Leduc Real Estate-Dana Sharratt

January Leduc Stats

January sales: 29

Average sold : $312,127

Average Days on Market: 75

Let’s break that down just a bit further so you can get a perspective on price categories of sold homes.  These stats below are just for single family “detached” homes (not rural properties, condos, etc.):

Solds under $320,000 :    9

Solds between $320,000-400,000:      5

Solds above $400,000:     6

How will the new mortgage rules affect the local real estate market?

On first glance it would be easy to assume that these changes will push buyers forward and create an earlier peak in the housing market just like we saw last year. However, the changes last year had more of an effect on first time home buyers and their ability to get a mortgage; last year not only was the amortization shortened, but the rules for get approved were changed (you have to qualify at the 5-year fixed rate even if you're taking a shorter term and/or variable rate). These changes had a noticeable impact on the housing market in Edmonton (and Canada) and we saw sales drop off right after the rules came into place. 

This year the changes will have less of an impact on buyers entering the market, and more of an impact on existing home owners looking for re-financing and lines of credit. I don't believe these changes will create a significant impetus for buyers move their purchase forward. There are other, bigger influences at play in the area such as migration into the province, job creation and rising mortgage rates that will affect the housing market later in the year.

2011 Housing Forecast Seminar
This week in Edmonton, the 2011 Housing Forecast seminar took place.  Here's a few key points and predictions for the upcoming year. 

MLS trends:

·  Generally balanced market, 3% rise in prices overall with seasonal fluctuations

·  Fewer new spec homes creates demand for resale

·  Inventory and DOM drop in quarter 3 and 4

·  Average price dropped in 2010 about 10% due in large part to less luxury sales

·  recreational properties will be slowed by low cost real estate opportunities in the U.S.

Development trends:

·  New standard detached lot is 40' wide (as opposed to 30')

·  most development growth on South, SW, SE side of Edmonton with Leduc and surrounding towns offering a variety of product and potential for growth

·  Housing starts flat until 2012 when we will start to see a modest increase in demand

·  Rental trends:

·  Vacancy rates dropping slightly (to around 3.5%) construction likely wouldn't ramp up for new rental housing unless vacancy rates drop down to 2%

·  Rent rates holding steady, expect rates to move up slightly, about 2% in 2011

Happy New Year!  Good to be back into the swing of things—came across this article, thought I’d pass it along!

On the day that the Edmonton Journal headline reported that the average home in Edmonton had increased by 9% the REALTORS® Association of Edmonton put out a news release that said that single family homes had dropped in value by 2.5%. Consumers were understandably confused.

A subsequent story in the newspaper tried to set it right and both REALTOR® president Westergard and the City's tax men were struggling to explain the difference. http://www.edmontonjournal.com/business/Edmonton+area+house+prices+continue+slide/4068204/story.html.

It seems strange to say that despite the apparent conflict, both numbers are accurate. The City of Edmonton uses prices as they existed on July 1. Their view would be based partially on the sales average numbers reported by the RAE for the month ending June 30. The REALTOR® report was based on year end numbers for prices for the month of  December. In the six months between the two reports, housing prices dropped, creating the discrepency. Another complicating factor is that real estate association prices reflect the entire Edmonton marketplace including all surrounding communities whereas the City report only considered property values within the City of Edmonton proper. Since outlying communities generally have lower prices they drag the RAE average prices down slightly.

Here are the actual numbers from the RAE database for average Single Family and Condo prices in the City of Edmonton only as recorded on June 30 and December 31 in 2009 and 2010.

The above numbers do not include duplex, townhouse and miscellaneous residential property that may be included in the City's calculations.

I hope everything is clear now.

Lakefront at Wizard Highlight Sheet            

If you’re in a position where you may want to consider turning part of your home into an income property, this article is for you!

1. Make sure it's worth it
   the cost of renovations has to be able to pay itself back within two years rent. Scout out local markets, get a professional opinion.
2. Tag team, if you can
   To use a cliché, two heads are better than one, and home-owning is no exception. Getting to your desired final product is a journey, and having a teammate to share frustrations, anxieties and most importantly, costs with is invaluable.
3. Whatever you budget, add 25 per cent
   When renovating your space, despite what a professionally quoted budget says, add 25 per cent, just in case. If you don't go over, nothing lost. But if you do, at least you were expecting it.
4. Houses are like onions
   The more layers you peel back, especially while demolishing, the more problems you're going to find. Count on hidden gems like mould, live wires and any other hidden costs, just in case.
5. Make sure the space is livable
   If the kitchen has zero counter space and the bedroom can only fit a bed, not only is it going to be hard to find someone to rent out your unit, but think of the types of people who might be wanting to rent out your unit.
6. Don't skimp on the drywall, especially on the ceiling
   Not only do you want a fire barrier between you and your new housemates, you might be thankful for a little bit of sound-proofing in the long run.
7. Start on the outside
   A separate entrance is key when renting out a basement, especially if you don't want to mingle too much with your new lessees. And you might want to make sure there are no potential lawsuits hanging around — such as slippery stairs or rotting wood.

Do I need a permit for that?  This is something I run into more often than you may think.  In the City of Leduc, any structure over 100 sq ft requires a permit. This includes even those “sunroom/gazebo” type detached enclosures that you can buy from Rona.  You see lots of folks out there with these great looking gazebos in their backyard, but BEWARE, if you happen to purchase one over 100 sq ft you will need a permit from the city.  Here’s why: Let’s say you  were to sell your property and have the Real Property Report completed, after that the report needs to go the city for a “letter of compliance”.  If they find a structure like in the above example you may not get the “compliance” stamp from the city. In fact, if it does not meet proper code they may even make you take that lovely gazebo down.  So just a heads up!  Make sure you check with the City of Leduc for all regulations and guidelines regarding structures and what’s allowed and what’s not.   They’re super friendly down there and don’t bite! #Leduc

This weekend at the LRC, Leduc Home and Leisure Show Oct. 22-24^th.  Stop by and say hello!  Paula with Dominion Lending will be there as well to answer any mortgage related questions you may have.