Fall is on its way and real estate sales are continuing their downward trend, as they do year after year when the cold months approach. Masks have been mandated once again for all property viewings. However, 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 America, 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. This inflation 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 Tidbits 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 rushing to purchase assets in Edmonton. The net rent-to-mortgage ratio is mind-boggling rosy in comparison to these investors’ home markets. Continue reading 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, needed 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 a disclosure of a collapsed sewer line. I felt like it was likely worth 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 just unique to the Northwest Edmonton condo market, and but 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 seller’s table and ask them for something immediately. For the best leverage in a negotiation, come up with an offer that asks a little less of a seller, not a little more. Secondly, if they don’t already 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 get 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. To keep your basement dry, here are some quick, little things a lot of us can do to preserve our homes, and keep water out and away from penetrating these cracks. Continue reading HERE
That’s it for this month folks. I have been on a bit on a listing palooza lately, and that doesn’t happen without your repeated 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 don’t hesitate to reach out!