Posts from October 2016

Edmonton News agencies including the Edmonton Sun, Global News, and the Edmonton Journal are reporting on recent community resistance towards the City of Edmonton’s infill project.

The ambitious project had been relatively well received by Edmonton residents, contractors, and particularly newcomers desperate to find residence amongst the city’s ever increasing population spike.

The project encourages the construction of new residences on existing properties, such as duplexes, the addition of rental units over garages, and basement suites. This will allow a population expansion in Edmonton, which does not see signs of slowing down, without the often associated sprawl of suburban communities. To encourage development, the city has been particularly lax on approval policies related to the former bureaucratic red tape of the projects.

Rumblings are beginning to be heard from homeowners, who are now organizing to voice their concerns.  Of particular note is the message board website EdmontonLotSubdivision.com which has been active since early last fall but is picking up momentum.  Of the largest concern to homeowners is the lack of an appeal process. Citizens are looking towards their city councillors and MLA’s in hope of some response. Says Westbrook community member Darren Jackinsky,

“Fundamentally, it’s that it’s been forced on people and that there’s no structure in place to appeal an approval of a subdivision.” He goes on to explain the difficulty in voicing homeowner dissatisfaction, “we’ve so far been told essentially by the MLAs that it’s a city issue — talk to your councilors — and the city is saying talk to your MLA, it’s a provincial government issue.”

According to Edmonton Journal reports concerns arose because “the appeal process exists for developments on already split properties and for subdivisions that are denied, but not for the subdivisions themselves.”

The latest vocal outcry is coming from the residents of Rio Terrace. A 500 signature petition and 100 letters were submitted in opposition of a split-lot skinny house proposal, believing the development would not to suit the aesthetic design of the neighborhood.

City Councilor Michael Oshry, a proponent of the project, is dedicated to working with residents to clear up misconceptions while maintaining momentum. He believes misinformation has led to recent outcries,

“I’m happy to listen to them, but I do think a lot of the supposed support for no infill is based on information that either people don’t know, or people have misunderstood, or even been misled on occasion…I think these are people that are just concerned about what they think is going to be a dramatic change to their neighbourhood. And I think what they don’t appreciate is what actually is going to be built there.”

Oshry has explained that in the instance of Rio Terrace, lots are 22 meters wide, meaning a split lot is still not so small to reasonably necessitate a house. Additionally, replacing a single, aging, bungalow with two higher value homes positively impacts the value of neighboring properties. The City sees the project as a win-win for communities.

Oshry concludes, “At the end of the day, in my view, I don’t think it’s going to make one iota of difference. You’re going to end up with two homes with two nice families living in a nice neighbourhood.”

Will YEG weather hold? Or should we prepare for second winter?

February in the YEG Real Estate Market carried a familiar theme, inventory.

More and more homeowners are continuing to see the value in listing their residences with MLS, as market prices are tending to remain steady. Market forecasters indicate that the predictable seasonal lull will be drawing to a close in the foreseeable future, as snow continues to melt and temperatures rise in the city.

“Buyers are still taking their time to consider all of their options before purchasing a new home,” Says REALTORS® Association of Edmonton Chair Steve Sedgwick. “But with warmer weather just around the corner, clients are reaching out to their REALTOR® for support as the busy spring buying season approaches.”

The early months of 2016 have seen fluctuations to over 6,000 residential listings on the market, with February closing at 6,682 MLS properties for sale. This total indicates just a 16.2% increase from January, however the year over year numbers show a more impactful 36.5% rise from February of 2015.

Average residential sale prices saw a mild increase in all categories across the board. The category of Duplex/Rowhouses continued to be the market superstars, showing an 8.41% rise to $354,386, up 8.41% from January previous, and a 1.24% from the same time last year. The real surprise in February came from renewed market strength of condominiums, which had lately been showing drops or only negligible rises, yet which had gains of over 8% last month (8.83%) for an average sale price of $247,090. This price tag indicates a minimal year over year drop of 1.32%. Single family homes remained nearly steady from January, a 0.24% increase brought their average to $419,940, which showed a 2.79% drop from February of 2015. The month ended with a total residential sale price average of $363,366, a healthy 6.93% rise month over month and virtually no change in year over year comparisons.

February showed a large climb in reported sales, with 837 by month-end compared to January’s 618. This indicates a 36.5% jump month over month. February of 2015 saw 931 residences sold, which shows a current 10.1% decrease. Explains Sedgwick

“Sales numbers are increasing consistent with seasonal trends. Relative to 2015, potential buyers have more inventory to choose from. Despite this inventory growth, prices have moderated only slightly compared to last year, so home owners and sellers can maintain some confidence that housing prices are remaining stable.”

These remarks are also reflected in days on market averages for the month. The average residence was on the market for 57 days, which shows a year over year increase of 48 days. Despite climbing inventory however, this is a remarkable drop from January’s 71 average days on market. Of particular note, Condominiums averaged 57 days, an even more significant decrease month over month from a previous 85 days.

How much will oil field politics impact Edmonton’s Real Estate economy?

A February sales report published by the EREB titled “Home buyers continue to cautiously watch market” has left some feeling less than optimistic. There is no denying the ongoing concerns of Albertan’s over the economic future of the province, however the real question is, to what extent will recent political and oil industry events impact the province’s real estate industry? It is very plausible that the market, which has proven itself as more than a little resilient, is simply experiencing a predictable lull.

The recent economic downturn appears to be creating undue concern amongst market consumers and professionals; a concern that is starting to be reflected in market activity, as explained by REALTORS® Association of Edmonton Chair Steve Sedgwick,

“Sales volumes are down, relative to the same time last year…It is likely that home buyers are responding to current economic uncertainties. Although prices have dropped slightly, they remain stable. Growth in inventory may create more opportunities for potential buyers, and given the low interest rates, we remain optimistic about market growth as we head into the spring buying season”.

The report goes onto to show strong inventory numbers, with 5,751 MLS properties available going into February. This figure is almost a 40% increase from the same time last year, creating a great deal of consumer options for discerning buyers. This massive inventory increase hasn’t yet caused market saturation concerns, as sales from the same time last year are down a mere 7.21%. However in contrast to the month previous, December of 2015, sales dropped just over 14%.

Continuing in favour of a buyer’s market, a small decline occurred in residential sale prices. The average single family home price hovered at $418, 928 down 1.2% from the month previous, while condos show a larger 8.8% decline in the same time frame, for an average of $227, 052. The largest drop showed in the category of duplex/rowhouses which averaged out at $326, 885, a double digit decrease of just over 12%. All in all the residential category saw a 7.2% decreases in month over month sales, and a 6.3% decrease year over year for an average price of $339, 714.

The larger inventory is likely contributing to a rise in average days on market, which has increased to 71 days, up from December’s 62. Comparatively, this time last year, the average was about 58 days to market. The EREB report attributes this average rise mainly due to condominium sales “which sat at 85 for January, up from 62 from last month and 61 YoY” (EREB).

Concludes Sedgwick,

“The increase in the average days on market just appears to reflect that buyers are taking time to consider their options before purchasing a new home,”. He continues, “Clients are looking to their REALTOR® for advice and guidance as they navigate their own individual situations.”

Consider this a public service announcement: Valentine’s Day is just 10 days away and events are selling out fast. Fortunately, Edmonton is jam packed with events and activities for families, friends, and couples to celebrate the day. Here’s a list of the city’s best offerings:

Valentine’s Day Disco Skate

The City of Edmonton is hosting this free public event from 5-9 pm on Valentine’s Day. Public skating will be available at the outdoor City Hall Plaza Rink accompanied by a 70’s and 80’s music mix! Attendees can enjoy a warm hot chocolate while they roast bannock over an open fire. Skate and helmet rentals are also available free of charge.

Meet Me at Lover’s Lane

Hosted by the Silver Skate Festival, this romantic day for the outdoors type is filled with all the wonders of Hawrylak Park. Enjoy a hot chocolate as you explore the park by lantern light, take a sleigh ride under the stars, or visit the magical Ice Castles at the park. You can even purchase boxes of chocolates right on site to surprise your sweetie with. Prices vary by package. Activities run from 4-9 pm.

Valentine’s Weekend at the Park

Fort Edmonton park is hosting a full weekend of jam packed weekend for family fun, or couples romance. Packages are selling out fast but there are still tickets to enjoy the Lover’s Getway and spend a night at the beautiful park hotel, enjoy a four course dinner and breakfast for two. Perhaps Cupid’s Dinner & Show is more your speed, which provides a delectable dinner followed by the radio-style musical ‘Song of the Martingale’.

Art Gallery of Alberta

There aren’t many more romantic ways to spend an afternoon then strolling through a quiet gallery, hand in hand, admiring the masterpieces of AGA’ spectacular collection. After your quiet tour, there are beautiful local artisan items available in the gift store, as well as postcards, books and other mementos to commemorate your visit. Then head over to Zinc, located in the same building, for a ‘relaxed, fine dining experience’. Sunday hours are 11am-5pm and admission prices range from $8.50 – $12.50 (Children 6 and under are free).

Fantasyland Hotel

Why not travel to farthest exotic reaches of time without ever leaving the city. The Fantasyland hotel offers spectacularly detailed theme rooms for a romantic night away (but not too far away). Theme rooms include Modern Polynesia, Hollywood Nights, Roman, Western, Arabian, Imperial, African, and Igloo, among others. The hotel offers multiple fine dining experiences, as well as all the amenities West Edmonton Mall has to offer. They also offer a “romantic rendezvous” package for any of the rooms which includes chocolates, sparkling wine, and of course, rose petals.

Sweetheart Snowshoe

The city of Edmonton has another great offer for the outdoorsy type! A guided snowshoe tour of the scenic sprawling river valley. Snowshoes and a guide are provided, as well as hot choclate and bannock making to warm up after your walk. Tickets are $30 per person and are limited, however if you’d like to avoid Valentine’s day crowds, they have other dates available.

Paint Nite

Paint Nite, the new social actitivy that has taken Canada by storm regularly selling out events nationwide, is hosting a handful of city wide painting events on Valentine’s Day. Paint themes include “An Undefended Heart”, “A Valentine Stroll” and “Love in Paris”. This is the perfect event for lovers of art, novices, and those who have never picked up a brush. Enjoy the activity in the comfort of your local pub, where you can enjoy food, drinks and all the regular amenities, while spending a wonderful date night out. Visit the Paint Nite website for locations and pricing.

Rowhouse/Duplex style homes continue to be the superstars of the YEG home market.

In the face of a potential economic crunch for Albertans, do EREB mid-winter sales statistics offer any light at the end of the tunnel? Has the real estate sector yet seen any fallout from this relatively recent downslide? While some areas have shown relative decline, such as condominiums, we continue to see promise in areas of duplex and rowhousing, which remain up in sales, while total number of property sales also remains strong.

REALTORS® Association of Edmonton Chair Geneva Tetreault summarizes her big takeaway on the year overall,

“2015 was a steady year for real estate in Edmonton. Edmonton and the surrounding areas experienced a decline in sales due to economic uncertainty, but we saw a slight increase in price that demonstrated that the market remained relatively stable. This began to cool in the fall months as inventory remained higher than normal.”

These expected patterns indicate the real estate market is following the largely predictable up and down cycle we see recurring year after year, and therefore provides an optimistic outlook about the market’s relative economic resilience.

As reported by the EREB, the cooling of December prices was not only “seasonally normal” but proved advantageous to potential home buyers. Total residential sale prices dropped a slight 0.9% from November of 2015, with the average price of a single family detached home decreasing to $424, 629 (compared to November’s $432, 862). Condominium prices decreased 1.8% to $248, 956 yet duplex/rowhouses reported a whopping 10% increase in price up to $374, 217. These prices are in fact up, in year over year comparisons. The year ended with average single family home prices up 1% from the year previous, and all residential properties up an average of 1.5% total. This is an area where even condominiums showed a slight increase (about 0.5% from the year previous). The 2015 condominum average sale price was up tp $252, 954, and single family homes rose to $437, 569, while all residential properties averaged out at $372, 511.

The sales to listings ratio for the year was 54% (evening out slightly from 2014 when it was 16% higher) while average days on market were up only 4 days from the year previous, to 51 days. Inventory continued to dominate throughout 2015, with year end inventory at a staggering 5,088 properties.  In comparison, at the end of 2014, year end inventory was at 3059 available MLS properties.

The new year continues to carry forward 2015’s trends of high inventory, and in ever increasing buyers market. Tetrault comments on these trends,

“We continued to see home buyers take advantage of low mortgage rates. An influx of listings at the beginning of the year, meant that buyers had a larger selection of homes and were able to take more time selecting properties than in previous years. We continue to see a tight market in the popular $400,000 price range for single family homes.”

Overall, 2015 MLS sales were down about 9% from the year previous, however it should be emphasized that this drop still shows a 1% increase over 2013 numbers. Single family homes represented this average, with a 9% decrease, while condos showed a decline in sales of around 13%. The ever popular rowhouse/duplex category continued to dominate the market with a rise in sales of 6%. In total Edmonton realtors reported 17,298 residential sales via MLS last year.

CLICK HERE to connect with a real estate professional in your community.

2015 went as quickly as it came, and we are left with another year of choices to reflect upon. Wether  you felt it was a highly successful year, personally or professionally, or if 2015 left something to be desired, the key to reflection is personal growth. The following steps are aimed at personal development which in turn will make your a more accessible and approachable professional figure. Implementing these small life changes will show dedication to continual self improvement.

Be A Swift Responder. Make a point of returning correspondences immediately. Have your calls, emails, and social media messages forwarded to your smart phone, so you can receive communication from anywhere, and more importantly, respond immediately. Turn that potential customer into a lifelong client by being the first agent to reply.

Commit to Lifelong Learning. Sign up for courses offered by Re/Max University, AREA Professional Development to always be challenging yourself and grow. It doesn’t have to be innately real estate related. Why not take a Metro Continuing Education photography class, and take better photos for MLS, or choose a beginner language course and broaden your client base.

Maintain Your Network. Have a lawyer, mortgage broker, painting service, and house cleaner on hand and build good relationships. Send wine, gifts, and thank you notes to show appreciation for a job well done. Send Christmas cards to past clients; even if you know they’re not interested you never know who they will pass your name to. Is your cousin in the furnace repair business? Keep a card on hand to refer customers to. Making an effort in all facets of your life will help improve social skills, build reciprocity, and create a dedicated business persona.

 Be an open book. Don’t leave your clients in the dark or assume they understand the real estate process. Many clients may be first time buyers and are probably more terrified and overwhelmed than they let on. Don’t be afraid to over-explain, people will stop you if they get it, mostly likely though they will be grateful to have the additional info. It also gives you a great chance to shine, you’ve put a lot of effort into honing your real estate skills, why not take moment to show off.

 Practice Self-Discipline. This means showing up on time, never double booking, being mentally present with appropriate paperwork, and having your homework done. This will show the client that you respect their valuable time, and appreciate their business. Show up to a viewing ten minutes early, with extra highlight sheets, and an overview of the neighbourhood and amenities. Your clients will see you care as much about their new home as they do.

Adapt to technology. Chances are if you aren’t particularly picky you will have a broad range of clients with a large range of abilities. You may have established clients who like phone calls, hang on to business cards, and receive faxed documents. Then of course your new clients may prefer dealing in texts and emails, having found out about you via your twitter or facebook page. Keeping current and constantly adapting opens you up to the broadest possible market of clientele. It takes less than 5 minutes to post an Instagram of your new listing which can then be cross shared with Facebook and Twitter. “Check-In” at your open house so clients know where to find you, then share success stories and photos of happy customers. It will showcase you as a genuine person with a real passion for client satisfaction.