RE/MAX Real Estate Blog

Re/Max has release their annual ‘Housing Market Outlook Report’ forecasting what 2015 has in store for Canadian markets, as well as the after-effects from the past year.

All regions of the nation are presently showing gains in price, and many showed increases in all categories of inventory. Edmonton and Calgary, alongside Toronto and Vancouver, have been highlighted as major areas of growth. Expectations based on current trends are for housing prices to either plateau or rise moderately, with no expectations of any decreases on the horizon.

Factors to be accounted for in 2015 include a projected GDP rise of 2.5%, as predicted by the Bank of Canada, along with minor increases in employment rates and wages, as well as a nationwide population increase of between 260-285,000 new permanent residents. These economic elements are all expected to have a positive impact on upcoming real estate trends.

Economic factors to consider in 2015. Credit: Remax Outlook Report

We can see these major trends echoed in the Edmonton market specifically, as well as the contribution of it’s own unique factors, such as an increase in westward migration. The report estimates around 30,000 new residents have settled into Edmonton’s census metropolitan area in the past year, increasing housing demands by about 10%. This pressure on supply has caused buyers to consider higher price points, and caused exponential growth in the condominium market.

Along with condo sales and development, the other burgeoning Edmonton market not to be ignored is the luxury homes category, which saw sales records broken each year for the past three years. According to the document,

“the Realtors Association of Edmonton reported a 29 per cent increase in sales over $1 million compared to last year.”

The popularity of homes over $1 million are the trend to be watching in the new year. There is also an expectation for headway on mixed-use community developments with “residential, retail and commercial components” which will be considered priority for the new, younger demographic of citizens as the provinces average age continues to decrease. Sale prices in the city are predicted to steadily climb, about 4 %, with similar levels of inventory expected to be maintained.

CLICK HERE to view properties available for sale in your area. The extensive 38 page report can be viewed HERE in its entirety as a PDF.

A multitude of media outlets, including the Edmonton Sun and the CBC, are reporting on the correlation between the economical after-effects of the recent plummet in Alberta oil prices and the unseasonably strong Canadian housing market.

As the economic flagship of Alberta there is justifiable public concern over oil-based market fluctuations and especially its influence over the real estate market in the province, which has remained seemingly immune to economic downturn conditions.

YEG housing prices have been resistant to economic decline.

However, reports are unanimously reassuring about the fate of the housing market. Realtors Association of Edmonton President Greg Steele explains that this is related to the somewhat autonomous nature of the market resulting from the recent boom.

“We’ve got away from being solely dependent on oil in the Edmonton market, with $5 1/2 billion in infrastructure/construction projects going along in the downtown core alone. That’ll be sustained for the next three to five years.”

CBC reports that average selling prices are excepted to increase about 4% in the new year, climbing to around $389,000. Due to a strong economy overall and high rates of employment, it may well be possible to remain resilient in the face of an oil crisis.  Crude oil is reportedly being sold at just under $60 US per barrel, nearly a $50 drop since summer prices.

Even with the recent influx of building projects, especially condominiums in the downtown core, and peripheral subdivisions, there is no reason the fear oversupply as some analyses have suggested. The Edmonton market especially is less than saturated, according to Steele, and there is a high demand for homes as the city’s population continues to skyrocket.

“Right now we’re taking everything,” says Steele. “We’re like a sponge. Everything being built is being sold.”

The imbalance between supply and demand will work in favour of the market, keeping it hardy in the face of economic impact.

A further contributing factor to market strength has been the sudden increase in demand for luxury homes. In the Edmonton area sales with a price tag of over $1 million have increase an astronomical 29% in year-over-year comparisons. Since 2011 homes at all price points have been steadily increasingly from an average $325, 395 that year to a current $374,000.

Click Here to invest in an available Edmonton property!

As we reach the final month of 2014, analyses and predictions are flooding in as to what we can expect from the future of the housing market. 2014 saw the highest resale price growth rate since 2007 with an expected average of $360,000, according to the Canadian Mortgage and Housing Commission (CMHC). These rates show a 4.4% increase in year over year sales figures, and while the Edmonton housing market has no shortage of momentum, rapid growth rates are expected to level out for 2015 and well into 2016.

The CMHC reported their fall 2014 market outlook at a conference on Tuesday.

The Edmonton Journal published a report Tuesday on the CMHC’s Edmonton Housing Market Outlook Conference. The article cites average resale prices at $371,000 and $380,000 for 2015 and 2016 respectively. Christina Butchart, CMHC senior market analyst for Edmonton addressed the this trend in moderation of prices.

“Right now, demand for resale homes in Edmonton is quite strong. Over the next couple of years, we expect that economic conditions are going to slow a little bit and that’s going to lead to continued growth, but at a bit slower pace in the resale market.”

As with all aspects of commerce, Edmonton home prices in the recent past have been driven by supply and demand. There have been fewer houses listed than the market demanded, leading to escalating home prices. Due to this apparent sellers market, many consumers have been motivated to list their homes causing an inevitable market saturation. The now larger numbers of properties available will force homes prices down by 2015 causing a ‘moderation’ of prices.

It should be emphasized however,  this slowing growth trend is not to be taken as a sign of a weakening market. “The resale market is going to remain fairly balanced over the next couple of years as we see demand still being supported by our key components of employment and rising wages,” assures Butchart.

The CMHC has made their detailed market outlook publicly available for download. CLICK HERE to search for properties currently available in your area of choosing.

Last week our sister blog posted a Halloween themed article to get us all geared up for the holiday. To follow suit, we’ve compiled a list of  the most devilishly delicious recipes to serve at your haunted holiday party. Whether you’re the belle of the ball or a beast in the kitchen, we’ve got a recipe for you…

1. Pumpkin Cheesecake Bars

Ghoulishly gourmet, these fancy snackers will have guests coming back for more.

2. Deviled Eggs

An adorable and delicious option for a more savoury treat.

3.  Gingerbread Skeletons

These little ghouls utilize a classic gingerbread recipe with simple gingerbread cookie cutters you may already have around the house. No holiday extras required!

4.  Cemetery Cookie Dessert 

Have no worries if you’re not a whiz in the kitchen, this one is meant to get messy!

5. Autumn Punch 

This adult beverage will be a party hit, it packs a ‘punch’ and is ‘bloody’ delicious.

6. Mini Spiced Pumpkins

This recipe requires a little skill, as well as a mini bundt pan, but the outcome is delightful and artistic.

7. Ghouly Pizza

It’s difficult to come by main courses that are festive and appetizing, but this ghostly dish takes the cake!

Looking for a great new home to throw that perfect holiday party? Look no further. CLICK HERE to search for properties available in the area of your choosing, just in time for the festivities! 

The Real Estate Commission of Alberta (RECA) has introduced a new document into the arsenal of Alberta real estate agents. The ‘Written Service Agreement’ acts equally to protect buyers and agents alike as they enter into their business relationship. A similar representation form already exists to protect sellers, but this new contract will now work on the part of the buyers and not just those listing homes.

Greg Steele, president of the Realtors Association of Edmonton, explained the new implementation in a CTV interview with Daryl McIntyre. The interview is posted here on the CTV website. Steele explains the decision by RECA to implement this non-voluntary document in an effort to protect all parties involved in real estate transactions. As a means of addressing previous issues with ambiguity and questions about transactions and provided services, RECA created the Written Service Agreement to clarify the process.

Greg Steele explains the new Written Service Agreement to the public. Image Credit: CTV news

Explained Steele in the interview,

“It outlines whos’s representing who, for what services,  what fees you are going to get for that service, where you’re going to look, how long you’re going to look. It’s pretty simple.”

It is important to note, this implementation in no way affects changes to commission or other service fees it only serves to regulate existing structures. The form has recently been introduced, but won’t become mandatory until July 1 of 2015, at which point all clients and agents will required documentation to enter into a relationship. Steele also explained that there is no minimum or maximum time limit on the form, indicating the services could be for as little as one day, or over multiple years.

If you are interested in Edmonton and area properties, or to list your home, click here to research real estate agents in your community.

“We’re looking at the T-Rex of winters.”

That is the catch phrase flying all over town these past few days after Jack Burnett, editor of the Old Farmers Almanac, likened our upcoming season to history’s most savage predator. He must not have realized he was addressing Edmonton’s hardy and unflinching masses, where life carries on, the work never stops, and much to the dismay of youngsters school is always open no matter the weather.

However, in the face of a long winter that’s predicted to be even colder and snowier than we are accustomed to it’s better to be prepared than to be stubborn. These ten cost effective tips will help save on energy bills, even in a T-Rex winter:

1. Cover your windows with plastic.

Older or inefficient windows cause hot air leaks to the outdoors and will end up costing a bundle. Bubble wrap is even better than regular plastic wrap, because of the added insulation of the air pockets.

2. Add a door sweep to all exterior doors.

Not only do they keep heat in but they keep the wet and damp out. They can be easily installed and Home Depot sells a variety of styles, most for less than $10.

3. Reverse Ceiling fan directions.

As we all learned in science class heat rises. There’s no use paying for the furnace to warm your whole house just for all that heat to settle up in the rafters.  Changing fan direction recirculates the warm air pumped out by your furnace and pushes it down into the living spaces.

4. Move furniture away from your vents.

Does it get any easier than that? Move armchair 6 inches to left for the winter, stay warm, save a bundle.

 5. Put a fan near your older radiator.

Radiators are great for creating heat, but not so great at circulating it. A nearby fan facing an opportune direction will help properly distribute all that warmth you’re paying for.

6. Close off any rooms you don’t use.

Storage room of needless items? Guest bedroom with no guests? Close the door, close the vent, close the window. Done. You’ll wonder why you bothered heating all that unused space in the first place.

7. Make use of that decorative fireplace. 

That hipster focal point that came with house is more than just a mantle for vintage books and busts of Beethoven…light that baby up! It’s completely free to use, just don’t forget to chop a few logs over the fall (your biceps could probably use the workout anyways).

 8. Open south and west facing curtains during the day.

Instead of paying for all that heat, why not use the sun. It not only provides free light, but free heat. Opening south and west window coverings in the day will allow your house to absorb as much warmth as possible, while closing them at night traps that heat in.

9. Insultate your water heater.

For about $30 you can buy a water heater insulation blanket and install it yourself in a jiffy. Here are 2 and a half minutes of helpful installation instructions:

10. Clean your gutters.

It’s high up and seems like worst job in the world but ice dams are a disaster.  Cold rain and snow combine with debris and can form ice dams that clog. This will lead to leaks inside the home. Leaks and cold weather are never a good thing. Scratch that. Leaks anytime ever are never a good thing.

These tips are relatively cost  and time efficient, meaning you should be able to get it all done on a day off and on a budget. Don’t forget there’s still time to get your house sold or a new house bought before the cold sets it! CLICK HERE to search for properties in the area of your choosing. 

Last week Re/max Edmonton posted this article recapping the summer sales figures for Edmonton and area real estate, addressing the minor decline in residential housing prices. When comparing June and July sales figures to new August number this trend becomes apparent, however when comparing housing prices year-over-year there is an obvious incline showing growth in the market.

As with all economic activities, the real estate market in Edmonton is strongly correlated to the population spike the city has been experiencing. In our most recent blog post, The Infill Trend, we addressed possible issues arising from population growth and the many steps being taken for the city to benefit positively from this change. At the heart of every solution was the creation of more residential living space in same geographic area we already occupy.

Edmonton Population Factors Compared to Other Major Canadian Cities (click to expand). Image Credit: Living in Canada

According to municipal census stats, the population of Edmonton has increased by 60,000 individuals in the past two years, for a current total of around 835,000. Within the next 10 years that number will break the one million marker. This strong need for residences, or the necessity for land to create more efficient styles of residences has a created strong demand. In addition to rising prices, another outcome of this housing pressure is expediency; properties are selling in significantly shorter time periods than what we have seen previously.

According the EREB sales figures, sales prices have increased by 14% when compared to the same summer months last year. By the end of August 2013 approximately $5 billion worth of homes had sold, whereas the total for August 2014 is $5.7 billion. An 11% increase has also occurred in the actual number of residences sold compared to the same time in 2013.

Edmonton August Sales Highlights (click to enlarge) . Source: EREB

According to EREB President Greg Steele:

“There has been some pressure this summer with a tight inventory of available homes and lots of new customers but low interest rates and new construction are enabling people to find a suitable home in the Edmonton area.”

He goes on to say:

“We move into the fall with 5,334 residential properties in the inventory and a vibrant market. Homebuyers and sellers are encouraged to work closely with a REALTOR® to find a suitable home in their preferred neighbourhood and price range.”

If you are interested in becoming a home buyer, or working on an infill project of your own click here to search for properties available in Edmonton and surrounding areas.

The current population of the city of Edmonton is around 835,000.

Projections expect that number to break one million within the next 10 years. If that number is hard to swallow, consider these statistics: in the next 30 years there is an expectation of half a million new residents living within city limits. That’s like the entire population of Saskatoon, Saskatchewan picking up and moving to Edmonton…TWICE. Every one of those 500,000 new neighbours of ours will need a bed to sleep in, a kitchen to cook in, and access to all the same amenities we use each and every day.

What is the key to this potential population crunch? New housing in established neighbourhoods. And the number one strategy to achieve this measure is infill projects.

Project Definitions. Source: City of Edmonton

The City of Edmonton is looking ahead, and presently establishing solutions to keep the city thriving while supporting an elevating population in the distant, as well as not-so-distant future. The city developed the “Evolving Infill” project which liaised with any and all interested members of the community to establish a conversation about the pros and cons of the upsurge of residential infill. The dialogue took place from November 15, 2013 and was wrapped up this August, 2014 when an extensive report was been published with in-depth responses to the challenging questions posed to concerned citizens.

Taking into account the information gleaned from this project, the city is now able to move forward in an effort to encourage and support the creation of more diverse housing options. The two year work plan explains measures taken to make the entire infill process more streamlined, with higher degrees of efficiency. Many of these measures address the inefficiencies of bureaucracy  and attempt to remove some of the red tape attached to municipal construction projects. Examples include addressing zoning bylaw location criteria (opening up more opportunities for garage or garden suites), changing RF1 zoning to allow narrower subdivisions of land, and simplifying approval processes for medium density houses in RF3 zones.

The city has published a user friendly guide to this new action plan (in plain English for us non-contractors out there), “Edmonton’s Infill Roadmap” outlining measures and approaches expected to change in the coming months and years.

Excerpt from the publication. Source: City of Edmonton

Excerpt from the publication. Source: City of Edmonton

According to an anonymous contributor to the report:

“My neighbourhood desperately needs to infills to replace tired housing stock, and also to provide enough density to support the schools and commercial businesses in the area.”

While a contractor explains:

“If garage suites were allowed, this would allow the original house to stand and the homeowner still to increase density while also having an income suite.”

Infill is important for a young, growing city; by making the best use of existing infrastructure we can allow for the thriving population expected within the next three decades. For more information on infill visit the City of Edmonton’s website, to create a custom search of properties available for purchase CLICK HERE and speak with an agent about exciting potential for infill projects in an area of your choice.

St. Albert is located in Edmonton’s north-westernmost corner, with major throroughfares connecting the two. Though St. Albert’s borders are virtually indistinguishable from Edmonton’s, it is politically deemed a separate city. With a geographical area of just under 50 km squared and a population of over 61,000 and growing, it is a fraction of Edmonton’s size, yet encompasses all the amenities of, and proximity to, big city life.

Map showing Saint Albert’s proximity to Edmonton. Image Credit: nacha.ca

The surprisingly independent community has its own rich history separate from the development of Edmonton. Founded in 1861 by Father Albert Lacombe,2 the the small Métis community became the town of St. Alberta in 1904. It thrived, due to it’s proximity to Fort Edmonton, and become known locally as a popular resting point for journeying First Nations peoples on their travels. Agriculture, and specifically the construction of two important grain elevators, contributed significantly to the burgeoning economy.

St. Alberta, 1912. Image Credit: St. Albert Historical Network

Through it’s evolution from settlement, to Town, to City, St. Albert has developed a strong foundational infrastructure. The city has it’s own transit system, the renowned Sturgeon Community Hospital, a public school system, an Athabasca University satellite campus, and a municipal governing body comprised of a mayor and six city councilors. The city also has a blend of residential communities and major commercial areas, including St. Albert Centre, a premier shopping destination.

Just last year, MoneySense Magazine, published an article on the best places to live in Canada, and the top ranking city was none other than St. Albert, Alberta.  The ranking accounted for criteria such as employment rate, public transit, arts and culture, crime rates, and access to medical care. Here is the SHAW TV report on the article:

St. Albert has a noteworthy arts and cultural community, with thriving establishments like the Art Gallery of St. Albert, and St. Albert Place. For the more recreationally  inclined, the city is renowned for it’s Red Willow park trail system, the recently developed, Servus Credit Union Place.

St. Albert Place. Image Credit: AlbertDiary.ca

CLICK HERE to view available properties in St. Albert.

The town of Lamont is about a 45 minute drive out of Edmonton to the north-east. The 9.3 square kilometre community is home to a population of around 1700 residents. Lamont is also known as the “Gateway to Elk Island National Park“, which is located directly south of town. Within the park is Astotin Lake which is less than a twenty minute drive from town. To to west, along highway 15  is the town of Bruderheim and then Fort Saskatchewan.

Lamont Park Trail. Image Credit: Town of Lamont

The town is named after the prolific historical figure John Henderson Lamont. Lamont was a Canadian politician, lawyer, and supreme court justice; he received his law degree in 1893 and was active legally and politically until his death in 1936. Lamont was famously described by settlers as “the nicest open country a person could wish for.”  Infrastructure development began in 1912 upon the opening of the Lamont Hospital.

Original Lamont Hospital, as it looked in 1912. Image Credit: United Church of Canada Archives

Lamont has a rich cultural history, which carries into present day. In honour of the large Ukrainian population in the area, a Mohlya was erected just north of the town in 1991 to honour the centenary of Ukrainian settlement in Canada. Additionally, the town has an array of art, craft, and antique shops in which to display and sell cultural relics.

Parade on Main Street. Image Credit: Town of Lamont

In addition to a public library, hall, and curling rink, Lamont is home to a regulation NHL sized hockey arena. The small community is incredibly active in organizing festivities year-round at these various facilities and in outdoor public spaces. Activities include the Family Fun Circus,  Town Wide Garage Sale, Picnic in the Park, Fairs, Rodeos, Public Skating, and numerous Christmas events.

NHL Sized Hockey Arena. Image Credit: Town of Lamont.

Lamont has all necessary amenities including hotels and motels, pubs, daycare and youth programs, grocery, health and beauty services, an elementary and junior high school, and all means of medical care. A whole host of restaurants are in close proximity, as well as shopping, and recreation.  Lamont is also home to the Elk Island Golf Course, an historic 9 hole course built in 1936, one of the provinces oldest!

CLICK HERE to view properties available in Lamont.