Edmonton Real Estate Blog

Another Piece of Edmonton’s History Gets Demolition Order

What makes a city beautiful?

Today I don't want to talk about the stock markets crashing around the world, or the credit crisis or bailouts....lets have a break. Tomorrow the monthly stats go up and we can all get back into the debate.

Comment on our city. What would make it more beautiful? More attractive to young families, more enjoyable to live in?

Many people think the climate in Edmonton will always prevent it from being a great city. I disagree.... I think one of the major things that is holding us back is our "tear it down and build something cheap on top" mentality.

Paris, New York, London, Prague, just to name a few, are all gorgeous cities in cold climates.

The reason I got on this topic is that I was saddened (but not surprised) to learn today that yet another historic building in Edmonton is going to be torn down. I may be the only person in Edmonton who cares about this, perhaps because I come from a place that takes care of its history - my parents live in a home built in 1840, and that's young for the neighbourhood - and takes steps to preserve it. My dad spent the entire summer last year removing mortar that was covering the original stone exterior of their home - it looks great!

My hometown - Dundas, Ontario - gives historic designations to beautiful, old buildings (hopefully my parent's home soon too!). Having a historic designation plaque on your home actually increases its value, even though it limits the renovations you can do to your home. Basically, you can't significantly alter the outside appearance of a historically designated home without approval. Can you imagine that system here? I think there would be a major revolt, yet it works beautifully and increases property values elsewhere.

The main street that runs through Dundas is bustling with shops and tourists (on the left is a shot I took during a parade there). The historic buildings house retail spaces with apartments above. Numerous films and TV shows have been shot there since the street can look 100 years old with almost no effort.

To me, keeping part of our historic buildings is part of what makes a city beautiful. On top of that, interesting new architecture, landmarks, trees, and beautiful public spaces - parks with art, not just utilitarian structures - make a city beautiful. Look at Toronto, Vancouver, Halifax, Montreal, Quebec City, even Calgary - all these cities have preserved some of their heritage, have added beautiful art, have lots of trees (except Calgary), have interesting architecture, and they are beautiful cities.

When I think of Edmonton, there are two beautiful things that come to mind - the river valley and the legislature. The rest of it (for the most part) is boring. We have the oldest and ugliest stadium in the NHL. The new condos that go up are cookie cutter and boring. The art in public places is not pretty, it is big and modern...but its not beautiful. The only original architecture ideas we seem to be able to come up with are pyramids. Why can't we build some new condos that would beautify our skyline - like these on the right going up in Toronto, they look cool! Sure, we have the second or third largest mall in the world, but it's also got to be one of the ugliest malls in the world!

You can do amazing things with old buildings. One of my favourites is BCE Place in Toronto (below) - they built right around old buildings, creating "Toronto's oldest intact streetscape" indoors, protected by a huge solarium. It's really cool!

It seems to me that the attitude here is that it is generally easier and cheaper to replace something, than to repair or restore it. What is missing is the intrinsic value a beautiful building possesses - it can't be calculated by penny pushers so therefore it has no value. We have a gorgeous character home for sale on University avenue right now, and all the feedback is that the basement ceilings are too low. The house is 100 years old - of course the basement ceilings are low! It also has the cleanest basement, in the best condition of any 100 year old home I've ever seen!

Don't get me wrong, I love Edmonton. I think it is a city that has HUGE potential. But every time I see another building bulldozed, rather than improved or modernized we lose a bit of that potential and it hurts our city.

Old IS beautiful!

Is the 0/40 Affecting Edmonton Home Sales?

There has been a lot of discussion and debate over the past while about the end of 0 down, 40 year (0/40) mortgages on October 15, 2008. When the announcement was first made in July, many wondered if there would be a surge in sales while buyers took advantage of 0/40s - our thoughts were that the impact would be minimal.

With sales up significantly this month, people are naturally starting to wonder if the end of 0/40 mortgages is responsible. Some have suggested that prices are lower and therefore more palatable to buyers, or that seller's are becoming desparate and accepting "low-ball" offers.

We haven't sold any homes for 0 down, ever. However, we don't know the other details of our clients' mortgages, and really have no idea how many have chosen the 40 year amortization period.

I wanted to find out more so I asked Gord McCallum, the broker at First Foundation Mortgages what his thoughts are on the situation:

We've seen some increase in interest in 0/40...but most of the zero down folks will choose 40 anyway. The thoughts at our office are that it has more to do with lower prices than anything.  We've also seen a burst of activity from military personnel (coming back from overseas) and new to Canada, for some reason - maybe our foreign worker program has kicked into high gear.

Benjamin Tal from CIBC was at AMBA a couple of weeks ago and he said that Edmonton and Toronto are buyer's markets now, and he thought that we had overcorrected in Edmonton, so maybe enough people saw that and started to make a move. 

Incidentally, rates are going up big time this week as there is a capital shortage in the Canadian mortgage market right now.  The Canadian Mortgage Bond fund only issued 8 Billion in liquidity instead of the usual 12 for this quarter...so the lenders are tigtening policy and raising rates.  The bailout in the US could lead to some improvement but it could be a little while before we see it.

So there could be an upswing due to people taking the 40 year amortization period that we as Realtor's are unaware of. However, the difference between 35 and 40 years is minimal. I think the increase is due to a few factors: lower prices, 0/40's, and perhaps an upswing in net-migration. If you are considering buying, now would be a very good time to get a rate hold from a mortgage broker, since rates are about to go up.

Weekly Update on the Edmonton Real Estate Market

Here is our update on the Edmonton real estate market. (Previous week's numbers are in brackets). For the past 7 days:

New listings: 434 (486, 616, 542)
# Sales: 274 (243, 300, 258)
Ratio: 63% (50%, 49%, 48%)
# Price changes: 441 (434, 478, 405)
# Expired Listings: 209 (298, 225, 692)
# Canceled/withdrawn/terminated listings: 49 (52, 60, 44)
Net loss/gain in listings this week: -98 (-107, 31, -452)
Active listings for single family homes: 3651 (3683, 3738, 3730)
Active listings for condos: 2428 (2454, 2503, 2466)

63% sales to new listings ratio! Wow! 1496 sales for far this month! Lets just say....that's not what Sheldon and I were expecting. One thing we were expecting was a price drop, and the average prices have slid to $323,206 for the month so far (down from $329 at the end of August) just like last September.

We are asked everyday: "Do you think the high sales are related to the end of 0 down 40 year mortgages in October?" There must be some affect, but my thoughts are it is minimal at best. We haven't had a single deal (ever) with 0 down, so maybe it's just our clients. But we've talked to a lot of other companies and they seem to feel the same way - the 0/40 is not the cause of the increase in sales.

Just what kind of increase in sales are we looking at? Last September there were only 1042 residential MLS sales in the Edmonton area. That was the worst September in years so it's not really fair to compare this year to last year. We normally see about 1400-1500 sales in September, and this month we could see more than 1700 sales. Also, sales this month would be higher than August, which is very rare.

I'll do some more digging before the monthly stats come out, so see if I can find an answer for the unusual increase in sales. Here is our inventory analysis:

 

September Real Estate Sales Soar in Edmonton

George dubbya hit the panic button yesterday in attempt to sell his 700 Billion dollar bail out for wall street.  Here’s how I see it going down in George’s day. 

“Cheny.  What did the Bin Ladens say?  No huh…uh oh, what about the Iraqi National Congress?  No why those dirty…Oh what about our old pals at Haliburton?  What do you mean they’re too busy buying fire sale stocks to return your call?”

Obviously I’m poking a little fun a George dubbya.  Seriously though, Bush was quoted on his  address to the nation “We’re in the midst of a serious crisis. Our entire economy is in danger” (Actual quote).

So what does the Calgary Herald do (we're in Calgary at a conference)?  They run “Housing market feels fall chill”.  Way to go.  What a bunch of dufuses.  They’re a year late on that one and if they had a good REALTOR working for them in their real estate department they could have reported it then.   However, I don’t want to be part of the herd blowing their negative noses everywhere.

You know this is why we go away in September.  September always sucks for real estate.  The Edmonton Journal last year reported “Prices Plunge” in September because the average price slid 1%.   In December when it went up 1.4% they reported nothing. 

Sales in of single family homes in Edmonton look like they’ll be up almost 70% in Edmonton over last September.  However, don’t go crazy.  That just shows how brutal sales were last September.  People are saying it’s because of people taking advantage of the 40 year amortization and zero down before it’s not longer available.  My answer to that is “Bullshit”.  My expectation is that those sales are barely a blip in the overall scheme of things.  It’s more likely related to people seeking safer investments than the stock market and prices being more realistic.

You see if you own a home and it goes down in value you still own it and it will come back up.  Not tomorrow or the next month but eventually.  If you own stocks and they go down in value, the stock can be delisted when it becomes absolutely worthless.  You can keep everything in cash except that inflation eats cash like George Bush eats up ballots... Or you can stuff it under mattress only to have a relative steal it or have the house you’re renting  burn down. 

Surprisingly sales for September are up over August.   That’s a big deal considering September sales are usually lower than August.   Last word.  I expect sales in October to be higher than September but don’t take my word for it.

The Value of a Personal Referral

When Sheldon and I recently arrived in France, we found our way through the multiple terminals and shuttles at the CDG Paris airport with little difficulty. When we got to the train station though we were a bit confused with the ticket machines and access to the trains since it was different than when we'd been there before. A very friendly Frenchman, who spoke impeccable English noticed our struggles and offered assistance - we followed him through the crowds to the correct train.

We ended up spending the whole 45 minute ride into Paris chatting with Erwan. As it turns out he is a journalist for a French newspaper, and writes mostly about economics. I'm sure you can imagine where the conversation turned, and we discussed real estate, oil, the credit crisis, elections, health care, transportation - comparing the French systems with the Canadian and American ones. One thing about traveling - you learn just as much if not more, from the people you meet than from what you see.

Anyway, back to my point.... Erwan gave us some recommendations for things to do and see in Paris, in particular a favourite restaurant. He said to make sure we ask for the owner Laurent when we arrived, and to tell him that Erwan sent us. Of course, we were very excited to have a personal recommendation, and moved dinner at Cafe Tournon to the top of our list of things to do. As the week went on, and the Parisian lifestyle took over, we put off the dinner and became pre-occupied by other things. We considered going a couple of times here and there, but the little cafe kept getting trumped by amazing sites like the Eiffel Tower, the Louvre, and Luxembourg Gardens.

Finally on our last night, I said to Sheldon, we have to go - we can't just pass up what could be our best meal in Paris. So off we went, wandering the streets of the Latin Quarter, map in hand, looking for Cafe Tournon.

As we walked I couldn't help but think how this situation relates to any personal referral - when someone recommends a hotel, a dentist, a book, a movie, perhaps a Realtor, whatever - initially you are excited and certain to try it out, and then other things cloud your mind, whether it be ads or just your daily life. And next thing you know you're going to the first hotel, movie, dentist or whatever that crosses your path, only to wish when you leave that you'd taken your friend's referral.

When we arrived at the restaurant there were a number of articles and reviews in the window, including one written by Erwan - when we mentioned his name the staff smiled as though we were all friends and we definitely got special treatment. As it turns out, the meal we had was fantastic. The wine was terrific and my Duck Confit was to die for - Sheldon would argue his braised Lamb was better but I beg to differ. All in all in made for an unforgettable night in Paris.

These days people are more likely to spread the word about a bad experience, than a good one. Also, when the recommendation comes with a "tell them I sent you" you're likely to get even better service than someone just walking off the street. So my advice is, when you do get a recommendation, especially one that is spontaneous or one you didn't ask for....Take it!

Public Notice: Rental Scam

We received this notice from the REALTORS Association of Edmonton while we were away.  I know most of our readers would never fall for something like this but Renters should be aware:

Rental property scam

The bad guys have figured out another way to profit from a tight rental market. Apparently they are copying information about homes for sale from mls.ca and reposting it on Internet property rental websites. Potential renters can drive by the property to verify that it exists. The renters then pay a deposit to the scammer who provides a rental contract and invites them to move in. Of course, at the end of the month, the renter cannot get access to the property and the scammer has disappeared with their deposit.

If you become aware of this scam being pulled, alert the local police immediately with all the details you have available.

Weekly Update on the Edmonton Real Estate Market

Here is our update on the Edmonton real estate market. (Previous week's numbers are in brackets). For the past 7 days:

New listings: 486 (616, 542, 450)
# Sales: 243 (300, 258, 228)
Ratio: 50% (49%, 48%, 51%)
# Price changes: 434 (478, 405, 461)
# Expired Listings: 298 (225, 692, 162)
# Canceled/withdrawn/terminated listings: 52 (60, 44, 47)
Net loss/gain in listings this week: -107 (31, -452, 13)
Active listings for single family homes: 3683 (3738, 3730, 3972)
Active listings for condos: 2454 (2503, 2466, 2661)

Sales to new listings ratio seems to be maintaining a steady course this week. One point I noticed was that this week there were a larger number of mid-month expired listings than there has been in six months. Maybe the fall back to school season is playing into that though.. The floor is open to comments!..

Best Features of Newer Homes

Have a Woman Look Over Your Home Renovation Plans!

Weekly Update on the Edmonton Real Estate Market

Here is our update on the Edmonton real estate market. (Previous week's numbers are in brackets). For the past 7 days:

New listings: 616 (542, 450, 516)
# Sales: 300 (258, 228, 276)
Ratio: 49% (48%, 51%, 53%)
# Price changes: 478 (405, 461, 469)
# Expired Listings: 225 (692, 162, 269)
# Canceled/withdrawn/terminated listings: 60 (44, 47, 54)
Net loss/gain in listings this week: 31 (-452, 13, -83)
Active listings for single family homes: 3738 (3730, 3972, 3986)
Active listings for condos: 2503 (2466, 2661, 2643)

Buonjourno from Florence Italy! Sorry about the late posting of the stats - Nathan is having technical difficulties and I am in Italy so it's been a bit of a hassle to get the stats up this week.

There has definitely been a lot of activity this week - lots of new listings, lots of sales, lots of expiries. The average price has dropped further to $325,811. So far there have been 683 sales this month, which is higher than we expected. Looks like it could be an interesting month. We'll keep an eye on it from Paris next week. Au revoir!