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.

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.

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 don’t always have to make massive, huge changes to your home to make an environmental difference. Often it’s the little things that add up fast to make a big difference. Having an eco-friendly home doesn’t mean you have to install solar panels: there are plenty of quick changes you can make that are both cost-effective and green. Many environmentally-friendly, energy-efficient home strategies will also save you money in the long run. Here are just a few suggestions to get you started.

Add Insulation

Making sure your home and attic are property insulated helps keep the heat in and the cold out, especially in the middle of winter. If you live in a cold winter climate like Edmonton, adding extra insulation can save you a ton of money on your natural gas bill.

Block Off the Fireplace Flue

If you have a real fireplace and chimney in your home — especially one that you don’t ever use — consider blocking off your flue and fireplace opening. Better yet, improve the value of your home by adding a natural gas or electric fireplace and kill two birds with one stone! Properly inserted gas fireplace inserts are designed to send warmth into your home rather than up the chimney.

Check Your Seals

Inspect the calking and weather stripping on all your doors and windows. If they’re in need of repair, adding calking and weather stripping is a simple and low-cost eco-improvement anyone can do themselves.

Low-Flow Faucets and Fixtures

Replace your sink and shower fixtures with low-flow equivalents designed to limit the amount of water you use. Many of these work without reducing your water pressure, and they’re easy to install.

Put Your Thermostat on Auto Pilot

Buying a programmable thermostat can save you money and make your home more eco-friendly. The best part? Once you set it, you can forget it! Programmable thermostats allow you to customize your furnace’s heating activity to be warmer when you’re home and cooler when you’re away or sleeping.

Energy Star Appliances

If it’s time to buy new kitchen appliances make sure you purchase ones with high Energy Star ratings. Appliances marked with the Energy Star label use up to 40% less energy than their unmarked counterparts, and often use significantly less water. Also keep an eye out for the Energy Star label when you’re buying a new TV or computer.

Replace Your Furnace

If you have an old furnace it may be time to look seriously into a new one. Modern furnaces that score a high Annual Fuel Utilization Efficiency (AFUE) percentage can save you piles of money in the long term on your heating bill, and are significantly better for the environment. Older furnaces usually have an AFUE rating of 60% while newer, high-efficiency models have a rating of 90% or higher.

Going Green isn’t just a feel-good exercise: it’s well known that investing in eco-friendly changes to your home will save you money in the long run. And in an Edmonton Real Estate market where being green is seen as a real advantage by prospective buyers, making your home energy efficient will protect your investment for years to come.

Interested in investing in Edmonton Real Estate? Contact the Terry Paranych Team to learn more about which properties make great investments for first time and veteran real estate investors.

“Even though residential sales have slowed in Edmonton, the transformation of the downtown core is still moving forward, as a number of highrise buildings continue to take the place of older single and multi-unit homes.

There are about 11, 000 people living downtown and that number is projected to grow to 24,000 over the next 20 years. To prepare, the City of Edmonton is calling for further infilling in downtown neighbourhoods and more medium-density highrise buildings.

The city is building a 3.1 km light rail transit (LRT) extension heading northwest from Churchill Station in downtown Edmonton to new stations at Grant MacEwan University, the Royal Alexandra Hospital and the Northern Alberta Institute of Technology.

Properties in neighbourhoods near the LRT will increase in value and “outperform” properties in other areas of the city, according to a report published by REIN. “Edmonton transportation improvements will deliver a 10 to 20 percent enhancement of real estate values in the region’s most affected,” the report states. Studies on other cities around the world indicate properties within 800 metres of new transit stations and 800 metres from exits o new major highway improvements generally increase in value.”

Today poses a great opportunity to benefit from Edmonton Real Estate investments in the downtown core. Talk to our team to get started!

Source: Canadian Real Estate Magazine, October 2010

With well over 10,000 properties for sale we’re seeing a lot of buyers jump back into the market. Activity has been picking up since the end of August.

There are two key reasons we’re seeing a strong last quarter: first, buyers have lots of choice; and second, interest rates are low. These facts combine to make this fall an extremely appealing time to buy Edmonton real estate.

Right now is an incredible time to get into the condo market, with prices as much as 50% off the original listing price. In the last few months prices have come down to the point where we can see positive cash flow again, making September an incredible time to invest.

Buyers and investors: get started searching our Edmonton Home Listings.

From the EREB’s Edmonton Real Estate Market update:

Edmonton, September 2, 2010: The average price of single family property in the Edmonton area has softened with a small drop for the second consecutive month. Prices were plateaued at just over $388,000 from March to June. Condominium prices have dropped steadily from their high point of $253,000 in April and are down another 2.99%.

*Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact the Terry Paranych Team today.

Did you know that Edmonton is rated one of the best places to invest in Real Estate?

If you are not already investing, now is the time! Get started on the right path with our FREE Investors Kit – contact us today!