Archive for Market News
Edmonton ranked THIRD in all of Canada for real estate investment!
Edmonton Housing Starts are UP!
Edmonton July housing starts are up 123% from ’09! Builders started more homes in the Edmonton region in July than in the same month last year — the 13th straight month of year-over-year gains.To the end of July, local builders have started 6,328 single and multi-family homes, up from 2,363 for the same period last year and surpassing all of 2009’s annual production of 6,317. Read the full article in today’s Edmonton Journal.
Along with building permits, housing starts are considered to be a leading economic indicator, and according to today’s article in the Edmonton Journal, Edmonton leads the way! I love living in such an economically vibrant city!
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
The Spring Market has SPRUNG!
“There is consumer confidence in this market and both buyers and sellers appear eager to enter the housing market,” says Larry Westergard, president of the Realtor Assocation of Edmonton.
Single family and condominium prices were up over last month and over this time last year!
1,571 homes sold in March, an increase of 15.1% from a year ago, perhaps fueled by buyers hoping to find a home before mortgage rates rise further.
Click here to read our full Market Report for March 2010!
Click here to see the entire statistics report on the Realtor Association of Edmonton webiste.
Competition in Real Estate
There has been a lot of talk in the media these days about real estate and competition. At SCHMIDT we support fair competition and the consumer’s right to choose as described in the Canadian Real Estate Association’s Pledge of Competition.
| Pledge of Competition |
Member Boards and Associations of The Canadian Real Estate Association support free and open competition. We believe in the principles embodied in the Competition Act of Canada. Therefore we adhere to a Code of Conduct which includes the following standards:
By using the MLS® and REALTOR® trademarks, all member Boards and Associations of The Canadian Real Estate Association proclaim adherence to these principles, designed to preserve free and open competition. |
SOURCE: Canadian Real Estate Association CREA Website CREA.ca
For more information, visit CREA.ca and click on REALTOR CODE.
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
More Good News for the Alberta Economy!
More than $1 trillion. That’s the total value of economic activity that’s expected to be generated by Alberta’s oilsands over the next decade…
according to the Canadian Manufacturers & Exporters (CME). So exactly how much is $1 trillion — or if you prefer, $1,000,000,000,000? Well, think of it this way. It’s equal to roughly 75 per cent of Canada’s GDP (gross domestic product), and it’s more than three times larger than Alberta’s current annual economic output. Either way, that’s a lotta loonies… Click here to read the full article. Edmonton Journal March 23 2010, Gary Lamphier
That’s good news for everyone in the province, whether you’re directly involved in oilsands production or not. The strength of our economy compared to others in Canada is obvious already to those of us in the real estate industry. Property values are stable and even rising somewhat in some areas. It’s all looking good for 2010 and beyond!
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
MARKET UPDATE – MARCH 2010
February results were posted just moments ago and things are looking very strong indeed for Edmonton real estate this spring! The average house sold for $369,573 in February, up 1.4 per cent from January, or 5.6 per cent from a year ago.
“While prices remained stable through February, the increase in sales activity indicates that there is a demand for housing in the Edmonton area,” said Larry Westergard, president of the Realtors Association of Edmonton.
There were 1,184 housing sales in February — up 33.9 per cent compared to January. This number was up 7.6 per cent from a year earlier.
Read the full article from the Edmonton Journal here and stay tuned to this blog for our monthly Market Report!
MARKET UPDATE FEBRUARY 2010
It looks like 2010 is going to be a strong year in real estate in Edmonton. In January residential sales were up 21% compared to last January and the average selling price of a single family home sold for 4% more than January 2009. Get the details in our latest Market Report .
Click here to receive our monthly Market Report automatically via mail.
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
New Mortgage Rules Rolled Out Today!
You may have already heard, but just in case we wanted you to hear the latest news from us! As of April 19th 2010 there will be new borrowing rules in place for home buyers. The biggest change is in the qualifying process for a mortgage. Currently, borrowers have to qualify based on the 3 year fixed rate, even if they actually choose to go with a variable rate or a shorter term. The new rules will require borrowers to qualify at the 5 year fixed rate. The impact is that the amount of mortgage that some borrowers will be able to qualify for will be a bit less. Could this have some impact on house pricing? Perhaps, but since many borrowers today choose a 5 year mortgage, it may have less of an impact than some think.
The second change is the rule regarding HLOC’s or Homeowner Lines Of Credit. Many consumers have made good use of the increased equity in their homes by taking out a line of credit for items such as home renovations or other major expenditures. Currently a homeowner can borrow up to 95% of the appraised value when refinancing their home but as of April 19th this will be reduced to 90%.
The third change involves mortgages for non-owner-occupied properties, or in other words, investment properties. CMHC insured mortgages on investment properties will now require a 20% minimum down payment.
Why is the government putting this in place? There are a lot of opinions out there, but the bottom line is that our market is having a marvellous recovery and they want to ensure it is sustainable in the long term. And they also want to ensure that even if/when interest rates rise every homeowner will be still be able to pay their mortgage.
At Schmidt Realty Group we have always promoted responsible home ownership. What does that mean? It means we believe in helping our clients buy a great home that fits into their total financial picture. So while this may have an impact on some , it’s our opinion that the vast majority of Canadian consumers will continue to be able to readily obtain financing for their personal residence and investment property purchases.
Want to learn more? Hear the news straight from Canada’s Finance Minister, Jim Flaherty on this video from The Canadian Press and read one writer’s opinion in The Globe And Mail about why this won’t hurt most homeowners.
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
REALTORS Predict Stable Housing Market for 2010
“Edmonton has a robust economy and consumer confidence is high,”
said Larry Westergard, the new president of the REALTOR Association of Edmonton at the annual Housing Forecast Seminar held recently at the Shaw Conference Centre. “We anticipate sales of about 21,000 units in 2010 which is up 10.5% from the 19,000 residential properties sold in 2009.”
What’s going to happen to HOUSE prices?
The average price in December 2010 is expected to be $385,000
as compared to $367,000 today.
What’s going to happen to CONDO prices?
Buyers can expect to pay $244,000 (on average) for a condominium next year -
about what they would have paid in 2009.
There were just 4,037 residential properties available for sale through the MLS® System at year end and Westergard warned that if inventory figures remain low it could tilt the market in favour of sellers and cause prices to rise higher than expected. On the other hand, if mortgage rates go up it could prevent some potential buyers from entering the market and put downward pressure on prices. Source: Realtor Association of Edmonton Press Release Jan 13 2010
So what does this mean for YOU?
It’s more important than ever to have a REALTOR you can trust in your corner,watching for signs of change in the market and advising you on how to make the smartest decisionin today’s market. Call your friends at Schmidt Realty Group anytime – let us be your real estate resource!
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
JANUARY 2010 REAL ESTATE MARKET REPORT
Looking back on 2009… “Strong year-end sales put a crown on a year that started slow but ended big,” Charlie Ponde, president of the REALTORS Association of Edmonton.
Looking ahead to 2010… “The truth is in the trends, and right now the trend is for the Edmonton area market to continue to strengthen,” Kathy Schmidt, Schmidt Realty Group
Learn more in this month’s Market Report. and read the Realtor Association of Edmonton News Release for December 2009 results.
Wondering what your home is worth! Click here to find out!
