Although April's average prices saw a decrease, market activity indicators suggest that Edmontonian's are experiencing a stable spring.  The sales-to listing ratio was 54% and the average days a home was listed on the market before selling was down to 46 (March 2013, 49 days).  

The average price of a single family detached home for April was $402,270 (down 3.5% from March) and condos sold for an average of $243, 503 (down 1.3% from March).  On the other hand, duplex and rowhouses were up 2.8% from March selling for an average price of $324,975.  It is crucial for homeowner's and buyer's to understand that the average price reported encompasses a range of properties and can be driven upward by a higher than average number of expensive sales during any given month.  For example, during the month of March (2013) there were 14 properties sold over $1M whereas for the month of April there were eight.

There were 2,769 residential properties listed on the MLS® System throughout the month of April; and Edmonton inventory remains relatively low with 5,294 residential properties (SFD, Condo, Duplex etc) available at month-end.

In looking at annual statistics, 33% of annual sales happen during the months of April, May and June (second quarter) and about 25% of sales will occur in the third quarter and 19% for October, November and December (fourth quarter).The REALTORS® Association of Edmonton president, Darell Cook states, "As many as 100 additional homes are listed everyday so motivated buyers need to maintain contact with their REALTOR® to ensure that they are notified the moment that a suitable property becomes available."

Remember that the majority of both buyers and sellers want to complete their real estate transaction before September when the school year begins.  If you are thinking of selling your home or purchasing a new home before fall, the sooner we begin the process the more likely we will be successful in achieving that goal.  To get an accurate evaluation of your home, or to become more knowledgable of what is currently available on the market, CONTACT ME today!

Kylee

kyleej@remax.net

780-246-5000

(source: The REALTORS® Association of Edmonton)

Job creation, low unemployment, economic stability and low rental vacancy rates drive the housing demand in Edmonton. For the month of March, the sales-to-listing ratio was up at 57% and the average number of days a home was on the market before selling was down 7 from last month to 50.  Although we are seeing multiple offers on lower priced properties, the market continues to remain in balance with neither sellers nor buyers having an advantage. 

The average price of a single family detached home in Edmonton rose 5.6% from last month ($404,041) to $426,815.  Edmonton condominiums sold for an average price of $249,711 which was down 7.7% from last month ($231,829). Duplex and rowhouses sold for an average price of $323,844, which was also down 5.7% from last month ($343,649). The shortage of lower priced homes has pushed the average price up as buyers, who are qualified, have had to move-up to in order to find a home to purchase that meets all of their needs.  As a result, the number of homes sold in the $450,000-$650,000 price range increased over the month of March from 12.2% to 14.5% (year-over-year), while the number of homes sold priced under $300,000 decreased from 40.7% to 38.2% (year-over-year).

Inventory on the MLS® System was up from 4,183 to 4,741 in March; but, remains down 15.4% when comparing to the same time last year.  Although a lower inventory can have an increasing effect on prices, it has a dampening effect on sales.  President of the REALTORS® Association of Edmonton explains, "When first time buyers cannot find a house that meets their needs or are forced into a multiple offer situation, they often remain on the sidelines.  Low interest rates and rising rental rates create the interest and desire but lack of suitable properties means they are not able to make the transition to home ownership at this time."

To have your complete Home Market Evaluation done for the Spring 2013 market or to begin the search for your next home, please CONTACT ME direct at 780-246-5000 or e-mail kyleej@remax.net.

Kylee

(Source: REALTORS® Association of Edmonton)

For the month of February, not only was Edmonton's Real Estate market active but residential listing activity was up 10% from January, in addition to sales which were also up 18.2%.  The average price of a single family detached home increased a minimal 0.3% from January to $400,973.  Condo prices rose 7.3%  to $231,866; and duplex and rowhouse prices were up month-over-month at $332,285. 

Month-end inventory shows 4,183 residential properties listed in the MLS® System.  This is reflective of a 4.14 month supply with sale levels remaining.  The average days-on-market was 57, up 4 days from the same time last year;  however, the sales-to-listing ratio was up 4% from one year ago to 55% (1,089 Sales, 1,995 Listings).

We are starting to see a shift in the pattern of sales from what we have seen over the past few months and one year ago.  Sales of properties priced $425,000 to $550,000 increased 19% this year and properties priced $200,000 to $375,000 were down 9.6%.  The REALTORS® Association of Edmonton President, Darrell Cook, comments, "Confidence in the strength of our local economy and a shortage of attractive properties at the lower end of the price range are both moving consumers to consider higher priced properties."

"REALTORS® were busier last month than in January both listing and selling more homes.  As usual, sales activity will continue to increase as we move into spring," says Cook.  "The inventory of available homes has increased and we expect hesitant sellers to come onto the market in the face of continuing strong prices."

With spring around the corner, Contact Me to arrange your Free Home Market Evaluation!

Kylee

(Source: The REALTORS® Association of Edmonton)

The 2013 year is off to a promising start for Edmonton and surrounding areas with the number of residential properties selling at or above list price rising 9% from January 2012 to 12.6%.  Approximately 921 residential properties in Edmonton and surrounding areas SOLD with a grand total of 1,084 sales of all types of properties (residential, commercial, rural, land).   Single family detached home sales were down slightly, 1.4%, from from one year ago (496 units); however, condo sales realized a 30.7% increase (286 units), as well as duplex and rowhouses (64 units) which were up 24.9%.

Although the average residential prices were down when comparing with December 2012, when reviewing year-over-year, the average prices and sales for the majority of residential properties in the Edmonton area were up.  With the average single family detached home selling for $399,832, Edmonton saw a 1.93% decrease in price from December (2012); but as previously stated, the same average price brought the market up 7.7% when comparing to this time last year.  Condo prices were also down from December (3.3%) for the average price of $216,139 with duplex/rowhouses selling on average for $328,351; and as previously stated, these prices do remain higher year-over-year by 1.7%.

The average days-on-market for a residential property before selling was 74 with a sales-to-listing ratio of 47%.  Month end inventory was 3,743 for Edmonton and surrounding areas which is lower than what we have seen over the past five years; however still representative of a 4.4 month supply at the current sales level.

Darrell Cook, The REALTORS® Association of Edmonton President states, "If there is an impending national housing crash, it is not evident in Edmonton.  The number of price reductions is 4% lower than the same month last year indicating that homes are appropriately priced for the market and that more home sellers are holding firm to their asking price."

For more detailed information on your area of the city, contact me!

Kylee

(Source: The REALTORS® Association of Edmonton)

With prices and sales both rising throughout the 2012 year, both REALTORS® and clients were active in the Edmonton Real Estate Market with clear focus and certainty.  The average price of a single family detached home for the 2012 year increased 6.8%, with the all-residential average price rising 5.4%.  There were a total of 18,020 residential sales (20,393 Total MLS Sales) which was the highest we have seen since the peak in 2009.  That being said, listings were lower than we have seen over the past three years accounting for the decrease in available inventory on the MLS® System, which has been the lowest we have seen since December 2009.

Totaling $7Billion in sales for the MLS®, at its peak for the 2012 year, June realized the highest average single family detached home price at $393,471 with our lowest in January (2012), $364,106.  Condominium prices rose to their best in May (2012) for $248,846 after their low in January (2012) at $216,622.

Throughout the 2012 year, the Edmonton market seen growth in the average number of higher priced properties SOLD.  Overall, there were 403 residential properties SOLD which were priced over $700,000.  Of these 403 properties, 89 were properties valued at one million or more.  These sales account for 2.23% of the total homes SOLD, which is higher than we have seen for a few years.  Six homes in total were SOLD over the $2M mark with the most expensive property SOLD in 2012 valued at $2.72M.  These homes were located in the areas of Crestwood, Magrath Heights, Windsor Park, Hodgson, Twin Brooks and Westridge.

As we look forward to the year ahead, REALTORS® and clients are confident about the Edmonton Real Estate Market.  The REALTORS® Association of Edmonton's newest President Darrell Cook notes, "We are positioned in the best economy in Canada and perhaps the world.  It is hard to make a restrained forecast when we have job growth, in-migration, low vacancy rates and continuing low interest rates."  Cook forecast that the value of MLS® for the 2013 year will increase, overall, by 3% (2% increase for single family homes, duplex, rowhouse; 1% condos) resulting in a year-long average price for single family homes to go from $382K to $390K; and for condominiums to increase from $235,500 to $237,800.  Our strong economy will also continue to increase interest in acreage and recreational properties as prices of properties in popular sunny destinations continue to recover making our local rec properties comparable in price.

REALTORS® have brought education, value and client service to the real estate market for the past 85 years and it is my role as your Edmonton REALTOR® to remain current on all trends that may effect your next real estate transaction.  For more information or statistics on your particular area of the city, or for any general real estate questions/concerns, please contact me direct at 780-246-5000 or kyleej@remax.net.

Happy New Year!

Kylee

(Source: REALTORS® Association of Edmonton)

2012 came to close very similar to the way it began, with slowly increasing prices and stability.   Although sales for December were 31% lower than November 2012 and 16.8% down from last year, the average all-residential price for the month was up 1.5% from one month previous at $333,140.

The average price of a single family detached home for December was up 2.5% to $391,427 (6.8% increase compared to December 2011).  Condo prices were also up, marginally, from last month selling on average for $225,143.  Duplex/row houses averaged $297,753, a 4.3% decrease from November.

Overall, 1,026 residential properties were listed during December and of that 789 properties were SOLD, resulting in a sales-to-listing ratio of 77% (5% increase from November).  However, with sales slower in December, the average days-on-market was up two to 66 days.  At month-end, there were a total of 4,354 properties remaining in the inventory.

"Although sales and listing activity were slower this December than in previous years, prices continued their slow steady rise.  Total sales for the year were up.  The Finance Minister toyed with the mortgage qualification rules at the beginning of the year but otherwise this market operated in a smooth and stable manner.  REALTORS® and their clients could trade in real estate with confidence and certainty."  REALTORS® Association of Edmonton President, Doug Singleton.

Stay tuned for my 2012 Year in Review...

Kylee

(Source: REALTORS® Association of Edmonton)

Overall, Edmonton area REALTORS® listed 1,210 residential properties during the month of November and SOLD   1, 063 properties resulting in a sales-to-listing ratio of 66% (October 2012, 61.7%).  At month end, there were 5,681 residential properties in the inventory, which is down 8% from one year ago.  Sales were slower in November with the average days a home was on the market (DOM) up three to 64.

The average price of a single family detached home increased from $372,061 for October 2012 to $382, 923 for November driving up the all-residential average price from $324,924 to $331,198; overall, resulting in a 3.32% increase compared to one year ago.  Condominium prices remain 1% higher than this time last year; however, dropped back to September 2012 pricing with an average sale price of $230,493.  Duplex and rowhouse prices were $312,041 on average, up 3.2% from last year.

The median price for single-family detached homes for November was the highest it has been since August at $363,000.  When the median price is lower than the average price, it indicates that there were more lower-priced homes SOLD.  Normally, even just a few higher-priced homes will drive up the average sale price.  For November there were just 51 sales reported for properties priced over $600,000, the same as reported in October.  However, when comparing to this time one year ago there were just 43 homes SOLD over $600,000 in the Edmonton area.

The REALTORS® Association of Edmonton President Doug Singleton states, "The slow steady escalation in housing prices reflects the confidence that home buyers have in the local economy.  People are moving up but also relocating to take advantage of job opportunities.  As a result, the housing market is stable and balanced."

Kylee

(Source: The REALTORS® Association of Edmonton)

Housing prices for the month of October were the highest they have been for that specific month in the past five years.  The all residential price was up 0.6% ($324,924) as compared to October of 2011 as were single family (detached) homes which, too, were up 2.1% at $372,061.  Condos were prices on average at $234,177, an increase of 1.8% from last month and up 5.4% from October 2011.  Duplex/townhomes were down 1.1% from October last year to $305,777.

A total of 2,228 properties were listed during the month of October, with a total of 1,375 sales resulting in a month end inventory of 6,406 properties for sale (sales-to-listing ratio of 62%).  The average days-on-market was up 2 from last month at 61.

"The housing market is be-deviled in other centres but here in Edmonton both buyers and sellers find it heavenly.  The pace of sales is steady, prices increase year-over-year, there is sufficient inventory and average days-on-market is reasonable," states The REALTORS® Association of Edmonton President Doug Singleton.  "Unless you are an investor, the best time to buy or sell your home is when your lifestyle changes.  No matter what your personal circumstances, your REALTOR® is here when life happens."

Kylee

(Source: The REALTORS® Association of Edmonton)

Contrary to a recent cooling market, residential sales year-to-date remain up at 7.2%. In comparing to last year at this time we saw a total of 13,729 sales versus 14,565 this year.  The average price of a single family home has remained higher than last year at $376,678 (0.23% higher).  For September (2012), the average condo price was down 3.1% ($229,246), while duplex/townhouse prices, on average, were up 2.75% ($307,739).

Residential inventory sits at 6,956 comparing to 8,062 this time last year.  The sales-to-listing ratio was down at 52.3% and the average days a home was on the market before selling was up 5 to 59.

"Sales always fall month-to-month at the end of the year; that's just normal market fluctuation; but, overall, the market has been stable with little market advantage for either buyers or sellers.  Edmonton is still one of the best places in North America to own property and I urge consumers to talk to their local REALTOR® when they are in a position to buy or sell property." Doug Singleton, President, REALTORS® Association of Edmonton.

Kylee

(Source: The REALTORS® Association of Edmonton)

After a very active spring in Edmonton, the market  is understandably slowing down; nevertheless, housing prices remain up when comparing to one year ago and consumer confidence is strong.  Sales of all types of residential properties for August (1430) were down 17.4%  from last month and down 10.7% comparing to August 2011.  Available inventory was reduced 2.9%. 

Despite the decrease in sales volume, prices were up compared to August 2011.    When comparing to last month (July 2012) the average selling price of a single family home was marginally down (0.15%) at $384,477 but up 3.8% from one year ago.  Condo prices were also down slightly as compared to July 2012 at $237,042 but were also up when comparing to one year ago.

The average prices are affected by the difference in price of similar properties as well as the market composition or mix of homes being sold (bungalow, 2 storey etc.).  For the month of August a typical 2-storey home sold for 3.2% more than it did one year ago and bungalows sold for 2.2% more.  Furthermore, the number of sales of homes over $500,000 was up 11% in 2011 and almost 15% this year.

The average days on market for August was up 2 days to 54 and the sales-to-listing ratio was down 9.7% from July to 52.3%.

REALTORS® Association of Edmonton President Doug Singleton states, "August sales illustrate the changes in the composition of the market.  More consumers are purchasing homes at the higher end of the market.  This is an indicator of consumer confidence and a long term view that the market is stable."

Kylee

(REALTORS® Association of Edmonton)

The average price of resale residential property softened in July to $335,501, down 1.9% from June.  The average single family detached price decreased 2.3% as did condominiums with a decrease of 2.1% and duplex/row houses falling 3.25%.  That being said, price reductions are minimal and are still approximately 5% higher than the beginning of the year.

Of the 2,081 residential properties listed in July, 1,624 sales were realized and the average days-on-market was 52.  Inventory of homes priced under $325,000 is minimizing as eager first-time home buyers are decisive and ready to enter the market.  With inventory at 7,684, there is solid inventory, especially at the higher-priced end of the market.  To date, there have been 64 properties SOLD over $1million as opposed to 66 in all of 2011.

REALTORS® Association of Edmonton President Doug Singleton believes housing prices are consistent with seasonal patterns but overall, we are still 3.6% higher than sales from July 2011.  Singleton states, 

“Persistent low mortgage rates, job stability and higher average incomes in Edmonton result in consumer confidence which has opened up the higher end of the market,” said Singleton. “Many of these sellers are moving up and do not want to carry two properties. They need to sell so that they can close on the new property; so they are doing all they can to ensure a reasonable but quicker sale. The increased inventory at the higher end is creating some pressure on sellers to keep their list prices reasonable. Once again, consumer confidence and access to low cost financing is driving the upper end of the market even while providing buying opportunities for first-time buyers.”

Kylee

(Source: REALTORS® Association of Edmonton)

Perhaps the most unexpected news of June's Real Estate market was the Finance Minister's announcement of the new policies on residential mortgages to take effect July 9, 2012.  Be aware that the maximum amortization period for government-backed mortgages was reduced from 30 to 25 years and purchases over $1 million will not be guaranteed by CMHC.  Furthermore, the amount which homeowners can borrow against the equity in their home has been reduced from 85 to 80 percent.  This is the fourth time in four years which residential mortgage policies have been adjusted, only this time with the intent to cool the Toronto markets.  Doug Singleton, REALTORS® Association of Edmonton President, expects that this will have little impact on Edmonton's stable and affordable real estate market and may push some homebuyers decisions forward.

Overall, Edmonton's real estate market continues to be strong and prices are higher than 2011.  On average, residential prices are 3.2% higher than June of last year.  Single family detached homes sold on average for $393,471, an increase of 3.7% from last year.  The median Condominium price was up 4.6% at $230,000 when comparing to last year; however, the average price in comparison to May 2012 was down 2.7% at $242,720.  Duplexes and rowhouses were priced on average about 7% higher than last year at $318,223.

There were 3,2111 residential properties listed in June and of that 1,874 sales.  The average days-on-market (DOM) in June was up two at 51 days with inventory of 7,930 (4.2mths supply), typical for this market.

REALTORS® Association of Edmonton President Doug Singleton states, “We expect that, although prices will, as usual, slide gradually over the next six months, they will continue to be higher than they have been in the past two years or the five year average.”

Kylee

(Source: REALTORS® Association of Edmonton)

In May, the average residential price was up 3.2% from last month at $348,196. The average price of a single family detached home was $388,762, up 1.7% from the previous month. The average price of a condominium in May was $248,846, up 5.9% from April. Duplex and rowhouse properties sold on average for $310,991; a 5.5% drop from the previous month.

Single family detached home prices reached a five year high.  Over half of the homes SOLD last month were under $370,000, with an equal number of sales prices over that same figure.  Compared to last year, which the average price was $365,000.  Condominiums SOLD on average for $232,000 for the month of May.  Last year's condo sales for May averaged at $250,000 reflecting a market change resulting in higher sales and market demand for smaller, less expensive condominium properties.

The average days on market (DOM) was 49 days, one down from April; and the sales-to-listing ratio was 53% representing stability in the market.

“Edmonton is bucking a national trend and making housing more affordable than other cities," said REALTORS® Association of Edmonton President Doug Singleton.  According to an RBC market survey, home buyers in Edmonton are facing one of the most affordable markets in Canada with a housing affordability index of 32.4% of a typical household income.  It is advised by most financial planners that a homeowner should budget approximately one third of their income for housing (mortgage, utilities and property taxes).  In comparing Edmonton's affordability index to other major city centers in Canada, Toronto came in at 53.4% and Vancouver, astounding at 88.9% of income.

Kylee

(Source: REALTORS® Association of Edmonton)

The REALTORS® Association of Edmonton reports that residential sales through the Multiple Listing Service® for the month of April were up 5.3% from April 2011; however, below average for April. There were 1,713 residential sales in April as compared to the 5-year average of 1,940 sales. There were 7,334 residential properties available in inventory at the end of April which is up 7% from last month.

The average residential price was up 0.8% from last month at $337,363.  Up 0.9% from March were single family detached homes at $382,384.  Condominiums for April averaged $235,036, an increase of 1.3% from March.  Duplex and rowhouse properties sold on average for $329,025 realizing a 3.6% increase from March.

Comparing to one year ago, all residential prices have increased as follows:

• Single Family Homes - 0.4%

• Condominium - 1.1%

• Duplex/Rowhouse - 8.9%

• All Residential - 2.99%

The average Days on Market for April was 50 and the sales-to-listing ratio was 53% indicating an increase in market activity.  REALTORS® participated in the sale of $578 million worth of residential property last month and total MLS® activity for the year is $1.5 billion (up 15% from 2011 YTD).

REALTORS® Association of Edmonton President Doug Singleton states, "Single family prices have risen slightly each month this year which is encouraging sellers to list their property.  There is plenty of choice in the market at this time."  With a growing number of listings, buyers should continue to be studious when purchasing their property but should also be prepared to make an offer and begin the purchase process as there are many active buyers in the market today.

"If a change in your lifestyle requires a change of address, then this a great market to be in," said Singleton. "Choice of neighbourhoods, variety of housing types and stable pricing may not be available in every market but they are features here in the Edmonton area."

Kylee

(Source: REALTORS® Association of Edmonton)

REALTORS® Association of Edmonton reports that the average residential price in the Edmonton area is up 2.2% when compared to a year ago. The all-residential average price is up at $335,187 as compared to $328,094 in March of last year. Single family detached (SFD) and condominium average prices were stable year-over-year with Single Family Home prices up 0.2% and condos down 0.7%.

Multiple Listing Service® System reports sales and listings by REALTORS® in March were up, with 3,271 residential listings (up 23.5% from February) and sales of 1,533 (up 24.5% from the previous month).  In total, there are 10,640 properties of all types (commercial, rural and residential) on the Edmonton and Area Multiple Listing Service®.  With sales remaining at the current rate, there are 4.5 months of inventory available. 

In March, the average price of a single family detached home was $380,083, up 1.3% from the previous month. The average price of a condominium in March was $231,629, down 1.4% from the February price. Duplex and rowhouse properties realized a 4.1% improvement from February selling on average for $319,020.  The average days a home was on the market for March was 53.

When comparing to last year, listing activity is up with sales and inventory down meaning market activity could pick up substantially during summer months.

“April is the start of the real estate season when people who want to buy and sell real estate are most active,” said REALTORS® Association of Edmonton President Doug Singleton. “There is speculation that mortgage rates will start to rise which makes it more difficult for first time buyers. However, there is lots of choice in our market with new properties coming available daily. Whatever your housing situation you can trust the advice of your local REALTOR® who is here when life happens.”

Kylee

(Source: REALTORS® Association of Edmonton)

The REALTORS® Association of Edmonton reports that housing prices were up in all housing categories in February in the Edmonton area.  The Residential average price was up 3.7% from January, and when compared to February 2011, a 5.7% increase.

The average price of a single family detached (SFD) home was $375,268, up 3.1% from the previous month. The average price of a condominium in February was $234,973, up 8.5% from January. This is higher than all months, with exception of May, of last year.  Duplex and rowhouse properties sold on average for $306,491; a 1.4% improvement from January.

Year-over-year prices were also up in all categories. Single family properties were up 4.8%; condos were up 1.7% and duplex/rowhouses were up 0.2% from the same month last year.

Sales and listings by REALTORS® on the Multiple Listing Service® System in February were both up from January and the sales-to-listing ratio recovered from 36% in January to 46% in February. This indicates that less than half of the residential properties listed were sold and provides fresh property options for buyers who may have been looking for several months. Sellers will be pleased to know that the average days-on-market (DOM) in February was 54; down from 65 in January.

REALTORS® Association of Edmonton President Doug Singleton states, “Buyers seem to have confidence and REALTOR® offices are reporting solid traffic. This is lifting prices up and they are already higher than at the same time in the past two years.”

 REALTORS® are here when life happens.

Kylee

(Source: REALTORS® Association of Edmonton)

Typical to the real estate market for the month of January, prices were lower than the previous month and sales were on par.  However, overall listings and sales activity has increased considerably as compared to one year ago with listings alone 126% higher as compared to December.

The average price of a Single Family Detached (SFD) home was $362,926, down 1.1% from December 2011.  However, this is an increase compared to one year ago when a SFD was $354,180.  Also on an upward trend are duplex and rowhouse properties which sold on average for $304,590.  This is an 8.3% increase from last month and 2.8% higher from one year ago.  Unfortunately, the same cannot be said for Condominiums.  Down 4.9% from the December 2011, the average price of a condo was $215,407.  One year ago the average condo price was $223,807.

Overall, there were 2, 441 residential properties listed and 881 sold in January realizing a 7.1% increase from one year ago.  On par with December 2011, the average Days on Market (DOM) for January was 65.

The REALTORS® Association of Edmonton President (2012) Doug Singleton notes, “Interest rates remain at a historic low point and are not expected to rise this year. Combined with an expected increase in listing activity, the low interest rates make this a great time to enter the real estate market.  Buyers have increased choice and there is a massive amount of information in the real estate market. REALTORS® are uniquely qualified to sort through the data and help buyers and sellers to make informed decisions that support their hopes and dreams. REALTORS® are here when life happens.”

Kylee

(Source: REALTORS® Association of Edmonton)  

December saw the all-residential average price for real estate sales through the Multiple Listing Service® (MLS®) increase 1.7% ($316,415) from December 2010.  The average price of a single family detached home also realized a 2.0% increase to $364,803 from one year ago.  Overall housing prices were also up from last December.  Typical for December, sales were down 27% and prices fell 1.5% from November 2011.

Past President of the REALTORS® Association of Edmonton, Chris Mooney states, "With prices and sales varying within a small range there is a solid base going forward into the 2012 market."

The average residential price (including all SFD, condo, duplex, townhouse properties sold in the Greater Edmonton Area) was $316,415.  Comparing to November 2011,  this was a 1.5% dip.  There were 1,085 properties listed and 827 sold during the month of December; comparable to December 2010, with 1,088 listings and 829 sales.  Slower sales resulted in longer Days-on-Market which was 65 and the sales-listing-ratio was a high for the year at 76.2%.

"REALTORS® were involved in almost 60,000 real estate transactions in 2011 and advised on thousands more that never materialized.  There were tens of thousands of business people, families and individuals who met with one of our 3,200 REALTOR® members this year, and I am proud of their service to the community and the local economy." Chris Mooney, Past President (2011) REALTORS® Association of Edmonton.

The REALTORS® Community Foundation proudly provided funding of $300,000 to 44 community groups in 2011 through marketing and individual contributions.

To further discuss December 2011 statistics, or the upcoming 2012 year in real estate, contact me.  I look forward to hearing from you.

Kylee

(Source: REALTORS® Association of Edmonton)

Take a moment and watch this BNN interview as President of the Real Estate Investment Network, Don Campbell, speaks out on the Canadian Real Estate market for 2012-2013.

BNN Interview, Don Campbell - Canadian Real Estate Market

Kylee

One of the most commonly misunderstood topics, which many people are hesitant to inquire about, is with relation to the payment of commissions. Alberta real estate and mortgage industry members are required to tell you how they will be paid for their services.  As a consumer, knowing this could prevent unexpected expenses later, not to mention, could have an affect on how your transaction proceeds.

Who is my contract with?

All individual members (real estate / mortgage) are employed by a brokerage.  These industry members are then authorized by the brokerage, to which they are employed, to represent them when working with clients.

This means, all contractual agreements you enter into are between you and the brokerage, not between you and an individual industry member.  The contractual agreements ensure a number of things including that the client, you, pay a fee to the brokerage which then pays the industry member.

Example: Industry member Sue is employed by XYZ Brokerage and is authorized to represent the brokerage in its transactions with consumers.  As a representative of XYZ Brokerage, Sue entered into a Buyer Brokerage agreement with Buyer Bob.  Under the agreement, XYZ Brokerage, through Sue, has agreed to locate a suitable property for Buyer Bob to purchase.  If successful, Buyer Bob pays a fee to the brokerage for their search assistance.  When Buyer Bob's payment is received, XYZ Brokerage then pays Sue.

Payments to individual industry members are made ONLY by their broker.  Avoid any requests by an industry member for direct payment.  If this does happen to you, refuse the request and call the industry member's brokerage and advise the acting broker.

A Word About Service Agreements

Refer to the service agreement between you and your brokerage for all fee payments.  The most common types of service agreements are as follows:

• Seller Brokerage Agreements (Listing Contracts)

• Buyer Brokerage Agreements

• Mortgage Broker Service Agreements

• Property Management Agreements

You and your brokerage will agree to the fee payment details specified in the contract.

Calculating the Fee

Brokerage fees are calculated as follows:

• A percentage of the sale price (for real estate)

• A flat fee or schedule of flat fees

• A fee for service

• A combination including any of the above

Note:  Real estate and mortgage brokering is a service, making Goods and Services Tax (GST) applicable.

Payment of a Bonus

A bonus is payment over and above the usual fee.  A bonus may be offered by a seller to encourage activity on a particular property.  As a consumer, you are entitled to know about any payments an industry member might receive as a result of your transaction.  Before an industry member accepts any payment of bonus, the buyer's representative must advise his client of the bonus and obtain written consent from the client to receive it.  As with all fees, the bonus will first be paid to the brokerage, then to the industry member.

Word of Caution

The Real Estate Act prohibits a real estate brokerage from calculating a fee based on the difference between the gross sale proceeds and the net sale proceeds deemed acceptable by the seller. 

Industry members must be honest when discussing commission fees and the "typical" or "usual" rates charged in a given area.  The amount of commission or fee charged is not officially set out by any industry body and every brokerage will have its own policy on services and fees. 

Before entering into a contract, interview the brokerages you may want to employ and learn about the rates available and the different types of services offered.  Wise consumers understand the value in a balance of services offered at a reasonable commission and know the old adage, "you get what you pay for" certainly applies to real estate services.

I hope this helps you to better understand commission calculations for industry members and I encourage you to contact me if you have any further questions on this or any other real estate matter.

Kylee

(Source: Real Estate Council of Alberta)