Edmonton House Price Rankings

Edmonton real estate prices have been on the decline, with the city’s housing market ranked #3 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Housing Affordability Report. While affordability is already one of the region’s biggest draws, cost-conscious Edmonton house hunters in search of even better prices can find them in the communities of Northeast Edmonton and Mill Woods, which have been named the most affordable neighbourhoods to buy a home in Edmonton.


Factors contributing to Edmonton real estate prices

Edmonton real estate prices have been declining, experiencing a 3.2-per-cent decrease from 2018 to 2019, and another one-per-cent decrease is expected this year (source: 2020 Housing Market Outlook Report). In light of the lowering prices, Edmonton has been named one of Canada’s most affordable housing markets, according to the new RE/MAX Housing Affordability Report.


In its inaugural Housing Affordability Report, RE/MAX examined 16 of Canada’s most populous regions and ranked them on an affordability scale, with #1 being the most affordable and #16 being the least affordable. RE/MAX brokers were surveyed about average home sale prices and whether they believe real estate in their region is overvalued, undervalued, or right on the money. Edmonton real estate came in at #3 of 16 cities. Canada’s most affordable city to buy a home is Regina (#1) and the least affordable place to buy a home in Vancouver (#16).


RE/MAX’s affordability ranking was determined by assessing the percentage of a buyer’s monthly income needed to carry a mortgage, assuming a down payment of 25 per cent, and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.


Edmonton& real estate is currently regarded as undervalued. The implementation of the Federal mortgage stress test has unintended consequences in how it impacted Canadian homeowners. In Edmonton, the recessed economy has also added to decreased sales, which in turn has resulted in buyers being unable to qualify for a mortgage and paying more in rent than what they would be buying for.


There is also an evident division between what buyers want and what inventory is available, most of that inventory is not what buyers are looking for. First-time home buyers are looking for newer properties, but much of what is available are homes in need of renovations.


At the high end of the affordability spectrum, the region’s least affordable neighbourhoods include& Upper Windermere, Belgravia/Windsor Park and Crestwood/Parkview/Laurier Heights.


Despite the commonly held notion that housing in Canada is unaffordable, the report finds that the vast majority of Canada’s largest urban centres (75 per cent) are currently undervalued, according to a survey of RE/MAX brokers in 16 of Canada’s most populous cities.


In its report, RE/MAX explored the most popular property types sought by first-time homebuyers, the least and most affordable communities in each of the 16 housing markets, factors preventing buyers from entering the market, and methods homebuyers are using to enhance the affordability of homes. Current and prospective Canadian homeowners were also surveyed about their sentiments around homeownership, barriers to owning a home, financial factors impacting homeownership, and what could potentially improve housing affordability.


Get your free property evaluation today and learn if the price of your Edmonton Homes has increased or decreased in value.

Read full post

Edmonton real estate prices have been on the decline, with the city’s housing market ranked #3 of 16 Canadian cities when it comes to housing affordability, according to the 2020 REMAX Housing Affordability Report. While affordability is already one of the region’s biggest draws, cost-conscious home hunters in search of even better prices can find them in the communities of Oliver, North East Edmonton and Mill Woods, which have been named the most affordable neighbourhoods to buy a home in Edmonton.



Factors contributing to Edmonton real estate prices

Edmonton real estate prices have been declining, experiencing a 3.2-per-cent decrease from 2018 to 2019, and another one-per-cent decrease is expected this year (source: 2020 Housing Market Outlook Report). In light of the lowering prices, Edmonton has been named one of Canada’s most affordable housing markets, according to the new REMAX Housing Affordability Report.


In its inaugural Housing Affordability Report, REMAX examined 16 of Canada’s most populous regions and ranked them on an affordability scale, with #1 being the most affordable and #16 being the least affordable. REMAX brokers were surveyed about average home sale prices and whether they believe real estate in their region is overvalued, undervalued, or right on the money. Edmonton real estate came in at #3 of 16 cities. Canada’s most affordable city to buy a home is Regina (#1) and the least affordable place to buy a home in Vancouver (#16).


REMAX affordability ranking was determined by assessing the percentage of a buyer's monthly income needed to carry a mortgage, assuming a down payment of 25 per cent, and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.


Edmonton real estate is currently regarded as undervalued. The implementation of the Federal mortgage stress test has unintended consequences in how it impacted Canadian homeowners. In Edmonton, the recessed economy has also added to decreased sales, which in turn has resulted in buyers being unable to qualify for a mortgage and paying more in rent than what they would be buying for.


There is also an evident division between what buyers want and what inventory is available, most of that inventory is not what buyers are looking for. First-time home buyers are looking for newer properties, but much of what is available are homes in need of renovations.


At the high end of the affordability spectrum, the region’s least affordable neighbourhoods include Upper Windermere, Belgravia, Windsor Park and Crestwood, Parkview, Laurier Heights.


Despite the commonly held notion that housing in Canada is unaffordable, the report finds that the vast majority of Canada’s largest urban centres (75 per cent) are currently undervalued, according to a survey of REMAX brokers in 16 of Canada’s most populous cities.


In its report, REMAX explored the most popular property types sought by first-time homebuyers, the least and most affordable neighbourhoods in each of the 16 housing markets, factors preventing buyers from entering the market, and methods homebuyers are using to enhance the affordability of homes. Current and prospective Canadian homeowners were also surveyed about their sentiments around homeownership, barriers to owning a home, financial factors impacting homeownership, and what could potentially improve housing affordability.


READ THE FULL REMAX HOUSING AFFORDABILITY REPORT

Read full post

What does your Edmonton Real Estate Agent Really Do?

In the life of a real estate agent, there is much more than showing homes, meeting with potential buyers and sellers and receiving a commission. There is plenty that happens behind the scenes. Being a REALTOR® is extremely time-consuming.


If you have ever tried to buy or sell a house on your own, you may have an idea of how hard real estate agents work. Imagine if you were selling more than one house at a time. A good Edmonton real estate agent will make the process of buying or selling a home flow smoothly, leaving the impression that their job is fairly simple. The fact is, this is not at all what really happens. If you have spent social time with a REALTOR®, you may understand how difficult their job actually is.


There are definitely REALTORS® out there who cut corners, do not take care of their clients well, and they should not define or be in our industry. The real estate industry is also loaded with competent professionals with whom I am proud to work with.


Below is a list of common activities REALTORS® perform on a daily basis:

Schedule Property Showings

Scheduling showings require contacting the listing agent who will inform their seller they have a showing in order for the seller to vacate the premises prior to the availability of the buyer and the buyers real estate agent. It also gives the showing agent an opportunity to find out any relevant information related to the property. All showings must be time blocked which most agents have down to an art form, so we are not early or running behind with our buyers.

Schedule and Prep For Listing Appointments

Once a listing appoint has been scheduled, REALTORS® work behind the scene gathering all pertinent information about the property including the property history, information about the community, current real estate statistics, establish the absorption rate, acquire the title of the property which will show applicable encumbrances such as easements, liens, or covenants, and confirm the registered owners, and comprise a comparative market analysis. The agent will pre-fill paperwork, double-checking everything is correct in order to save time while on the listing appointment. The agent will gather all necessary real estate tools such as yard signs, the CMA and key boxes.

Property Inspections

A REALTOR® usually attends the property inspections with or in place of the agents' buyer, unless agreed upon by the seller. A property inspection normally takes a few hours. In the event there are any concerns with the inspection, it can take several hours to days to come to an agreement which both the buyer and the seller are comfortable with prior to removing and contingencies are conditions.

Delivery of Deposits

Once an offer has been agreed upon, time is crucial in the deliverance of the deposit. A late deposit can result in the agreement becoming voided and the buyer losing their dream home.

Negotiations

REALTORS® are held by a high code of conduct and ethics and no matter how much you may disagree with the opposing REALTORS®, negotiations must be dealt with in a professional manner while working in the best interest of the client. There is much more to offer and counter-offer negotiations than just the price of a property. Negotiations also include terms, possession, conditions and sometimes contingencies. Parties involved in the negotiations can also include lawyers, mom and dad, someone with power of attorney on behalf of a client or the "handyman special" uncle.

Paperwork

REALTORS® have trail and trails of paperwork. Each change on an agreement, amendment or addendum must be documented and kept for at least six years. Agents must ensure everyone involved in the transaction has a copy of each document change including the buyer, the seller, both real estate agents, the financial institution, both real estate offices, both lawyers representing the buyer and seller.

Follow-Ups & Inquiries

A good real estate agent will follow up email, texts and missed calls within a timely manner. REALTORS® can easily receive dozens of emails every day and it is so important not to get sidetracked with the unnecessary emails which can gobble up an agents valuable time.

Scheduled Closings

Closings require toe follow-ups with lawyers to ensure they have all the necessary documents including any recent amendments, walk-through with builders and buyers prior to the closing date and making arrangements for keys once the title has been transferred. And of course,e re-arranging the real estate agents schedule to accommodate the meeting time with the buyer.

Other Related Services

Meet up with other real estate affiliates which help listed properties sell such as a professional photographer, mandatory measuring company employees, home stagers, putting up signage, open houses, or helping a client get their property ready to be shown. Other meetings may including attending financial institutions with a client if needed, property inspections, verify completion of repairs, and other closing related meetings.

Property Showings

After scheduling showings, a real estate agent needs to accommodate the time set aside to show their buyer the homes without them feeling rushed. This may be one or two properties or may consist of a complete day or a few days such as an HHT.

Attend Listing Appointments

A professional REALTORS® attends all listing appointments as though it is a job interview because that is exactly what it is. The seller is interviewing the real estate agent and the agent is interviewing the seller. Prior to the listing appointment, an agent should be prepared for any questions or concerns a seller may have as well as have all necessary tools needed, should a seller be in a position to list the property. Each listing appointments should take an hour or two - sometimes more depending on how much information is presented to the seller or how many concerns they may have.

Keeping Clients Updated

This can include and newly listed homes which may be a hot commodity and must be shown immediately to sitting down at the computer for a few hours to perform a new market analysis and research back office syndication sites to forward to clients.

More phone calls

On any given day, a good real estate agent will be on the phone to other agents looking for property specific feedback on their listings, updating clients, addressing any on-going concerns, dealing with offers, mortgage brokers, real property report companies, condominium management companies, dispute low property appraisals and other real estate activities.

Maintain Required Continuing Education

Yes. Edmonton real estate agents are still required to maintain and continue education which is mandated by the real estate council of Alberta. The cost of maintaining a real estate licence and updating an agents education criteria is the responsibility of each REALTOR® and not the real estate brokerage.

Marketing and Property Syndication

If you are lucky enough to find a real estate agent in Edmonton who is an e-pro and is familiar with search engine optimization, they will spend several hours syndicating your home through various search engines and websites to ensure your property reaches the first page of google.

Attend Real Estate Conferences

There are dozens of real estate conferences annually and attending these help your REALTOR® stay up to date on the latest technology, real estate systems, and tools to help them with time management and gaining an advantage over their peers.

Maintain Active Social Media Profiles

Although social media and blogging play a key factor in the life of a real estate agent, if the only thing you see on an agents site is personal posts - you might wonder if they are actively doing any real estate. Many agents will hire this out to maintain an internet presence.

Networking with Edmonton Home Builders

There are several different home builders in Edmonton and this is a great way for real estate agents to keep up-to-date with home demand trends, especially in our current real estate market. Recently many of Edmonton home builders have implemented garden suites which offer new home buyers a great way to pay off their mortgage quicker.

Stay in Touch with Past Clients

If your REALTOR® stays in touch with you on a regular basis, you have a great real estate agent. With so many things to do, it is hard to find time to stay in touch with all of our clients!


Several people take education and start a career in real estate under the assumption that it is easy money. In reality, real estate agents are in a brutal time consuming, competitive business. The net commissions are not enough to keep people in the business, in fact, most people get out of real estate because they cannot afford to be in it. REALTORS® who survive to do so because they have a passion for the real estate business, and enjoy helping people make their real estate dreams a reality. It’s a great business to be in, but it’s NOT EASY!

Read full post

How to use a Comparative Market Analysis

Edmonton real estate agents can provide a comparative market analysis, also known as a CMA, for any property including properties subject to divorce, civil enforcement, foreclosures, estate sales, city tax purposes, etc. It takes time for real estate agents to complete an accurate home evaluation. Unless you have plenty of experience in buying and selling real estate, online home evaluations may be completely misleading and should never be used as a realistic asking price.


Free Edmonton Home Evaluations Image


Seller Comparative Market Analysis

When working with sellers, a comparative market analysis is used to determine a realistic and accurate asking price. A Seller CMA is based on comparable properties which are currently active (homes for sale), recently sold homes (usually within the last six months), expired (homes which did not sell for various reasons) and the history of these homes. Other factors will include the current Edmonton real estate market, supply and demand, the condition of the property, the location, community absorption rate and many other factors. An experienced, professional Edmonton Realtor will take the time to go through all of this data with you, together determining a true asking price for your Edmonton Home.

Buyer Comparative Market Analysis

When working with buyers, a comparative market analysis is similar to a bank appraisal and is used to write a reasonable offer to purchase. A buyers CMA is based on both current homes for sale and recently sold home price in Edmonton taking into consideration all relevant factors including the condition, size and location. For new builds, this process is a bit different and is based more on the cost to build, economic factors, building quality, and the reputation of the builder.


Free Comparative Market Analysis

If you are thinking about selling your home or if your home did not sell due to other factors, feel free to contact us for a professional no-obligation Edmonton home evaluation. We also service Morinville, Bon Accord, Gibbons, St. Albert, Spruce Grove, Beaumont and Devon. Our Homes & Gardens Real Estate Agents will take the time to help, educate and inform you on all real estate aspects of your community to determine the right value for your home, ensuring you receive the highest possible price. Simply CLICK HERE to fill in the form and we will get in touch with you shortly.

Read full post

What is a Real Estate Absorption Rate?

During listing appointment and the CMA process, sellers often ask "How long will it take to sell my house?" Although there is no magic way of knowing the answer, know what is currently happening economically and using a real estate absorption rate here in Edmonton will give us a good indication of how long a property will be on the market. An absorption rate will also tell us if it is a buyers market or a seller's market and is often used by real estate investors. It can also give a prediction on the demand of an Edmonton community.


Edmonton House Prices Image


Knowing how to use and calculate absorption rates using this real estate tool has several benefits. It's the best thing next to a crystal ball. An absorption rate It is a rate at which homes sell in a given area during a given time period. Absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. It is the inverse of months of supply.


For example, if there are 100 houses listed for sale in a certain area, and 10 houses sold over the last month, the absorption rate is 10/100=10%. Which means, assuming no other house listing are put on the market, it would take 10 months for buyers to purchase enough properties to absorb the real estate demand.


As a rule of thumb, an absorption rate of 20-25% or higher means that homes are selling quickly and the market favors sellers. Lower absorption rates mean that homes are not selling quickly and supply is much greater than demand, favoring buyers.


If you are thinking about selling in Edmonton or the surrounding area and would like to know the absorption rate in your community, contact us.

Read full post
Beds (Min)
Any
1
2
3
4
5
Baths (Min)
Any
1
2
3
4
5
Priced between $ & $
Copyright 2020 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.