Selena Autumn 2020 Newsletter

Happy Thanksgiving

It has been awhile since my last newsletter and while online communication is the way to go in this pandemic, it’s easy to feel inundated with zoom meetings, google meets and all the other online content. We certainly know what that is like as our little one has been doing online schooling since March, which explains why I have been remiss with writing my newsletter. It has certainly been a roller coaster of a year with Covid-19 making us change how we do even simple things such as shopping let alone big things like buying a home. So as we are about to enjoy Thanksgiving Day this weekend, pause a moment to consider all you are grateful for in your life starting with your health and family.

Edmonton Market Update

You can’t mention a Real Estate update without mentioning Covid-19 as it has had a profound impact on the market here but it is not the only thing which has been affecting house prices in Edmonton. Early in the year several large scale projects were cancelled, then oil price took a tumble plus the government basically shut down the whole economy due to Covid. That made buyers (and sellers) very cautious and the numbers reflect it. In what would normally be a busy spring market, the number of new listings was half compared to same time last year, and similarly, half the number of sales too. Normally that sounds like bad news to any market but considering we had too many listings it helped to balance the market heading into summer and the buyers came back with pent up demand increasing sales figures similar to the previous year. Now as we head into Autumn and Alberta ( Edmonton in particular ) is experiencing a second wave we expect house prices to dip by 10% over the winter months plus an increase in foreclosure properties as people who deferred their mortgage payments struggle to keep up.

Who Is Buying

So if sales increased over the summer, who is buying, and what are they buying is a good question, particularly if you are looking to sell. From our own experience plus checking the MLS figures indicates duplexes have seen a marked increase with double the number of sales as previous years. First time home buyers are snapping these up as it is an easy entry point plus interest rates are so amazingly low you can call it free money (1.74% at the time of writing). We have noticed millennials with good credit are choosing to buy as the payments are often cheaper than renting. Important to note though, these homes are typically brand new and look like showhomes. If you are looking to sell, your home will need to look like a showhome too. Before listing your home for sale, you should be going through photos of online listings and see if your home measures up. Now is the time to get it ready if you want to sell in the spring.

Latest Sales Data

Every Month the Edmonton Real Estate Board gathers the latest sales figures sorted by property type, price ranges, listed and Sold. Click the above link to download a copy from our website.

Its one thing to download the latest sales figures from Edmonton Real Estate Board and its another to actually understand what all the numbers mean. Click the above link link for a summary from the President of the Edmonton Realtors® Association, or reply to this email and we will be happy to discuss it with you or provide sales figures for different months.

Forecast

Although we had more sales this summer than previous years, we are still behind in total yearly sales (12,873 compared to 13,287) and there is a perfect storm gathering to push prices lower. First off, we are heading into winter market and prices typically dip down. Next is the downturn in the economy primarily for oil and gas which makes up a significant chunk of Alberta’s GDP. Then there is a second wave of Covid-19 coming with another possible lockdown and hurting an already struggling economy. Can it possibly get worse? Well yes, actually. Many people chose to defer their mortgage payments with the first lockdown. It would make sense to do this if you had lost your job, but it was only a deferral for 6 months and that time is now up. For people who have been unable to find work and struggling, they may not be able to make their mortgage payments and CMHC has predicted to see an increase in foreclosure properties in the new year. So if you are looking to buy then December / January is probably the best time as you have low interest rates and low prices.

Disclaimer: Not intended to solicit buyers or properties under contract.
This article contains the opinions of Andrew Barrett and Selena Cheung. Licensed Realtors® with COLDWELL BANKER Venture Realty.
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