RE/MAX Edmonton Real Estate News

Housing prices have been resistant to economic decline

In the face of economic downturn there are still expectations that Canadian home prices will continue to rise. It is being reported that while the growth may slow understandably, there is no foreseeable slump in the any of the major real estate markets of Canada.

Despite plummeting oil prices a predicted nationwide appreciation of 2.9 % can be expected on 2015 residential sale prices. The major centers of Toronto and Vancouver are predicted to see increases of as much as 4.5% and 2.8% respectively.

2014 saw prices surpass historical averages; residential detached bungalows rose about 6.7% throughout the nation. Edmonton’s condo market saw the largest nationwide increase at 12.2%, contrasted with the cross-country average of 4.5%.

ATB Financial Chief Economist Todd Hirsch comments on the predictability of the oil markets:

“This happens over and over. In fact, in 2009, we saw a similar price plunge like this and it was quite short-lived and things rebounded…I don’t think we should worry too much because I think it will be quite temporary.”

Alberta in particular has prosperous industry to fall back on, such as agriculture and forestry, which have the potential to thrive in low oil price conditions. Additionally, as reported by the Calgary Herald, Alberta saw a “50 per cent increase in meat product exports last year along with growth in the aerospace, farming and chemicals sectors.”

Pierre Cleroux, Chief Economist with the Business Development Bank of Canada reasons

“Oil of course is the No. 1 export product from Alberta but we often forget that Alberta is also a diversified economy. There’s other sectors that are doing well.”

The real estate market outlook is optimistic due to other economic factors like labour market trends and a continuing surge in demand from homebuyers. At this point the multitude of positive aspects continue to outweigh the decline seen by a deteriorating oil market.

CLICK HERE to search for available Edmonton properties. 

The acclaimations for 2014  continue to roll in and word has been received that RE/MAX LLC has ranked as the #1 Real Estate Franchise according to the latest Franchise Times Top 200 report.

Re/Max Publicist Ronda Scholting explains the highly competitive criteria,

“The exhaustive annual survey is based upon 2013 world-wide sales and growth and includes franchisors from a wide variety of business sectors.”

The report outlines that real estate sales are based on total volume of homes sold.

For the 6th year running Re/max dominates their category, and while worthy of celebration, the honours comes as no surprise to the worldwide real estate powerhouse. The company, ranking twelfth overall, moved up two full slots from the previous year. As a top 20 competitor, Re/Max holds a prestigious spot amongst such franchises as Tim Hortons (#18), Marriott Hotels & Resorts (#11), and McDonald’s, who secured the number one slot on the list.

The astonishing jump from position 14 to 12 in just a year can be attributed to incredible sales growth. The 15.6% increase seen this year is more than triple that of nearly any of the top ten franchise’s reported numbers.

As far as industry competition goes, Re/Max certainly doesn’t need to be watching their back, according to the internal press release, “The closest real estate franchises were ranked #28 and #45.”

Additionally, the company made the top ten cut for sales growth, securing the #2 position in the ‘Fastest Growing Franchise‘ category, second only to Circle K.

Re/Max CEO Margaret Kelly has a straightforward approach to franchising.

Re/Max CEO Margaret Kelly commented on the straightforward nature of the company’s enduring success:

“Our philosophy at RE/MAX has always been very simple. Attract new franchisees by providing support services and competitive advantages that help them succeed. It’s why we continue to grow, innovate and evolve.”

CLICK HERE to read about Re/Max Edmonton agents and homes for sale.

In early fall our sister blog at Re/Max North posted the Infill Trend detailing the current influx of residential development in the city. This trend is in response to skyrocketing population growth in Alberta, as well as the rest of Canada.

This issue is far from resolved, according to recent reports by Canadian Real Estate Magazine, stating that within the next 3 decades “Canada will actually need another 4.5 million homes for incoming generations”. Historical predictions were proven inaccurate when baby boomers continued to stay in their residences, rather than an expected mass exodus, causing a previously unforeseen housing shortage.

City Official Peter Ohm Discusses Infill Initiatives. Image Credit: Metro News

The City of Edmonton took initiative when implementing the “Evolving Infill” plan to create more residential space in existing established neighbourhoods. However, with any project there are bumps along the way. The city has recently created a ‘compliance team’, as reported by the Edmonton Journal, to physically inspect infill projects, assuring they are built according to permit guidelines. The inspections are necessary before new tenants can take up residency. According to City Councillor Michael Walters:

“The compliance team is needed to win public support for further infill housing”.

This is necessary based on the public mistrust created when community members felt corners were being cut on projects being rushed to completion.

Edmonton Infill Projects. Image Credit: John Lucas, Edmonton Journal

The Journal reports on the process:

  “the new six-member team will visit all new developments in existing low-density neighbourhoods to ensure the infill house was built according to the development permit approved by the city.”

Issues arose due of the complaint-driven nature of the currents development compliance system, meaning a neighbour or concerned bystander would have to call to report an issue with a project before its investigation. The new compliance team takes a proactive approach to the system, which addresses the public concern over previous rule bending by developers.

If you are looking to develop or become a homeowner CLICK HERE to search for properties currently available.

Re/Max has release their annual ‘Housing Market Outlook Report’ forecasting what 2015 has in store for Canadian markets, as well as the after-effects from the past year.

All regions of the nation are presently showing gains in price, and many showed increases in all categories of inventory. Edmonton and Calgary, alongside Toronto and Vancouver, have been highlighted as major areas of growth. Expectations based on current trends are for housing prices to either plateau or rise moderately, with no expectations of any decreases on the horizon.

Factors to be accounted for in 2015 include a projected GDP rise of 2.5%, as predicted by the Bank of Canada, along with minor increases in employment rates and wages, as well as a nationwide population increase of between 260-285,000 new permanent residents. These economic elements are all expected to have a positive impact on upcoming real estate trends.

Economic factors to consider in 2015. Credit: Remax Outlook Report

We can see these major trends echoed in the Edmonton market specifically, as well as the contribution of it’s own unique factors, such as an increase in westward migration. The report estimates around 30,000 new residents have settled into Edmonton’s census metropolitan area in the past year, increasing housing demands by about 10%. This pressure on supply has caused buyers to consider higher price points, and caused exponential growth in the condominium market.

Along with condo sales and development, the other burgeoning Edmonton market not to be ignored is the luxury homes category, which saw sales records broken each year for the past three years. According to the document,

“the Realtors Association of Edmonton reported a 29 per cent increase in sales over $1 million compared to last year.”

The popularity of homes over $1 million are the trend to be watching in the new year. There is also an expectation for headway on mixed-use community developments with “residential, retail and commercial components” which will be considered priority for the new, younger demographic of citizens as the provinces average age continues to decrease. Sale prices in the city are predicted to steadily climb, about 4 %, with similar levels of inventory expected to be maintained.

CLICK HERE to view properties available for sale in your area. The extensive 38 page report can be viewed HERE in its entirety as a PDF.

The EREB has released their latest market report, and the last one we will see for the year.

As 2014 is comes to a close the Edmonton real estate market has slowed only negligibly and remains resilient despite expected seasonal cooling. Market spikes showed some plateauing throughout November, but REALTORS® Association of Edmonton President Greg Steele assures us,

 “The housing market has been very strong and robust this year. We are expecting to see continued growth in housing sales for some time, but at a slower and more stable pace.”

Dropping temperatures in the city aren’t stopping motivated sellers this winter. Image Credit: Hendrik Slegtenhorst

According to MLS figures the average residential sales price for November was $381,371,  showing an increase of over 4% from the previous month, and an almost 10% growth in year-over-year comparisons. Single family dwellings averaged out at $442,884 for November (a 3.76% rise) however condominiums showed a minimal 2% sale price drop to $255,167, which is still a 5.3% price increase from the previous year. Total residential sales are up 11% from November of 2013. 

While sale prices remain strong, inventory saw a decrease as fall came to a close, with 1137 properties sold in November in contrast to 1505 sales in October. Total inventory is down 12%, however the year-over-year decrease is only about 4%. The benefit to this slight drop in supply has been the decrease in total days on market as buyers snap up residential listings. Last year at this time we saw on average 57 days on market, whereas this past November residences were sold in an average of 54 days. Edmonton condominiums, with an average of only 12 days on the market, are exceeding expectations in this category possibly due to the minor drop in prices we have seen recently. 

Steele remains confident in the market as we come into the new year,

“It has been a great year for Real Estate. As we do every year, we expect things to cool off as the temperature drops, but we always have new homes listed and sold over the winter months. People move when life happens, which does not necessarily correlate with warm weather.”

CLICK HERE to search for available properties in the Edmonton area or to connect with a local realtor. 

“We’re looking at the T-Rex of winters.”

That is the catch phrase flying around after Jack Burnett, editor of the Old Farmers Almanac, likened our upcoming season to history’s most savage predator. He must not have realized he was addressing Edmonton’s hardy and unflinching masses, where life carries on, the work never stops, and much to the dismay of youngsters school is always open no matter the weather.

Wintertime in YEG. Credit: Laura Danielle Photography

However, in the face of a long winter that’s predicted to be even colder and snowier than we are accustomed to it’s better to be prepared than to be stubborn. These ten cost effective tips will help save on energy bills, even in a T-Rex winter:

1. Cover your windows with plastic.

Older or inefficient windows cause hot air leaks to the outdoors and will end up costing a bundle. Bubble wrap is even better than regular plastic wrap, because of the added insulation of the air pockets.

2. Add a door sweep to all exterior doors.

Not only do they keep heat in but they keep the wet and damp out. They can be easily installed and Home Depot sells a variety of styles, most for less than $10.

3. Reverse Ceiling fan directions.

As we all learned in science class heat rises. There’s no use paying for the furnace to warm your whole house just for all that heat to settle up in the rafters.  Changing fan direction recirculates the warm air pumped out by your furnace and pushes it down into the living spaces.

4. Move furniture away from your vents.

Does it get any easier than that? Move armchair 6 inches to left for the winter, stay warm, save a bundle.

 5. Put a fan near your older radiator.

Radiators are great for creating heat, but not so great at circulating it. A nearby fan facing an opportune direction will help properly distribute all that warmth you’re paying for.

6. Close off any rooms you don’t use.

Storage room of needless items? Guest bedroom with no guests? Close the door, close the vent, close the window. Done. You’ll wonder why you bothered heating all that unused space in the first place.

7. Make use of that decorative fireplace. 

That hipster focal point that came with house is more than just a mantle for vintage books and busts of Beethoven…light that baby up! It’s completely free to use, just don’t forget to chop a few logs over the fall (your biceps could probably use the workout anyways).

 8. Open south and west facing curtains during the day.

Instead of paying for all that heat, why not use the sun. It not only provides free light, but free heat. Opening south and west window coverings in the day will allow your house to absorb as much warmth as possible, while closing them at night traps that heat in.

9. Insultate your water heater.

For about $30 you can buy a water heater insulation blanket and install it yourself in a jiffy. Here are 2 and a half minutes of helpful installation instructions:

10. Clean your gutters.

It’s high up and seems like worst job in the world but ice dams are a disaster.  Cold rain and snow combine with debris and can form ice dams that clog. This will lead to leaks inside the home. Leaks and cold weather are never a good thing. Scratch that. Leaks anytime ever are never a good thing.

These tips are relatively cost  and time efficient, meaning you should be able to get it all done on a day off and on a budget. Don’t forget there’s still time to get your house sold or a new house bought before the cold hits harder! CLICK HERE to search for properties in the area of your choosing. 

For many this Halloween holiday season will be their first in a house. With sales rates at an all time high this summer, many buyers made the leap from condo or apartment to a home of their own. This means the opportunity to participate in the festivities by decorating, party hosting, or the time honoured tradition of handing out candy.

For seasoned veterens with a backlog of decorations this task may not loom so large on the horizon, but it can be daunting for the rookies with no idea where to start. These links to the cutest and kitschiest party and decorating tips will leave you with a spooktacular house this Halloween without haunting your bank account:

1. Ping Pong Ball Ghost Lights 

This is seriously easy and inexpensive. Ping Pong balls sell for $3 at Canadian Tire. And you probably already have Christmas lights and a sharpie lying around somewhere right?

2. Severed Finger Party Invitation

Gory, yet strangely artistic, Martha Stewart would never lead you astray. This simple project will make everyone want to RSVP to your holiday event.

3. Haunted House Silhouettes

One of the easiest, and most inexpensive ways to haunt up your house with no artistic skill required! Additionally, this website provides more scary and unique free printable silhouettes to add to this project!

4. Crisp Candy-Corn Treats

This recipe is a win-win. Let’s face it, nobody really likes candy corn, so why not make it into a delicious childhood favourite.

5. Wall Spiderweb

As the instructions insist, all TWO items for this project can be bought at the dollar store, but you would never guess this adorable decor was made on a budget.

666. Glowing Eyes

If you’ve been earth conscious this year and saved up all your old cardboard paper rolls this project can be done in a snap.

7. Bloody Shirley Temples

This party cocktail is simple to make, provides the sugar rush that Halloween is all about, and is alcohol-free for the kiddies.

There’s still time to start looking for a home before the mini-monsters come knocking, CLICK HERE to look for available properties in the area of your choice!

It is a common expectation for real estate sales to boom in the spring and summer and to then see buyers and sellers retreat for the autumn and winter months. Though certain years have proven to this to be occasionally true, September sales figures show the Edmonton region remaining very strong as it enters the fall season. According to REALTORS® Association of Edmonton president Greg Steele:

“There is a false idea out there that people only buy houses in the spring and summer. People buy and sell their houses when the time is right for them. Consulting with your local REALTOR® is the best way to see if the time is right for you.”

Expectations should remain high as we move towards the winter sales season. There is no reason to believe the economy within the industry will weaken anytime soon, based on recent statistics provided by the EREB. Averages appear to have remained the same, or even increased in some circumstances. Days on market have remained stable (at 49 days on average) carrying over from August to September, while prices, listings, and sales are all up when compared with September of last year.

For pricing details, click the following sales chart to expand:

Changes in the price of various residence styles showed negligible differences, with single family dwellings dropping a mere 0.4%, while duplex and row houses increased 0.3%. Sales of single family dwellings increased from August to September showing almost a 5% increase in total number sold.

Out of 2291 residences listed over the month, 1568 of those were reported sold. Steele commented that “we normally see a decrease in sales and average price when fall arrives. The strong market we saw in August continued on into September with surprisingly little to no changes in prices.”

Into our fall season interested buyers are continuing to snap up houses as quickly as they are listed while sellers continue to list their homes in record numbers. Click Here to view recent listings in your neighbourhood, or find an agent to help sell your home this October. 

Edmonton’s real estate market is holding strong as it comes into fall, however a rising market also means  larger price tags on residential and commercial properties. Current and prospective homebuyers can take comfort in their investments however, as statistics are showing the Edmonton market to be one of the most affordable in Alberta.

A recent article posted by Global Edmonton targeting the competitive nature of the Calgary and Edmonton real estate markets uses sales figures to show Edmonton in a clear win situation when comparing affordable housing prices. Additionally the Calgary Herald has made mention of record high prices in the large southern Alberta city.

Residences in Edmonton are Readily Available to Home Buyers. Image Credit: Global Edmonton

Calgary has seen a 10.48 % increase since the same time last year, nearly double the national average. When comparing 11 major centres across the country, the sales figures increase was about 5.33% on average, according to the MLS Home Price Index. Additionally price growth percentage in Calgary has increased 25% over the past 3 years, while nationally that number is hovering around 12.5%.

Economist Leslie Preston (TD Bank) explains the situation down south:

“Existing home prices . . . are on track to outstrip income growth for a second straight year in 2014, which adds to concerns about an already-overpriced market. Affordability, even at low interest rates, has become an obstacle in many markets.”

Global News reports that coming in to winter the average home price in Calgary will be approximately $99,000 higher than that of Edmonton, and about $103,000 in the new year. According to Edmonton’s Chief Economist John Rose:

“When you look at housing affordability issues, Edmonton is actually – among Canada’s major metropolitan areas – one of the most affordable in terms of housing. You have to bear in mind that incomes in Edmonton are about 20 per cent above the national average.”

The affordability and availability of housing in Edmonton can account for the latest population influx in the area, and the strong economic upturn, especially in the real estate industry. Click Here to search for properties for sale in the Edmonton area.

There’s a chill in the air in Edmonton, and it may be safe to say summer is over. On that (slightly sour) note let’s take a look at residential real estate sales over the summer months in Edmonton.

Fresh from all-time highs in spring, prices dipped a little over the summer months beginning in mid to late June, providing some relief to potential home buyers. Single-Family dwellings saw a slight decrease in average price, with July costs around $426,716. That shows just a  2% drop from June sales, with total residential sales showing an average price drop of around 2.6%.

Total Sales Statistics-Residential.

Interestingly, the changes in Condominum prices were quite negligible differences, seemingly unaffected by market influences.

Condominium Sales Statistics

Though prices are showing a temporary lull, there is still an overall trend of increased sales figures. REALTORS® Association President Greg Steele weighs in on the changes:

“Like the shortening summer days and the appearance of fall fashions, real estate prices begin to soften at this time of year. Despite the seasonal slide, prices in the Edmonton area are still up when compared to the same month last year. The local market continues to be very active and REALTORS® report having a busy month.”  

 

Single-Family Dwelling Statistics.

Steele has quite accurately described the seeming dip in the trend, whereas housing prices have the appearance of dropping, they are  statistically still showing an increase from the same time last year. Overall residential prices were up 3.3% from 2013, with the single-family dwelling up almost 4%. The most marked year-over-year upsurge appeared in condo prices, which are gaining increasing popularity in the city as a more viable residence option, showing an increase of about 4.6% from last summer.

Along with a sale price increases, total overall transactions are skyrocketing as buyers become more eager to invest in Edmonton’s booming real estate market. July saw the sale of 2,013 residences (639 of them condominium units); a 9.7 % increase from the 1,835 residences sold in July of 2013.

Steele also addressed this influx of transactions:

“The demand for real estate remains strong and in line with other market fundamentals. Fortunately, year-to-date listings are also up compared to last year and there is adequate supply with over 5,600 residential properties in inventory.”

Homes in June on average were selling in about 41 days, and in about 46 days for July.

Click here to create a custom property search for Edmonton and the surrounding area or visit our Market Stats page for more details and the most up-to-date numbers!