Posts Tagged ‘house prices’

January May Be the Best Time to Buy a New Spruce Grove or Stony Plain Home

Tuesday, January 13th, 2015

January May Be the Best Time to Buy a New Spruce Grove or Stony Plain Home | Spruce Grove Stony Plain Parkland County Real Estate | Barry TwynamUsually I tell my clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton region who are looking to buy a home that the best time to buy is when they’re ready, regardless of what the market is doing. But some new statistics from TheRedPin.com suggest a certain time of the year is better if you want the lowest price, while another time during the year offers the best selection.

The infographic “5 Year GTA Breakdown – The Best Time to Buy and Sell Your Home”  contains some interesting data. The infographic is based on Toronto home sales, but there is reason to believe things are not so different in our part of the country.

You’ll find the best housing prices in January.

In Toronto at least, the price difference was huge: $16,000 less than the next least expensive month (July) and a whopping $60,000 less than the most expensive month (May). There may be several reasons for this:

• Fewer people are looking to buy a home in January, maybe due to the cold weather or to after-Christmas bills. Fewer buyers = less competition and therefore lower prices.
• Sellers who list their homes in the winter usually do so because they have to sell and may be willing to negotiate a lower price.
• January listings may have been on the market for a while and sellers may feel pressure to sell for a lower price.
• Much smaller inventory of homes on the market means lower prices for buyers.

Highest prices (and best selection) in May.

Reasons for this?

• Better weather means it’s easier to get around, more pleasant to view houses, and easier to move one’s belongings. That means more people shopping for a new home.
• Buying a house in May means a move can happen during the summer, which is generally the choice for families with children needing to change schools. This is equally true for sellers with children and is certainly one of the reasons so many people list their home for sale in the spring.
• More buyers, more homes on the market, more competition all spell higher prices.

House prices correlate inversely with days on the market.

Months that show the lowest prices also generally show the longest time on the market. This can mean good news for buyers; a house that’s been on the market for many months may be owned by someone desperate to sell and willing to look at lower offers.

House prices also correlate with the number of homes on the market.

This almost seems counter-intuitive but the data show that the greater the competition (that is, the more homes there are on the market and the more people looking for homes), the higher the price. Conversely, fewer homes on the market = lower price.

I still recommend to my buying clients that their first consideration should be their personal circumstances, but it doesn’t hurt to be aware of trends such as these!

I’m happy to help you find your new home at any time of the year. Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Housing Market Boom or Bust in Alberta?

Thursday, April 4th, 2013

 | Spruce Grove Stony Plain Parkland County Real Estate | Barry TwynamHousing Market Boom or Bust in Alberta?My clients in the Spruce Grove, Stony Plain, Parkland County and Edmonton area often ask me if “now” is a good time to buy a new home.  My answer to that question usually involves telling them that the best time to buy is when they feel ready to do so, no matter what the market is doing.  That may sound like a weasel answer but I believe people’s own finances and their needs and wants in housing are better for decision-making than any attempts to time or predict the market.

But “now” is an interesting time to be dealing in real estate in Alberta.  You’ve probably seen the gloomy news reports that the Canadian housing market is due for a major correction with house prices set to fall by about 20%.  That is not the case here!

In a recent article in the Edmonton Journal entitled “Alberta’s housing market still hot, whatever the media say”, Gary Lamphier reports on a conversation with Don Campbell, senior analyst and founding partner with the Real Estate Investment Network (REIN).  Mr. Campbell advises would-be sellers and buyers to “chill out”, suggesting that there is no such thing as a Canadian real estate market, but rather that each locality has its own unique market and conditions.  He goes even further when commenting about the Alberta market, saying that economic and demographic factors here are ripe for another housing boom, not bust.  He notes Alberta’s population continues to grow as workers come into the province while apartment vacancy rates shrink.  Many of these workers will decide to make Alberta their permanent home and that means they’ll be buying houses sometime in the next 2 to 7 years, fueling demand for houses and the subsequent rise in prices.

You may have heard or read that prices in Alberta have flat-lined so how can the dream of a new housing boom be true?  Mr. Campbell says Alberta’s boom-bust economy and the accompanying anxiety in people’s minds is to blame for this skepticism, along with tougher mortgage qualification rules and the negative national news.  He points out that Alberta’s population growth in 2012 was nearly triple the national average, putting a strain on housing capacity.  This situation tends to cause prices to rise.  While the average price of a house in Edmonton (about $401,000 in February) is still not as high as the peak prices in 2007, prices are definitely on the rise, according to another article entitled “Home prices flirt with record highs of ‘07”.

All of this suggests to me that now is indeed a good time to buy!

Let me help you find the home that’s just right for you.  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Good Time or Bad Time To Buy a Home?

Friday, January 6th, 2012

Good Time or Bad Time To Buy a Home? | Spruce Grove Stony Plain Parkland County Real Estate | Barry TwynamMost people considering the purchase of a home, whether in Spruce Grove, Stony Plain, Parkland County, the Edmonton region, or elsewhere, get around to asking the important question:  “Is now a good time or a bad time to buy a home?”  It sounds flippant or evasive if I respond with “Yes” or “That depends”, but both answers are correct!  For most people, buying a home is one of the most significant events in their lives, and it naturally comes with many positives and negatives based on individual situations.  Once people have made the decision to invest in a home, the best time to buy becomes “now”, no matter what the market is doing.

But the market at the moment in the Edmonton area is making the decision to buy much easier.  An article in the January 5, 2012 Edmonton Journal entitled “Real estate market healthy, agents say” contains some very encouraging news.   In spite of crises elsewhere (Europe’s money woes, the US housing market), prices and sales in our region remain steady.  The article quotes a statistic from the Realtors Association of Edmonton:  the average price of homes sold through MLS in 2011 was $325,457.  This is down slightly from $329,019 in 2010, but prices are not undergoing the wild swings we’ve experienced in the past or the ups and downs felt elsewhere.  The article also points out that 827 properties were sold in December 2011, compared to just two more the previous December.

Is right now, just after New Year’s, a good time to buy?  Sure, why not?  The article mentions that the market usually picks up in the summer, with April and May being peak months, but there is always an inventory of homes waiting for the right buyer, and the current market stability, combined with continuing low mortgage rates, all suggest the time is never better!

I’d love to help you find that perfect home!  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Top 10 Most Expensive Homes in the World

Friday, August 5th, 2011

Many of us living in Spruce Grove, Stony Plain, Parkland County, the Edmonton area, or elsewhere have a guilty secret.  We like to look at other people’s houses.  We may even fantasize about living there, especially if the home is particularly beautiful or spacious or luxurious. 

Top 10 Most Expensive Homes in the World | Spruce Grove Stony Plain Parkland County Real Estate | Barry TwynamWhat would it be like to spend time in Donald Trump’s 80,000 square foot beachfront pad, worth about $125 million?  Or what about William Randolph Hearst’s mansion in Beverly Hills with its 29 bedrooms, 3 pools and a disco and theatre, worth an estimated $165 million?  Who do you suppose owns the world’s most expensive house, where is it, and how much cash would you need to buy it?   Read all about these fabulous dwellings in the article “Top 10 Most Expensive Homes in the World”  (found at HowStuffWorks.com) and then take a look at the photos, courtesy of the Edmonton Journal.

Can you move into your own dream home without spending many millions of dollars?  The area around Edmonton has plenty of wonderful and affordable properties, whether you are looking for a house, duplex, condo, acreage, recreational property or bare land.  I’d love to help you find the perfect home.  Call me today at 780-910-9669, email me at barry@barryt.ca, or contact me here.    

Recent Canadian Home Prices

Tuesday, December 7th, 2010

Recent Canadian Home Prices |Spruce Grove Stony Plain Parkland County Real Estate | Barry TwynamMost of us wonder from time to time what our home in Spruce Grove, Stony Plain, Parkland County or the Edmonton area is worth in today’s real estate market, and we may also wonder what prices are like elsewhere in Canada.

From the Canadian Real Estate Association:

“Each month, The Canadian Real Estate Association compiles the statistics of existing homes and properties sold through the Multiple Listing Service®. This provides an overview of the existing housing market in Canada, and tracks market trends for prices and properties sold.”

Here are CREA’s latest home price comparisons: 

October 2010 October 2009
British Columbia $521,871 $493,328
Alberta $344,569 $351,768
Saskatchewan $234,147 $230,958
Manitoba $224,439 $204,606
Ontario $347,788 $337,410
Quebec $257,456 $239,240
New Brunswick $152,087 $151,218
Nova Scotia $194,578 $189,570
Prince Edward Island $150,091 $155,028
Newfoundland/Labrador $231,039 $196,847
Yukon $304,800 $296,738
Northwest Territories $352,869 $363,435
National Average $343,747 $341,232

 

Can we draw any conclusions from this data?

We probably knew already that the highest home prices are to be found in BC, but we can see a few other things:

  • In October 2010, only 4 provinces/territories had prices above the national average:  BC, NWT, Ontario and Alberta, in that order.
  • The average selling price in October 2010 for a home in BC was roughly 3 ½ times that of a home in the area having the lowest average price in Canada, PEI.
  • Average prices were higher in October 2010 than the previous year in every area of Canada except Alberta, PEI and NWT.

The interactive map on this page of the CREA website also allows us to compare average selling prices for a few of the major cities in Canada.  For Edmonton and Calgary this is what we find:

October 2010 October 2009
Edmonton $317,096 $351,768 -$34,672
Calgary $399,679 $393,574 +$ 6,105

 

Now why, we might ask, did Edmonton prices drop close to 10% during the one-year period between October 2009 and October 2010 while Calgary’s increased more than 1.5%?  The data provided by the Canadian Real Estate Association provide only the bare facts.  Chances are, we’d discover many complex reasons for this disparity:  things like types of property sold (single family homes vs. multi-family dwellings, condos, etc.), the number of homes on the market, along with features of the properties, such as age, size, condition, location, amenities, and many more.  Average home selling prices also don’t tell us about historical price gaps between Calgary and Edmonton, with Calgary prices usually being $50,000 to $60,000 higher than Edmonton.  In the end, determining a home’s value is a complicated business!

Interested in a free home evaluation?  Give me a call today at 780-910-9669 or email me at barry@barryt.ca.

Barry Twynam, Realty Executives Leading
#1 14 McLeod Avenue, Spruce Grove, Alberta, T7X 3X3
Tel: 780-962-9696 Cell: 780-910-9669 Fax: 780-962-9699
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