Fall is on its way and Real Estate sales are continuing their downward trend as they do year over year when the cold months approach. Masks have been mandated for all property viewings. We have yet to see open house bans or pair cohort viewing limits like we did this past spring. Sales are still above averages from recent years past and condo sales are still showing signs of life. For full details, visit Liv Real Estate’s Blog HERE.
Across North American, governments have printed trillions of dollars to forgo the catastrophic damage the pandemic has caused or could have otherwise caused. Stock Exchange prices and housing prices are soaring. If you have tried to buy an appliance, build a fence, or finance a truck, it doesn’t take long to see prices have gone up before our eyes, and our demand has caused shortages. Pre-covid, Edmonton was in a buyer’s market with almost unanimous housing depreciation year over year. What does our post-covid market look like, and when does that happen? If you are honest with yourself, regardless of education or vocation, I think you would say your guess is as good as mine. What I can say is that it’s an exciting time to be alive. With financial and housing markets still moving along positively, there is no reason to think they are about to correct. There is inflation that is here to stay.
In the short term, I am willing to bet prices at worst will stabilize in Edmonton, at least until the Federal Government stimulus wears off, the Fed starts increasing interest rates, or there is a change in federal power. In the medium to long run, I have no idea. If I am buying and or selling today, I am feeling relatively secure.
Interesting Tid-Bits from the Market
Out of Town Investment
Attracted by relative price, today, we see an influx of capital from investors in hot real estate markets from Ontario and British Columbia rush to purchase assets in Edmonton. The net rent to mortgage ratio is mind-boggling rosy in comparison to these investors’ home markets. Cont’d HERE
The Acreage Market
We recently viewed a larger bungalow on a three-acre parcel just North of Spruce Grove. The home was partially renovated, needing completed siding (the new windows were poking an inch out the side of the house), with a partially demolished basement, which smelled of active water coming in. The home had disclosure of a collapsed sewer line. I felt like it was likely worth and around $400K. It sold in multiple offers that afternoon for just under $500K. Unbelievable!
A New Condo Purchase
We recently went through the new condo market in Northwest Edmonton. This subsection of the market is popular for single folks and retirees. What is often never discussed is the depreciation of a new condo is often equal or greater to buying a new car from a dealership. I mean 10-20% (30-60K on a $300K condo) as soon as someone signs the sales papers. This isn’t unique to the Northwest Edmonton Condo market and can be found for condominiums throughout the city. In this particular situation, we opted for the resale condo where the Seller would be absorbing the cost of the deflated unit.
A “Subject to Sale” Contract
If you have a house to sell before you buy another, this piece is for you. As a buyer with a home to sell, you can ask a seller to accept a conditional purchase contract to sell their home if you sell yours. There are some aspects to look at here. As a buyer, you will likely have less negotiating power as you come to the sellers’ table and ask them for something immediately. For the best leverage in a negotiation, come with an offer that asks a little less of a seller, not a little more. Secondly, if they already don’t have their home listed, the Buyer will have to get their home listed immediately. And thirdly, buyers are asked to act as if they will purchase, to give a refundable deposit, have a conditional mortgage application approved, and pay to have the home inspected if they so choose. Herein lies the rub. If a Seller gets an offer they like better while a buyer is completing their due diligence, there is almost always a clause built into a “subject-to-sale” contract that allows the Seller to give you, the Buyer, 48 hours notice to complete the purchase or the Seller is going with the second offer. If you haven’t sold your house, you have exerted a significant amount of time and energy only to beat out by a request with better terms.
Water in Your Basement
Almost all homes in the greater Edmonton area have some types of cracks in the walls and floors of their basement. Cont’d reading HERE
That’s it for this month. I have been on a bit on a listing palooza lately, and that doesn’t happen without your repeat business and word of mouth. I am so grateful to have met the people I have over the last few weeks and I appreciate the opportunity to bring value to our marketplace. If you have any questions, concerns, or comments, please reach out.
If you would like to be removed from this list, or would like a friend added, please reach out and I will do so immediately.