One of the challenges I faced when I was president of the Realtor's Association of Edmonton was the monthly updates on the state of the market.

Within a few days of the beginning of the month we would have the previous month's stats in on how many homes were listed, sold, pricing, etc. and then bundle that all together and compare how the market was doing in comparison to the year previous.  For the most part it was always positive news, either transaction numbers were higher, or prices had risen or both were up when compared to the last month, or last year etc. It wasn't (or isn't now) a matter that these numbers are wrong, or fudged or in any way misrepresent what is going on in the market, what was and is frustrating is that it remains dogma that the mere overview of the overall numbers remains all that many people rely on to base their decisions on real estate, which,  for many people is the singe largest purchase they will make in their lifetimes.

One thing to keep in mind is that the data shared is for the Census Metropolitan Area (CMA) which includes more than just the City of Edmonton.  The RAE serves a wider range of members and the data that is reported in the monthly news release tends to focus on the broader numbers.  This can create a bit of a skew if you are more concerned with the actual city's real estate health as it adds some areas such as St. Albert and Sherwood Park which tend to traditionally be on the higher end of the sales scale and have sufficient sales numbers to have an impact on averages - smaller communities with less transaction numbers are not sufficient enough to have a counterbalancing effect.  Let's look at the reported numbers for the overall Single Family and Condo pricing YTD as reported by the RAE's most recent new release - you can find the whole report here - the reported average SFD price for the first half of 2014 is $435,534 up 5.8% while for Condos it is $254,182 down 1.6%.  If you focus only on the Edmonton numbers, then the average SFD price is $425,904 up 3.97% and Condo is $257,035 which is virtual static.

In my view it is really important to know what the numbers you are looking at really pertain to.  Remember, all real estate is local - the larger the geographical area you are looking at, the less relevance it has to your specific home.  Here is a great example:  I have a wonderful home listed in the Mcgrath neighbourhood in Edmonton - 8 year old two storey, 4 bedrooms, double detached garage, fully finished basement professionally done listed at $799,800.  Last year by this time eight homes had sold like it at an average of $820,812.  This year there have only been 4 sales with an average of $749,800!  Yet, if you were to just extrapolate by using the broader numbers of what the region is doing, you would swear that the figures for this year should see 10 homes having sold for an average of about $853,400.

By the way, if you are looking for a great home in Southwest Edmonton give me a call!  

Shameless advertising plug #1 inserted ...

So, below are some numbers I breakdown for the various regions of the City of Edmonton that I think give a better indication as to what is happening in the various parts of the city.  As the example above shows though, it is really important to take the next step and get a more localized opinion of value for your home when you are making a buying or selling decision - that is where your Realtor comes in.  When you are ready call and then a more accurate, localized snapshot of your area can be examined and a better idea about the home's value can then be reached.  What number and who to call?  Get ready for shameless plug #2 ....

780-919-7653 or email me!

Thanks once again for reading  I will try and get more things up between clients!

Larry

What does $400,000 buy you in Canada? From CBC.ca

Wanted to share with you this info graphic from CBC that looks at what $400,000 will buy you in major Canadian cities across the country ....

While lending rules have changed, and many families are having to lower their initial buying expectations in light of tighter qualification standards making smaller mortgage amounts available to them; Edmonton remains a very affordable place for home buyers moving from elsewhere.

What adds to the Edmonton advantage vis a vis some other maybe more affordable places?  Jobs!  In March the unemployment rate fell to 4.8% compared to the national average of 6.9% - Toronto for instance is at 8%, Calgary at 5%, Vancouver at 5.8% and Halifax at 6.8%.

Just a little food for thought!

UPDATE to Last Post

In my last post I talked about RECA making Written Service Agreements (WSAs) mandatory starting February 4th.  I apologize that I wasn't clear.  The plain language agreements are available as of February 4th, but RECA's timeline for their mandatory use is July.

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I had a bit of a twitter joust with RECA on this distinction (https://twitter.com/LJWestergard) and in essence what they are saying is that all the forms are available for use and you should get used to using them because on July 1st you MUST use them with all transactions.

This is akin to give a person a car to drive and THEN telling them that you are going to sign them up for driver's lessons in a few month so they know how to drive properly!

I have a great deal of respect for RECA's mandate to protect the consumer and make sure that their real estate experience is as trouble free as possible; but these current round of changes are something that have been in the works for a while now - and I think that they have dropped the ball on the implementation and education of the industry, there should be a mandatory educational requirement BEFORE making such a sweeping change to industry practice and before making the forms available for use.

In the end it's important to make sure that whether you are an industry member or a member of the public you give and receive the best  and most competent service available.  I just don't know if RECA is allowing us to do it with this phased rollout.

Respectfully,


Larry

RECA makes contracts with agents mandatory for Sellers AND Buyers.

Last spring, RECA - the Real Estate Council of Alberta - announced that they were moving ahead with their plans to introduce mandatory written service agreements for all real estate transactions in the province.  Now, anyone who has used the services of a real estate agent is familiar with a written service agreement, it's your listing contract with the brokerage that has the sign on your lawn.  What is different, is that starting on February 4th (Tuesday), you are going to have to have a similar type of agreement when you are working with an agent as a Buyer.

So what does that mean?  We all know (and accept) that you need a contract in place if you are going to sell your house, the MLS permissions, the fees, the details of the chattels included, and all the other little details needed to sell the home are contained in a formal contract.  In many ways, a written service agreement (WSA) with a Buyer acts in a similar manner. In the WSA you will find all the  main components of a contract you would typically see in a listing contract - parties to the contract, property the contract pertains to (in this case the search criteria), time frame of the contract (it has to have an expiry date just like a listing contract), the services provided, the responsibilities of the parties, and the compensation for fulfilling the contract.  Whoa! Says you ... compensation?  So now as a Buyer I have to pay to find a house?

Well, simply put yes, you may have to.  Typically, the fee paid to the agents involved in a real estate transaction have always been dealt within the listing contract.  There has always been provisions in it to pay the Buyer's Brokerage a fee on the successful closing of the sale.  An argument has always existed that an agent really isn't working for the Buyer if the Seller is paying them.  Having separate agreements for both parties that outlines the responsibilities an agent has to them separately and delineating who pays for what really goes along way to helping create a better understanding of the loyalty commitments everyone has to one another.  Here's the good news ... most MLS listings still have an offering from the Seller to the Buyer's brokerage and the contracts contain a clause that allows the fee you would be expected to pay to your agent to be offset by this.  So you get the benefit of having a formal structured relationship contractually written up AND it still will not cost you much if anything!

There are a lot of different ways that the new WSA will benefit you as a buyer, taking the time to go over it with me before we go look at homes is a great way to sit down and talk about what you a re looking for in an agent and in a home.

Give me a call and I'll buy you a beverage and we can get started!

Larry
780-919-7653
lwestergard@remax.net

Sound Winter advice from Pillar to Post

Good Morning!

An article I came across from the folks at Pillar to Post that I wanted to share.  Some great tips if you have an older home!
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Weathering the cold and dark winter months is a challenge for anyone, but can be especially difficult if you live in an older home. Older homes carry a lot of appeal but older homes also come with problems and a lot of them are brought to light in cold winters. These are common issues that should be addressed and corrected so that your focus is on friends, family and holidays, and not with home repairs.


Many older homes come with beautiful glasswork but unfortunately, these drafty, single-pane windows allow heat to escape, wasting energy and money. Replacement windows can be expensive but they are often the most effective way to increase energy efficiency and comfort.

Insulation overall can be a problem in older homes, and inadequate insulation should be supplemented with additional insulation, particularly in attics. In order to ascertain how much insulation you need, check with local sources to determine if minimum insulation ratings (R-values) are required in your area for new homes and then meet or exceed those levels in your older home if you can.

Outdated water pipes can cause huge problems if cold temperatures cause them to freeze or burst. Older pipes made of galvanized steel, iron, or lead may need to be replaced if they are not in good condition. Good replacement options include copper or CPVC.
Early sunsets can make the winter seem dreary and long, so simple steps to brighten the interior of your home can go a long way to lifting those winter blues. Add bright color to any room with pillow covers, flowers, or indoor plants. Likewise, giving a small space like a powder or laundry room a fresh coat of paint in a cheerful color can help brighten an indoor space without becoming a major project. If you've got a green thumb, you can also take this time to plan out your spring garden, reminding yourself of sunnier, longer days to come.

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If you have any real estate questions give me a call!  780-919-7653 or send me an email! lwestergard@remax.net

Larry

New Listing!

Just listed this fantastic bungalow in Brookside! Give me a call @ 780-919-7653  to find out more and to set up a showing!

Real Estate Review (Part 4)

Our fourth instalment of 2013 real estate in review is going to take a look at the communities that surround Edmonton; we will cast out to Beaumont and Leduc in the South, up through Devon to Stony Plain and Spruce Grove, across to St Alberta and up to Morinville then across to Fort Saskatchewan and finally south from there to Sherwood Park.  By the time we are through when you include our look at Edmonton we will have covered the overwhelming bulk of real estate in the Greater Edmonton area.

Unlike our look in Edmonton, I have created a couple of charts to summarize the comparisons between 2012 and 2013,  we can then consider where the markets are going in a brief summary paragraph for each.  While we might talk about some general trends, each community has organic features and influences that are unique to them alone.

The Numbers

First off, let's just get it out there that you need to take condominium stats in most of the markets with a grain of salt.  In many cases, even in those markets where condos sales are an established part of the market, there has been an increased introduction of complexes over the last year or so that is "bumping" numbers a bit.  Over all then, the takeaway for the condo market in the outlying communities should be that it is a market niche that is gaining much more traction over the past few years and one that I think will continue to expand.  Note though that it is one that is still a bit of a tougher sell in these markets - look at the days on market in many of the areas being at 60+ days.

There is plenty of good news in almost all of the single family home markets around the city of Edmonton.  Everyone of them posted gains in either price or transaction numbers.  Leduc, Stony Plain and Fort Saskatchewan were especially exciting as they all posted double digit unit gains and price increases of at least 3.5%.  The two negatives are in and of themselves somewhat trivial; Devon's drop in sales volume is 4 units which is offset by a 1.5% increase in price.  While the price decrease in Spruce Grove of .11% is really less than $500 and is more than compensated but the over 10% increase in units Sold.  All in all a very good report card for the communities.  Note thought that it is taking slightly longer to sell a home outside of the city (on average) and a a Buyer, you really are not saving as much as you used to,  In fact in four of the nine communities you will most likely spend more on an average home than you would in the City!

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A little bit more of a quick look at the surrounding regions but I hope you got a bit out of it.
Tomorrow is the Realtor's Association of Edmonton's annual forecast event.  On Friday I will make some comments on how they think the year is going to pan out and maybe discus a bit about the differences in our viewpoints!

Thanks again for reading and remember; if you have any questions at all, don't hesitate to call or write!

Regards,

Larry
780-919-7653
lwestergard@remax.net