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

The desirability and resale value of your home-to-be depends on location more than any other single factor. Again, don’t let emotion get in the way of a wise investment. No home is an island, and the value of yours is affected by the homes that surround it.

Assuming you’ve already considered the elements that make up a desirable community — character, quality of schools, access to places and services, recreational facilities, etc. — there are several elements that combine to create a good location.

Your first consideration is always the neighbourhood. Every neighbourhood has its own unique character: you need to make sure you’d be comfortable in the one you’re thinking of living in. Take a long walk and observe carefully. Do people take care of their yards and homes? Are the yards fenced? Do children play in the streets? Talk to the neighbours and ask questions that give you a better feel for the area. Always remember to be careful not to appear judgemental: you could be talking to a future neighbour!

If the neighbourhood is to your satisfaction, look at homes on the market in the area. Extremely large homes surrounded by smaller ones tend to appreciate less than a larger home surrounded by other large homes. Conversely, the smallest home in the neighbourhood tends to be “pulled up” by the other homes on the block.

The outer edge of a neighbourhood is usually not good for resale value. There are noticeable dividing lines between unlike neighbourhoods. It could be a difference in architectural styles, home size, property use or something else. Look for a home in the middle of a community of similar homes; it will hold its value better.

An exception to this rule is a house on the edge of a neighbourhood bounded by woods, park land, a golf course or other open space. Natural boundaries appeal to buyers, and these “edge” homes can actually command a better price. Of course, the exception to this exception is when there’s an unpleasant use planned for the open space: a field with a babbling brook is nice, a new freeway or factory isn’t.

Other things that can negatively affect property values are traffic, sounds and smells. Be sure to give the entire neighbourhood a long, hard look. The home you’re interested in may be perfect, but if the neighbourhood has problems, you’re investment won’t be worth as much when the time comes to sell.

When you’re interviewing Edmonton Realtors and trying to pick the best one to represent you, your home and your interests, it’s important to look at what the agent or office is offering. What benefits does choosing a particular agent offer over picking another? How do they plan to market your home? How many eyes will they put your home in front of?

When you’re selling your home you want to put your best foot forward so you sell for top dollar: this means making your home look its very best inside and out. To give your home that extra edge, think about bringing in a Professional Edmonton Home Staging Company. Home stagers know what furniture  will bring out the best features of your space and still allow potential buyers to easily envision what your home might look like with their own furniture.

With only a few weeks until Christmas, the holiday season is officially upon us with all its excitement. People are at their busiest during the holidays, with hectic personal, social and business schedules that don’t allow much time for anything else. And we all know how the Christmas season can put a strain on the budget, whether from gift-giving, baking or holiday entertainment expenses.

So what if you’re in the market for a new home? Should you start looking during the Christmas season or postpone the house hunt until the new year?

If you can fit house shopping into your busy holiday schedule, Christmas can be the best time to buy a house. Real estate prices are at their yearly low in December: most buyers turn their attention to seasonal duties and abandon their house hunt, so the buying market dries up and drives prices down.

But for those with the time and determination to continue looking for a home during December, the possibility of property bargains are at a yearly high. Since most buyers disappear, sellers determined to sell who keep their homes on the market over the holidays tend to be more negotiable.

Things for buyers keen to keep shopping for Edmonton real estate over Christmas to consider:

• People — including sellers — are in high spirits during the holidays. Good moods during Christmas often means good deals: sellers are feeling generous and much more inclined to negotiate than they might at other times of the year.
• Home prices are at their 12 month lows during Christmas: the perfect opportunity for the buyer on a strict budget looking for a good deal.
• There are fewer serious buyers house hunting this time of year so there’s little to no competition on even the most attractive homes. The chances of the home you like getting multiple offers is much lower.
• Sellers who keep their homes on the market over Christmas tend to be very serious about selling and likely to put fewer restrictions or conditions on the sale.
• The holidays are a great time for buyers to revisit listings where stubborn sellers wouldn’t negotiate a particular price. During the holiday season these sellers are often more willing to consider lower offers just for the peace of mind selling their home before Christmas.

It’s important to also keep in mind that scheduling viewings during December can be more difficult: buyers who are willing to be flexible with their time to accommodate festivities will garner goodwill and good deals.

Looking to buy during the Christmas Season, contact the Terry Paranych Team today to get started!

“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

The fall season has continued to see a steady real estate market with Condo and Single Family home sales increasing. While RE/MAX stats showed that “one area of the market outperformed all others” with a 26% increase in the Edmonton Luxury Market.

I am confident that right now is a great time to buy whether you are an investor, first time home buyer or looking to upgrade your home. Start your Edmonton home search!

According to the Edmonton Real Estate Board: “Housing prices in the Edmonton area remained stable as we enter the final quarter of the year. Single family dwelling prices in September mirrored prices in August and condo prices rose slightly after four months of decline.

The average* price of a single family property was up $472 and sold for $370,653 in September. Condominiums, which have dropped in price for four consecutive months, rallied and sold on average for $238,822 last month. The slightly less than 1% price increase did not reverse drops from a high of $252,728 in April. The duplex/rowhouse average price was down 11% to $313,462 but tends to vary widely from month to month. The residential sale price (which includes all types of residential property) was $326,499; down less than a quarter of a percent from last month.

Residential sales in September were down from the previous month at 1,187 as were listings at 2,668. This sales-to-listing ratio was 47% and the average days-on-market was unchanged at 57 days.”

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 vary from house to house and area to area. For information on a specific area, contact the Terry Paranych Team today!

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.