Slower Market Beginning to Take a Turn

Edmonton, July 3, 2015: For the first time in 2015, the REALTORS® Association of Edmonton recorded an increase in year-over-year reported sales for the month. June 2015 Census Metropolitan Area (CMA) had 2,008 reported sales for all residential properties, 2.4% over the 1,961 all residential sales reported in June 2014. This number includes 1,243 single family dwellings (2.1% more than 2014), 572 condo sales (1.6% more than from 2014) and 156 duplex/rowhouses (11.4% more than 2014). Sales were also up 13% in June from the reported sales in May 2015.

“We finally saw prices take the expected small dip month over month that we have been waiting to see due to lower sales and higher inventory. Prices still remain higher than the same time last year and with sales ramping up again and inventory starting to settle, we likely won’t see our prices drop much more than this,” explains Geneva Tetreault, President of the REALTORS® Association of Edmonton.

Single family prices were up 2% year-over-year at $444,862 for June 2015. Condo prices continue to remain static at $255,662. Duplex/rowhouse are still popular and have seen price growth of 2% year over year. June prices have dropped slightly from May by 1.4% for single family, 0.1% for Condo and 0.8% for all residential.
 
Inventory is still healthy at 7,177 for the Edmonton CMA at the end of June 2015, down from 7,303 in May. All residential listings were up year over year by 7.7% but down month over month from May by 3.6%. There is currently just over three and half months’ supply of inventory in the Edmonton CMA.

“The reality of what we are seeing in the market is that the slight hesitation from buyers that came with the drop in oil prices is lessening. Edmonton has not been hit nearly as bad as what many predicted and buyers are becoming more confident that our market won’t plummet. This renewed confidence coupled with low mortgage rates and a healthy selection means that people are realizing that this is still a good time to buy.” Tetreault continues, “People move when their lifestyle warrants a change. This will always be true. There are always buyers and sellers, no matter what the market looks like or what analysts predict. REALTORS® are here to help you decide what move is best for you.”

Average days on market for all residential properties was up again this month at 49. Single family average days on market was up to 46 from 43 in May, Condominiums were averaging 52 days compared to 49 in May, and Duplex/Rowhouse took an average of 50 days to sell in June.

Artificial grass has been used in warmer climates for some time, but it’s also become more popular in Canada as an alternative to a natural lawn. The jury is still out as to which is best, and there are definitely pros and cons on both sides of the fence.

Natural Grass
Benefits:  There’s nothing like the lush, organic feeling of natural grass under your feet.  It’s affordable to install, and with maintenance, it can last a lifetime.

Things to consider:
Maintenance – A lot of time and effort is needed to cut, water and maintain the lawn.  It’s difficult to keep it looking good all year round.
Environmental Impact – Tons of water are used every day to get that ”green” look.  Harmful pesticides used also wash away into the water system.
Expense – Sod may be cheaper to install ($1-$2/ yard), but the monthly water bill is much higher than artificial turf.

Artificial Grass
Benefits:   Today’s artificial grass is like a carpet for your yard. The turf looks great all year round with virtually no maintenance, no water and no monthly cost.

Things to consider:
Expense: Artificial turf is very expensive to install.  Anywhere from $4-$9/ sq. ft, a small 500 sq ft area can cost upwards of $4500.
Environmental impact – Although it doesn’t need the water and pesticides and has a lifespan of 15-25 years, artificial grass is synthetic and does eventually end up in the landfill.
Animal waste – The turf can be watered and liquids pass through, but there are mixed reviews on how well Fido’s business washes away.

Whichever you prefer, you will start noticing artificial grass in more residential and public spaces. Artificial turf is being used in dog runs, playgrounds, on boats, trade show booths and golf courses.  Toronto is even installing artificial turf on its medians. It looks like it is here to stay.

Not long ago, in 2008, the mortgage rate in Alberta was 5.39%. This year, we have consistently seen posted rates under 3%. The low rates offer significant opportunities for buyers and sellers alike, but to take advantage of the trend, learn to evaluate your financing options.

Taking advantage of the lowest rates possible allows you to make real strides on interest payments. But if your mortgage is short-term and a variable rate, there is a possibility it could change with the market.

If you are looking to reside in a home for a while or invest in a long-term rental holding property, some lenders offer up to a 10-year fixed rate.  Fixed rates are generally higher than variable, but can minimize uncertainty and the risk of higher interest and payments in the future.

Refinancing an existing mortgage to a lower rate might also help you save. However, you are liable to pay penalties and administrative costs for breaking your mortgage.

A mortgage consultant can assess the specific needs of your situation and guide you in choosing the financing plan that will fit you best.