It feels like it has been forever since I’ve written one of these. I hope you all are well. The weather is beautiful and restrictions are being lifted for the time being! We were able to accept an invite to a clients’ lake house in the Shuswaps this summer, that was nothing short of amazing, we are very lucky. Much to the chagrin of my wife, I feel like I could vacation professionally and have expressed this a few times.
Real Estate in the greater Edmonton Area? We are still moving right along. June saw more record sale numbers. July sales are down 20% from June but still up 2% from July of 2020. This is not unusual or surprising. Our market is cyclical. Our number of sales and sale prices are at their highest every spring and early summer. With covid restrictions being almost removed completely and summer falling away it is no surprise we are seeing people travel and get out and about rather than continue to purchase real estate. To see Liv Real Estate’s monthly statistical breakdown, click HERE.
I really like that as the number of sales decreases, the number of new listings coming online is falling as well. This will keep the market balanced.
For-Sale-By-Owner:We approached a For Sale By Owner to purchase last month. The home owner represented himself and had his lawyer oversee the transaction. Because The Seller wasn’t vetted in any way by any Brokerage, I had concern for the welfare of my buyer. I documented the experience here. HERE.
Central Home and Condo Sales Universities are opening up again and investors, grads and students are buying centrally again. There is a condo market out there for Sellers, this has been a welcomed surprise. Year over year we have students and parents outfitting their children with accommodations for the school year over the summer. Last year this market disappeared, this subsection is a welcomed return.
Foreclosed Condo Purchase: We purchased a foreclosed condo, for sale by a Bank, represented by a Lawyer out of Calgary. It was one of those situations where the Buyers loved the first place they saw and wanted to buy it. They didn’t know it was in foreclosure, the learning curve for them to make an informed decision was steep. This is what we considered. HERE
Mortgage Rates and Poor Advice: Speaking with representatives from iMortgage Solutions and Axiom Mortgages, rates are expected to stay low. I am seeing variable as low as 1.09% and fixed for as low as 2.09%. Terms to consider other than rates when choosing a mortgage professional? I would consider customer service and the time a mortgage professional is able to provide to you to give you a working knowledge of what you are doing. I have seen costly errors made on multiple files this spring where either the mortgage professional did not explain or did not know to explain things like payout penalties or know how to explain the cost of selling or purchasing a home accurately. One file put a client out $9,000 on closing, another a few thousand. During preliminary talks with a Seller and future Buyer this week, we went through the following before meeting with her mortgage professional.
– are there payout penalties, what are they, how will they affect you?
– will you get payout penalties if you’re refinancing for a larger purchase?
– Is the bank able to bridge finance in order for you to purchase and then sell?
– What is the cost of bridge financing?
– How much do you owe on your current mortgage? How much does the bank need from you to pay it out and get a larger mortgage when considering any payout penalties, bridge financing costs?
Lawyers’ fees will run approximately $2,200 plus disbursements (for buying and selling together). The largest disbursement being property taxes. (on the sale of your home, you will likely get reimbursed on what you have paid for but will not use, on your purchase, you will likely have to reimburse the seller).
This is not inclusive, as I am not a mortgage professional, but it should start a conversation that will vet a mortgage professional as capable, and second, start the right dialogue so the client is prepared for the approaching financial disbursements.
What way is the market going? Please take this with a grain of salt, even people who study economics for a living are wrong 50% of the time. You have to think with the amount of money the federal government has printed to put into the economy, coupled with low interest rates, home prices in places like Edmonton, with no positive underlying economic fundamentals, will at least remainstable or moderately increase over the short term as the price of all goods and services rise with inflation.
If you made it this far, you are appreciated. This year has been special for our family in so many ways, not only are we allowed to leave the house again, but our business is growing because of your word of mouth. So, thank you, positive experiences with people like yourselves makes all the difference as we grow together in our respective communities as friends, colleagues, peers, investors, and property owners. Thank you for taking the time to engage me in this process, I look forward to seeing you all again in one way or another in the future.