Edmonton Real Estate Market Snapshot

December 2016 & 2017 Forecast

Edmonton is the festival city with a beautiful backdrop of the river valley

How are the Edmonton home prices doing this Fall/Winter as compared to 2016?

Here’s a glimpse….

EDMONTON:

Monthly Sales are up 0.42% year-over-year

New Inventory is down 16.51% year-over-year

Total Inventory is up 2.40% year-over-year

Supply of Inventory is roughly 7.27 months, meaning it’s still a buyers market.  Sellers will need to ensure their properties are staged well and priced more attractively then their competition in order to SELL.

Average days on market is up to 69 days over 2015 with 62 days

Single Family average sale prices are down 0.86% year-over-year at $420,962

Condominium average sale prices are down 0.53% year-over-year at $247,647

Duplex & Rowhouse average sale prices are down 5.22% year-over-year at $228,000

According to the Realtors Association of Edmonton’s annual housing forecast, Chairman James Mabey predicts that the sales of residential homes will continue to remain relatively stable for 2017.

Single family homes performed well in 2016 and are only expected to have a small decline until the middle of 2017 ending approximately 1.7% under the 2016 numbers. Prices of single family homes will also see a slight decrease of around 2.2%. With inventory remaining higher than years before $350,000-$450,000 single family homes will have the most continued strength in this category.

Condominium sales saw both a drop-in unit sales and prices in 2016. A slight increase and stabilization are expected by only a small margin approximately 0.2%. Inventory will continue to increase 1.1%, with average sale price dropping by 3.8%

Alternatives to single family homes such as Duplex’s and Rowhouses continue to gain popularity especially for first time home buyers. Higher quality selection should keep average prices stable with a modest increase in unit sales of 0.5%, matched by a modest drop in inventory by 0.5%. Overall unit sales are projected to decrease by1%.

“Edmonton had a positive 2016 despite ongoing economic uncertainty,” said Mabey. “Buyers are continuing to remain cautious, and sellers are having to set appropriate expectations and evaluate their motivation and urgency.”

If you would like to know the specific averages ($) of the houses in your neighborhood, you have 2 options:

1) Contact Dave Ozubko directly at 780-966-8227, and he will provide you with additional information

OR

2) Visit Dave Ozubko’s website for the FULL HOUSING REPORT, which will provide you with all the details at: www.DaveSells.ca

If you would like any additional information on the real estate market, or if you’re thinking of buying or selling, please contact Dave directly as he would be glad to answer your questions.

Happy New Year from the Dave Sells family!

#DaveSells #RealtortotheRescue #yeg #yegrealestate #Remax

Full Housing Report

2016 Residential Prices Resilient Through Economic Downturn

Winter season sales and inventory decrease

Edmonton, January 4, 2017: The Edmonton Census Metropolitan Area (CMA) real estate market marked a year of overall stability in 2016. Prices were also consistently stable with only modest decreases throughout 2016. Condominiums and single family home prices decreased, with condominiums declining 0.53% and single family homes declining only 0.86%, relative to 2015. Duplexes and rowhouses, which account for approximately 10% of all unit sales, experienced the most decline in prices, decreasing 5.22% compared to 2015.

In total, 16,170 residential unit were reported sold in 2016 as compared to 17,325 in 2015. Average days on market for 2016 for all sold units was 57, up 6 days from the average of 51 days on market in 2015. The reported all-year sales to listing ratio was 52%, indicating a fairly balanced market.

“2016 was a steady year for real estate in Edmonton and many of the surrounding communities. The ongoing economic instability certainly affected unit sales and inventory, but sale prices have continued to hold,” said James Mabey, REALTORS® Association of Edmonton Chair.

In December 2016, sales of all residential properties through the Edmonton Multiple Listing Service® (MLS®) System in the Edmonton CMA were up 0.42% from December 2015. This stability was reflected across all property types, which showed little change compared to the same month in 2015. Single family home unit sales were down only 2.53%, condominiums were unchanged and duplexes/rowhouses increased 19.44% from December 2015.

As is typical for the winter, December average days on market increased across all categories relative to the previous month. Single family homes required on average 62 days to sell, compared to 52 days in November 2016. Duplexes/rowhouses took 78 days to sell compared to 74 days in the previous month, and condominiums took 80 days to sell, only one day longer than November 2016. Overall, inventory for December in the Edmonton CMA was 5,208, which is down 19.8% relative to November 2016 and up 2.4% compared to the same month in 2015.

“Now that the 2016 holiday season is behind us and a new year is here, we expect listings and sales to begin to increase again,” said Mabey. “As Edmontonians are making their plans for 2017 and considering selling or buying a home, it is a great time to talk to a local REALTOR® for expert market advice.”

Review these statistics and more at www.ereb.com.

A Review of New Mortgage Rules

 

Picture21Buying a house has become a little bit more complicated with the implementation of the new mortgage rules last month and the refinance rules coming into play Nov 30th. With concerns that some of the real estate markets in Canada are inflated, these changes are supposed to remove some of the risks in the housing market. This can have a significant impact on the housing markets, especially first time home buyers. We at Dave Sells, and our friend Evangeline with Evangeline Mortgages, have put something together to go over some of these changes and possibly clarify a few of your questions.

Mortgage Rates

-New rules became effective Oct 17th, 2017

-These Rules apply to high ration purchases (less than 20% down) submitted after the effect date.

-Mortgage applications with less than 20% down must pass a stress test.

-A Stress test is qualifying the mortgage at benchmark rate which is 4.64% instead of the contact rate.

-Clients will still receive the lower contract rate of their mortgage commitment, which today is between 2.35% to 2.69%, but they must qualify to carry the mortgage at 4.64%

-Fixed rate mortgage terms for 1-4 years and all variable rate mortgages had to qualify at benchmark rate prior to these changes, it is only affecting the 5-year fixed term.

Refinance rates

-New rules became effective Nov 30th, 2017

-Some lenders will allow you to refinance and qualify at contract rate with a maximum term of 30 years amortization.

-Most lenders must qualify to refinance at benchmark rate with a maximum term of 25 years amortization.

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With these new changes, we have seen a 20-22% decrease in the purchasing power of clients after the stress test. Mortgage brokers now are crucial to providing opposition and competition to banks. This will prevent them from increasing rates and costs associated with mortgages while decreasing options for obtaining a mortgage. Using a mortgage broker is a great asset as they can still get you a mortgage with many of the big banks, while accessing other exceptional lenders, all at no cost to you!

 

Let us and our friends help you find your forever home!

#DaveSells #yeg #yegrealestate #RealtorToTheRescue

 DAVEOZUBKOlogo[1]

http://www.evangelinemortgages.com/homepage.asp

November 2015 Market Report

We have finally reached the end of 2015 and the latest market stats are here. As everyone is forecasting down turns in Edmonton’s future in 2016 we have noted that year over year (yoy) that the prices and inventory are up but sales are down. The price of a single family home has risen over 1% from last year. The price of condos by 0.4% from 2014 and the average of all residential properties are up by 1.5% yoy.

Edmonton in 2015 was a steady year, lack of sales was due to uncertainty within the market. Slight price increase demonstrates that the market is stable. Home buyers have the advantage with lower mortgage rates and the high rate of inventory for them to choose from. Buyers are taking their time to select properties because of the large selection available to them. In comparison to last year inventory levels were at 3,059 properties (in 2014) to this year year-end inventory of 5088.finalplease

November 2015 Market Report

Sales in Edmonton’s housing market were strong although sales were dropped by 2.9% year-over-year (YoY). This is an improvement from October of this year where we saw sales down by 15% from 2014. Residential sales priced were slightly down by 3.1% but but prices year-to-date are up by 1.5% from November 2014.

In November we generally see the residential market slowing down but this year was different due to several factors as consumers are showing trust in the Edmonton and Area Market.

“The warm fall weather we saw in November, coupled with healthy inventory numbers, were key factors in keeping buyers active in the market,” explains Geneva Tetreault, Chair of the REALTORS® Association of Edmonton.

 

Although inventory numbers are up, in the fall there are fewer listings compared to the spring. The average days on market have increased from 55 days in November 2014 to 59 days to sell November 2015. Prices should adjust to normal winter sales season but with higher levels of inventory.

Edmonton Residential Stats:

Information retrieved from: www.ereb.com Monthly Stats