Recently this article on the Yahoo Finance website feed caught our team’s attention, which talks about the current state of the Canada real estate market and provides five tips for new home buyers and current homeowners.

We’ve been lucky up here in Canada to avoid the major real estate crash the United States has experienced, and Alberta in particular has been fortunate in its speedy recovery. We agree that prices are likely to plateau a little this year, with modest growth in most areas.

We think there’s some great advice in this article, with a few caveats we wanted to add:

1. Buy Now, If You’re Ready

Interest rates are at an all time low around the country right now: both short and long term rates. First time home buyers who have been waffling back and forth about whether to buy or not, right now is an excellent time to break into the Edmonton real estate market, especially if you’ve been squirrelling away a solid down payment. Regardless of whatever predictions say, the most important factors that should determine when you’re ready to buy are 1) do you have the appropriate resources to buy; and B) is it a reasonable time to buy a home. If answers to both questions is “yes”, then you should seriously consider taking advantage of the record low interest rates.

2. Take Your Time

Prospective Edmonton home buyers shouldn’t feel too pressured to buy right away, so make sure you work with an Edmonton Realtor who encourages you to take your time and visit many properties before making any offers or signing any contracts. Five years ago, real estate was being snapped up so quickly people were making hasty decisions, and when it comes to long term investments like property, hasty decisions can be a recipe for disaster.

3. Take Advantage of Lower Rates

It’s not just first time Edmonton home buyers that can take advantage of low interest rates. If your mortgage is up for renewal, consider refinancing under the lower rates and cash in on huge long term savings. This is a great time for homeowners looking to move up in the Edmonton market, and it never hurts to make an appointment with a mortgage broker to see if there’s a real opportunity for savings for you in 2012.

4. Renovate Rather Than Move

Sometimes “now” is just not the best time for you to move. We like to suggest caution with pricy renovations and remodelling projects however, since there are just as many ways to affect the resale value of your home negatively as well as positively. Our advice? Consult an Edmonton Realtor before you start any major renovations if you’re interested in how they might affect your resale price. We can help you understand which kinds of improvements the market values, and which might actually make selling your home more complicated.

5. Think About How Much House You Really Need

Being realistic about the size of home you need – and the size of mortgage you take on – can have a huge impact on your future. Don’t discount smaller homes and condominiums when you’re shopping for homes: as investments, they have just as much value as larger houses. Edmonton’s downtown area is seeing a lot of growth, and more and more condominiums are being built to meet the growing demand of people interested in downsizing their lifestyle.

Today, the Edmonton Journal has a feature article on which Edmonton communities have had the largest increase in value over the last decade based on the recently mailed out property assessments. Winners include the Mactaggart community, Rossdale and Beverly Heights.

Homes on Mactaggart Drive

Below is an excerpt from the article. You can read the entire article on the Edmonton Journal website.

But if you had sunk your cash into a place in Rossdale, or farther downstream in Beverly Heights, you’d have made out like a bandit — average values in those areas jumped 55 per cent, blowing stocks and oil out of the water.

These are some of the findings from the latest assessments mailed out for 326,500 Edmonton properties at the beginning of January, based on estimates made last July 1.

Although one-year values for single-family houses (the Journal figures don’t include other types of homes) are down 1.7 per cent,results vary between a 10-per-cent rise in Secord and a similar-sized drop in Canora.

The spread is even larger over five years.

While the average neighbourhood value rose 41 per cent in that time, the biggest growth came in the northeast, where eight of the 12 districts that had increases of more than 50 per cent are located.

City assessors annually determine values at which each property might have sold as of July 1, which is used to determine that location’s share of Edmonton’s total property taxes for the following year.

Assessors look at various factors, including location, sale prices for similar homes in similar areas, lot and house size, building condition and age, size and style of garage, if the basement’s finished and any special features.

But the property assessments mailed out in January can vary from a home’s actual selling price.

For one thing, they are based on conditions six months earlier, and the market may have changed.

As well, assessors don’t reinspect every house every year, so conditions at individual properties can change without the city’s knowledge.

A proper home inspection, performed by a qualified Edmonton Home Inspector, will provide you with important information you will need to make decisions about the home you are considering purchasing. When you walk away from the inspection, you should understand what if any major issues the home has and what repairs might be required. This information should be shared with your Edmonton Realtor, who can advise you on whether or not to renegotiate the price to accommodate major repairs.

3 Tips for Getting the Most Out of Your Home Inspection

1. Prepare Questions
   Before you meet with the inspector for the inspection appointment, make a list of any questions or concerns you have about the house, based on your initial viewing. Add questions about any particular appliance or system that are new to you, and ask about any renovation or remodelling plans you might be considering. A qualified home inspector should be able to answer most, if not all, of these questions. The purpose of the inspection isn’t just to ascertain whether or not the home is in good working order, but also to give you a chance to ask questions about the operation and maintenance of the house.
2. Take Notes
   Bring a pad of paper and a pen with you to your inspection appointment, and take as many notes as you need. You will likely be learning quite a lot of new information about your home, and it’s a good idea to jot this down to make sure you remember it, especially when it comes to maintenance, how things operate, and renovation insights. The home inspection is also a good opportunity for you to measure the size of rooms.
3. Attend the Inspection
   If at all possible, the best option is always to attend the inspection and walk through the house with your inspector. This will give you the very best opportunity to ask questions that may make or break your decision to buy the home, so even though it seems like a pain to set aside the time, we always recommend it. If you can’t attend, think about sending a trusted friend or relative, your Edmonton Realtor, or contact your inspector by phone after the inspection to review the details of the report.

Remember that no home is perfect, not even newly built ones. Every home will have flaws uncovered during the inspection processes. Be prepared to review these issues with your seller and negotiate, but also be prepared to walk away if the inspection uncovers major issues you’re not willing to take on.

Last week, RE/MAX released a report on the current state of the Canadian Housing Market and the major changes it has undergone in the last 20 years, which was featured in an Edmonton Journal news article. The report contained information on several major Canadian real estate markets, including Edmonton.

You can read the section on the Edmonton market in the report excerpt below, or check out the full press release and downloadable report on the RE/MAX website.

Alberta, Edmonton

A red-hot economy fuelled unprecedented price appreciation in Edmonton over the past decade, but rising values have had as much to do with new home construction as they have supply and demand. Canada’s second strongest performing market – up 165% since 2000 – has seen close to $19 billion in residential building permits issued during the same period, virtually tripling values reported in the previous decade.

Average price has climbed from $124,203 in 2000 to $328,803 in 2010, peaking in 2007 at $338,636. Prices have since stabilized and regained some of the ground lost during the recession and subsequent fall out. More balanced market conditions have emerged, with buyers gaining a slight advantage.

New condominium construction has led the way in recent years, with an abundance of newer units coming on stream. Condominium now represent close to 28% of total residential housing sales in Edmonton, with an entry-level price point of $234,982 (YTD September 2011). Rental conversions have also occurred at a steady pace, given that affordability is top of mind with many purchasers. Yet, single-family dwellings remain most popular, with year-to-date (January to September) average price hovering at $325,252.

The city’s newer housing stock tends to be found in the peripheral areas, surrounding Edmonton proper. With more than 8,000 properties currently listed for sale, little movement is expected in average price in the months ahead. Although inventory levels are down somewhat from one year ago, supply remains considerably higher than the 5,500 to 6,000 units traditionally on the market at this time of year.

Renovation is on-going in the city, representing approximately just over 5% of building permits issued so far this year. Infill is a relatively uncommon phenomenon. Upscale communities such as Glenora have seen some properties priced at $400,000 to $500,000 torn down to make way for larger, custom-built homes, but, to date, the trend has yet to gain traction.

Edmonton remains one of the fastest growing metropolitan areas in the country, with a 10% increase in population in the last census, bringing the number of residents to 1,034,945 in 2006. Job opportunities remain plentiful in the area, thanks to an unemployment rate that is well under the national average. As economic performances improves, so too will the residential housing outlook.

Relocating to a new city is a stressful affair: there’s a home to purchase, schools to find, and a whole new place to learn. After all the boxes are unpacked, the most exhausting part of buying an Edmonton home is finally finished, but there’s still a whole new city out there, waiting for you to get to know it.

If you’ve just recently moved to Edmonton and don’t know where to start exploring the city, there are some great online tools that can be a huge help. Here are a few ways you can get to know your new neighbourhood before you even step out your door.

1. Know how to get around.

Learning how to navigate a new city can be the most frustrating, challenging part for some people. Before you start exploring, it’s a good idea to familiarize yourself with Edmonton using an online tool like Google Maps.

Zoom in and pan around, look for main arterial roads, and try mapping a few routes to see what is suggested. Edmonton is a gridded city with streets running north to south and avenues running east to west. But, like with any city, there are some unique areas that don’t obey this system, including areas like Millwoods, Castle Downs and Clareview.

It’s also a good idea to do some research on Edmonton’s Transit and LRT System. You can download printable route maps and schedules from the city of Edmonton website, or plug your destination into Google Maps and click the transit route option to get specific transit options for your routes.

2. Know where to eat and shop.

Edmonton has lots of great places to shop, and nearly all of our local centres have websites. You can get a list of major malls on the Discover Edmonton website. The Downtown Business Association has an Edmonton downtown business directory, and Edmonton’s unique Old Strathcona Whyte Avenue shopping area also has a website with a full list of available shops, services and restaurants.

If you’re looking for the closest amenities to your new neighbourhood, try entering your address on Walkscore. There’s a ton of great information available for every Edmonton community, including nearby parks, shopping spots, banks, cafes and pubs.

For those who like to support local businesses, the Edmonton Live Local site has a huge directory of shops and restaurants that are owned and operated by Edmontonians. And you can always browse Edmonton restaurant reviews on sites like Yelp and Urbanspoon.

3. Know where to have fun and meet new people.

One of the hardest things to do after you’ve moved to a new city is to meet people and make new friends, but it’s one of the most important things, and will help make Edmonton feel like home.

If you’re an outdoor enthusiast, finding an Edmonton park near you is a good first step. Joggers might want to consider joining the Running Room Club, and those interested in recreational sports should check out the Edmonton Sports and Social Club, which is a great way to stay active and meet new people at the same time.

There are many great Community Leagues in Edmonton, and joining one can help you meet people right in your neighbourhood. Our city also has a great Continuing Education program with a diverse range of classes for every interest and every age group.

To stay up to date on current events in Edmonton, there’s the Share Edmonton website that collects feeds from major event sites and merges them into one. You can also find great things to do on the Edmonton Events website. If you’re interested the local theatre scene, Tix on the Square is the best place to start, and music enthusiasts can browse local Edmonton music and search for live shows on YEGlive.ca.

Research released by RBC Economics shows Edmonton Real Estate to be one of the most affordable markets in the country. On average, home owners in Edmonton spend just 33.8% of their income on owning a home, lower than even Calgary’s 37.1%.

From the Edmonton Sun article:

“The numbers show that Edmonton, from an affordability perspective, is one of the national leaders. In terms of being a major municipality, having over a million residents in the metro Edmonton area and having prices as affordable as they are is a real blessing for Edmonton, I think,” RAE President said.

“The last time I checked, Edmonton was running $100,000 less than Calgary,” he said. “I think that’s an indicator of how lucky we are in Edmonton.”

The real estate industry keeps an eye on rental industry numbers, and a lower vacancy rate is encouraging, spurred by a warm oil and gas sector, Mooney said.

“In a market like ours where we’re seeing a lot of in-migration of labor, that’s a strong indicator of future sales … foretelling further activity in the residential market,” he said, predicting a “bump” in real estate sales within a year.

…

In Edmonton, the average single family home price shrank from $415,860 in 2007 to $384,656 in 2011. The average condo price went from $274,379 in July 2007 to $224,225 in July 2011.

For a quick retrospective, in July 1962, the average single family home cost $12,790. In July 1972, it cost $24,411. In July 1982, it was $91,190; in July, 1992, it was $110,516; in July 2002, it was $139,021.

Read the full article at the Edmonton Sun

You may be the sort of person who looks at a home in need of significant work as a challenge and an opportunity to make money. Many people have bought fixer-uppers at below market rates, invested a little sweat equity and money on renovations, then eventually put the home back on the market at a profit.

But if it isn’t priced low enough you won’t recoup your investment of time, trouble and expense. Before you proceed do a careful evaluation of what you’ll have to invest and consult with your Edmonton Realtor to learn what you can reasonably expect to make when you put the home back on the market. And be sure to expect the unexpected: there’s no such thing as a “sure thing”.

When evaluating the advantages and drawbacks of a particular Edmonton property, be sure you know the difference between acceptable and unacceptable problems.

Some issues — peeling paint, worn carpeting, ugly wallpaper — are cosmetic and can be easily remedied. In fact, you can use these “problems” during negotiations to lower the asking price — after all, you’ll need to spend money to bring the house up to snuff. Make careful note of what you see that can be used to your advantage. Don’t nit-pick, however: if taken to extremes, you could end up alienating the seller and creating a hostile atmosphere that makes negotiations difficult.

Other problems may be warnings to walk away. Major foundation cracks, evidence of previous water damage, signs of serious dry rot or termite damage, antiquated electrical systems or plumbing — any one of these may be cause to reconsider your interest.

Don’t let a house’s positive attributes blind you to very real — and very big — problems. If you do, chances are good you’ll end up spending much more money than you ever expected down the line.

When shopping for Edmonton Real Estate, spending a few hundred dollars on a professional home inspector is the best investment you’ll ever make. A professional inspector brings experience in examining a great many homes, good evaluation standards and an unbiased perspective. And a written home inspection report can be an excellent negotiating tool.

A Typical Home Inspection Looks At:

• Foundation (slab, crawlspace, basement, etc.)
• Electrical, heating and plumbing systems
• Floors, walls and ceilings
• Attic
• Roof
• Siding and trim
• Porches, patios and decks
• Garage
• Property drainage

Make sure you accompany your Edmonton home inspector on the tour. You’ll learn a lot about the home you’re thinking of buying.

Once you have your evaluation, the decision to proceed is yours. A home inspector only gives you a professional opinion of the home’s condition, not advice as to whether or not you should buy.

A good Edmonton Realtor brings to the table an in-depth knowledge of the current housing inventory in their area, and continually updates that knowledge by touring homes as they are placed on the market.

This works to your advantage. Trying to personally see every available home that might fit your needs would be a overwhelming process, if not an impossible one! If you are thorough in communicating your needs and what you can realistically afford, then your agent can help you narrow down the list of prospective homes to those that best suit your needs. This will save you much time and energy.

When the time comes to settle on one home, you can do it with confidence that you’ve made a well-informed choice.