinema shows classic films for a fraction of urban theatre prices, additionally you can book a romantic stay at their Hotel Selkirk for the full pioneer experience. Another hi-light includes Opera performances outdoors in the park limited runs. Visit their website to keep up to date on coming events.

Heritage Festival

Heritage Festival

If you’ve ever craved Greek salad, green onion cakes, pyrohy, empanadas, and crepes all in one sitting, this is the place to be. Amazing eats, colourful attire, world music, and traditional dance are just of few of the experiences not to be missed at the Heritage Festival. For 3 days 60 pavilions showcase more than 85 cultural experiences from around the world, right in the heart of the river valley. The Heritage Festival is held August long weekend (1-3rd) in Hawrelak Park.

Take a Dip at an Outdoor Pool

Queen Elizabeth and Kinsmen Spray Park Outdoor Pool

Probably the most relaxing, laid back, and easiest to plan on our list. Soak in the sunshine at one of Edmonton’s four outdoor pools. There are pool toys and games for the kids and refreshing beverages and ice cream for purchase. Queen Elizabeth offers a spray park and sun deck, while Oliver pool boasts a water slide. Visit the City of Edmonton Outdoor Pools page for hours and information.

We can’t possibly include ALL the city’s activities in one article, and many are so much a part of the city they hardly need discussing, yet here are a few of our honourable mentions: Edmonton Folk Music Festival, K-Days, Edmonton International Fringe Theatre Festival, and  the Muttart Conservatory.

Visiting Edmonton? Why not stay awhile? CLICK HERE to contact one of our friendly, experienced agents who can help you find your dream home right here in Festival City.