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first time home buyers in edmonton real estate

What to Know About Houses in Edmonton as a First-Time Buyer?

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Buying your first home is a huge milestone! It takes a lot of time and effort in order to be able to finally afford such a big-ticket item. In Canada, it can be hard to find a home that is suitable for your needs and within your price range. Before you pull the trigger on purchasing a home, it is important to consider how this will affect your future. If you are a prospective first-time home buyer, we encourage you to read this article before making the decision to buy houses in Edmonton. For more information on what to keep in mind during the buying process, continue reading below. 

Houses in Edmonton Won’t Hold For Your Future or Your Budget. 

Your current lifestyle is undoubtedly going to change as you and your family get older. Finding a property that suits your future plans is vital. Purchasing a home is surely one of the biggest purchases a person will make during their lifetime. To guarantee your bank account stays happy and healthy, it is important to consider your future plans. This will allow you to find a home that gives you a good return on your investment. Your home buying plans must account for your various life changes. For instance, if you are considering having children, going abroad, or unsure of where work will take you in the coming years. 

Furthermore, many people will end up purchasing a home that they don’t immediately love. This is done with the hopes of renovating. However, renovating a home can be even more costly than buying one. Houses are great at hiding sneaky issues and costly repairs. Some of which, might not be uncovered until you start to demo the place. These seemingly small issues can quickly add up. This is why it is so important to determine whether it is worth renovating or simply buying a home that you love. However, sometimes a few coats of paint can be enough to refresh a space! 

When you’re looking for a new home, it is important to keep these factors in mind. As soon as you start toying with the idea to redo a major area like the kitchen, that’s when the cost will start to rise. Be mindful of your budget now and how it may look down the line. You may realize that a fixer-upper is a great solution for you and your budget. Or, that you’d much rather something move-in ready! 

Edmonton Has One of The Best Markets for First-Time Buyers!

Stretching your budget too thin when you go to buy houses in Edmonton can be scary. Buying a home that you are financially comfortable with is going to help you maintain stability throughout the duration of your mortgage. This can seem hard to do given the high real estate prices across Canada. However, Edmonton has recently been ranked as one of the most affordable and easy-to-enter markets for first-time buyers! Compared to other major cities in Canada like Vancouver and Toronto, Edmonton is a great place for new and young buyers to start. Real estate in the City of Edmonton is roughly 30% cheaper than in Calgary and surrounding cities. Most citizens have no trouble finding an affordable place to live within the city. The average price for a single-family home is within the $400,000-$500,000 range. This is incredibly affordable given real estate prices everywhere else in the country. 

Purchasing real estate and getting a mortgage that matches your financial situation will save you a lot of stress. During uncertain times, having a more affordable home can allow you to have more flexibility. Mortgage brokers often suggest a home with payments that total 28-33% of your gross income. Edmonton is a great place to get your feet wet in the housing market. There are plenty of job opportunities and it is overall more budget-friendly. Many Canadians are making the move to Edmonton for these reasons.  

Entering the Edmonton real estate market is likely to be more forgiving for first-time buyers. This is because of the low risk and higher inventory. New homebuyers often obsess over the initial price of the home without considering the other costs involved. For instance, homeowners insurance, taxes, repairs, maintenance costs, moving fees, strata fees, etc. These costs can quickly amount to an unbalanced budget. Have a discussion with your real estate agent if you have any questions or concerns about what costs could arise while living in the home. 

Contact Us Today!

The real estate market in Edmonton is the perfect place for new and young buyers to get on the property ladder. It is crucial that you think about your budget, future plans, and needs when you go to buy a home. Making the decision to buy homes in Edmonton can offer you more financial comfort. If you have any questions or concerns about buying houses in Edmonton, contact us today. Be sure to check back on our blog next month for the latest updates and more. Don’t hesitate to reach out if you’re interested in a specific property. Our team will get in touch with you as soon as possible! We look forward to working with you in the near future.

Edmonton Houses for Sale

Foreign Buyers Banned From Purchasing Edmonton Houses for Sale!

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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!

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REALTORS® in Edmonton Advise Buyers to Act Fast!

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For REALTORS® in Edmonton, things are heating up fast. In what is normally a quiet month for real estate in Edmonton, homes are being sold at every turn. Anyone who is interested in purchasing a home in the Edmonton area is advised to act fast. Homes are lasting a short time on the market according to the most recent stats from the REALTORS® Association of Edmonton. It is blatantly obvious that Edmonton’s real estate market is doing better than ever before. In addition to this, the Bank of Canada just hiked the interest rates in an attempt to rein in inflation. Learn more about the market conditions in Edmonton, recent statistics from February, and interest rate hikes in the article below. 

REALTORS® in Edmonton are Busier Than Ever.

Edmonton’s real estate market is showing strong momentum through what should be a quiet month. In comparison to other years, the market condition in Edmonton is looking up. According to Tom Shearer, in an article by the Edmonton Journal, he said “In Edmonton we’re lucky if we see more than 20 houses sell over $1 million,” no matter the month. Currently, the number of homes being sold over $1 million is much higher. 34 homes were recorded to be sold in the million-dollar-plus range. In addition, it should be noted that a February this successful is out of the ordinary. Most of the increase in sales is due to people wanting a bigger home or people looking to purchase their first home. 

Moreover, an influx of people looking to buy property in Edmonton from out-of-town are now making up a portion of sales in the city. Since housing in Edmonton is more affordable than in other major cities, investors are buying what they can. According to the same article by the Edmonton Journal this “hasn’t happened in a long time”. 

People are finally beginning to realize the opportunities that are present in Edmonton. Quality of life, housing affordability, and job opportunities are all major factors in people making the move to Edmonton. 

February Market Statistics in Edmonton

In February, the total residential unit sales increased to 69.3% in the Greater Edmonton area. This is up from last year’s 41.7% residential unit sales. Single-family homes were up 35.6% year-over-year. The average price of a single-family home was $493,545. Thus, indicating a 12.7% increase in price from 2021. 

As for condos, the number of sales increased 55.2% from February 2021. Furthermore, the average sale price for a condo was $226,811. This means a 1.8% decrease compared to last year during February. 

Additionally, duplex unit sales jumped up 55.9% year-over-year. Prices of duplexes in Edmonton saw a small spike in price by 9.1% from February 2021. The average cost of a duplex was $374,290

Homes in the Greater Edmonton Area are moving quickly as we progress into spring. Once the warmer months hit it is likely that housing sales will continue to gain momentum. During the month of February single-family houses and duplexes only lasted 42 on the market on average. This is a 5-6 day decrease from February 2021. REALTORS® in Edmonton are optimistic about the market condition for the remainder of 2022. For a more in-depth look at the February market stats, click here. 

REALTORS® in Edmonton on the Recent Key Interest Rate Hikes. 

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For those who are not aware, the Bank of Canada raised its key interest rate to 0.5% on March 2nd, 2022. This was done in an effort to dampen inflation. Presently, Canadians are seeing some of the highest points of inflation in decades. The decision to raise the benchmark interest rate is expected to be the first of many small rate hikes in 2022. 

The latest interest rate hike will certainly be affecting those with mortgages, lines of credit and savings accounts. In our article last month, we discussed what would be to come for mortgages in Edmonton. You can learn more about that by reading the article “Mortgage Forecast for Edmonton Real Estate”. 

Lenders are beginning to act in accordance with the most recent hike, as many are raising their prime lending rate. Mortgage payments could start to snowball as rates heighten.

Inflation is rumoured to be growing at a rate faster than what was anticipated. With the ongoing effects from the pandemic and now War in Ukraine, all outside factors are contributing to the quick, increase in interest rates.

Contact REALTORS® in Edmonton Today!

With everything going on in the world, buying real estate can appear intimidating. However, with the help of an experienced REALTOR® in Edmonton, the process is not difficult at all. If you have any questions or concerns about buying a home in Edmonton, contact us today. Don’t hesitate to reach out if you’re curious about the most recent interest rate hikes that will affect your mortgage payment. 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!