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remax elite edmonton homes for sale

Canadian real estate listings are continuing to sell for an astronomical price. For most Canadians, the concept of homeownership is out of the question. Unless you are willing to spend half of your household income, owning a home is nearly impossible for those in the middle class. Almost all of the cities within Canada have sky-high housing prices. Despite these facts, properties in Edmonton are selling for substantially less money. Find out more about the affordability of the Canadian housing market by reading below.

Skewed Income to Homeownership Ratio in Canada.

In the past, it wasn’t as difficult for middle-class families to afford a home. In large cities, people were able to move to smaller areas and find more affordable real estate. However, this is no longer the case. Cities where families were once able to find refuge from high real estate prices are now too far out of reach for most people’s monthly incomes. The average middle-class family now needs to fork out over 50% of their monthly income in order to take on a mortgage. This has contributed to a large gap in affordability across the country. 

For instance, in a place like Toronto, the average household would need to spend 75% of their income on their mortgage. This is over 50% more than what the previous generation needed to spend on their mortgages. Thus, making it extremely difficult for anyone to purchase a house in the Toronto area. 

Another city in Canada that lacks affordable housing is Vancouver. Vancouver’s real estate is up there with some of the most expensive housing in the world. The discrepancy between income and housing price is vast in the Vancouver area. For example, the median household would need to spend nearly 82% of their income to pay monthly mortgage payments. This is the most extreme example in all of Canada. 

The average family income would need to be 50% higher than what it is currently in order to comfortably afford your average home in Canada. Affordability has rapidly dissipated from the Canadian housing market. It has been over 27 years since the cost of living has been this high, this fast. Getting on the property ladder has never been so difficult for young buyers. This is because the average household needs to make 154k per year to afford a home.

Properties in Edmonton Are More Affordable than in Other Canadian Cities.

If you don’t make 154k per year, owning a home might seem impossible. Or, too risky for your budget. However, for those looking to make the move to Alberta, homeownership might be in the realm of possibility. Calgary and Edmonton are the only two major markets that boast affordability. Contrary to the rest of Canada, those living in Calgary only need to spend 27% of their income on their mortgages. This is a considerable decrease in price compared to cities like Vancouver or Toronto. In addition, Edmonton has seen an even bigger reduction in price. Edmonton homeowners only need to pay 25% of their income in order to carry a mortgage. Buying a home is more comfortable for middle-class families in Edmonton and Calgary. 

Properties in Edmonton are starting to become even more affordable. This is thanks to higher salaries within the city, more supply, and slowing demand. Furthermore, taxes in Alberta are lower than in other provinces in the country. This ensures that families have a higher disposable income. In addition, your typical Albertan family is likely to be able to afford a home without any concern. Although, there still remains work to be done for low-income families and marginalized populations. Despite this, it is much easier for young buyers and new families to buy properties in Edmonton as opposed to other Canadian cities. 

Contact Us About Properties in Edmonton!

The real estate market is much more affordable if you live in Edmonton. Make the decision to buy properties in Edmonton today for more financial comfort. If you have any questions or concerns about buying a property in Edmonton, contact us today. Don’t hesitate to reach out if you’re interested in buying a new home. Our team can put you in touch with the resources you need to get your real estate goals on track. Be sure to check out our social media for the latest updates and more! We look forward to working with you in the near future!

Edmonton Houses for Sale

Canada’s housing crisis has come to a head. Provincial and federal governments are struggling to get a hold of the problem at hand. In British Columbia, a new presale policy has been announced to be integrated. And, foreign buyer taxes have jumped up in many provinces across the country. Despite the provincial efforts to cool the housing market in Canada, there continue to be issues surrounding supply and affordability. In an attempt to ease the housing crisis, the federal government is implementing some key changes to help Canadian buyers. Learn more about how Edmonton houses for sale will be affected by the following federal changes in the article below.

How Does the Government Plan to Make More Edmonton Houses for Sale?

The liberal government in Canada is making an effort to cool off the housing market in Canada through two main channels. Over $10 billion in funding has been allocated to help speed up construction and repairs of homes. Furthermore, the government has decided to put a ban on foreign investors purchasing real estate in Canada. As well as, introducing new tax measures to reduce speculation. 

These methods make up a large chunk of the federal budget. In order for everything to proceed smoothly, cooperation from other levels of government will be necessary. Ideally, the government’s plan is to double the number of homes built in the next 10 years. Collaboration from the government, construction companies, and citizens will be essential to the success of the budget. The housing section of the budget has a clear focus on increasing supply. Moreover, there is $4 billion set aside for municipalities to ensure that homes are being built swiftly. The money will go towards the planning and delivery of housing, with an estimated 100,000 new units in the next 5 years. 

$1.5 billion is set to be spent in the next 2 years to create 6,000 new affordable housing units through the Rapid Housing Initiative. In addition, there will be $475 million going towards rental assistance and $2.9 billion to provide housing to vulnerable Canadians. Other commitments include $600 million to attend to homelessness by creating new programs and supporting existing programs. Furthermore, $1 billion will be used to incentivize green energy use at home, including grants and loans. As well as, $150 million over the next 2 years for affordable housing in Northern Canada. 

The Liberal government has said that they will leverage $40 billion-plus in infrastructure to speed up the process across various cities. 

houses for sale in edmonton

Record High Months Continue To Add Pressure.

In February, the national average home price climbed 20% to $816,720. All the while, rental rates continue to rise. As for Edmonton houses for sale, supply and demand match current national trends. In March, 472 duplexes were put up for sale and 441 of those were sold. Thus, indicating a 93% listing-to-sales ratio! Nearly every duplex or townhome that gets listed is being sold. 

Although supply continues to be at an all-time low, spring has brought hope for buyers-to-be. More listings have surfaced now that spring is here. There has been an 8% increase in Edmonton houses for sale this March! Additionally, condo and apartment sales have started to grow. March saw the biggest year-over-year leap in sales, at 67%. In the past, condo and apartment sales were few and far between in the Edmonton market. Edmonton continues to be an affordable market for out-of-province buyers to find a home and settle down. 

The lack of supply in Canadian real estate markets is evident. The government has recognized this as the central problem in the housing crisis.  Liberals are hopeful that the budget will provide some relief for Canadian citizens. For the next 2 years, foreign buyers will be banned from purchasing Canadian real estate. Although, there are several exceptions to this measure. 

The Liberal government will also be reviewing the impact of large companies buying homes on the market. And, how they intend to stint the growing trend. A new bill of rights is proposed to include several measures to protect homebuyers. For instance, the right to a home inspection, no more blind bidding, possible mortgage deferrals, and more disclosures from real estate agents. 

Contact Us For Information on Edmonton Houses For Sale!

The real estate market is constantly fluctuating and buying Edmonton houses for sale can appear intimidating. However, with the help of an experienced REALTOR® in the Edmonton area, the process is much less daunting. If you have any questions or concerns about buying Edmonton houses for sale, contact us today. Don’t hesitate to reach out if you’re curious about the government’s plans for an increased housing supply. Our team can put you in touch with the resources you need to get your real estate goals on track. We look forward to working with you in the near future!

edmonton real estate and mortgages

The onslaught of the pandemic saw a decrease in mortgage rates that allowed homeowners a little more wiggle room. However, the Bank of Canada announced that they will be putting an end to the ultra-low interest rates. Inflation has certainly seen a spike over the last little while and the Bank of Canada is hoping that a spike in interest rates will help combat the inflation jump. But, what does this mean for Canadian citizens? And, who is most likely to be affected by a rise in interest rates? Follow along in the article below to find out more about the impact of interest rates increases on Canadians.

Will Those Owning Edmonton Real Estate be Affected by Interest Rates?

The short answer to this question is yes. However, that is not to say that all Edmonton residents owning real estate will be affected in the same way. New interest rates have a ripple effect on borrowing costs across the economy. Although, most citizens will discover that the area that sees the biggest impact is in variable-rate loans and credit products. For instance, variable-rate mortgages and lines of credit. For anyone living in a home with a variable-rate mortgage, it is likely that you will see the greatest influence of the latest interest rates. Variable-mortgage payments are likely to raise this February 2022. 

This means that anyone who has a variable-rate mortgage can expect to be forking out a lot more money over the course of 2022. An example from The Globe And Mail said that a $720,000 home, with a variable rate of 1.15%, a 10% down payment, and amortization of 25 years, would have a $2,762 monthly payment. A rate increase of a quarter of a percentage point would change the same monthly payment of $2,762 to $2,844. Thus, signifying an $82 monthly increase and a $984 increase over 12-months. 

There is hope yet for those concerned with their financial situation after interest rates start to rise. For example, Canada’s mortgage stress test ensures that borrowers can afford their mortgages. Understanding your financial position is a key part of finding ways to soften the jab of rising interest rates. Ask a financial advisor or your mortgage broker if you are unsure of how to proceed during the coming months.

Rising Interest Rates to Come.

Interest rates are rumoured to rise in March of 2022. And, they will continue to rise throughout the year by a quarter of a point (0.25%). If you are wondering how this is going to affect buying and selling Edmonton real estate, reach out to us today. At RE/MAX Elite we understand how difficult it can be to find proper housing during this time. Contact one of our experienced professionals today to get help on finding the right Edmonton real estate for you. For more real estate-related information, be sure to return to our blog next month. We look forward to working with you in the near future. 

Prepare your home for sale this fall

Well the fall season is now upon us in Edmonton, and this is the perfect time to get your home ready for Sherwood Park real estate.

Fall in Sherwood Park generally starts in September and stays around until about late October. The temperature is going to drop and people are going to start changing shorts and sandals, to jeans and shoes. People may be starting to focus on Sherwood Park real estate now that the summer is over. Here are some tips on what you can do to prepare your home for sale this fall.

sherwood park real estate,sherwood park real estate agents,windermere real estateYard Work
You’ll want to make sure there are no leaves or debris in your yard, especially when those leaves start falling. Make sure that any plants or trees near the house are trimmed down, so that they are not blocking any window views and let the sun shine in.

 

sherwood park real estate,sherwood park real estate agents,windermere real estateWindow Cleaning
Most people don’t realize that the summer can wreak havoc on your windows. As there isn’t much rain happening in the summer, people don’t think your windows can get that dirty, but don’t forget about the dry dust and dirt being blown around in the wind. When preparing your home for sale you’ll want to make sure your windows sparkle. Potential buyers will definitely notice smudgy windows. You will want to wash the windows inside and out.

sherwood park real estate,sherwood park real estate agents,windermere real estateSweep that Chimney
As the temperature falls you may want to start using that fireplace to keep warm and get that nice wood-burning smell in your home. But before you do this, you’ll want to make sure you clean that chimney. You can sweep it yourself to get those cob webs and dust out, but hiring a professional would be the best bet, as you’ll want that chimney to be perfect.

 

These are just a few tips to prepare your home for sale this fall for Windermere real estate. For more information contact your local Sherwood Park real estate agents, RE/MAX Elite, today!

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