#106, 17704 103 Avenue NW,
Edmonton, Alberta T5S 1J9
Ph. (780) 462-1782
Fax (780) 463-0684
"Some people like to say that the true value of anything is determined by what the market will bear. But when buying a home, that’s a very dangerous assumption to make. The Canadian housing market continues to grow and, Especially in the hottest markets like Toronto and Vancouver, prices continue to climb.
In an environment like that, a professionally prepared and unbiased appraisal of a home’s value is a critical tool to make informed decisions.
Not only does knowing the appraised value of a piece of property help you make a sound investment, it also plays a central role in financing. “In a very competitive seller’s market where you are competing with other buyers,” explains Keith Lancastle, CEO of the Appraisal Institute of Canada, “you might offer $600 thousand for a home when the appraised value is only $550,000.”
If you do, you need to know that the lender will determine the maximum amount of the mortgage on the basis of the appraised value, not the sale price. “As the purchaser, if you are going to close the sale you’re going to have to make up that difference, so the cash to close becomes that much higher. Your financing will cover a maximum of 95 percent of the appraised value.”
In an example like this one, the amount of cash you will need to contribute can go from $27,500 to $77,500 based on the discrepancy between purchase price paid and appraised value....."
Source Keith Lancastle - CEO of the Appraisal Institute of Canada
First-time buyers are driving the housing marke,t but are increasingly turning to credit to afford the downpayment on a new home.
A report from the Canadian Association of Accredited Mortgage Professionals found that 45 per cent of the 620,000 homes sold across Canada in the past 27 months were purchased by first-time buyers.
Most are between 25 and 34 years old, were typically employed full-time and confident about job security. Almost two-thirds believe that a mortgage is “good debt.”
Source Canadian Real Estate Magazine
Rental demand in Alberta had been steady over the last couple of years, especially in markets such as Calgary and Edmonton, where vacancy rates were relatively low. This has encouraged new rental construction and contributed to the rise in rental supply in 2015. The number of purpose-built rental apartment units in the rental market universe increased from 112,602 units in April 2014 to 115,678 units in April 2015. The increased supply of rental apartments contributed to the rise in vacancy rates in Alberta.
The average same-sample rent, which is based on units common to both the 2014 and 2015 April rental market survey's, was 5.3 per cent for April 2015. Edmonton’s same-sample rent increase for two-bedroom units was 4.4 per cent, while the increase in Calgary was 5.9 per cent in April 2015. In both centres, the gain in rents in the April survey can largely be attributed to stronger rental demand until the latter half of 2014.
Edmonton, June 2, 2015: With new listings down over 2% from last May, we are finally starting to see the Edmonton Census Metropolitan Area (CMA) inventory begin to stabilize. Even with a wealth of residential property on the market (almost 30% more than last year), we are continuing to see price increases for all residential properties.
“As expected, the average days on market is up four days year-over-year and one day over last month at 45. We can expect this number to continue to grow due to slower sales and higher inventory,” REALTORS® Association of Edmonton President Geneva Tetreault explains.The average days on market for single family last month was 43, condominiums were 49 days, and duplex/rowhouse took an average of 45 days to sell.
Residential sales in Edmonton’s Census Metropolitan Area are beginning to pick up with 1,784 reported sales in May 2015. That is up 12% from 1,597 reported in April but still down almost 10% from May 2014. Again this month, reported sales are down in all categories except duplex/rowhouse (up 4% y/y) – a trend we have seen all year. Single family sales were 1,078 - down 11% over last May (1,213 reported). Condo sales were down 10% over May 2015 at 510. Sales were up in all categories over April 2015. Year-to-date, residential sales are down 13%.“Last month we were down 13% year-over-year in all residential sales. This month we are down less than 10%. We expect this trend of increased sales to continue as confidence in the stability of the market grows,” Tetreault adds. “We are still seeing multiple offers in popular price brackets. The fact that we haven’t seen a decline in prices is giving buyers more assurance. They are venturing back into the market with the feeling that prices won’t plummet any time soon.” Despite a decline in all residential sales, the average sale price was $381,111 up 2.5% from May last year. Single family dwellings sold for an average of $451,312 (up 3% from last May), condos for $256,143 (up 2% y/y) and duplex/rowhouses were the only price drop at $345,659 (down 2% y/y). The end of month residential active inventory was 7,303 for the Edmonton CMA. May 2015 all residential new listings were down 2% from last year at 3,314. That meant 5% less single family, 6% more condo, and 4% less duplex/rowhouse listings than in May last year.
“People are continuing to take advantage of low interest rates and a greater selection in the marketplace. We are moving into our busiest season for real estate. Your local REALTOR® can help you find what you are looking for in the neighbourhood that best suits your needs."