Archive for Media Reports
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.
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.
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.
Best July on Record for Edmonton Area Housing Market!
It's a sign! These are popping up everywhere!
The Realtor Association of Edmonton says there are sold signs popping up all over the city! The team at Schmidt Realty Group agrees. The market is moving! June was our busiest month ever, and July continued the trend! August is looking like another strong month as we have already helped two families a day make a great purchase or sale this month! The REALTORS® Association of Edmonton reported a record number of single month sales of residential properties for the second month in a row. Buyers who created record sales in June carried through for a record in July as well. Although sales were off almost 11% from June the total number of July sales was 2,277, creating a new July record.
Edmonton, August 5, 2009
“The market is stable and strong sales and market activity are not driving prices up dramatically,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “Attractive mortgage rates and consumer confidence are powering the local market and sellers are being realistic about their pricing.”
The average* SFD (single family dwelling) sold for $372,741 in July as compared to $369,859 in June (up ¾ of a percent). Condominium prices were down one percent at $244,265 on average in July from $247,071 in June. Duplex and rowhouse prices were up 1.8% from a month ago to $296,284. The average residential prices was down just over 1% to $324,847. Average prices in all categories in July were down from the same month last year.
“The total value of residential sales for the year have surpassed what they were last year at the same time,” said Ponde. “REALTORS® have sold $3.845 billion worth of residential property so far as compared to $3.842 billion last year at the end of July.” Listing activity was down with just 2,764 properties listed as compared to 3,179 last month and 3,582 in July 2008.
The average days-on-market was 46 in July; down three days from June. At the end of July there were 6,592 residential properties active on the MLS® System down by just 107 properties from June. Total sales through the MLS® System are worth $4.42 billion after just seven months of business.
Highlights of MLS® System activity
| July 2009 activity | Record for the month* |
% change from July 2008 |
| Total MLS® System sales this month | 2,554 | 25.40% |
| Value of total MLS® System sales – month | $836 million | 19.10% |
| Value of total MLS® System sales – year | $4.33 billion | -2.01% |
| Residential¹ sales this month | 2,277* | 27.60% |
| Residential average price | $324,847 | -3.06% |
| SFD² average selling price – month | $372,741 | -1.71% |
| SFD median³ selling price | $350,000 | -3.30% |
| Condo average selling price | $244,265 | -3.78% |
¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices
* Average prices indicate market trends only. They do not reflect actual prices, which may vary.
Source: Realtor Association of Edmonton
Edmonton Housing Market Heating Up!
As owner of a busy brokerage I can tell you that the market is hopping, but don’t just take my word for it! Read what Todd Hirsch, senior economist for ATB Financial, has to say in his latest report! “Something set a spark in Edmonton’s real estate market last month (July/09). Residential properties are really starting to move!”
Contributed by Kathy Schmidt, Broker Owner for Schmidt Realty Group Inc.
June 2009 was the third busiest month in Edmonton real estate!
“In the Edmonton housing market, it seems that the recession is over.” stated Charlie Ponde, president of the Realtor Association of Edmonton. We agree with Charlie! Schmidt Realty Group set our own record with our busiest month ever! Take a look at our listings and read testimonials from happy clients in our July 2009 Newsletter.
In This Issue:
June statistics for the Edmonton housing market.
“Edible” home staging tip!
Testimonials from happy buyers and sellers.
FREE photocopy and fax service.
PLUS help fund a house with a click of your mouse! Between now and August 31st, Schmidt Realty Group will donate $10 to Habitat for Humanity for every comment received by visitors to our website!
Click here to receive this newsletter automatically via email!
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
Edmonton Housing Market Experiences Record Breaking Sales in June!
Only two months on record (May 2006 and May 2007) had more sales than June 2009!- The Realtor Association of Edmonton reported that homes sold in an average of just 49 days in June, while SCHMIDT lisitngs sold in just 18 days on average!
- Inventory took a leap down! There were only 6,785 homes for sale on June 30th. This is the first month-end since January 2009 with less than 7,000 homes for sale.
- There is now less than a 3 month supply of properties for sale in the Edmonton area.
Read our Market Report and the Realtor Association of Edmonton News Release for more details.
Alberta Remains Best Place for Real Estate Investors
When it comes to the housing market, E-town still rules! So says Don Campbell, president of REIN, the Real Estate Investment Network. Don has earned a reputation as a trustworthy source of advice for anyone interested in Alberta real estate – when Mr Campbell speaks, people tend to listen! Not only is he bullish on Alberta real estate, he goes a step further to state that Edmonton remains the best place to buy real estate in all of North America! That’s quite a claim, especially in light of the rise and fall and rise again of oil prices!
“Edmonton has the potential, it has the job growth. We know that when the recovery comes … Edmonton is going to be able to provide fuel and fertilizer, which is exactly what the world is looking for. So that’s a pretty good basis for job growth.”
Don is also not wearing rose-coloured glasses. He believes “real estate markets are likely to remain choppy for then next 18 months” and doesn’t forecast a repeat performance of the dramatic price increases we saw prior to the recession.
What I read into Mr Campbell’s comments is that now is a safe and smart time to make a purchase. While there may be some volatility in prices in the short term, 2010 will bring a solid turnaround in real estate. Wouldn’t it be nice to look back and be glad you listened to the trend gurus and purchased at today’s prices?
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group
Edmonton Homeowners Warned of “Shady” Renovators!
“Beware of itinerant renovators!” That’s the advice from the Alberta government. Apparently unlicensed individuals come to our province every spring and then pass themselves off as legitimate contractors. Homeowners may be attracted by their reduced rates only to discover the low price equalled low quality work! Sometimes fixing the problem costs more than hiring a professional in the first place. As with any other professional, remember to ask for references, a written estimate and the contractor’s license as well as proof of Workman’s Compensation coverage.
The Home Renovation Tax Credit may unfortunately bring out more of these unscrupulous individuals, so do yourself a favour, and do your homework before you hire. And if you’re wondering whether your planned renovation project will add value and marketability to your home, call on SCHMIDT Realty Group for a free homeowner consultation anytime!
Contrivbuted by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc.
