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March 2020 Real Estate and COVID – 19

I would like to make a quick message about my thoughts on this current health pandemic and how it is effecting the real estate market. I can only briefly speculate on how the future will look this year, but given what I can see and what I have heard I am not as optimistic as I would like.

Currently, showing houses is difficult. I have many sellers who do not want people in their homes. These are sellers that really need to sell and are very motivated, but the current message is “Let’s wait and see, or wait till this blows over a bit more.” At this point we are offering video showings and virtual help to assist in the sale of these properties. However, that is not easy. If you check out my listing videos page, this will give you an idea of what I can do to help sell properties virtually.

I have 2 very clear categories of buyers right now. The first being those who are able to wait and see what happens. These are folks that range from pre approved to cash buyers wanting to make a rental investment, buy their first home, or just make a change. They are very cautious right now and my recommendation to them is to WAIT as long as possible. We need to know how things will look before making such a big decision. My over all gut feeling is not that homes will drop drastic drastic amounts of money $50,000+. But as I said earlier, there is a level of uncertainty that we just can not know what things will look like. Long term forecast I am optimistic but we still want to ensure we are making best decision possible.

Second category of buyer is the WE NEED TO BUY A HOUSE BUYER. These folks have either been relocated for work or other reasons or just sold their previous home and have a mortgage to port or other motivation to buy. These folks need to understand their rental options in the short term and if that is an option to strongly consider it. Long story short is these buyers are getting A LOT of my attention right now. Countless showings, lots of aggressive offers, and plenty of miles on my little car. It is important to get this sort of attention when market conditions are so crazy. Check out my dream home finder but better yet call me! 780-777-9703

Landlords and Tenants – Dealing with COVID 19

Are you a Landlord or Tenant? Listen up. This is the most delicate situation I am dealing with. In my letter to tenants and landlords I made it very clear that each situation I manage (200+ Rental Properties) is different. We are EXTREMELY compassionate property managers. That being said I have tons of families and individuals to manage. There are losses from landlords and tenants. We are dealing with each tenancy and lease agreement payment on a case by case measure. With a blanket 10 days of grace without penalty on every property and split rental payments when requested. However, we also have tenants who can not pay at all and landlords who can not afford to miss one payment. I am in constant contact with each tenant and landlord and working on these matters. We urge everyone to reach out for government support and help from family and friends to ensure not only you are healthy, safe, and happy but you can afford your cost of living: food, shelter, supplies. Anyone can call me direct to discuss these personally!

Government Support Website. Check it out!

https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html

COVID – 19 Response From Realty Executives Focus

CLICK HERE TO SEE HOW YOU CAN PRACTICE SOCIAL DISTANCING AND GUIDELINES!

To: Our Clients, Tenants, Landlords, and Friends

As we monitor the COVID-19 situation, our top priority is the health and safety of you and our agents.

The COVID-19 page on the Government of Alberta website is updated twice daily and will have the most current information applicable to Albertans. Please take the time to learn about how you can help stop the spread of all viruses, including the novel coronavirus (COVID-19).

Buyers and Sellers

Please discuss your concerns about the potential risks with your Agent. Our Agent will go over with you recommendations that would minimize or eliminate risks regarding the purchase or sale of your property. We encourage you and your Agent to work cooperatively to find a solution that best fits everyone’s concerns.

Tenants and Landlords

Please be advised that we are aware of the hardships that some of our tenants and landlords are facing at this time. If you are having issues maintaining rental payments, mortgages, cash flow, please discuss with your Property Manager to come up with the most mutually beneficial solution possible.

As such, there are no penalties for being late on upcoming rents with a 10-day grace period on all rental payments. If you are experiencing further difficulty please let us know so we can come up with a plan to ensure that we are doing whatever we can to further help you.

We all must work together so that both landlords and tenants are supported.

TENANTS: FOR ALL COVID-19 RELATED HARDSHIPS PLEASE EMAIL 

covid19@realtyexecutivesfocus.com

Please use this email for rent issues, payment schedules, and other matters regarding how we can keep track of who we need to work with us, owners, and families during this current health pandemic.

Our industry has a very strong virtual presence and will remain operating to ensure our clients are effectively buying, selling, renting, building, and investing in real estate.

Thank you for your continued trust and support of Realty Executives Focus.

Get Ready for Spring Real Estate

What to expect Spring 2020!

We are right around the corner to another Spring Real Estate blast in Edmonton, Sherwood Park, St Albert and Fort Saskatchewan! This is the most popular time of year for people to make their move in between the school and summer months. Trust me when I say, ever real estate agent, mortgage broker, and inspection company is extremely busy! It is very important to ensure you contact someone who does not take your business for granted. I have trained and coached my entire team to put one thing ahead of everything else – customer relation and care. In order to have a successful experience with real estate it take tons of time, energy, research, and thought about exactly what you are doing.

For instance, is it a good time to sell? There are many benefits about selling your home in the spring. Especially if you own a property that has landscaping or out door features that need to be shown off. There are going to be a lot more buyers in the market after tax season, but also will be a lot more listings on the market to compete with. Contact me to discuss when the right time to list your home is.

Should we buy in the spring or wait? This all depends on what your motivations are. If you are looking for your next home and you want it to be as close to perfect for you and your family, this is the perfect time to start shopping. There will be more options for you to choose from and it is much nicer to view homes with out so much snow on the ground! We should start our search and ground work now so we are ready to buy in the coming months. If you are looking for an investment or rental property this may not be the best time. There is an average rule that you are going to pay between $5000 – $10,000 more for your next property this spring versus waiting till fall or winter. Which is not that much of a deal breaker for the right property. The more important aspect is that there is a much better opportunity to pick up a smoking hot deal in the late fall or winter months!

I am here every step of the way. During my many years in real estate I have handled many many many different situations and can assure you that I will put your interest above everything else to ensure you FOCUS ON THE REALTY! Contact me direct at 780-777-9703!

Need some help?

Here is a quick list of some other service providers to get you ready for making your next move. Need anything else! Let me know.

Come check out our full service real estate office in Sherwood Park at #192 – 130 Broadway Blvd!

2020 Housing Economic Forecast

2020 Housing Forecast – Edmonton Event Centre Jan 15, 2020

Here we go 2020! I attended the 2020 Edmonton Realtors Association Housing and Economic Forecast this past Wednesday morning. I love this yearly event! Great chance to talk real estate, review the recent past, and look into the year to come. This year was great and informative as expected. The MC, Canadian Comedian Steve Patterson, was back for his second year and did a great job. The speakers included the Senior Economist City of Edmonton, Chief Economist of the Alberta Treasure Board and Finance, Vice President of Edmonton Global, President and CEO of the Realtors Association of Edmonton, and the Current Chair of the Realtors Association of Edmonton. All these very well spoken and knowledgeable individuals had lots to say! This is a great event in understanding the Edmonton and greater Area Real Estate Markets including Fort Saskatchewan, Sherwood Park, St Albert, Leduc, Stony Plain, Spruce Grove, Morinville, and surrounding counties and towns.

If you are ready to talk real estate let me know! Contact Jarett Johnson

Summary of 2019

  • Average Price in 2019 All Residential: $360,262
  • Total New Listings in 2019: $42,959
  • Total Sales Reported in 2019: $20,079
  • Total Sales Volume in 2019: $7,201,367,293
Courtesy RAE

Summary of 2020 Forecast*

  • Average Price 2020 All Residential: $361,703
  • Single Family and Condo Sales Change: +0.6%
  • Duplex Sales Change: +1.4%
  • Stable Market for 2020
Click Here To Download the Entire Forecast Package, Slides, and Information

Real Estate in 2019

The market was busy in 2019. However only about 47% of listed properties reported Sold. This created a very unique buyers market with steady prices. A quality home in a good location was selling for above market value, and on all else, had to make concessions on price and terms.

Housing starts in 2019 exceeded the City of Edmonton’s forecast by about 600 new housing starts to reach approximately 8600. The majority of which are multiple family housing projects (which includes everything outside of new single family homes). This was boosted by a strong fourth quarter.

The City of Edmonton research suggests we see a real 1.4% growth in GDP across our region and forecast an expected 2% growth in Real GDP for 2020. This is positive news that is crucial for spending power. The long term forecast suggest 2-2.5% after 2020.

Real Estate in 2020

Having listened to knowledgeable economic experts and taking into account their various perspectives on the economy, I believe we will see a very stable market in 2020 with very little change in average price. The Realtors Association is predicting an average single family home price of $425,068; condo average price of $228,339, and duplex/row house average price of $334,476. This numbers all represent a very small increase from 2019.

The Realtors Association of Edmonton predicts a decrease in single family listings by 0.2% which would help stabilize prices. They also predict an increase in condo listings by 1.1% and duplex listing increase by 0.4%. My gut is telling me we see an increase in listing right across the board with an average of 0.5%.

Single family home sales have been on the decline since 2015. Year over year there have been 100 + less homes selling in the YEG. The Realtors Association of Edmonton is predicting an up tick here by 75 homes. Short answer is – no changes. Marginally up or down will equate to a very stable market.

Inflation and Population Growth

Inflation is projected at another stable 2% increase into 2020. We are also looking at a population grown in the Edmonton region by about 30,000 in 2020 with the majority of this growth coming from natural increases and international movement through immigration. In 2016 and 2017 we’ve actually seen an interprovincial net decrease (people moving out of Alberta to another province versus them moving to Alberta). With a very slight increase in 2018 and proving to be a more significant increase in 2019, we can expect further growth as we have experienced in the past in 2020. We should not expect the same massive growths we’ve seen in 2013 and 2014 from other provinces but growth nonetheless.

Speaking of the Edmonton and area population! Did you know the Edmonton and area has a very young and educated work force? The average age of Canadians is 41 years of age. The average age of Albertans is 37.8. The average age of Edmontonians is 37.7. We have the best schools, hospitals, and people. Combine this with the 15th highest and very affordable housing market in Canada, and no wonder people want to live in the Edmonton region and invest in housing and their families.

MLS Stats, Vacancy Rates, and More

Through the Realtors Association of Edmonton there were 42,959 new listings added to the system in 2019. Out of that, 20,079 sold properties were logged at a total sales volume of over $7 BILLION! 2019 was a year for the buyer with only 46.7% of listed properties selling in the YEG.

Unemployment is still an issue in Edmonton and the rest of Alberta. The main problem is the growing work force that is growing faster than the supply of jobs. Especially for individuals younger individuals in our region. As of December 2019 the Edmonton region was at approximately 7% unemployment with a growing labour force. One key note is that with our growing population and work force one of the sectors that is expected to see gains is the service sector.

Here is another stat that I found interesting! Estimated vacancy for Commercial Real Estate is at 20% – Great time to purchase commercial real estate on the cheap however lease values are low. Purchase values are extremely low and interest rates are attractive. Over the long term when lease rates become stronger, the potential is massive.

If you are looking to make a move in 2020, planning your real estate activity for the future, or need to understand your real estate investment, your home; it’s time to give me a call! Feel free to call, text, or email me anytime.

Jarett Johnson Real Estate
#fotrYEG coming early 2020

To Learn More about EDMONTON GLOBAL check out their website. I found this new Edmonton corporate structure fantastic and extremely interesting. Their main goal is to sell the Edmonton region to the global marketplace. Here is the package they provided – click here.

https://edmontonglobal.ca/

*Forecast and statistical information courtesy the RAE (Realtors Association of Edmonton – the 2020 Housing Forecast Seminar) https://www.raehousingforecast.com/2020-forecast-package

Looking to buy your first home?

LIKE COFFEE? DREAM OF OWNING YOUR OWN HOME?

Let’s chat! Transitioning into home ownership is our expertise and would love to go for coffee with you to discuss how we can help! Let My First Home YEG help!

Transitioning in to home ownership is one of the biggest decisions of someone’s life. Having the right team in place to ensure you are making the best decisions possible is so important. I have teamed up with a fantastic mortgage broker, Kris Crawford with Innovative Mortgage Solutions, and plan to make this dream a reality for as many people as possible. Whether you are renting or transitioning into adult life, achieving home ownership is a reality! Contact me to discuss more, coffee is on me!

Get to Know Kris

With over a decade of experience as a Mortgage Broker, Kris and his team at Innovative Mortgage have helped over 2100 local families with mortgage financing.

Not sure if you’re mortgage-ready? We have options for people without a down payment or those in the process of rebuilding their credit. Kris is also offering complimentary mortgage coaching that will help you develop a step-by-step plan to qualify for a mortgage

Get to Know Jarett

Edmonton and Area Real Estate Expert. Friendly and honest advice 24/7.

Since 2006, Jarett has been a top agent in helping sellers and buyers navigate the complex world of real estate. Jarett is family and friend oriented, and university educated with a Bachelors of Commerce Degree. Most importantly, he loves his job and helping people buy, sell, invest, and rent homes in Fort Saskatchewan, Sherwood Park, Edmonton, and surrounding areas.

Fort Saskatchewan Farmers’ Market

Fort Sask Farmers Market Thursday Evenings!

Come check it out! Next Market is on August 29, 2019. Such a great selection and tons of quality local vendors. Great thing to do in Fort Sask!

The Fort Saskatchewan Market is the place to be on Thursday evenings. Starting with a longer season, the market will be open June 13th and will run until September 19th. With up to 80 Vendors with fresh produce, baking, homemade crafts, unique gifts, ethnic foods and of course the famous food trucks with mini doughnuts, fresh made kettle corn, and so much more. What are you waiting for? Join us weekly on Thursdays!

Market Hours: Thursdays, 4:30pm-7:30pm     Location:  CN Station  |  Legacy Park 

We Are Hiring! Realty Executives Focus

Looking for new employment?

We are located in Fort Saskatchewan and service the Edmonton and area. Fort Sask is a great place to work and live and we do our very best to support local residents and employment.

Starting position available with 3 tiered level growth plan and tons of opportunity to be creative. Are you willing to put your stamp on our growing real estate company!

Fort Saskatchewan New Trail Maps! WOW!

Check out the new Fort Sask Trail Maps!

One of my very very favourite things about the city of Fort Saskatchewan is all the trails leading to and from the perfect river valley setting. I grew up in Fort Saskatchewan and have spent years and years exploring these trails on my feet, bike, and roller blades. What a great place to live!

The city’s website just posted this new tail map page. CLICK HERE!

I plan on making it my goal over the next month to run each trail loop and map. Such a great way to get around the city and enjoy the Fort Sask lifestyle. Whenever anyone asked me about buying real estate in Fort Saskatchewan, the trails and river valley is one of the first things that comes to mind. I sell real estate in the Edmonton and area and trust me very familiar with the trails in Edmonton, St Albert, etc. Fort Sask is a special place! First on the list is the West River’s Edge Loop! More about Fort Saskatchewan and what it has to offer check this out!

Canada Day in Fort Saskatchewan! 11 Days Away!

Fun on Canada Day in Fort Saskatchewan!

I have been very luck to grow up in Fort Saskatchewan, sell real estate and work in Fort Saskatchewan, enjoying the beautiful city, run the park and river valley trails, and enjoy the non stop community events. The city has grown so much and so has the Canada Day parade, day of celebration, and the evening fire works!

For all of those who are wondering! Here is a break down of all the festivities that are available that day! Fort Saskatchewan Canada Day Event Page

Full Day of Activities

The day starts with an awesome Pancake Breakfast served by the Fire Department in support of Muscular Dystrophy Canada. Check it out between 8 and 10 am at the Royal Canadian Legion Parking lot just down and across the street from the fire hall!

After you are full and ready hit up the down town core to get your spot set for the Parade! Parade starts at 11:00 in Downtown Fort Sask. I personally like to set up by the old mall area just off 99 ave! There is a new route this year that take a nice look into old Fort Saskatchewan. Don’t miss it!

After the parade hit up legacy park main stage for the open ceremonies for the rest of the activities offered throughout the day. Kids festival, NWMP Fort Tours, Cake and Ice Cream, Dog Agility Demos, Farmers Markets, Food and Shops, and so much more! Full day of events.

Legacy park LIVE ENTERTAINMENT this year includes Doc Walk on stage at 8:30 pm and Jesse Roper on stage at 7:20 pm. Great way to finish off the day and get ready for my favourite part! FIREWORKS!

Hurry down to the Rotary Amphitheatre to get a spot for the FIREWORKS! Plan is to start the fireworks about 10:45 pm when the sun goes down. Bring chairs, blankets, and bug spray! Parking is limited so I suggest taking a nice walk there and settling in.

VOLUNTEERS STIL NEEDED! CLICK HERE!

For more information on your community check out my Fort Saskatchewan community page. If you are looking to make a move. Check out my local real estate page for houses and homes in the area.

Looking for Storage in Fort Saskatchewan and Sherwood Park?

Need storage space? Who doesn’t?

I recently helped a number of clients sell and buy their next home. Only problem was moving dates, storage, movers, logistics, and the list goes on and on! The only way we made this work and facilitate the move was to rent some storage space. One client moving from Fort Saskatchewan to Sherwood Park and another from a beautiful acreage to Fort Saskatchewan. Both requiring 2 storage lockers each. We did our home work! The nice thing was prices were pretty standardized with some deals to be had especially if renting multiple spots and renting for longer term period.

Here is a list and contact information of what we found! Luckily I had a personal trailer to help them move around.

2 Best in Fort Saskatchewan to Deal With

  • ARMOUR SELF STORAGE: 11204 84 Ave, Fort Saskatchewan. Easy location to get to just off the highway. Electronic Access Card was easy to use! All paved access and tons of room to move around. Also a variety of storage sizes and additional resources like trailer rentals, boxes, and moving supplies! Give them a call 780-992-8448
  • REAL STORAGE FORT SASK: 11242 88 Ave, Fort Saskatchewan. Another easy location to get to which is also just off the highway. They use numbered access codes which is a bit easier so you do not have to carry a card with your to get in and out. However when I was i messed up the code and had to get the attendant to let me out! Very typical set up with different sizes and easy access. Give them a shout 780-997-0081

2 Best in Sherwood Park to Deal With

  • STORESMART SELF STORAGE: 61 Broadway Blvd, Sherwood Park. This is a great location! Super close to Broadmoor, Baseline, and Anthony Hendey. Also close to a lot of other convenient shops, grocery store, and restaurants. Which is perfect if you are running errands and need to get into storage or make a drop off! Give them a shout at 587-805-0500
  • REAL STORAGE SHERWOOD PARK NORTH: There are a few Real Storage facilities in Sherwood Park. I personally prefer this one as it is just off the Yellowhead on the north west of Sherwood Park with easy access to Anthony Hendey. Great set up which is expected with Real Storage and established name in the area so something you can trust. Give them a shout at 780-416-5028

Now all you need is a pro like me to sell your home and make moving a reality. Rest assured when dates do not work out there are other options to ensure that you can relax and successfully move on. So start packing and call me! 780-777-9703

How is the Rental Market doing? Vacancy Rates and Rental Prices ANSWERED!

How fast are properties renting out? What are the prices?

Vacancy Rates? Rent to Value Ratios?! – Check out my rental inventory here

It is extremely hard for the public and other industry members to obtain real rental prices and real vacancy rates via online sources. What do most people do? Check rental websites for properties that are being advertised for rent. This is misleading. It does give insight on competition and a general idea of what options are out there in the competitive landscape. It does not give actual rent price, terms, how long it took, whether that property was vacant or just being advertised near the end of another lease, whether the property rented out, and on and on. My office Realty Executives Focus and our rental division is a small to modestly medium rental company with over 150 rental properties in the Edmonton and Area. Our inventory is focussed in Edmonton, Fort Saskatchewan, and Sherwood Park (with a handful in areas like Beaumont, Spruce Grove, St. Albert, Redwater, Bruderhiem, and Strathcona County).

For the purpose of this conversation the information I am going to provide is based off 100 rental properties. Out of which I am pulling data for 20 Properties in Sherwood Park, 30 properties in Fort Sasktchewan, and 50 properties in Edmonton. Finally, I am taking 50% of each area and giving half apartment condos and half residential (houses and duplex properties). So 10 condos, 10 houses in Sherwood Park, 15 and 15 in Fort Saskatchewan, and 25 and 25 in Edmonton. For further information on location indicators and other aspects of which vary’s rental conditions please give me a call!

Period I am analyzing is 2019 January 1 – May 31 (Average over the 5 months)

Vacancy Rates: Percentage of Available Units (My Vacancy Rates are Out of this World – Ask for More Details!)
Average Rental Price: Simple Average Monthly Rent
Rent to Value: Yearly Rent Divided by Property Value (6% is the magic number for cash flow i.e. $1500 per month rent for a $300,000 investment – I just did a deal on a unit with basement suite that gets 8.9%! Condo’s can be misleading as this measurement does not take into consideration condo fees and impact on investment. Condo prices are LOW so these numbers are HIGH in 2019 – THIS WORKS OUT TO $500 per month rent per every $100,000 of property value)

Edmonton Houses

Vacancy Rate: 0.05%
Average Rental Price: $1630 per month
Rent to Value: 6.2%

Edmonton Condos

Vacancy Rate: 0.009%
Average Rental Price: $1470 per month
Rent to Value: 8.3%

Fort Saskatchewan Houses

Vacancy Rate: 0.04%
Average Rental Price: $1543 per month
Rent to Value: 5.7%

Fort Saskatchewan Condos

Vacancy Rate: 0.01%
Average Rental Price: $1242 per month
Rent to Value: 8.7%

Sherwood Park Houses

Vacancy Rate: 0.01%
Average Rental Price: $1783
Rent to Value: 5.5%

Sherwood Park Condos

Vacancy Rate: 0% (No Vacancy in 2019!)
Average Rental Price: $1365 per month
Rent to Value: 8.2%

If you need help analyzing the rental market. Have questions about investing. Anything about real estate call me!