The year is off to a great start – at least for our Real Estate market here in Edmonton. Thanks to a very strong finish in December, much stronger than anyone predicted. With the 2022 housing forecast put on by the Edmonton Real Estate Board just a couple days ago, they started by giving a re-cap of their 2021 predictions (if I was to summarize, they had no idea, but in their defence, nor did anyone else know just how strong it would be). So our Real Estate market is super hot considering it is still winter market and their 2022 forecast predicts that continuing but does allow for a slight slow down as interest rates rise and construction costs for new homes increase. We worked very hard in 2021 and once again we made the top 5% of all Realtors, so thank you to all our wonderful clients making this possible.
So as we mentioned, the December market was unusually strong. You can see that with the green line in the below graph where the increase in prices for November had so much momentum it carried through, increasing again into December. In a normal year, Edmonton averages 17,000 home sales. 2021 was not a normal year any regard but I was surprised we sold over 24,600 homes. That is a staggering 45% increase in the number of sales so you can understand why home prices have increased even in winter, and why we see many homes receive multiple offers on day 1.
The big question is why, what is causing this demand and increase in prices. The average price increased by 5.5% over the previous year, bringing the average home price to $382,000. Compared to the rest of the country, that is so affordable so we are seeing many buyers from out of province. (some are investors, some are moving to Edmonton for jobs) plus we have been told international immigration should pick up by the end of the year adding more upwards pressure on prices. Fear of interest rates going up has caused some frenzy and the latest announcement earlier today by the Bank of Canada saying they will hold off with a rate hike until March will probably just cause more frenzy for those who missed out because low of inventory and multiple offers. The take away from this is, if you are considering to sell your home this spring, then start getting your home ready now, so it will look its best when you list.
The market has been hot but the weather was extremely cold and icy for much of December and January. Yes, its winter, so of course it’s cold, but this was colder than normal coupled with many periods of freezing rain. How do you get freezing rain when it is supposed to be so cold? A winter storm blew in a lot of rain while the temperature was hovering around zero but then dropped by 20 degrees in a matter of minutes turning everything to ice. This caused chaos on the roads and some motorists having to wait more than a day for rescue. It also caused issue for some homes with power getting cut off and furnaces stop working leading to pipes freezing. We are grateful we signed our investment properties up with a monthly furnace service and have an account with contractor to get priority service. If you are listing your home and it is vacant, be sure to check the requirements of your insurance policy to make sure someone checks the home on a regular basis to comply with their guidelines otherwise you may not be covered.
This year the first gift I bought is “6 Minute Diary” – A lovely book and journal in one that I found on Amazon. 66 pages of instruction, followed by a daily journal.
Step 1 – Every morning write down 3 things you are grateful for.
Step 2– Do good deeds.
Step 3 – Each evening, write down 3 good things you experience that day.
Take 6 minutes from your busy life to slow down and count your blessings! Indeed we all have blessing in our life. We might not be able to travel around, but at least we have nice place to stay, warm food, and clean water and air, and we are richer than most people in this world. I noticed when I keep counting my blessing during the day, I actually get more balance and energy, plus attracting more wonderful people to my life. I’m truly grateful and a great buy.
I couldn’t believe my little one needs glasses due to attending so many online classes in the last 2 years. The Optometrist told us this is very common since Covid 19, a lot of children been having poor eye sight due to too much computer / iPad. Catching it early means she may improve her eye sight as she gets older. It’s important to have regular check up. In Edmonton, the eye exam for children is free and we are grateful we have really good doctor to explain this to Fionna.
A big thanks to Dr. Nair A Khan from Windermere Eye Centre.
This article contains the opinions of Andrew Barrett and Selena Cheung. Licensed Realtors® with COLDWELL BANKER Venture Realty.
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