Archive for Market News
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!
City of Edmonton delivers Updated Property Assessments!
The City of Edmonton has mailed out revised assessments to all property owners in the city. This information will be used to distribute the city budget among property owners and is based on property values at Juy 1st 2009. Read CBC’s report or watch the news clip.
This report states that prices dropped significantly last year which is true if you compare June 2008 to June 2009 single family average sale prices ($381,384 and $369,859 respectively). However if you compare the average sales price of a single family home at December 2008 with December 2009 there was actually an increase. The average sales price in December 2008 was $351,870 while the average price in December 2009 was $366,761.
Some people mistakenly believe that the value provided by the city accurately reflects their current property value. It’s important to remember that the city has not personally inspected every home and so is unaware of all the differences between homes which might affect the value of your property. If you feel that your property is inappropriately assessed, you have 60 days to appeal with the city. On May 1st the city will send out this year’s tax notices.
If you want a more up-to-date estimate of value for your home, you can get a quick market evaluation via email right here on our site. Just click here and we will provide you with our estimated range of value via email. And if you need a more precise valuation, please contact us via email at Schmidt@WeSellEdmonton.com or by phone at 780-437-2030 to request a FREE On-Site Market Evaluation!
Submitted by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
Happy New Year!
WHERE ARE YOU HEADING IN 2010?
2010 is here and the team at Schmidt Realty Group is raring to go! All signs point to a very busy Edmonton area housing market this spring and we are ready to hit the ground running to help you make a great move. Even if you’re planning on staying where you are, the new year is a great time to take stock of your real estate investments. Do you know what your home is worth right now? What are your housing plans for your kids when they head to university in the next few years? Let us help you put a solid plan in place to ensure your family’s real estate needs are well covered and you maximize your return on investment in your primary residence as well as vacation homes or investment properties. Consider us your real estate resource!
Our team is looking forward to lots of exciting changes this year. We will soon be launching a new service using texting technology to enable buyers to receive property information including photos on their cell phones and will also be introducing video blogs on this site. And stay tuned for news of new team members as well. We’re excited about the year ahead!
All the best to you and yours for a healthy, prosperous and joyous 2010!
Submitted by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc
Merry Christmas from your Friends at SCHMIDT REALTY GROUP!
‘Tis the season… for snow and shopping, skiing and skating, and sitting by the fire with friends & family. We hope you enjoy everything this wonderful season brings. At SCHMIDT it’s also the season to say thank you! Thank you to all of you who invited us into your homes and into your lives this year. It was a privilege to help you find a great new place to call home.
Click here to view our December newsletter.
It’s in PDF format for easy printing too!
In This Issue:
Play a Christmas Carol Word Scramble 
Check out our new listings and see what’s been selling.
Find out how to share the Christmas spirit with those in need through World Vision.
What’s on your wish list this year??? At SCHMIDT we make wishes come true!
Click here to receive future newsletters automatically via email!
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
Strong 2010 Forecast for Canadian Real Estate
At SCHMIDT we have had a busy fall that has continued right up until today! And we believe that the stage is set for a great year in Alberta real estate in 2010. The producers of this video obviously agree… Click here to watch this short report on Canadian real estate.
Submitted by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
Edmonton Inventory of Homes for Sale is Dropping!
According to the Realtor Association of Edmonton daily activity report published today, the number of residential homes for sale is now below 6,000! This is good news for the market and leads me to anticipate a very busy spring next year. Today’s report shows an inventory of just 5,981 homes for sale – this is lower than any month-end inventory number reported by the Realtor Association of Edmonton in over two years! The low inventory point was July 2006 at just 1,856 properties available. This climbed to 4,485 in May 2007 and then leaped up to 6,367 in June and climbed steadily from there to a peak of 11,006 in May 2008.
There were over 3,000 homes added to the market in October 2008 compared to October 2009 so far, where there have been less than 2,000 new listings. Sales in October 2008 were very close to current levels (1,251 Oct 2008 vs 1,269 so far in Oct/09).
This indicates an overall tightening of the market.
Fewer homes are coming up for sale. Buyer activity is good. Inventory is coming down.
SO WHAT DOES THIS MEAN FOR YOU…?
You might want to think about purchasing sooner rather than later…
