There continues to be a large supply of homes for sale in Edmonton.  Despite media reports to the contrary, our team at SCHMIDT REALTY GROUP is extremely busy!  Smart people are recognizing good value in today’s market, and our team makes sure that every buyer understands the market and what “fair market value” is in each case.  Real estate is a very local product and varies not only city by city, but neighbourhood by neighbourhood and even street by street so it’s important to work with a professional REALTOR! 

The Edmonton Journal provided an update in today’s paper – click here to read the full article.

Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc

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.

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. 

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 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.

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.

“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.

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.

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.

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

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