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

2013 Real Estate Review (Part 3)

In the first two parts of our review of Edmonton's real estate market for 2013 we have looked at pretty much every area of the City save two.  Today we are going to finish off by taking a look at the Downtown area and the Central region.

NOTE:  This is a multi part series that will span the next week or so.  We will start with the districts in Edmonton and then move out to look at some of the surrounding communities. 

The Central districts run east starting from 142 street to the city boundaries and follow the north bank of the River up to the Yellowhead.  It is, for the most part a very mature region that most people would balk at due to perceived "socio-economic concerns", but also includes some of Edmonton's most cherished heritage neighbourhoods (Ada Boulevard).  While it is true that there are some areas that are facing challenges with certain classes of people, the area is one that offers many families there first chances at home ownership and it is becoming a popular infill development option for some builders due to lot sizes and affordability.  2013's number are as follows:

SINGLE FAMILY HOMES

• # TRANSACTIONS
• 2012 - 671
• 2013 - 661          DOWN 1.5%

• AVERAGE SALE PRICE
• 2012 - $253,195
• 2013 - $269,864  UP 6.6%

• DAYS ON MARKET
• 2012 - 52
• 2013 - 47

CONDOMINIUMS

• # TRANSACTIONS
• 2012 - 251
• 2013 - 246          DOWN 2.0%

• AVERAGE SALE PRICE
• 2012 - $154,607
• 2013 - $152,720  DOWN 1.2%

• DAYS ON MARKET
• 2012 - 57
• 2013 - 57

Thoughts: 2013 marked a bit of a setback in transaction for the area after seeing some very positive numbers over the past few years.  I think one of the issues is the transitory nature of the area.  As really the second choice of many buyers, the continued affordability in other areas of the city has a bit of an impact as people find options elsewhere where in previous years where the market was a bit more "heady".  The condo market is a touch more sensitive to this than the residential portion as evidenced by the drop in both sales and prices.  2014 will see a bit of a recovery to 2012 levels, but not much "growth" beyond that.   Look for single family sales to climb back to 675 units (+2%) and condo sales to push back to 250 units (+1.6%).  Prices will also climb with single family averages UP 1.9% to $275,000 and condos making back the 2013 losses to rise back to $155,000.  The time on the market will continue to be 47 days for homes and 57 days for condos.

The Downtown region is the most geographically compact of all the Edmonton areas.  Comprising of that region that lies on either side of Jasper Avenue bounded by the River on the South and roughly 104 Avenue on the North, it's east/west boundaries are also pretty much bounded by Jasper Avenue - where it becomes 124 Street in the west and where it becomes 82 Street in the east.  While most regions we discuss are dominated by single family homes, the downtown is the one place in Edmonton that has built UP rather than OUT - so the condo market is the main housing driver.  That being established here are the key 2013 numbers:

SINGLE FAMILY HOMES

• # TRANSACTIONS
• 2012 - 59
• 2013 - 74          DOWN 25%

• AVERAGE SALE PRICE
• 2012 - $375,376
• 2013 - $423,121  UP 12.7%

• DAYS ON MARKET
• 2012 - 70
• 2013 - 69

CONDOMINIUMS

• # TRANSACTIONS
• 2012 - 653
• 2013 - 709          UP 8.6%

• AVERAGE SALE PRICE
• 2012 - $270,661
• 2013 - $291,486  UP 7.7%

• DAYS ON MARKET
• 2012 - 55
• 2013 - 58

Thoughts: The single daily market in this area is mercurial.  Because there are so few of them and we are really starting to see a change in the makeup of them.  Many of the older homes are being bought up to make way for either new homes, or collected in bundles to give way for new projects.  Thus prices have begun to rise again to to a newer product offering or the desirability of older "lots".  The condo market is also seeing a bit of a "mini-boom".  It appears that the new downtown arena project is a go and there are a number of new projects that have been started in anticipation of this.  While 709 units is by no means a high, there are a number of "hidden" sales inside project sales that don't make MLS.  Prices have now exceeded highs we saw in the 2006/07 boom market and even with a higher supply coming on line this will not abate.  Look for 2014 to once again see very strong growth in the area - single family sales will hover at 80 units (+8%) while condo sales will grow to 765 (+8%).  Prices for both will climb; single family slightly to $435,000 (+2.8%) and condos will break through the $300,000 barrier for the first time finishing 2014 at $305,000 (+4.6%).  Days on market will continue to be lengthy 70 days for homes and 56 days for condos.

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So that concludes the look at the regions in Edmonton.  Overall, the numbers are very exciting; single family home sales grew 7.2% in 2013 (8900 from 8296) and condo sales grew a staggering 15.3% (4572 from 3964).  I don't see anything that suggests this trend does not continue on 2014.  I expect home sales to reach 9700 units and condo sales to push to 5258.  By all indications prices will continue to rise as well and will vary across the regions.  Remember, because real estate remains local, it's best we sit down and do a comprehensive look at your neighbourhood to see just what the market impact is for your home.  Give me a call at 780-919-7653 or email me at lwestergard@remax.net and I will be happy to drop by to talk real estate!

Next time article we will take a look at the surrounding communities!

Thanks for reading!!

Larry

2013 Real Estate in Review (part 2)

Last post we started out looking at how 2013 turned out in the South districts of Edmonton.  Today we are going to pick up where we left off, continuing clockwise and beginning with the West end.

NOTE:  This is a multi part series that will span the next week or so.  We will start with the districts in Edmonton and then move out to look at some of the surrounding communities.  

The West of Edmonton is best described as everything on the north bank of the river as it crosses the Anthony Henday and Whitemud Freeways.  It is a very diverse area with almost every property type and class.  There are high end homes, new homes and condos, mature neighbourhoods, redeveloping ones and everything in between.  It includes such landmarks as West Edmonton Mall the Valley Zoo.  It had a pretty stable 2013 as the numbers tell us:

SINGLE FAMILY HOMES

• # OF TRANSACTIONS
• 2012 - 1246
• 2013 - 1305            UP 4.6%

• AVERAGE SALE PRICE
• 2012 - $444,357
• 2013 - $466,340     UP 4.9%

• DAYS ON MARKET
• 2012 - 48
• 2013 - 46

CONDOMINIUMS

• # OF TRANSACTIONS
• 2012 - 591
• 2013 - 608            UP 2.9%

• AVERAGE SALE PRICE
• 2012 - $228,479
• 2013 - $228,076     DOWN 0.17%

• DAYS ON MARKET
• 2012 - 54
• 2013 - 54

Thoughts:  Residential sales showed another year of steady moderate growth in both number of transactions and sale pricing.  This is indicative of the area for the past few years and reflects the mostly established nature of the area.  New Home builds on the fringes of the district will also be steady and contribute, but unlike the SE and SW areas, it is constrained by geography as to how rapidly it can develop.  The Condo market is, to put a positive spin on it, treading water.  Slower transaction growth over the past few years and minimal to non-existent price increases are most likely due to the competition from the faster growth areas around it.  In 2014, there is nothing that indicates that these trends will change, expect a similar trend of slow but steady inching forward.  Transaction numbers will rise for Single Family homes to 1370 units (4.9%) and Condos to 625 units (2.8%).  Prices will also rise; to $489,000 (4.8%) for Single Family and minimally for Condominiums to $230,000 (1%).  It will also continue to be a slower market with DOM being 1 and a half months for SF homes, and slightly longer at 52 days for Condos.

The Northwest district is a bit of a smaller region vis a vis housing as a lot of the geographic area is commercial and industrial.  It still features some very prime real estate in its southern area - Glenora as an example - and a bit of new development in the north - Zone 59 around Big Lake.  As such, the numbers for the district are on a smaller scale than some:

SINGLE FAMILY HOMES

• # OF TRANSACTIONS
• 2012 - 426
• 2013 - 503            UP 18.1%

• AVERAGE SALE PRICE
• 2012 - $338,343
• 2013 - $342,711     UP 1.3%

• DAYS ON MARKET
• 2012 - 47
• 2013 - 40

CONDOMINIUMS

• # OF TRANSACTIONS
• 2012 - 138
• 2013 - 145           UP 5.1%

• AVERAGE SALE PRICE
• 2012 - $183,105
• 2013 - $200,929    UP 9.7%

• DAYS ON MARKET
• 2012 - 59
• 2013 - 64

Thoughts:  While a smaller area the northwest has seen a very good recovery in it's numbers.  SF home unit sales have been rising steadily in the past four years and 2013 was the strongest year in some time.  While they haven't quite bounced back to 2007 levels, prices also rose again year over year.  Condo sales while small in number, posted excellent gains in 2013; numbers that when compared to past years have to be considered as approaching the previous peaks.  In 2014, I expect to see both markets to continue to grow in a similar fashion with transaction figures reaching 550 (+9.3%) for SF homes, and Condo sales increasing 6.8% to 155.  Prices will also rise in both areas albeit a bit slower in the SF market - up approximately 2% to $350,000; while Condo prices climb over $210,000 for the first time since 2009.  While the time on market might seem a bit daunting, these are numbers that tend to be typical for the the area.

The North region comprises 3 MLS districts (1, 27 and 28).  It is a diverse area and a mix of old, established and new homes.  It stretches from the Yellowhead north to CFB Edmonton and encompasses such areas as Castledowns, Belle Rive, Athlone and Rosslyn.  You will find a bit of almost everything in this area although the prospects for new home builds is somewhat constrained by St. Albert to the northwest and the Base to the north. 2013 posted some good numbers:

SINGLE FAMILY HOMES

• # OF TRANSACTIONS
• 2012 - 1097
• 2013 - 1198         UP 9.2%

• AVERAGE SALE PRICE
• 2012 - $352,029
• 2013 - $359,791     UP 2.2%

• DAYS ON MARKET
• 2012 - 52
• 2013 - 53

CONDOMINIUMS

• # OF TRANSACTIONS
• 2012 - 335
• 2013 - 390           UP 16.4%

• AVERAGE SALE PRICE
• 2012 - $227,832
• 2013 - $226,503    DOWN 0.5%

• DAYS ON MARKET
• 2012 - 59
• 2013 - 56

Thoughts: While transaction numbers for both types have been very good news the past few years, prices have been slow to recover since the downturn.  While they have seen an overall gain since that period, it has been slower than some other areas have been experiencing.  I see these trends continuing in 2014.  Unit numbers for both will continue to see excellent gains - for SF homes 1310 (9.3%) and Condos will push upwards to 425 units (+8.9%).  Prices, while not as robust will still see increases; $369,000 (+2.6%) for SF, and $228,500 for Condos (+0.9%).  Days on Market will continue to be slower, over 50 days in both areas (52 & 55 respectively).

Finally for today we look at the Northeast.  This area takes in the established areas north of the Yellowhead and west of 82 Street that includes, Delton, Killkenny and Londonderry, east past Manning Drive into Clareview and to the River.  Northwards it runs to the City limits and includes some of the newer neighbourhoods we see north of 167 Avenue.  Again it contains a great diversity of home types and price ranges although like the North it is much more blue collar than some to its southern brethren.  Here are it's 2013 stats:

SINGLE FAMILY HOMES

• # OF TRANSACTIONS
• 2012 - 879
• 2013 - 942       UP 7.2%

• AVERAGE SALE PRICE
• 2012 - $331,993
• 2013 - $338,703     UP 2.0%

• DAYS ON MARKET
• 2012 - 48
• 2013 - 44

CONDOMINIUMS

• # OF TRANSACTIONS
• 2012 - 472
• 2013 - 508           UP 7.6%

• AVERAGE SALE PRICE
• 2012 - $196,350
• 2013 - $191,551    DOWN 2.4%

• DAYS ON MARKET
• 2012 - 53
• 2013 - 63

Thoughts:  The northeast tends to be the epitome of "blue collar".  It doesn't do much to excite a lot of attention or attract people with a lot of shiny bells and whistles; but what it does do is provide decent housing options for your average homeowner.  It remains and will remain a very affordable place for families to find a well priced home in some very decent neighbourhoods.  This I think will continue to be the case in 2014: sales will see a comparable rise - 1020 units for SF homes (+8.2%), 550 units of Condos (+8.2%); while prices will slowly move upwards - rising 3.3% to $350,000 for SF homes, but only increasing just over 1% for Condos (to $193,500).  Days on market will continue to be longer for Condos taking 60 days  to sell, SF homes will be much faster at 44 days which is about the historical average.

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So that is it for today, we are almost through Edmonton!  Next time we will wrap up our look at Edmonton by seeing what happened in the core with a look at two areas: the Central region, and the Downtown.

Thanks again for reading and remember that these reviews are a general look at macro districts in the City.  For a more comprehensive look at what homes in your neighbourhood are doing and how your home is appreciating in value, give me a call at 780-919-7653 and we can sit down and talk real estate!

Larry

lwestergard@remax.net

2013 Real Estate in review

Well, 2013 is over and I imagine that people are a bit curious as to how the housing market went.  I know that there have already been some forecasts published already - case in point, the RE/MAX 2014 Housing Forecast released on December 11th that I reported on earlier; and the upcoming Realtors Association of Edmonton Forecast next week January 8th.  Rather than giving a broad overview of the whole Edmonton region as these report do,  I like to break things up into smaller chunks, to give you a better look at what is going on in an area of the city that is a bit closer to your own neighbourhood.  This will take out some of the variance you might get by adding in districts that are not like yours and which might skew results one way or another.  Keep in mind though that there is still a degree of overview in this and if you really want a true measure of what your home is doing in the market, it is best if we sit down and look at specifics.  That being said, let's take a look at the market!

NOTE:

This is a multipart series that will span the next week or so.  We will start with the districts in Edmonton and then move out to look at some of the surrounding communities.  Let's start on the south side and move clockwise around the city!

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Picture the South district as being the south bank of the river down to the Whitemud - so, from the University area east to Refinery row.  It is a traditionally mature district which has a good mix of property types and includes a decent mix of condo and single family residential.  The area is seeing some new developments - mostly condo projects, but also infill due to the desirability of many of the neighbourhoods being close to some of the more trendy areas of the city (Whyte Ave).  Here are the key real estate numbers for the South:

SINGLE FAMILY HOMES

• # of TRANSACTIONS
• 2012 - 1036
• 2013 - 1115          UP 7.6%
• AVERAGE SALE PRICE
• 2012 - $410,009
• 2013 - $433,448   UP 5.7%
• DAYS on MARKET
• 2012 - 40 days
• 2013 - 36 Days

CONDOMINIUMS

• # of TRANSACTIONS
• 2012 - 364
• 2013 - 434           UP 19.2%
• AVERAGE SALE PRICE
• 2012 - $281,540
• 2013 - $291,205   UP 3.4%
• DAYS on MARKET
• 2012 - 58 days
• 2013 - 57 days

Thoughts: While transaction numbers have not reached the highs we saw in 2005/06, prices have now seemingly recovered back to those levels.  What bodes well I think is that this is being done in a calm and steady pace as the days on market would suggest, rather than the fast 21 day average we were seeing then, the 36 day average points to a market that is on more of an even keel.  In 2014 I think we will see transaction numbers go up again - for SF homes 7.5% is not unreasonable (bringing totals to about 1200), while for Condos I would not expect an increase that is that high but most likely on par with the SF numbers - 7.5% (467 units).  Prices will most likely see similar increases which will bring them to approximately $450,000 for SF and $300,000 for Condos - both historical highs in the area.  I don't see much of a significant lessening of time on market in either category so it is still going to over a month to sell a home and almost two months to sell a condo!

The Southeast is that area which is sat of Calgary Trail and South of the Whitemud - so the established communities of Millwoods and Wildrose/Silverberry alongside the newer areas of Tamarack/Laurel and then the Ellerslie Road communities of Summerside/Orchards, Ellerslie and Walker Lakes.  It is also a very good mix of residential single family and condominiums both new and mature neighbourhoods. The 2013 key numbers:

SINGLE FAMILY HOMES

• # of TRANSACTIONS
• 2012 -1367
• 2013 - 1431          UP 4.7%
• AVERAGE SALE PRICE
• 2012 - $365,361
• 2013 - $376,264  UP 3.0%
• DAYS on MARKET
• 2012 - 47 days
• 2013 - 41 Days

CONDOMINIUMS

• # of TRANSACTIONS
• 2012 - 510
• 2013 - 644           UP 26.3%
• AVERAGE SALE PRICE
• 2012 - $209,289
• 2013 - $219,098  UP 4.7%
• DAYS on MARKET
• 2012 - 58 days
• 2013 - 53 days

Thoughts: Activity numbers in this area have exceeded the numbers we saw during the "boom" period of 2006/07 but before anyone gets too excited, remember that a lot of this is organic growth due to the new neighbourhoods that have grown in this area during this period.  As the new home market melds into the MLS data more and more, this has helped to add bulk to the existing stock of  homes and condos available to the market.  This is true in both categories although the condo market still has a ways to go to catch up to the 933 units sold in 2006.  Prices have also seen positive movement back to the numbers posted back then, but the continuing competition from the new home market has kept prices still below those levels.  Days on market are still well above the historic averages in both sectors.  In 2014 I believe that we will continue to see increases in both SF and Condo sales and prices with the SF market seeing comparable results and the Condo market being a bot more modest than 2013.  I expect SF transactions to increase to 1500 sales (4.8%) and SF average price 3.6% to $390,000.  In the Condo market look for a more modest 15% increase in sales to 740 units and an average sale price of approximately 3% to $225,500.

Go west of Calgary Trail and south of the Whitemud to find the Southwest district.  It comprises some of the most desirable and distinguished living areas in Edmonton - Riverbend, Windermere, Westbrook and the new developments in Heritage Valley.  There is also a very good cross section of living too, from affordable housing in both condo and single family homes to the larger than life homes you can find in Riverbend and along the Ravines.  The key numbers for 2013:

SINGLE FAMILY HOMES

• # of TRANSACTIONS
• 2012 -1515
• 2013 - 1671         UP 10.3%
• AVERAGE SALE PRICE
• 2012 - $493,093
• 2013 - $509,467  UP 3.3%
• DAYS on MARKET
• 2012 - 49 days
• 2013 - 48 days

CONDOMINIUMS

• # of TRANSACTIONS
• 2012 - 650
• 2013 - 888           UP 36.6%
• AVERAGE SALE PRICE
• 2012 - $262,371
• 2013 - $265,714  UP 1.3%
• DAYS on MARKET
• 2012 - 58 days
• 2013 - 58 days

Thoughts: Again, I think a lot of the growth in transaction numbers is organic.  The Heritage Valley and Windermere developments are creating huge growth numbers in available homes, much of which is finding its way onto MLS sooner rather than later hence the double digit increases.  This is also a fair explanation for the modest price increases (3.3 and 1.3% respectively) we see and the really mundane days on market numbers.  In 2014, look for SF sales to crest over 1850 units (+10.7%), but Condo sales to slow a bit to 750 units mostly in the heels of many large projects either being finished or near sell out.  Prices will again see modest gains with SF pricing increasing just over 3% to $525,000 and Condo pricing rising to $270,000 (about 1.5%).  As in 2013, I do not expect the time to sell to be very short; look at a period of 1 and a half months for homes and almost two months for condos to be the norm.

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So that concludes our first instalment at the year in real estate.  The South side of Edmonton continues to be a robust and active market that has a selection of properties for almost every home buyer out there.  

Remember, whether you are looking to buy or sell it's important we sit down and look at the specifics that relate to you and your needs.  How the numbers I talk about for the general areas related to the home or homes that you have a specific interest in.

Give me a call direct at 780-919-7653 or send me and email at lwestergard@remax.net.

Thanks for reading!