RE/MAX Edmonton Real Estate News

Though August 2015 sales statistics show a slight decrease of about 0.2% in average residential home prices in month over month comparisons, prices have actually increased since this time last year, but only about 1%. Geneva Tetrault, Chair of the REALTORS® Association of Edmonton explains the comparatively plateauing market,

“Edmonton continues to experience a relatively stable market with respect to year-over-year prices.  A slower pace of sales, combined with growing inventories, are creating favourable conditions for entering the Edmonton market.”

In the single family home category, listings were selling for an average of $439,829 up both from the month previous and year over year, but both increases by only a percentage point or less. The total average for all residential categories was $372,254, showing a 0.2% month over month decrease, but up 1% since last summer’s numbers.

The EREB has stated that “sales continue to lag behind last year” but have emphasized that duplex/rowhouses have managed to remained somewhat economically immune. This invulnerability has been attributed to the abundance of availability in this category of residence, which has been a popular choice amongst builders and developers after the city’s recent emphasis on the necessity for infill projects. Sales are up 1.7% and prices are up 1.53% since this time last year for duplex and row houses. On the other end of the spectrum, condominiums are experiencing the largest decline in sales and average prices year over year, down 7.7% and 2.8% respectively.

“While there is no doubt that oil prices and the resulting economic slowdown have impacted the housing market, Edmonton has been able to weather these changes better than other Alberta markets.” Explains an optimistic Tetrault. “New developments and projects both in the city and outlying areas have kept the housing market moving.”

On the listing front, inventory numbers continue to surprise and impress. Though residential listings are down 6.3% from last month, they are up a whopping 26.9% compared with August of last year. The EREB is reporting just under 5 months supply of inventory currently in the Edmonton CMA with 7,227 listings, a 35% from last summer.

“We have a great selection of inventory this year, a luxury we did not have last year. Sellers may have to wait a little longer to sell their houses but they should still be getting a good price for their house. Buyers can take more time to select their home and have more choice than they would have last year.”

Residential sales saw a decrease of about 5.6% year over year, with single family homes specifically down 4.3%. Days on market was up in August to an average of 54. Single family homes DOM rose to 52, up from July’s 48. Condominiums averaged 56 days, just two more from the month previous, and duplex/rowhouses averaged about 52 days to sell.

Cooler nights and falling leaves all suggest summer in the city is quickly drawing to a close. Edmontonians are acutely aware just how little of the season we get to experience but also how to best take advantage of what we do get. If you feel like you’ve dwindled the summer away, fear not, we’ve compiled a list of not-to-be-missed events happening all week long. So take advantage of the last days of August, grab grandma, the dog, and the kiddos, and make the most of hot summer in the city!

Today: Movies on the Square. The City of Edmonton in collaboration with Direct Energy has been putting on free movies all summer long. You’re just in time to catch the last one of the season. Pitch Perfect 2 will be screening tonight, outdoors, in Churchill square. Entertainment in the square begins at 7 and movies begin at dusk. Bring a lawn chair!

Movies on the Square at Churchill Square

Wednesday: Qualico Patio Series. Enjoy the view over Broadmoor Lake as you lounge on the patio at Festival Place, taking in the sights and sounds of two spectacular and eclectic music acts in an intimate setting. This week features country locals ‘The Moanin After’ contrasted with the Cuban stylings of ‘The Marco Claveria Project’. Don’t forget about the beers and BBQ to boot!

Qualico Patio Series at Festival Place

Thursday: John Janzen Family Bonfire. Bring the family down to the river valley from 7 to 8:30 pm and shake off that looming Autumn chill with a free bonfire at the nature centre. Discuss topics like bees, birch, and bats with knowledgeable staff members. Once again, bring a lawn chair!

John Janzen Nature Centre

Friday: Eskimos VS Argonauts. Show some hometown pride and see if the ‘City of Champions’ moniker holds up when the Edmonton Eskimos take on the Toronto Argonauts this Friday at Commonwealth Stadium. The Eskimos, currently ranking second after Calgary in the West Division, will start Rookie quarterback James Franklin at Friday’s game. This will technically be his first start in the CFL, an occasion not to be missed.

James Franklin of the Edmonton Eskimos. Image courtesy of Esks.com

Saturday: Dogs with Wings Fundraising Fun Day. A farewell to summer party is being hosted by Dogs with Wings, an outstanding organization striving to train and provide assistance dogs for persons with disabilities. Their event is free but they will be accepting donations on site and all proceeds from sales will go to the organization. Free activities include a petting zoo, bouncy castle, crafts, dog demos and more. There will also be a huge garage sale on site! A jam-packed day of fun with the family while raising money for charity? Sounds like a win-win!

Dogs with Wings Assistance Dog Society

Sunday: The Great Big Family Picnic. At the Devonian Botanic Garden from 11-3 on Sunday, take a jaunt outside the city to spend some quality time in the great outdoors with friends ad family. You are welcome to bring your own food, and there will be lunch for purchase at the grounds. Naturalists will be hosting activities at Calla Pond, as well as children’s crafts, and family games.

Japanese Garden at the Devonian

Monday: Ghostly Walk Through Old Strathcona. The last night of August deserves to go out with a bang, or rather a Boo! Why not say farewell to the season with an eerie stroll around the cultural heart of Edmonton. An experienced veteran of storytelling will take you to buildings, houses, and shops, all with ghostly legends in their history including hauntings, murders, and mysteries. Tours begin at 9pm and are a bargain at $10 per person.

Ghost Tour Group Gathers at Orange Hall

Due to 2015’s ongoing rise in sales inventory there has been a foreseeable lowering of real estate prices this past July. While June saw continued rises in homes on the market, only a moderate price dip meant figures still remained higher than compared to the same time last year.

The EREB’s latest market report published last week indicates that July finally saw the impact of inventory catching up to list and sale prices. While all average residential prices were down in month over month comparisons, the most significant impact was to single-family homes, with other categories remained largely unaffected.

EREB reports have indicated that, while still falling somewhat, average prices have likely remained stronger than expected due to the abundance of high priced properties, which began impacting the market last year. So far this year 73 homes have been sold on the market all with price tags over the million dollar mark, which is the same figure as we saw by this time in 2014.

Residential list price ended up averaging $372,910, dropping 1.4% from June. Single-family homes were the biggest catalyst in that average, showing a 1.8% decrease down to $436,948. Contrarily, duplex/row houses saw an increase of 1.4% to $356,237 and condominiums, at $256,708, saw a negligible 0.4% rise. When compared to year over year averages prices were still 3.3% higher than July of last year, despite pressures cause by inventory surpluses.

“This small dip in prices is expected due to our higher inventory and lower sales numbers. We continue to be surprised by how strong prices have been this year compared to last when we had higher sales and very tight inventory. The ‘wait and see’ attitude of buyers seems to be diminishing, but people continue to be cautious,” explains Geneva Tetreault, Chair of the REALTORS® Association of Edmonton.

By the end of July, inventory in the city’s census metropolitan area had reached 7,226 properties, which was only slightly higher than the 7,177 listings on the market at the end of June. However this is a significant upswing when compared the same time last year, with inventory in July of 2014 at 5,609.

Another result of the current market environment has been an increase in average days on market, indicative of a slowing in residential sales. July sales dropped 9.8% from June, and 2.8% in year over year comparisons. The average home spent 50 days on the market in July, up from 46 in 2014. While row houses spent the fewest number of days (43), followed by single-family dwellings (48), the largest slowing was seen in the condominium category, averaging 54 days on the market.

“We have seen the biggest drop in condominium sales year to date at 14%. That drop coupled with an increase of condo listings of 17% explains why condos are taking longer on average to sell. Some of these buyers may be moving over to duplex/townhouse options which is the only residential category showing an increase of sales of 6% year to date.” Tetreault continues, “We are seeing the effects of many condominium projects that broke ground when inventory was coming onto the market recently. Condominiums continue to offer the best price point for those entering the housing market and the ease of care and smaller size that appeal to an older demographic.”

Interesting in buying or selling in the Edmonton area? CLICK HERE to speak with an experienced real estate professional.

Rendering of the completed public plaza.

In early spring our blog focused on the revitalization projects in Edmonton’s core, highlighting three of downtown’s new up and upcoming districts, including the Brewery District, the Warehouse District, and the formerly titled ‘Edmonton Arena District’. Today we are focusing on the arena district’s shiny new public image and all the amenities the area will have to offer in the coming years.

An aggressive new public rebranding campaign is in full swing, complete with a flashy new name ‘Ice District’ and of course the corresponding hashtag (#icedistric), dubbed so by Katz Group Chairman Daryl Katz. The new name and image was agreed upon but the Katz group, stakeholders, and focus groups, and has thus far been well received by Edmontonians, who are more than aware of the city’s longtime associations with the cold and winter.

The Edmonton Journal reports that Bob Nicholson, CEO and vice-chair of the Oilers Entertainment Group, had this to say about the new branding that he has put his support behind:

“The Ice District really represents winter, winter sport and hockey. When you look at Edmonton, we’re a northern city. Ice District – it’s crisp and clean and it’s somewhere that people are going to come in the middle of winter”

Street view of Rogers Place

He goes on to explain the move away from the area’s former moniker, “When you look at the Edmonton Arena District, it was about the arena. No question, Rogers Arena is a big part of that but Ice District is about the whole district.”

The chilly sentiment resonates with city council, who aren’t looking to distance the city from such a reputation but rather embrace our climate, as voice by Councillor Scott McKeen. “It does refer to our winterness,” he said. “Council has really been pushing the idea that we do not have to apologize for being a winter city and we need to learn ways to honour and exploit that. I love that it ties in with that and it’s not a corporate name.”

The $2.5 billion expansion will encompass 25 acres of the Edmonton city centre and the initial stages, including the arena itself will be complete in fall of 2016, which second and third stages following suit in the years to come, and a full completion estimated for 2020.

The following promotional video has been used to build buzz and excitement for the many new projects currently underway for the area:

The staggering list of future developments include but are not limited to:

• Rogers Place –A 20,000 person sports and entertainment venue. The most advanced in North America.
• Grand Villa Edmonton Casino– Vegas worthy gaming, dining, and entertainment
• Cinaplex UltraAVX and VIP Cinemas
• State of the art office towers –both achieving LEED Gold Standards, one will be Edmonton’s tallest and will encompass 1.3 Million square feet of office space.
• Luxury hotel – touted as ‘Downtown’s first four-star hotel in 30 years” it will house 360 suites, a luxuy pool, terrace, fitness amenities, and a 24,000 square foot ballroom
• Public plaza -50,000 square feet of community space for concerts, festivals, skating, seasonal events and programming
• Premium residences
• Macewan LRT station

The promotional website icedistrict.com lauds the project as “a development fuelled by the optimism of what Edmonton can be”, describing the area as “one of the most advanced sports and entertainment venues in North America, a humming public plaza, sophisticated living and AAA office space all in one location. A place to cheer, a place to celebrate, a place you’ll never forget.”

Strathearn Drive Home in Edmonton

According to reports released by EREB earlier this month, the most notable real estate sale statistic has been June’s increase in year-over-year sales. This is the first instance we have seen this year of monthly reported sales eclipsing those of 2014.

While June of 2014 saw a reported 1961 residences sold in the Edmonton census metropolitan area, this year the market saw 2008 homes sold,  a small increase of 2.4%. The breakdown of residential property styles sold shows an overwhelming popularity of duplex/row houses, of which sales increased over 11% from this time last year, followed by single family dwellings at 2.1%, and finally condominiums with the smallest change at 1.6%. The largest statistical change reported for the month of June were the increase in sales from the previous month of May 2015 showing a 13% growth.

However, though EREB acknowledges that this shows clear market growth, the fact we are seeing this year over year increase so late in 2015 is largely indicative of an overall slowing of the market, which we are only now seeing the results of.

“The reality of what we are seeing in the market is that the slight hesitation from buyers that came with the drop in oil prices is lessening. Edmonton has not been hit nearly as bad as what many predicted and buyers are becoming more confident that our market won’t plummet. This renewed confidence coupled with low mortgage rates and a healthy selection means that people are realizing that this is still a good time to buy.” Explains REALTORS® Association of Edmonton President Geneva Tetreault.

Inventory, which so heavily influenced late spring and early summer market numbers, remains high with 7177 listings on the market at the end of June, though likely due to higher june sales figures, is still less than the 7303 reported at the end of May 2015. Inventory continues to remain higher in year over year comparisons, up 7.7%.

As far as pricing, which has seemingly been unaffected by high inventory numbers, we’ve seen only a 0.8% drop from the month previous for all residential listing costs. Single family homes have seen a 2% increase in year over year figures, currently averaging $444, 862. The same 2% increase was seen in duplex/rowhouses, despite their rising popularity, while condominiums are showing no change at $255, 662 on average. 

“We finally saw prices take the expected small dip month over month that we have been waiting to see due to lower sales and higher inventory. Prices still remain higher than the same time last year and with sales ramping up again and inventory starting to settle, we likely won’t see our prices drop much more than this,” explains Tetreault.

Lastly there has been a slight increase in average days on market; residential properties in general spent an average 49 days on the market. Condominiums had the highest report DOM at 52, followed by the 50 days for Duplex/rowhouses, and 46 for single family homes (up from 43). These increases have likely been influenced by the combination of sale prices and inventory surpluses.

“People move when their lifestyle warrants a change. This will always be true. There are always buyers and sellers, no matter what the market looks like or what analysts predict. REALTORS® are here to help you decide what move is best for you.” Concludes Tetrault.

CLICK HERE to search for a property or find out about listing your home with our qualified realtors. 

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”.

CLICK HERE to contact an Edmonton and area Real Estate professional.

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.

The Canada Mortgage and Housing Corporation (CMHC) has recently reported on updated results of their House Price Analysis and Assessment (HPAA) framework. According the CMHC, the analyses attempts to “detect the presence of problematic conditions in Canadian housing markets”. These conditions can range from factors like overbuilding, and overvaluation, to acceleration of home prices, and overheating. The article backgrounder found HERE explains in detail the rubric used in the study.

The CMHC article explains further:

“The HPAA is a comprehensive framework that is designed to assess housing market conditions by taking into consideration the economic, financial and demographic drivers of housing markets. The use of multiple indicators of housing conditions, which incorporate various data sources and prices measures, provides a robust picture of overall housing market conditions.”

The study, which was originally published in November of 2014, reviews the market on both a national level overall, as well as focusing on the major influential centres of Vancouver, Calgary, Edmonton, Toronto, Ottawa, Montreal, Québec and Halifax.

The HPAA considers the incidence, intensity and persistence of these four main risk factors that may provide an early indication of the potential for a sharp decline in house prices.

The CMHC concluded in the original report that there was a “modest” overvaluation on a national scale, with that condition persisting in some census metropolitan areas more than others. Edmonton and Calgary were not present amongst the CMA’s listed for overvaluation, showed no indication of overheating, and presented no risk of acceleration.

Late this spring the framework was revisited, as reported by the EREB, to provide an update on the landscape of the Canadian real estate market. Edmonton again fared surprisingly well in the face of a booming market, risk assessments being categorized as “low” overall. Calgary has apparently been showing indicators of overvaluation, however the CMHC goes on to explain that the Alberta’s economic boom and bust cycles are tending to naturally govern problematic factors:

“MLS^® sales have declined in recent months in [Edmonton and Calgary], pushing the sales-to-new listings ratio to buyers’ market levels, reflecting the impact of lower oil prices on housing demand in these oil-producing centres. This is expected to place downward pressure on house price growth, which could lessen the current risk of overvaluation in Calgary.”

The EREB also indicated that despite market growth in April, with 1597 sales, the city is showing a slight overall decline in residential sales. REALTORS® association of Edmonton President Geneva Tetreault comments on the current market:

“Sales are definitely down this year, but the sales numbers are still higher than 2011. It is unlikely that anyone would call 2011 a bad year for housing sales. It’s just in comparison to last year, we are not quite as busy. Prices are stabilizing and inventory is robust. We will continue to see increases in sales as we move into the selling season”

The CMHC report would indicate that presently, Edmonton one of the few Canadian CMA’s not presenting market risk factors.  CLICK HERE if you are interested in searching for a property or connecting with a Re/Max agent.

Image Credit: Calgary Herald

Just over a month ago the provincial budget was released and now that citizens have finally had the time to sift through the comprehensive report, there is a new awareness of how it will affect personal financial choices. From the perspective of the real estate market, the largest impact will be seen in land title fee increases.

This will affect buyers most directly in terms of closing costs. Additionally, homeowners looking to refinance will also be hit by these additional fees. As explained by DBB LLP land title fees are part of the larger category of disbursement fees, as distinct from the actual legal fees. Disbursement fees are the hard costs incurred by the law firm as result of the real estate transaction. This makes the government fee less than immediately apparent, and a careful review of cost breakdowns may be necessary. Obtaining and transferring land titles is an integral part of a real estate deal, as well as legally necessary, therefore there is no means of avoiding this new government incurred expense.

Though the fee hike is not immediate, it will come into effect on documents registered on or after July 1, 2015, approximately 90 days after the budget announcement which, in real estate terms, will come up quite quickly.

It is important to note these dates are not impacted by possession date, only registration date is a factor.

As of July 15th the variable fee will increase from $1.00 to $6.00 while the flat fee (for land title and mortgage registration documents) will increase to $75.00 from a previous $50.00. These numbers appear to be quite negligible, especially as an additional cost on a property deal worth hundreds of thousands of dollars. However when applying these increases to examples, the additional costs become immediately apparent:

A summary of cost impact courtesy of DBB LLP Law.

For potential buyers, or owners considering refinancing, this fee hike could be seen as a motivator to move quickly on a decision as there is still ample time to close a deal before the deadline arrives. However, due to increased activity in the summer months, as much time as possible is necessary for lawyers and the land title office to complete registrations within the time frame.

CLICK HERE to connect with a Real Estate agent who can answer all your home-buying questions.

Easter weekend is a perfect excuse to spend some much needed time with your loved ones. Sometimes though, it can be hard to fill those long weekend hours, or find an activity that the whole family can enjoy.

We’ve compiled the best of Easter arts, crafts, and cooking for you to try with your friends and family while enjoying time together. These ideas are simple, inexpensive, and many supplies you probably already have around the house. Just click on the headings or photos and you will be linked with a simple tutorial!

Onion Eggs

This is a new, earthy spin on Easter egg colouring, without the mess of dyes. You’re left with beautiful bohemian floral patters, and with eggs ready for eating! This is great fun for kids, just make sure an adult is on hand to carry-out the boiling process. With simple objects like string, onion shells, and small flowers, there’s also a good chance you already have all the supplies you need.

Bunny Bait

This is a unique way to the give the kiddos their Easter candies. You just need a bag of their favourites and an appropriately sized mason jar. It’s a classy gift for adults as well! Download the free printable Bunny Bait tag HERE, or design your very own!

Non-Commital Chalk Eggs

This simple craft is perfect for those in fear of the permanence of Easter egg dying. It’s also versatile, you can use real eggs, or repurpose plastic and styrofoam eggs already laying around the house for decorations. A coat of chalkboard paint and some drying time is all it takes. Then you’re left with an endlessly erasable palette for all your artistic whims.

Edible Nests

These are great to make with kids, or adults who may be less than skilled in the culinary arts. They require NO baking, have 3 simple ingredients, and can be made in minutes then left to set in the fridge. A delicious and beautiful dessert.

Sprinkle Eggs

These precious pastel eggs may be candy coloured, but are definitely not for eating. These are very simple to make and again you can use real or synthetic eggs of your preference. You can personalize them however you like by choosing any colour and style of sprinkles that suit you.

Napkin Rings

These are a fairly customizable craft depending on the material you choose. Card stock and paper would simplify the process, or for more elaborate rings that you may want to reuse you can choose a felt fabric you like. You can also detail with buttons, cotton, or other craft supplies you may have on hand to make them unique and individual table decor!

Cookie Jars

This genius gift idea allows you to make someone cookies without having to make cookies! This adorable jar of ingredients, topped with festive coloured M&M’s could be substituted for any holiday, and allows your loved ones to share your gift with their friends and family. Or bring them along to an Easter gathering and make the cookies together. Here is a LINK to the recipe tags you can print out and attach to the jars.

Everyone in the Re/Max Real Estate Edmonton Family would like to wish you and your family a wonderful holiday weekend. Come Visit Us anytime, for your real estate related needs.