Selena News May 2021 Edition
ISSUE: 143
Happy belated Mother’s Day to all the Moms out there. Hope you got to enjoy some quality time with your family, and even some quality time for yourself as a special treat. So we are well into spring and that means the grass is green from all the rain (yes lots of rain forecast for today, and even snow is predicted for later) and spring is the busiest time for us as we help sellers get ready to sell their homes. So important right now is curb appeal, so do what you can to make your front yard look its best. If you are not wanting to sell, still work on your front yard because when it looks better, you will feel better about living in it.
Inflation
Prices are going up but apparently inflation is not. Strange, so time for a little Economics 101. Considering the oil price a year ago, you couldn’t give it away so while oil has recovered its still low comparatively speaking ($64) against production costs. Lumber prices going up each week which helps make the housing price go up, fuel price going up which increases supplier costs and therefore simple things like food prices going up. Obviously food, fuel and housing are not essential so the government can just ignore them when they calculate Core Inflation otherwise they wouldn’t met their 2% target for inflation. If you would like to read more there was a good news article on CBC News about inflation. Put simply, things such as food and fuel are not included in Core Inflation as these are considered volatile and as housing prices go up, these are not considered part of the Core Inflation because they are considered assets.
(Hmmm, maybe I should have been an economics professor). The following graph shows the weekly price increases for lumber.
If you have been doing any sort of Home renovation project lately you are probably aware how much building materials have increased. We have noticed when our Seller clients are getting renovation quotes, the contractor says the quote is only valid for 5 days because prices going up so much.
No Conditions
Recently we have clients ask us if it’s right to write unconditional offers due to this crazy market. My answer is always “Depends”.
For me personally, if I was to write an unconditional offer, I would only do so if I have a load of cash to cover the purchase price and any potential issues which may crop up after closing, so why would buyers want to write unconditional offers? In a multiple offer situation, an unconditional offer is often better than one with conditions. Sometimes a seller will accept an unconditional offer that is lower than other offers simply because it is a guaranteed sale.
I always recommend to put financing and inspection condition even if just for few days. During this crazy market, lenders are so busy that one recently told us they need 30 days to process the mortgage.
Previously we recommended to wait until your financing was approved before you do the inspection but with this lender backlog and changes to insurance requirements we suggest to get the inspection done up front as nowadays insurance broker need to know age of the roofing, furnace, sewer line (if it is older homes), and many other details which you get from the inspection so get insurance quote as soon as you can once pending. Something else that can be of benefit is to have your lawyer review the purchase agreement once pending. They may spot something important so you can deal with it before you remove conditions. In summary, be fully prepared so you can act quick if you are looking to buy now however don’t get emotional as the deal of the decade shows up about once a week.
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.
Mother’s Day
My little Fionna told me because her, I become mom! Which is very true! She and Andy (my hubby) cooked my favourite sea food to celebrate this special day! Since Covid-19, going to have nice meal in a restaurant is not happening. However, time staying home with loved ones is precious. I heard a lot of negative comments towards this pandemic so I wrote down 100 things good and happening in my life that I’m grateful for during this period including: spending more family time together, cooking delicious and nutritious meals, saving money on restaurant bills, less driving, more time to rest. There is good in every situation.
Kindle
Last month my mentor, July Ono wrote an article for my newsletter and in it she mentioned her new book “The 7 Profit Centre Of Real Estate” which is now out on Kindle.
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.
The trademarks REALTOR®, REALTORS®, MLS®, Multiple Listing Service®, and the associated logos are controlled by
The Canadian Real Estate Association (CREA) and identify real estate professionals
who are members of CREA or identify the quality of
services provided by Real Estate professionals who are members of CREA
Copyright © 2019 Wealthyhome. All rights reserved.
This article contains the opinions of Andrew Barrett and Selena Cheung. Licensed Realtors® with COLDWELL BANKER Venture Realty.
The trademarks REALTOR®, REALTORS®, MLS®, Multiple Listing Service®, and the associated logos are controlled by
The Canadian Real Estate Association (CREA) and identify real estate professionals
who are members of CREA or identify the quality of
services provided by Real Estate professionals who are members of CREA
Copyright © 2019 Wealthyhome. All rights reserved.