Curtis Leibel 780-438-2500

The new real estate census for Edmonton Metropolitan Area was released at the beginning of this month, and you may be surprised to hear that local real estate sales showed a year of overall stability even in a year of economic turmoil and downturn.  All of the following statistics are taken from the Edmonton Real Estate Board.

Prices were quite stable throughout the year, with only a slight overall decrease in price and number of total sales.  Condos decreased marginally by 0.53%, and single family homes only 0.86%,  The one big decrease was seen in duplexes and rowhouses, falling 5.22% from the previous year.  To put this into a practical application – a $400,000 single family home in 2015 would theoretically have sold for $396,560 in 2016.

The number of units sold throughout the year decreased slightly from 17,325 units in 2015 to 16,170 in 2016.  The average days on market also increased slightly from 51 to 57…meaning on average it would have taken 1 week longer to sell your home last year, compared to the previous year.

And there is recent hope that we may have seen the worse and we are on the upswing:

In December 2016, sales of all residential properties were up 0.42% from December 2015. These increases were 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.

Stay posted as I update you with the most recent numbers as we enter into what is typically the busiest time of the year in real estate.

Well we have finally been hit with a cold snap and winter has come.  As a new or existing homeowner, there are many maintenance tasks you should keep up with to make sure your home stays dry and warm throughout the winter.

Here are some tips listed in our Realty Executives blog : http://www.realtyexecutives.com/blog/winter-home-maintenance-tips/.

To summarize:

Ice Damming – be sure to clear any ice collecting on the roof – ice formation will most often be found along the perimeter where there is poor air circulation and also in the roof valleys.

Frozen pipes – make sure any pipes in exterior walls are properly insulated, keep the house warm, install frost proof hose bibs, and shut the main water off when leaving for extended periods of time.

Mold – check to make sure there is proper insulation and air flow in high humidity areas and keep an eye out for any dampness around windows, cracks, baseboards, etc…

Chimney – have your chimney inspected by professionals on a regular basis.  Build up of creosote can be deadly.

Falling trees – clear any debris, or heavy or dead branches away from the home before they break under the wind and weight of snow and cause damage to the exterior of your home.

These are just a few items that take a few minutes to check to ensure you stay dry this winter.

Time for the latest Alberta Real Estate Market update –  I am happy to report that Alberta has seen home sales increase year over year for the first time in over 2 years!  According to the Alberta Real Estate Associations latest statistics, Alberta completed 4527 home sales last month, compared to 4327 of 1 year ago.  Additionally, the average home price is up 1.9% from the same month of the previous year; the average price has risen from $384,381 to $391,692.    This is great news, and may signal the beginning of increased sales and growth over the months to come.

In case you haven’t heard, as of Oct.17/2016 a new, stricter, mortgage lending rule came into effect.  It is in response to years of lower mortgage rates and serves to limit potential buyers total debt load.

In short, a buyer in the past would typically only need to be approved for a mortgage amount based on what their interest rate will be (for example, a typical rate at this time would be around 2.49%) .  However, even though your interest rate would be that low, you will have to be approved as if it were the current Bank of Canada fixed rate of 4.64%.  This will ultimately effect the total amount of money you are able to borrow.

Here is an example listed by the Alberta Real Estate Association:

Family A is qualifying for a mortgage using the following information:

Result:

• Qualifying for a mortgage and applying for mortgage insurance under previous rules, Family A qualifies for a purchase price of $450,000.
• Qualifying for a mortgage and applying for mortgage insurance after October 17, 2016, given the need to qualify at the Bank of Canada rate of 4.64%, Family A qualifies for a purchase price of $360,000.

For more information, I recommend you speak with your mortgage lender to see how this may effect your borrowing ability.

When looking at purchasing a condo, it is important to include a review of condo documents condition.  This allows perspective buyers the opportunity to do their due diligence and look into the condo corporations financial position.

Attention to detail is necessary for this, and I often advise clients to seek the help of professional companies trained to review these sort of financials.  Either way, here are some of the documents you can expect to come across while reviewing:

1.  Information statement – particular information about the unit itself (ie. exact condo fees, any law suits against it, etc…)
2.  AGM – minutes from the latest Annual General meetings which all owners are invited to attend.
3.  Monthly meeting minutes – Most complexes will hold monthly meetings to tackle ongoing concerns.  Smaller units may only meet every 3 or 6 months, but all minutes must be held on record.
4.  Monthly and annual financial expenses and budget for the next year.
5.  Reserve fund Study – Basically a professional inspection of the exterior of the building.  All condos must have this completed every 5 years.
6.  Certificate of Insurance – all condos need to have insurance and provide evidence of it.

Although this list is not inclusive, these are the major items you can expect to have provided to you to review before proceeding with your purchase.

Wow – happy to announce a huge $15,000 reduction on our listing at 9331 – 172st.  Now at the smoking price of $199,500 this home will be sold in no time.  In case you missed it, here are the details:

Rare top floor end unit with large south facing balcony.   Pride of ownership is apparent when you walk in the door of this 2 bedroom + den home.    With a large open layout, the main area boasts a large living room and dining room centered around a tastefully tiled fireplace.    The kitchen has upgraded cabinets, a large pantry and loads of counter space.  A unique hand painted moveable island with granite countertop and breakfast bar finishes off the space sure to impress any cook.  The generously sized master bedroom has a large walk-in closet & ‘Jack ‘n’ Jill attached bathroom. The Second bedroom comes with ample closet space. The den, with glass French doors, has built in cabinets and is currently being used as an office could easily be converted into a third bedroom.  The complex has brand new deck railing and duradek and is now ready for you to enjoy in a private setting.  The unit is also one of only four in the entire complex to have its own parking stall directly in front.  Walking distance to Terra Losa shopping Ctr and West Edmonton Mall. Close to Schools, Miserecordia hospital and all amenities. Now underpriced at just $199,500!

Alot of people I come across are unaware of how exactly Realtors work.  Most are shocked to learn that using a Realtor when buying a place is generally free.  In this case, there is really no downside to using a Realtor when buying a home.  The way we get paid is through the seller.  When listing your home, you will actually be paying 2 realtor fees- one for the selling Realtor and one from the buying Realtor.

Typically we use a 7% + 3% method to calculate our commissions.  That meaning it will cost you 7% on the first $100,000 and 3% on the remaining balance.  Keep in mind that this is then split between both Realtors, each receiving 3.5% and 1.5%.

As an example:

A sale price of $300,000 on a condo would result in:

3.5% on first $100,000 + 1.5% on remaining balance for listing Realtor = $3500+$3000= $6500 + GST

3.5% on first $100,000 + 1.5% on remaining balance for buying Realtor = $3500+$3000= $6500 + GST

TOTAL = $13,000 + GST

That may seem like a lot, but generally speaking listing through an accredited Realtor typically gets you a sale price higher than the cost of the Realtor fees than if you were to decide to list on your own.  In addition, you will have exposure to many more prospective buyers, often reducing the time to sell by a substantial amount.  Any time you work with a Realtor it is important to be up front and discuss what fees are involved so there are no surprises later.

Our Edmonton market has generally held strong amidst the low oil prices and struggling Alberta economy.  However, we are starting to see the effects on the market and as we get into the summer months expect to see the volume of sales to continue to decrease.  Although historically we have seen moderate growth in sale prices year over year, the last 2 years have reported a small dip in house prices.

The Alberta Real Estate Association have released the latest stats for June.  Here is a quick summary for Alberta as a whole:

• total of 6059 units solds, this is down 9.2% from the month of June/2015
• the average mls sale price is also down 1.4% from last june, averaging $397,269

The good news is that the Edmonton Region saw one of the smallest year-over-year changes of only -0.6%.  Calgary and Lethbridge regions saw the only positive changes (of .2% and 2% respectively) in Alberta, while the South Central Alberta and Fort Mcmurray regions saw the greatest decreases; between -19.8% and 32.3% respectively.

Brand new beautiful coach home listing in the west end.  This is actually my 3rd listing in this complex in the last few years, the whispering willows.  This well run complex is in great shape, has low condo fees and is in a great location, near west edmonton mall, Terra Losa shopping center and many major commuter roads.  It is one of the rare top floor 2 bedroom + den units at the end of the complex and is meticulously maintained.  Large open layout with updated kitchen, island and breakfast bar with granite countertop.  Boasting two grand bedrooms and a den with french doors and built in cabinets.  This is a must see, and wont last long at a listing price of $214,900.

Whether you are selling or purchasing a property in the Province of Alberta, you will be required to sign a form called the Consumer Relationships Guide.  This is not part of the purchase contract, rather a form that will be held on record by the Real Estate company representing you in the transaction.  The purpose of the form is to explain the relationship and responsibilities of both the Realtor/and or client so that everyone involved is aware and well informed about the role both parties play throughout the transaction.

Although fairly self-explanatory, these are the major issues it brings to awareness:

1. Agency relationship – explaining that when you enter to this relationship, you are represented by an agent as well as the agents brokerage that is acting in your best interest.
2. Agents responsibilities – undivided loyalty, confidentiality, full disclosure, obedience, reasonable care and skill and full accountability are the responsibilities that every agent must exhibit.
3. Customer relationship – if you choose not to be represented by a Realtor in a transaction, the Realtor is not able to provide you the same services as if they were to act on your behalf.
4. Conflicts of interest – if you choose to have the same Realtor represent both the seller and buyer in a transaction, you are entering into what we call a transaction brokerage.  You must be made aware of this, and are required to sign another form which explains this situation fully.

You will come across these, among other items when completing the form to agree to be represented by a Realtor.  If you have any questions at all regarding this subject matter, do not hesitate to ask your Realtor and/or their brokerage for further explanation.