Edmonton Real Estate Blog - Market & Financial News

Mortgage Rate Hikes on the Horizon

As reported by the Canadian Press, home buyers and sellers should gear up for mortgage rate hikes sooner instead of later.

That’s because, while the Bank of Canada this week declined to change its current 1% overnight rate (which banks use to formulate their mortgage and other lending rates), it announced in a statement that the economic recovery, if it continues, will inevitably lead to hikes in the near future. 

"To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed,” the Bank of Canada noted in its statement, “some of the considerable monetary policy stimulus currently in place will be eventually withdrawn."

For those who have been closely following the Bank of Canada’s actions…

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New Rules for Home Inspectors in Alberta

As reported earlier this month by the Edmonton Journal, the Provincial government has passed some much-anticipated new rules affecting home inspections in Alberta.

Under the Home Inspection Business Regulation, Home Inspectors must:

• meet minimum qualification and education standards in order to be licensed by the province (those who already hold a Registered Home Inspector or Certified Master Inspector certificate are pre-qualified)
• carry $1 million in “errors and omissions” insurance
• post a $10,000 security fee in case of negligence or incompetence

Home Inspectors who don’t meet these requirements can apply a conditional licence, which expires in March 2013.

In addition, the new regulations put an end to contracts that limit…

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First Time Home Buyers Driving Real Estate Market: Report

According to a recent Re/Max report, first time home buyers across the country are driving the real estate market forward.

There are a few factors behind this trend. The first is the prospect that higher mortgage rates are just around the corner. In fact, most of the major banks have already hiked their standard five-year, fixed rates.

The second is the Government’s new mortgage rules, which reduce the maximum amortization period for government-insured mortgages from 35 years to 30 years. What’s very interesting here is that instead of preventing first time home owners from taking the plunge into the housing market, the new rules are simply compelling many people to change their expectations. They’re willing to bend a bit when it comes to location,…

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Edmonton Home Prices Stable: Report

According to a report by the REALTORS ® Association of Edmonton, housing prices remained stable in April vs. March. And after a shaky 2010 and an even more volatile 2009, stability in the housing market seems like just what the doctor ordered if you ask me!

Here’s the statistical snapshot:

• All-residential average price decreased $310
• Single family home prices decreased $425
• Condo prices rose $1,305
• Residential sales were down 7.8%
• Residential listing activity rose 9.8%
• Inventory of homes on the Multiple Listing Service® increased 4.6%
• The average days-on-market in April was 49 days.
• The residential sales-to-listing ratio was 45% in April

So what do all these numbers mean for buyers and sellers? Well, it means a few…

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