Selling a home can be exciting but challenging, especially in a dynamic market like Edmonton. As a home seller, it's crucial to be aware of the common concerns that many sellers in the area are facing. In this article, we will explore three primary concerns that Edmonton home sellers encounter in the current market and provide some insights to address them effectively.

Pricing in a Changing Market:  One of the significant concerns for home sellers in Edmonton is accurately pricing their properties in a market that experiences fluctuations. The real estate market is influenced by factors such as supply and demand, interest rates, and local economic conditions. To overcome this concern, it is essential to consult with me so I can provide you with a comprehensive comparative market analysis (CMA) and guide you in setting the right price for your home. A well-priced property can attract more potential buyers and increase the chances of a successful sale.

Competition and Buyer Demand: In a competitive market, standing out among other listings and capturing buyer attention is crucial. Many home sellers in Edmonton worry about how to differentiate their homes and attract qualified buyers. To address this concern, consider investing in staging your home to showcase its full potential. Professional staging can create a visually appealing and inviting atmosphere, making it easier for buyers to envision themselves living in the space. Additionally, I  employ effective marketing strategies that can help your listing reach a wider audience, increasing the chances of finding the right buyer.

Home Inspection and Repairs: Home inspections are a standard part of the home buying process, and sellers often have concerns about the potential discoveries and necessary repairs. It's important to remember that no house is perfect, and minor issues are common. To alleviate this concern, consider conducting a pre-listing inspection. This proactive step allows you to identify any problems beforehand and address them accordingly. If repairs are needed, consult with trusted contractors or professionals to ensure the work is done efficiently and satisfactorily. Being prepared and proactive can help streamline the negotiation process and instill confidence in potential buyers.

Navigating the challenges of selling a home in the current Edmonton market requires careful consideration of these common concerns. By understanding the importance of pricing, addressing competition and buyer demand, and handling home inspections and repairs, you can confidently approach the process. I welcome the opportunity to guide and support you throughout your home-selling journey.

I am sharing with you some well-researched facts about the “real state” of the real estate market. Of course, all real estate is local — what happens in other areas can be quite different. Please always know you can contact me anytime with your questions and I will get those answers for you.

Is there renewed optimism in the Canadian real estate market?

It has been more than a year since the Bank of Canada (BoC) raised interest rates, and now the policy rate is the highest since before the global financial crisis. Has Canada’s housing market baked rates into the cake? Are homebuyers taking advantage of the modest correction in residential property prices? Is the real estate sector bracing for the typically busy homebuying spring season?

The latest March 2023 numbers potentially offered a sneak preview of what to expect over the next few months.

According to the Canadian Real Estate Association (CREA), home sales rose 1.4 percent month-over-month in March but remained down more than 34 percent year-over-year. The MLS® Home Price Index (HPI) edged up 0.2% month-over-month but was down 15.5% year-over-year. The national average home price was down nearly 14 percent from the same time a year ago, sliding to $686,371. When the Toronto real estate market and the Vancouver housing industry are removed from the equation, national home prices are about $530,000.

So, with this in mind, what are some of the key trends in today’s Canadian real estate market?

Economic Concerns

Unsurprisingly, concerns over the cost of living are playing a crucial role in the home buying and even selling process in 2023

A new study commissioned by RE/MAX found that 59 percent of Canadians have at least one financial worry as they navigate the housing market: rampant price inflation (34 percent), the lack of affordable housing in their neighbourhood (25 percent), and the rising cost of rent impacting their ability to save for and purchase a home (25 percent). But even the broader economy is weighing on homebuying decisions, particularly among first-time homebuyers. The study revealed that 42 percent of first-time homebuyers are sitting on the sidelines of the Canadian real estate market due to the consternation surrounding the economy

Overall, evolving conditions in the economic landscape have altered the buying decisions of 72 percent of Canadians.

Barriers to Homeownership Before the coronavirus pandemic, real estate prices in the major urban centres, particularly Toronto and Vancouver, were obstacles for households trying to accomplish the dream of homeownership. A common strategy was to relocate to a rural or suburban community. But with prices higher than they were before the COVID-19 public health crisis, this might no longer be feasible.

Put simply; there are too many barriers to homeownership.

The report commissioned by RE/MAX highlighted a series of barriers to entry to the country’s housing sector:

Economic Uncertainty (46 percent)
High Interest Rates (44 percent)
Not Enough Savings (36 percent)
Dislike the Neighbourhood (34 percent)
Language and Terminology (31 percent)

Real Estate Agents

Real estate agents have always been critical to the homebuying and selling journey. Without them, you might set yourself up for too many headaches, and Canadians realize this. In fact, for the latest crop of homebuyers, 69 percent acknowledged that their real estate agent made them feel less stressed throughout the process.

Despite conceding the pressing need for real estate agents, buyers and sellers still have set criteria for realtors. Specifically, nearly half (49 percent) of Canadians list a real estate agent’s ethical credentials to be of the utmost importance, which is especially true for millennials (65 percent) and Generation Z (56 percent).

In the end, it is all about honesty, says Alisha, a repeat homebuyer in Alberta.

“[Our real estate agent] was very honest with us when we were doing our inspection,” she said in the report. “She went through it. She’s a mother of older kids now and went through it as if she was our mom, and she was like, ‘Make sure you ask them about this and do this.’ I felt she really cared.”

Space for Work and Play

In the early days of the public health crisis, families learned that they needed more space since they would be confined to their homes for work, school, and a broad array of other activities, like entertainment and exercise.

Therefore, the post-pandemic modern life requires more space at home, meaning that they need to better utilize floors, rooms, and walls in the kitchen, living room, bedroom, and everywhere else.

“People learned during COVID that they can perform a lot of their working functions at home, which has implications for what the home is. The home is also a workplace, and the design of the home needs to accommodate that,” said Ken Greenberg, the former director of urban design and architecture of the city of Toronto, in the report.

At the same time, Canadians desire a healthier work-life balance. Forty-seven percent of remote Canadian workers are struggling to achieve this desire, and a third of Canadians report feeling burnout.

Ultimately, it is about the home allowing families to “shift their mindset,” says Chelsea Hamre, a RE/MAX real estate agent.

“People are bringing more intentionality and purpose to how they are utilizing space. The office needs to feel different from the kitchen or the bedroom. They’re looking for spaces that can shift their mindset,” she stated.

The Community

In recent years, it has often felt like the idea of community has been abandoned. Some assert that this is more pronounced in the big cities. However, experts argue that the pandemic diminished this feeling since more households gathered in parks instead of in front of their television sets.

As a result, more households have become accustomed to frequenting public areas, whether streets or outdoor cafes. In fact, more than half (56 percent) of Canadians consider community spaces as something they consider when purchasing a home and the same percentage report that a vibrant local community is something they consider when buying a home. Of course, safety is paramount, too. Seventy-three percent of Canadians list neighbourhood safety as a top priority when deciding where to buy.

Homebuying Sentiments

Is the Canadian real estate market still moderating? Many markets across the country are shifting into balanced territory, and this, according to a survey, is the greatest cause for optimism (34 percent).

But there are several other wishes that homebuyers need:

New ‘missing middle’ housing
Eco-friendly housing options
Liveability in rural areas
Car-free infrastructure
Updated road infrastructure

Source

The Bank of Canada implemented a 0.25% increase in its target for the overnight rate, bringing it to 5%. This adjustment signifies a shift towards a more restrictive monetary policy with the objective of addressing inflationary pressures.

Mortgage costs for individuals with variable rate mortgages will see a rise. The mortgage rate for variable rate mortgages and secured lines of credit will increase by 0.25%, translating to an additional approximate monthly payment of $16 per $100,000 borrowed.

Global financial circumstances have become more restrictive, with bond yields on the rise in Canada, the US, and Europe. This trend has been influenced by major central banks indicating the necessity for additional interest rate hikes as a measure to tackle inflation.

Elevated bond yields have resulted in an upward movement in all fixed mortgage rates. This presents a difficulty for individuals with maturing mortgages, as they will face the task of renewing their mortgages at significantly higher rates.

The economy has exhibited stronger-than-anticipated growth, especially in the United States, which serves as Canada's primary trading partner. Although global inflation is showing signs of easing, persistent and resilient inflation is being fueled by strong demand and tight labor markets.

Take action today and secure your financial future. Reach out for a referral if you're in need of a fantastic mortgage broker who can help you make the right decisions and find the best mortgage options tailored to your needs.

5 Quick Facts:

Streamlined essentials: Embrace minimalism by curating a collection of versatile coats that cover your needs.

Clever storage solutions: Optimize your space with efficient hangers, hooks, and shelving, maximizing every inch.

Seasonal rotation: Practice a seasonal approach by storing off-season coats elsewhere, keeping your closet clutter-free.

Capsule wardrobe bliss: Create a capsule wardrobe of timeless and functional coats that effortlessly elevate any outfit.

Mindful maintenance: Regularly assess your coats, donate or sell ones that no longer serve you, and keep the closet tidy.

Boost Your Home's Curb Appeal with a Garden Revamp: Quick Facts on Plucking Weeds, Spreading Mulch, and Defining Space

Your home's curb appeal is the first impression visitors and passersby have of your property. One of the most effective ways to enhance that appeal is by revamping your garden. By dedicating a little time and effort to plucking weeds, spreading mulch, and defining the space, you can transform your outdoor oasis into a captivating sight. In this blog post, we'll explore the quick facts about each of these essential garden revamping tasks and provide you with practical tips to make your garden the envy of the neighborhood.

Plucking Weeds: Weeds can quickly detract from the beauty of your garden, so it's crucial to keep them in check. Here are some quick facts to remember:

• Regular maintenance: Set aside time each week to walk through your garden and pluck any weeds that have sprouted. This habit will help prevent them from taking over your plants and ensure a tidy appearance.
• Proper techniques: To effectively remove weeds, use a garden trowel or hand weeder. Dig down to the root and gently pull upward, making sure to remove the entire plant. This will prevent regrowth.
  
• Weed prevention: After weeding, consider applying a layer of mulch to deter weed growth. Mulch acts as a barrier, suffocating weeds and retaining moisture for your plants.

• Mulch types: Choose the right mulch for your garden based on your plants' needs and aesthetic preferences. Organic options like wood chips or bark provide nutrients as they break down, while inorganic choices like gravel or stone offer long-lasting durability.
  
• Application tips: Spread a 2-3 inch layer of mulch around your plants, leaving a small space around the base to prevent moisture buildup. Ensure the mulch is evenly distributed, covering the entire garden bed. This will help regulate soil temperature, suppress weed growth, and retain moisture.
  
• Mulch maintenance: Over time, mulch may break down or be displaced due to weather or gardening activities. Periodically check and replenish the mulch layer to maintain its effectiveness and aesthetic appeal.

• Pathways and borders: Use materials like gravel, stepping stones, or edging to outline paths and borders within your garden. This not only adds definition but also allows for easy access and navigation.
  
• Plant groupings: Arrange your plants in clusters or rows, considering their size, color, and growth habits. This arrangement helps create visual interest and a sense of organization within your garden.
  
• Focal points: Install eye-catching elements like a fountain, sculpture, or decorative planter to serve as focal points. These objects draw attention and add personality to your garden.

Revamping your garden to boost curb appeal is an exciting endeavor that can transform the entire look of your home. By plucking weeds, spreading mulch, and defining the space, you'll create an inviting outdoor sanctuary that showcases your green thumb and leaves a lasting impression on visitors. Embrace these quick facts and tips, and watch as your garden becomes a stunning showcase of natural beauty. Happy gardening!

Total residential unit sales hit 2,596, decreasing both 2.1% compared to June 2022 and 4.6% from May 2023. New residential listings were down 14.8% year-over-year from June 2022, while also noting a drop of 3.9% from May 2023. Overall inventory in the GEA was down 11.7% from June of last year, and up 0.5% from the previous month. 

Total residential average prices hit $412,334, a 3.1% decrease from June 2022, and a drop of 2.3% from May 2023. The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $383,600, resulting in an increase of 1.3% from May 2023, but a decrease of 7.2% from June 2022. Overall, all residential listings averaged 41 days on the market, increasing by nine days year-overyear and dropping one day from May 2023.

Detached unit sales were down 5.1% from June 2022 and decreased 6.0% from May 2023 at 1,594. They averaged $500,496, noting a 1.8% year-over-year drop and 2.7% decrease from May 2023. Detached homes averaged 40 days on the market, seeing no change from May 2023. 

Semi-detached unit sales were down 9.0% year-over-year but increased by 4.3% from May 2023. They sold for an average of $382,883, resulting in a small 2.6% increase year-over-year, and an increase of 0.2% from the previous month. Semidetached homes averaged 34 days on the market, decreasing three days from the previous month.

Row/Townhouse unit sales saw decreases both year-over-year and month-over-month, noting drops of 6.9% and 17.3% respectively. Prices were up both 0.7% from June 2022 and 1.7% month-over-month, selling at $257,812. They averaged 40 days on the market, a decrease of 2 days month-over-month. 

Apartment Condominium unit sales had increases of 26.0% from June 2022 and 6.8% from the previous month. Their average price hit $194,910, showing an increase of 0.9% from last month and a drop of 4.9% from June 2022. Apartment condominiums averaged 55 days on the market, showing a one-day drop from May 2023.

If you or someone you know have questions about how this may impact your home selling or buying decision, send me a message!

Craig Finnman ⁠
Re/Max Elite ⁠
craig@craigfinnman.ca ⁠
780-982-1589⁠

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