Buying a Home in Edmonton: Real Estate Trends for August/14

Tue, 26 Aug by Terry Paranych
Edmonton Real Estate Market Trends

Getting to this place is getting easier in Edmonton.

We know that Edmonton is an amazing to place to live. But the process of buying or selling a home can seem impossible. And for those who look, it can be difficult to make sense of the numbers.

Fortunately, the new statistics that came out this August paints a pretty good picture for people looking to buy a home in Edmonton. According to the Canadian Real Estate Association, Alberta’s housing average sits in the top three provinces in terms of housing prices. It might look like rising prices are a challenge for buyers, but there are unique advantages for homebuyers in this market, too.

Locally, The REALTORS® Association of Edmonton report that the current average price for all residential homes sits at $362, 091, which is a slight decrease from two months ago. This can be expected as sales slip from people trying to get the last bits of vacation in through the waning days of summer.

The great thing is that the demand this year has been high. Prices year-over-year have been up from between 3.9% for single detached homes to 9.2% for duplexes/rowhouses.

Overall residential sales was up nearly 10%, suggesting that demand is strong, and it is likely to remain that way throughout the rest of the fall.

Also, the year-to-date listings are up over last year, which indicates that there will be plenty of opportunity for both buyers and sellers this year, and possibly into 2015.

It’s important for people to understand that this market offers tremendous opportunity for both buyers and sellers. Considering that our average income across Edmonton CMA is almost 20% higher than the national average (according to Global), our home prices are remarkably affordable. Additionally, there are numerous options available for you to make a move into this market, whether it’s a home for your family or an investment property.

We are here to help! If you want to buy or sell a home in Edmonton, we can work with you to help you navigate through the process.

Get in touch with us, and we can have a conversation about getting you into your dream home today.

Closures and Opportunities for Edmonton Area Schools

Wed, 02 Jul by Terry Paranych

 

Edmonton Area School Closures and Rebuilds

Earlier this year, The Province of Alberta earmarked $20 million dollars for Edmonton Public School Board (EPSB) to build a brand new school that would replace these Edmonton area schools:

  • Westmount (Westmount Inglewood and Coronation schools)
  • Highlands (Highlands, Montrose and Mount Royal schools)
  • Greater Lawton (Lawton, R.J. Scott and Rundle schools)

Throughout the year, the board of trustees had consultations with parents in each of these communities. Last week, the EPSB administrators recommended that Lawton, R.J. Scott and Rundle schools should be closed for a new .

The EPSB leadership were clear that the majority of Lawton parents wanted a new school and not just a modernization of an old school.

Today, the EPSB board makes the final vote.

A few parents in Lawton spoke up against the proposal, and it can be hard on a community when an issue like this comes up for parents. I’ve seen things get emotional when it comes to community matters, and it can create disagreement among members of the community.

One of the great aspects of a new school is knowing that your children will get access to modern amenities and technology. The school board has been talking about the schools in these area lacking in basic heating at times in the winter, so a new school would help to provide comfort and, over time, cost less. New schools are designed for better power efficiency, and enhanced education. Often those old long hallways with pockets of kids hiding are replaced with common open spaces that make it easier for administrators and teachers to monitor children.

What Does a New School Mean for Homeowners?

School districts have become an important part of deciding where to live in a community, and it can influence how a REALTOR® may see your property. Having property near a school that shines (or even in a district that shines) is often at the top of the options for families with children or teenagers. The Fraser Institute keeps score of schools for the Edmonton area (as well as the rest of Alberta), although some do argue about how they get the results, so use wisely.

Often investors look at these factors to gauge how high they would be willing to bid on new properties, and Ken Corsini conducted his own research, and found that some highly-ranked schools in the US were sheltered from declining values by 2009, while lower valued schools experienced measurable losses.

Having good schools near a home can add premiums to the value of a property, but it’s not a simple calculation. Quality of the school, distance from the home, current home value, all of these factors come into play. In fact, it might be easier to look at it the other way around. Knowing the school and district data, what might a family or an investor be willing to pay above the list price?

Either way, the residents near Lawton school have a new school coming to them, and they should be happy with the results.

About The Alberta New Home Buyer Protection Act

Tue, 04 Mar by Terry Paranych

New Alberta New Home Buyer Protection Act Is Now In Effect

Alberta New Home Buyer Protection ActYou know what folks, I know I’ve said this before but we are very lucky to be living in Alberta right now. Even more so to be living in The City of Edmonton. Our economy is strong, our city is full of opportunities, and our housing market is booming. Best of all, we have a government that recognizes our attractive housing market and has put legislations in effect to protect consumers.I’m talking about the Alberta New Home Buyer Protection Act— an act that has been in the works for a while now and has finally taken effect last month (February 2014).

So here’s how it works…first of all, it’s mandatory. That means every single builder operating in the province is required to provide warranty coverage on every Alberta home they construct. Home builders also have to pay to register each of their properties into the online public registry of homes. This registry is managed by the Alberta Government’s department of New Home Buyer Protection and available to future buyers. Basically, you’re just a click away from checking the warranty status on newer Alberta properties! Now get this, the warranty purchased by builders must be between $1,700 and $2,000 on an average home before they are even eligible for a building permit! How great is that?

Alberta New Home Buyer Protection Act 2If you’re still not impressed with the Alberta New Home Buyer Protection Act, consider the following…before this act came into effect, the coverage for new homes was 1 year and 5 years. Now its 1 year, 2 years, 5 years, and 10 years! For more information on the breakdown of each type of warranty, read this blog.

As an existing or future Edmonton homeowner, your role is to learn as much about the process as possible. Educate yourself by researching the builders you are working with, their history, as well as the process if you ever need to file a claim.

Thankfully, when you select Team Paranych to help you with your Edmonton home buying process, we are committed to you every step of the way. We gladly serve as your ambassador and representative when dealing with builders. We also provide you with information on the Alberta New Home Buyer Protection Act and your role during the process.

Contact us and request a complimentary Edmonton Home Buyers Consultation. This consultation will give us an opportunity to listen to your needs, your wants, and your lifestyle. We then help you work with a builder to construct a beautiful new home— or find you a property that’s in move-in ready condition!

Give us a call today and start packing.

Cheers,

Terry Paranych

For more information feel free to visit the Alberta Government website.

Edmonton Condos & Estoppel Certificates

Tue, 04 Feb by Terry Paranych

 Edmonton-Condos-Estoppel-Certificate

Edmonton Condos: What Is An Estoppel Certificate?

Being an Edmonton condo owner certainly has its perks: lock-and-leave security, closeness with your neighbours, and (in some cases) zero property maintenance requirements! If this is the type of lifestyle you want, we can help you get it! Before you begin the condo buying process, we recommend you become familiar with condo-related terminology and paperwork. Not only will this help you make an educated decision when buying a condo; but, it will also help you better manage your Edmonton property as an owner. One of the words you’ll hear during the condo buying process is: Estoppel Certificate.

“Estoppel Certificate [e’stapel]: A signed agreement form from the condo corporation or condo board that certifies the information provided is correct.”

Edmonton Condos: Why Do Estoppel Certificates Matter?

Signing or not signing?According to Service Alberta, an Estoppel Certificate tells you:

  • The monthly or yearly schedule for paying the condominium contribution (condo fees).
  • Whether the previous owner has paid their share of the contribution, what remains unpaid, and the amount of interest owing.
  • The amount of condominium contribution (condo fees) assessed to the unit.

A Real Estate Purchase Contract requires sellers to provide buyers with an Estoppel Certificate. Financial institutions will then request the information listed on an Estoppel Certificate, along with a copy of the document itself. It is also important to note, some condo boards can charge an Estoppel Certificate Fee of up to $100.

Estoppel Certificates & Renting An Edmonton Condo

Estoppel Certificates should be used by potential buyers to make an educated decision about the property, as they contain information about the unit. They do however, have certain limitations when renting an Edmonton condo:

  • Estoppel Certificates cannot amend the lease.
  • They cannot alter or contradict specific information written on a lease.
  • They cannot create rights at a contractual level that would not exist on a lease.

When it comes to purchasing an Edmonton condo, trust in Team Paranych. We consist of trained professionals who are dedicated to you. We’ll help you understand condo buying aspects such as: Estoppel Certificates, Condo Fees, Condo Boards, and more! We’ll also sit down with you to sort through the paperwork and make buying an Edmonton condo a breeze.
To get started, contact us and request a free home buyers consultation!

RE/MAX 2014 Forecast

Tue, 07 Jan by Terry Paranych

RE/MAX Housing Market Outlook 2014

There are great things ahead for the Canadian real estate industry in 2014! RE/MAX recently released the 2014 Housing Market Outlook which featured a series of forecasts on the Canadian real estate market. The optimism surrounding RE/MAX’s forecasts could be triggered by Canada’s strong economic growth and steady flow of residents seeking homeownership. Whatever the reasons, RE/MAX of Canada has predicted home sales will climb 2% to 475,000 units during the next 12 months! Other note-worthy predictions include:

REMAX 2014 Forecast

  1. The value of an average Canadian home will increase 3% to $390,000.
  2. Canadian residential housing market will stay in a “clear balanced territory” with a few exceptions.
  3. Canada is expected to be the second top-performing economy of the G7 Countries in 2014.

As for the Edmonton real estate market, the RE/MAX Housing Market Outlook for 2014 was also filled with positive predictions. If you’re still on the fence about buying or selling an Edmonton real estate home, perhaps the following market predictions will sway your decision:

  1. First-time buyers will drive sales of homes between $300,000 – $370,000.
  2. Move-up market will seek properties priced between $400,000 – $600,000.
  3. Edmonton Luxury real estate properties (homes priced over $750,000) are growing in popularity.
  4. The projected number of residential sales is 19,400 units by the end of 2014.

“The city’s commitment to higher-density living has led to the serious redevelopment in Edmonton’s downtown core. The conversion areas—traditionally appealing to the hipster crowd—have started to attract the attention of empty nesters who want to be close to the new shops, restaurants, and amenities. The success of recent revitalization projects is likely to ripple into other areas of the core, leading to a vibrant downtown lifestyle.”

To view the full report click here.

Whether you’re looking to invest in the Edmonton real estate market, want to buy an Edmonton home for sale, or sell your Edmonton home—Terry Paranych and his team of experts are here for you!

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.
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