The Edmonton Real Estate Blog, Market Information, Advise & Opinion

"Our local housing market is quite healthy with affordable prices, a good inventory and strong sales," said Association President Chris Mooney. "The selection of properties on the market for buyers is excellent. With employment opportunities popping up throughout the region and interest rates being very attractive, now is a good time to purchase a property in Edmonton."

The average price of a single family detached home in July was $384,656 with a median price of $360,000. Condo average price was $244,225 with a median of $223,000. Duplex and rowhouse prices rose on average from $296,969 to $309,816, a 4.3% increase.

"The increase in housing prices is on track with our January forecast and as we move into fall, we don't see prices increasing substantially," said Mooney.

Statistics Canada reported that Alberta boasted the highest spike in population in the first quarter with a 0.4% increase.

The Conference Board of Canada predicts that housing prices in Edmonton will increase from five to seven percent in the short term although local prices are currently down when compared to last year.

Although the Bank of Canada seems reluctant to raise interest rates because of the negative impact on exports, CMHC reports that Canadians are budgeting for an interest rate hike.

While housing prices nationally are up by 8.6% (May figures) Edmonton prices are tracking predictably in a stable market.

CIBC is of the opinion that Alberta home prices are over-valued by 17% yet RBC names Edmonton amongst the most affordable major metro markets in Canada.

A report by Peters and Co. forecast that $180 billion will be spent on new oilsands projects in the next decade with current oilsands operations and maintenance adding another $30 billion a year.

"The various reports and indicators can be confusing and contradictory," said Association President Chris Mooney. "Alberta and Edmonton are often moving in a different direction than the rest of the country and a national statistic or trend may not apply here. REALTORS® are very optimistic about the current market and are prepared to help home buyers and sellers sort through the figures to determine the best housing strategy for each individual or family."

In the short term, when compared to the previous month, prices in June were generally stable. Single family homes were up 0.31% from $378,239 to $379,409. Condo prices dropped from $239,782 to $231,852 (down 3.3% after rising 3.1% in May). Duplex and row house prices climbed slightly from $295,334 to $296,689. The all-residential average price dipped 0.5% during the month of June.

There were 1,768 residential sales in June with 3,260 listings resulting in a sales-to-listing ratio of 54%. This is compared to 53% in May. There are currently 8,432 residential properties in the MLS® System inventory and days-on-market is slower at 53 days (up from 50 in May).

"We know that all real estate is local and homeowners and buyers should focus on local data and local expertise to guide their decisions," said Mooney. "Is it a good time to buy a home in Edmonton? If your domestic needs have changed and you need to move, then seek professional advice and start the process."

According to the REALTORS® Association of Edmonton, the average price of housing remained relatively stable through April as compared to the previous month. The all-residential average price decreased $310 to $327,415; down from $327,725 in March. Single family home prices decreased $425 while condo prices rose $1,305 (0.6%) during the month. Despite the activity the market is balanced without a distinct advantage for either buyer or seller.

"Prices and sales usually increase in the second quarter and REALTORS® are busy serving new and repeat customers," explained REALTORS® Association of Edmonton President Chris Mooney. "The increase in new listings means that there is a good selection of homes to choose from. However, the market is still price sensitive and sellers will have to have a realistic pricing strategy if they are expecting a quick sale."

Residential sales were 1,487, down 7.8%; compared to 1,613 in March. Residential listing activity rose from 2,958 units in March to 3,278 units in April. Inventory of homes on the Multiple Listing Service® increased from 6,885 last month to 7,215 as of April 30.

The average price of a single family detached home in April was $379,075 with a median price of $357,000. Condo average price was $234,220 with a median of $220,000. Duplex and rowhouse prices rose on average from $294,585 to $300,906, a 2.1% increase. All prices reflected sales across the entire Edmonton region including surrounding communities and counties.

"There is a lot of activity in the local market and the situation changes every day and from neighbourhood to neighbourhood," said Mooney. "Only your REALTOR® has access to the most up-to-date sales activity and sold prices. He or she is prepared to work closely with you to locate your next dream home or sell the property that no longer meets your lifestyle needs."

According to the REALTORS® Association of Edmonton, residential sales in the first quarter are normal for this time of year although lower than 2010 numbers because of the abnormalities imposed on the previous market. There were 3,479 residential sales in the first quarter, which is down from 3,890 last year.

“We will see sales number bounce back as we move into the spring market period,” said REALTORS® Association of Edmonton President Chris Mooney. “All the fundamentals for this market are positive. There is job stability, low unemployment, income growth and in-migration. New home builders are busy and I expect buyers to be looking at the housing options which match their lifestyle changes.”

At the end of March, the average* residential price (includes all types of housing including condos) was down 4.6% from a year ago at $327,725. The average price of a single family detached home was down to $378,912 compared to 2010 (a -2.6% change) and condos were priced down 7.5% year-over-year at $232,706.

As the market picks up momentum, prices inch up each month with the average residential price up 4.8% from a month ago. Compared to February, prices for SFDs were up 5.8% and condos up 0.8%.

“REALTORS® expect that prices will continue to climb slowly through the next quarter as usual,” said Mooney. “We are already seeing strong sales in the lower end of the market but tighter mortgage qualification rules have slowed sales in the upper end. Sellers should review their asking prices or consider minor home improvements that will appeal to the potential buyer.” Mooney urged both buyers and sellers to contact their REALTOR® to get assistance and advice on home selection and pricing strategy.

REALTORS® listed 2,960 residential properties in March and sold a total of 1,503 properties. Current residential inventory is 6,885 up 7.8% from last month. The residential sales-to-listing ratio in March was 45% with days on market down from 58 to 50 days. Total MLS® System sales this year are $1.235 billion.

Highlights of MLS® System activity

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

Single family detached properties sold for $359,934 on average* in February; up 1% from January. The February price was down 3.1% from a year ago but close to the $349,810 price in February 2009. Condo prices followed the same pattern. At $230,911 on average, condos were up 4.5% from a month ago but down 0.65% year over year. In February 2009, condos sold for $229,685. The average price for a duplex/rowhouse in February was $303,440; up 2% from January but down 5.6% from a year ago. In 2009, the February price for this category was $288,379.

"Sales and prices in early 2010 were pushed up by the impending mortgage rate increases and qualification changes," explained REALTORS® Association of Edmonton President Chris Mooney. "Now that the market is stable, price levels have returned to the 2009 levels. However, the price increases for all housing types from January indicate the slow upward movement that local REALTORS® anticipated."

The all-residential average price (including single family, condo, duplex, townhouse, mobile home and other residential housing types) was up three quarters of a percent from January but down 1.8% from a year ago. However, at $312,840 it matched the February 2009 price at $310,488.

REALTORS® listed 2,631 residential properties in February and sold a total of 1,044 properties. Current residential inventory is 6,389 up 13.4% from last month. The sales-to-listing ratio in February was 39% with days on market down from 67 to 58 days. "With the recent announcement by the Bank of Canada that interest rates are not being raised, consumers can have confidence in the strength of the local real estate market," said Mooney. "Call a REALTOR® to begin your house search."

Highlights of MLS® System activity

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

he average price of a single family detached property in the Edmonton area continued to soften in November. According to the REALTORS® Association, at $362,657, the average SFD price was half a percent lower in November than it was in October. Compared to a year ago the price was down significantly by 2.5%. November condo prices also took one of the biggest drops this year with the average price down 2% to $229,603 month-over-month and just under 3% year-over-year. Average duplex/rowhouse prices of $318,605 went up over the previous month (6%) and previous year (10.6%).

Despite the softening of prices in specific categories, overall the market remained stable with the all-residential average price of $319,479 (up 0.65%) from October and up a third of a percent from last year. There were 1,120 residential sales on the Edmonton MLS® System in November as compared to 1,077 in October. Listings were down from 2,267 in October to 1,860 in November. This resulted in a drop in the available inventory from 7,689 to 6,982 residential units; still considered high for this market.

"Softening prices, a dip in interest rates, increasing sales nationally and excess local inventory all contributed to a month-over-month sales bump," said Larry Westergard, president of the REALTORS® Association. "Housing affordability in Edmonton is lower than the national average and economic growth in Alberta is expected to exceed other parts of the country."

The sales-to-listing ratio in Edmonton and area was 66% and the average days-on-market was down from 60 to 59 days. Taken together the two figures indicate that sellers must exercise patience as they wait for a buyer.

Although the all-residential average price dropped 3% in October, average prices are almost exactly what they were a year ago. Single family dwellings were sold on average for $365,691 which is just $1,434 less (-0.39%) than October 2009. Condos sold in October for about $2,000 less (-0.9%) than a year earlier at an average price of $235,893.

"Stability is the key word for the Edmonton housing market," said Larry Westergard, president of the REALTORS® Association of Edmonton. "Prices this fall are matching almost dollar for dollar with prices for the past two years. But I am pleased to report that the inventory dropped 10.6% in October, and as it returns to a more normal level, prices will start to move."

The average all residential price in October was $317,422 as compared to $327,235 in September. It was less than one percent lower than the October 2009 price of $320,184. Listing activity continued to slow with just 2,269 residential properties added in October. There were 1,077 residential sales for a sales-to-listing ratio of 44.5%. Total residential inventory was 7,689 properties at the end of October as compared to 8,602 the month prior. The average days-on-market went up to 60 days from 56 last month.

Homeowners are in the best shape when it comes to financial fitness in Canada, says a new survey. Sixty-five per cent of homeowners pay off their credit card balances each month (vs. 48 per cent of non-homeowners). A quarter of homeowners with mortgages have made a lump sum payment or accelerated their mortgage payments in the past year, according to the survey. It was sponsored by Genworth Financial Mortgage Insurance Company Canada.

Almost half of homeowners were able to pay all of their bills and save some money in the past year, suggesting a strong correlation between homeownership and financial fitness, the company says.

“Homeownership is an achievable goal for those who are prepared,” says Peter Vukanovich, president and COO Genworth Financial Canada. “Homeownership helps people focus on their financial situation and get their fiscal house in order.”

The Financial Fitness survey was conducted in conjunction with the Canadian Association of Credit Counselling Services (CACCS). Compared to the same survey undertaken in 2007 when the economy was booming, Canadians are even more likely now to say their financial fitness is good (55 per cent vs. 50 per cent).

Other findings of the survey:

• 49 per cent of homeowners made down payments of 20 per cent or more on their purchase;

• 13 per cent of homeowners say they are in great financial shape;

The housing market was relaxed in May with slightly lower sales than last year and prices generally stable. Despite the sales drop, the current sales figures compare favourably with levels set in 2008.

“Financial incentives, changes to mortgage qualifying rules and the threat of increasing mortgage rates caused the local market to peak a little earlier this year,” said Larry Westergard, president of the REALTORS® Association. “Many buyers exercised their options in April leaving the customer base a little leaner in May.”

Single family residences in the Edmonton area rose in price by less than one percent and sold on average for $390,583 in May. Condominium prices dipped just two percent to an average of $248,526. Duplex and rowhouse prices of $320,204 were down 2.3% from last month. Overall, the average residential price was up a quarter of a percent to $340,192.

There were 3,670 residential listings in May with residential sales of 1,682 properties resulting in a sales-to-listing ratio of 46%. The average time to sell a home was 44 days (the same as April) and inventory at month end was 8,780 residential units (as compared to 8,056 in April). At current sales levels the inventory will last for over five months.

April is the start of the busy second quarter for real estate, and resale housing sales were down over the same month last year according to a report issued by the REALTORS® Association. Average prices of single family houses moved down compared to a month ago, but were up by 8.2% from last year. Condominium average prices moved up from last month and were up 7.0% from April 2009.

“There were three increases to interest rates and changes to mortgage qualifying conditions in April; none of which seemed to slow down the Edmonton housing market,” said Larry Westergard, president of the REALTORS® Association. “Despite the upward movement, mortgage rates are still close to the 10-year average and not out of reach of most homebuyers. In many cases it is a matter of the REALTOR® lowering expectations rather than crushing hopes and dreams.”

Single family residences in the Edmonton area sold on average for $385,359 in April and condominium prices rose to $253,788. Duplex and rowhouse prices of $322,127 were up from last month and the average residential price was down to $339,314.

There were 3,884 residential listings in April with residential sales of 1,740 properties resulting in a sales-to-listing ratio of 45%. Days-on-market rang-in at 40 days and inventory at month end was 8,056 residential units.

“It is pretty clear that the costs of home ownership will increase as our economy improves relative to the US and other world economies,” said Westergard. “Only a REALTOR® has access to the latest and most detailed market figures and their experience and objective viewpoint will help the buyer and seller come to realistic expectations in their home search or sale.”

The silver glint of the Century Park LRT station is the main display photo for a Blue Quill condominium listing on real estate agent Mike Muranetz's website.

"Why pay high property values for location when this half duplex is only a few minutes' commute to the University of Alberta area?" the listing reads. Buyers see the area as a more desirable place to live now because of its proximity to the station, Muranetz said.

So how will this pool of new prospects find you?

The CREA survey says that just 8% will start their home search by phoning a REALTOR®. The number one choice to start the home search is on the Internet. 87% of all home buyers will be looking at web sites, blogs and other Internet sources to find a real estate representative.

Let’s look at the numbers another way. Of the 20,000 home buyers who will enter the market in the Edmonton area this year 11,000 do not have a REALTOR® yet. Over 9,500 of those potential new clients will start their home search on web sites, blogs and other Internet sites. Some of them will want to work with REALTORS® they “met” on Social Media sites like Twitter and Facebook.

Considering that web sites and blogs have been around for most of a decade and operating them is almost free, it is astounding that so many REALTORS® are not using them effectively to attract new business.

Edmonton’s new home builders continued to ramp up production in March. According to the Canada Mortgage and Housing Corporation (CMHC), housing starts in the Edmonton Census Metropolitan Area (CMA) totalled 813 units in March compared with 135 units in March 2009. This represented the ninth consecutive month of year-over-year improvements in housing starts.

Single-detached home builders started work on 513 units last month, almost five times the 105 singles started in March last year. “The industry is attempting to replenish single-detached inventories that have been driven to low levels by a reduction in completions and relatively brisk demand,” noted Richard Goatcher, CMHC’s Senior Market Analyst based in Edmonton. So far this year, foundations were poured for 1,394 units compared with 401 singles recorded in the first three months of 2009.

While apartment starts were up in March from the same month last year, production levels so far are down by 64% from January to March of 2009 due to persistently high inventories.

Housing starts in Alberta’s seven largest centres totalled 1,957 units in March compared with 605 starts in the same month last year. Strong increases in Calgary, Edmonton, Lethbridge and Red Deer easily countered year-over-year declines in Wood Buffalo, Grande Prairie and Medicine Hat.

More information can be found online on CMHC's web site.

Kelowna, BC (April 14, 2010) – RE/MAX of Western Canada is proud to support National Organ Donor Awareness Week, April 18-25, 2010, designated by the Canadian Society of Transplantation. RE/MAX has partnered with Aquarius Marketing to power www.LiveOn.ca, a newly developed website that has been designed as a touch point to facilitate easy access to the applicable registration information for each provincial transplant agency.  With the continued support of RE/MAX of Western Canada and other organizations helping spread the word on the need for organ donors, the BC Transplant Organization performed an amazing 211 organ transplants in 2009. 

Registering your decision to become an organ donor can save up to eight lives and improve the quality of life for up to 80 others. The critical shortage of donors is only increasing, as fewer people are dying in ways that make organ donation an option. This is due to positive factors - improved safety measures such as airbags and helmet laws, as well as continued advancements in medical care. Nonetheless, the average person is far more likely to need an organ transplant than to be eligible to donate an organ.  The good news is that everyone is a potential organ & tissue donor, regardless of their age. To date the oldest Canadian organ donor was over 90 years of age while the oldest tissue donor was 102 years old. 

Canada ranks 11^th place when compared to other countries with 14.8% actual organ donation per million people. Spain has the highest rate (34.3%), followed by Belgium (28.2%) and the USA (26.6%).  “It is our hope raising awareness about the shortage of organ donors will encourage the public to discuss their wishes with their families and make the decision to register as an organ donor”, said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Canada has the opportunity to set a record-breaking year for organ transplants in 2010 and for many years to come.  By educating ourselves on organ donation in our province of residence, we can all make this possible.”  

RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated throughout its more than 680 independently-owned and operated offices across the country.  The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in more than 70 countries.  Over 6,500 independently-owned offices engage over 115,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.  For more information, visit: www.remax.ca.  

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For more information: 

Marie Sheppy 

RE/MAX of Western Canada   

Office: (250) 860-3628

www.remax-western.ca