Home sales are moving right along as one would expect post pandemic shut down. We are currently hovering around 150 home sales a day in Edmonton up from a low of 10-20 day in April.
It feels like there was some momentum generated after CMHC announced they would be increasing restrictions on mortgage qualifications although this fear was quickly eliminated as CHMC’s competitors Genworth and Canada Guarantee will not be following suit. Mortgages, for now, will stay more or less as affordable as they currently are.
Trends right now, homes under $400K are moving well. The better they show, the faster they sell, and in several cases for full list price in multiple offers within hours on market. That being said, a lot of shoppers are not qualified to purchase, I know this from the amount of callbacks I receive saying “the home is back on market due to financing”. A wise sellers’ agent will seek to qualify a buyer before accepting a contract with them. A buyer would be wise to tactfully show they are qualified.
There are continued price drops in the luxury home market which stir significant activity. One could pick up a Luxury infill for under $600K right now and a well maintained 2,000 Sq.Ft bungalow in old Glenora just went for under $750K.
The condo market remains sluggish. A well priced, well maintained townhome between $130-$150K will sell almost immediately. The downtown and south central markets remain slow. There is a lot of perceived value right now for bargain hunters.
Moving forward, there is speculation that once our mortgage deferral period runs out and the federal aid program expires home prices will plummet and foreclosures will flood the market. This, if true, will not be immediate, though, prices over the next two years will undoubtedly decline. The ready availability of foreclosed homes have become normal over the last few years, this is likely to continue.
As far as timing the market at a bottom, if I could come close to timing the market, I suspect someone would be writing these for me. There is a lot of confidence to be had by ensuring one’s own “house is in order” before buying or selling a home. If I had a vested interest in buying a new home or selling our current home, I would be doing so in short order as the market is unpredictable. I currently like what I see.
I feel like our market will be more or less incubated from any huge swings as historically, Edmonton has moderate home prices bolstered by large bureaucratic unionized employers like the University of Alberta and Capital Heath ( AHS), institutions that are not going anywhere. At the beginning of the year, we ranked the 13th most expensive city in the country to purchase housing, with an average of 34% of our earnings going towards our mortgages.
Covid-19 and home sales? The Canadian Real Estate Association just announced open houses will be “opening”again.
Best practices for Sellers are to instruct Buyers to touch as little as possible, leave hand-sanitizer out. Buyers are asked to answer questionnaires before each showing, and to sign hold harmless agreements as well. Some sellers are requiring viewing parties to wear masks and gloves.
The best guidelines for up-to-date Covid-19 information are available through the Province of Alberta Covid response announcements and updates.
Thank you for taking the time to engage me in the process, if you have any questions, please reach out, I am happy to hear from you.