Edmonton Market Update January 2023

February 17, 2023

The market sure is heating up! We’ve had multiple showings and a growing number of people heading to our open houses. There is no better time than NOW to look at your potential options in time for the SPRING MARKET.

Whether you are looking to expand your space, downsize or invest in a property, feel free to contact me. Realty Executives Focus is a full service brokerage assisting families in buying, selling and investing in real estate!

January 2023 Market Update

Average Price of Single Family homes in Edmonton and Area

“YEG Housing Market Sees Stable Transition Into New Year”

“The Edmonton real estate market remained relatively stable from December as we transitioned into the new year,” says REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles. “While many categories saw minimal decreases month-over-month, average prices for both the row/townhouse and apartment condominium categories saw increases when compared to December 2022.”

Single-family houses went for an average of $451,659, condos went for about $189,631 and duplexes sold for an average price of $355,086.

While it’s not unusual for the market to cool at this time of year, a climbing interest rate could be leading buyers to re-evaluate and sellers to reconsider moving. However, I anticipate activity will pick up in March just in time for the Spring market. If you have questions about the rising interest rates, forecasted home prices, or would like to know what these market stats mean whether you are buying or selling, feel free to contact me.

Source: https://www.realtorsofedmonton.com/Market-Stats/Monthly-Housing-Statistic

Free Comparative Market Analysis

What is a Comparative Market Analysis?

A Comparative Market Analysis (CMA) is an estimate of the market value of a property and is typically completed by local real estate agents. Real estate agents compare recently sold properties based on the neighbourhood, size, and age to determine a market valuation for a specific house.

Even if you aren’t thinking of selling now or in the near future, it’s never a bad idea to know what numbers you are working with. This can help you in the long run! I can provide you with a FREE CMA. Over the years, I have listed and sold all types of properties. From vacant land to apartments to duplexes to single family homes to acreages in rural communities. I’ve listed in Edmonton and Surrounding Cities such as Fort Saskatchewan, Sherwood Park, St. Albert, Rural Strathcona County, Redwater, Beaumont, Gibbons, and more. If you don’t see it here, let’s chat!

Current Listings

You can check out all my current listings here!

Open Houses

Open Houses are a great way to get a feel for a property and ask any and all things real estate from one of our Realtors. If you are a first time home buyer, this is also a great starting point for your home search. See what you like/don’t like in a house, neighbourhood, features, amenities, and more.

We host open houses almost every weekend! Make sure to stay tuned on social media or click here to stay updated.

Come check out our open house tomorrow February 18 from 12-3 PM!

Where to find me:

2023 Edmonton Housing Forecast RECAP

January 28, 2023

The Realty Executives Focus team, along with Kris Crawford (Mortgage Associate) had a great time at this year’s event!

Last Wednesday, I attended the 2023 Edmonton Realtors’ Association Housing Forecast at the Edmonton Convention Centre! I am so glad this event is back! It’s the first event hosted by EREA post covid. The event is a great chance to talk real estate, review historical information and learn expected projections for the new year. This year was great and informative – just as expected.

The emcee, Canadian Comedian Steve Patterson, was back for his third year (hosted both in 2019 and 2020) and did an amazing and hilarious job. The very well spoken and knowledgeable speakers included Past and Present Board Chairmans from Realtors Association, Modern Economist Todd Hirsch, Corporate Economist from the City of Edmonton and the Associate Minister of Finance, Honourable Randy Boissonnault.

I wanted to share some insight and summary of what was presented and inform you of what these experts expect for 2023! There are some variable factors and economic drivers that can potentially impact these projections that may or may not be beneficial to our market. These include climate change, global economy, military spending, conflict overseas and more.

2022 Year in Review

Average Price in 2022 for Single Family Homes: $484,822
Total New Listings in 2022 for Single Family Homes: 21,496
Total Sales Reported: 14,223

2023 Housing Market Predictions

Expect to see sales decline slightly and prices to gain modestly. Overall, the national market is expected to see more balance between buyers and sellers, a change from pandemic markets characterized by record-high buyer demand. Years 2020-2022 are considered to be anomalies and as we move forward in 2023, we can expect to see the market “correcting and normalizing” itself.

Activity in Alberta’s resale and new home markets is being supported by strong population growth. Alberta’s population grew by 1.3% in the third quarter of 2022, the highest single quarter growth rate in over 40 years.

Strong Housing Fundamentals in Alberta

Large core age population – Alberta has the youngest population in the country, with an average age of 39. More than half (53%) of Alberta’s source population is between 25 and 54 years of age, the cohort in which most household formations occur.

Shifting Demand/Product Type

Increased demand for apartments/condos: Buyers aren’t going anywhere they are just looking for something different! We expect to see a shift in row/townhouses and apartments/condos!
Continued growth in the luxury market: As I mentioned above, Alberta has a young population. A generational shift is occuring where a lot of older homes are up for sale. Investors/buyers are buying, ripping them down and building bigger homes, or renovating. We can see an increase of infills and modern homes in Edmonton!
An influx of migration from out of province: Minister of Finance Randy Boisssault mentioned immigration. 100% of the labour force growth comes from immigrants. We can expect to see more newcomers looking and buying homes.

Key Takeaways:

Edmonton can expect the 2023 market to continue to normalize. Compared with long-term trends, the COVID years are anomalies. This means we will see a drop in year-over-year numbers, with sales, listings and prices hovering at levels seen in 2019 and prior.

Our region is well-positioned to take on the economic challenges 2023 could bring. Alberta has affordability, demographics, and employment on its side.

According to a recent report from the Government of Alberta, “In Alberta today, it takes 21 weeks of work to pay the annual mortgage payments on the average home purchased on the resale market. As a result, this is 41% lower than the national average of 36 weeks. By contrast, it takes 50 weeks of earnings in BC, 46 weeks in Ontario, and 26 weeks in Quebec to meet annual mortgage payments.”

Greater Edmonton Area – Edmonton, Fort Saskatchewan, Sherwood Park, St. Alberta and other surrounding cities are both a great place to live and invest real estate in! One of Edmonton’s continued strong activity is it remains among the more affordable markets.

If you have any further questions or would like to discuss what this means for you and your real estate investment, please do not hesitate to contact me any time!

All the best!

Where to find me:

Top 5 Reasons Why You Should Hire a Property Manager!

September 17, 2021

It’s nerve-wracking to put your trust and money into hiring a company to manage your investment but I assure you, there’s nothing to be afraid of. Here are Top 5 reasons you should hire a Property Manager!

At Realty Executives Focus, not only do we work with clients to buy and sell homes but we also work with owners in our Property Management division. With 16 years of experience, we take all the stress from you and work as a bridge between owners and tenants. You will save both TIME and MONEY when hiring us. We use an online portal where you can see all work orders, maintenance requests, tenant information.

Our fees include all advertising and rental marketing, tenant application reviews and screening, online account access, all accounting and documentation, 24/7 emergency services, periodic rental inspections. We cater to out-of country Owners and have multiple properties rented in Sherwood Park, Fort Saskatchewan, Edmonton, Redwater and more!

If you are still unsure whether or not hiring a Property Manager is a good idea, here are top 5 reasons WHY you should!

1. You’ll Make More Money with a Property Manager

Many property owners are afraid to hire a property manager because of the cost involved – not realizing they will actually make more money in the long term due to the increased care of the property. You will get better tenants that stay longer and have less damage and repairs to deal with. Your property remains in great shape.

Through our services, you will be only charged when the property is rented. Min $75/ month to a Maximum $150/ month.

2. Property Managers Will Save You Lots of Time and Headaches

How much time does it take to be your own landlord? Could you be making better use of your time?

It can be a full-time job to track rent payments, collect late fees, deal with complaints and repairs, prep the property for new tenants, find vendors, and deal with bad tenants. It may also become a constant source of stress. Relinquishing these ongoing responsibilities to a good property manager can allow you to benefit from your investment without sacrificing your time and health.

With a 24/7 emergency hotline service available to both owners and tenants, we are able to settle issues as quick as they come. Our full time Maintenance Manager will handle work orders and quarterly inspections on the property to ensure your property is taken care of.

We do our best to make sure we give you the best bang for your buck.

Rental Available. Location: 11512 11 Ave SW, Edmonton, AB

3. Better Tenants Thanks to Screening and a Bigger Pool Of Potential Renters

If you hire a property manager with experience, they will know exactly how to find the best tenants and screen out potential tenants with a bad history. Property managers have a bigger pool of applicants to choose from due to their extensive marketing and advertising programs. An established property manager will already have waiting lists of potential tenants. The result is better quality tenants in your property faster.

We have advertisements relayed to almost all available Rental Property websites making sure your property will get screen time. We do in-depth credit checks and reference calls to ensure that you have the best tenant in your property.

4. Property Managers Know the Law

How much do you know about the laws that apply to being a landlord? One of the biggest advantages to hiring a professional property manager is the ability to avoid some legal hassles. With a full understanding of all the state and federal laws when it comes to discrimination in screening and selecting tenants, property managers avoid breaking discrimination laws. In the event that an eviction becomes necessary, an experienced property manager will know how to handle it in a way that will save time and money while staying within the boundaries of the law.

5. Property Managers Serve As a Buffer Between Owners and Tenants

When using a property management company, a property owner is able to keep a professional distance from their tenants.

If you are personally involved with the tenant, this can result in being too lenient on certain issues or too defensive about certain types of complaints. Renting out a property is a business and it is much easier for a property manager to keep things on a strictly professional level. When issues arise, experienced Property Managers are more prepared to deal with the issue.

Rental Available. Location: 6727 136 Ave, Edmonton, AB

Here are my top 5 reasons why you should hire a property manager! If you want to know more information about our services at Realty Executives Focus , feel free to reach out to me at 780-777-9703 or email me! I’d love to help you and get you started on your investment journey.

View our current listings here!

Call us at 780-628-6683 for more information or click here to find more info!

Where to find me:

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

June 9, 2019

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!

Interested in Owning an Investment House with Basement Suite?

May 31, 2019

Be a super investor and start making real equity and monthly cash flow!

What a great way to generate very positive cash flow! I have lots of rental properties and know the struggle to ensure your rental is generating enough revenue to cover the costs associated with owning the property. Mortgage, taxes, insurance, management, maintenance, utilities, condo fees… the list goes on and on.

Owning one property with one mortgage and combining costs associated with one property while generating two incomes is simply smart. Do not be fooled, this property costs more money, insurance costs go up, maintenance costs go up, management fees are higher, utilities come into question. Overall, investors and landlord win! I see a lot of portfolio financial statements every year. On a yearly basis property owners with the basement suite make higher net revenues.

2 Simple Examples of Rental Properties with Suites

(1) New 2 Story House with Basement Suite 1500 – 1800 sq ft top floor and approx 600 – 900 sq ft basement suite. 3 Bedrooms up 1 – 2 Bedrooms down. Separate laundry

Purchase Price Average: $425,000
Top Floor Rental Revenue: $1500 + Utilities
Bottom Floor Rental Revenue $1000 + Utilities
Newer Areas have higher density.
Newer properties have lower maintenance costs

AVERAGE NET INCOME PER MONTH: $750.00 per month
AVERAGE NET INCOME PER YEAR: $9000 per year

(2) Older Bungalow Style House with Basement Suite in Mature Location 1000 – 1300 sq ft top floor and approx 900 – 1100 sq ft basement suite. 3 Bedrooms up 2 Bedrooms down. Separate laundry. Separate Entrance

Purchase Price Average: $400,000
Top Floor Rental Revenue: $1500 + Utilities
Bottom Floor Rental Revenue $1200 + Utilities
Lower density area and on average higher rental prices as the units/suites are more comfortable and more space for living.
Higher maintenance costs
Basement Suite is much more comfortable and can get more money per month!

AVERAGE NET INCOME PER MONTH: $850.00 per month
AVERAGE NET INCOME PER YEAR: $10,200 per year

IMPORTANT!

Make sure you achieve favourable mortgage terms. You want low payments, no CMHC, and flexible term. Quality interest rates. All effect bottom line!

Higher a property manager! You want to limit your vacancy to 1 month per unit per year. Quality tenants and properly set up lease agreements to navigate tenants sharing a house is extremely important. Click here for property management details.

Location Location Location. The fun part of having these properties is that worse case scenario you break even or make a little. Which is great. The real money is made with equity and riding changing markets. Get a proper investment in the right location at the right time. The potential for a major win is very very real.

For more information contact me anytime! There are many options in Edmonton, Fort Saskatchewan, Sherwood Park, and Surrounding Area.

Affordable Duplex in Bruderheim! WOW!

April 1, 2019

Affordable Duplex in Bruderheim! WOW!

Looking for something move in ready, corner lot, build equity with affordable living in private setting. Problem Solved! Move or Invest in Bruderheim. Wonderful 3 + 1 Bedroom Home. 10 Minutes North of Fort Saskatchewan. 20 Minutes from Edmonton city Limits. Bang on close to Industrial Heartland and just what the doctor ordered! Treed private corner lot. Renovated and comfortable. Literally come pick up the keys and move on in. Great property for first timers or someone looking for an ideal rental property with affordable price tag.

4702 56 Ave, Bruderheim – CLICK HERE
$169,900

Call 780-777-9703!

Looking for an Investment Property?

March 30, 2019

Since prices are low, is it time to consider buying and investing in a rental?

You came to the right place. I have been in the investment rental market for nearly 13 years helping hundreds including myself buy, sell, rent, manage, and invest in real estate. Not to mention over a thousand lease agreement. I would be lying to say there is no risk involved when buying property to rent. The reason why you need to contact me is I virtually eliminate 95% of the risk and help you make the smart decision while managing your investment.

I recently sat down with a client to discuss which type of property we should buy. We are talking here about average rentals not full apartment buildings and commercial projects. We boiled it down to the 5 basic options: The affordable Newer 3 bedroom 2.5 bath duplex, The 2 bedroom condo apartment building, The 3 bedroom condo townhome, The old mature neighbourhood home with basement suite potential, The new home with basement suite potential. Here is a quick glance at how I think of each option. Keep in mind if you have questions about other properties contact me anytime.

If you are someone that has multiple real estate investments are need to diversify this is a great article to check out. It is very beneficial to not have all condo apartment rentals and to throw in some more liquid investments like duplex and single family home rentals. However the same goes the other way. It is smart to have some longer term low maintenance and low cost condo equity building properties that can last 10 – 20 years without shingles, giant renovations, etc. This allows you to buy and sell the liquid rental properties as markets flux, but hold on to the condo apartments till markets make significant change and appreciation over time.

The Affordable Newer 3 Bedroom 2.5 Bath Duplex

This in the past, present, and probably future has always been my favourite. It is a super popular option amongst most of my investors as well. This investment on average rents for $1400 – $1600 per month on a $290,000 – $320,000 investment which is honest cash flow (roughly $1100 mortgage with 20% down). These single family properties are priced perfectly in the largest sector of home ownership as well. This makes the investment more liquid than others. It is important to look for new as possible options unless price is extremely attractive with good location for older properties. Do not kid yourself. 3 bedrooms and 2+ bathrooms is a must. We need to be able to market to the largest group of tenants possible in order to get the best tenant at the right price. These properties rent like single family stand alone homes but require less maintenance, they are more affordable, more liquid, and just as easy to rent for very similar prices for less money.

The 2 Bedroom Condo Apartment

Welcome to the jungle. I could talk about this for days. However for this purpose I am focussing on the massive amounts of newer and older 4 story walk ups low rise apartment condos that took over our real estate space. Ok so the old stuff, basically old apartment conversions into condos, not bad, prices are as low as they have every been and some are in great mature desirable areas. Right now you can buy a 2 bedroom 1+ bathroom unit for $100,000 – $150,000. Condo fees on these units range from $250 – $450. They cash flow all depends on equity ratio and condo fees. The most important aspect of purchasing these rentals is quality building management, quality location, and quality price. Those will all add up to quality tenants and quality experience. The newer option. Well we can shop for weeks to see them all. In fact I have 10 guys that will sell to you right now if the price is right. The issue with the condo 2 bedroom apartments is that there are way too many, and when the market increases way too many more will be built. This makes them a very non liquid investment but a solid long term affordable cash flow. They fill an extremely important sector of our real estate market for affordable living in dense areas allowing for more amenities and economic prosperity. The issue is they are just a sluggish long term rental in the eyes of a normal real estate rental investor. Prices are as low as I have seen in 13 years. You can get a quality location, quality 2 bed 2 bath for $175,000 – $200,000 in and around the city that rents for $1100 – $1300 per month. In the best it is normal to rent for more as well. Also those numbers can easily change depending on location. There is just not enough time in the day for me to type out all the things we would need to discuss with regards to a 2 bedroom condo apartment. Simple answer is, YES it is a great time to buy one for a long term gain. I would buy a semi newer, 2 bed 2 bath 2 parking unit. Reasonably average location. Rock and roll. Get it for $185,000 is my guess with a potential of $230,000 would be my hope. Easy rent. Set it and forget it with reasonable cash flow.

The 3 Bedroom Condo Townhome

Looking to rent amongst mature homes, expensive properties, quality schools, busy locations? This is the answer. The mature 3 bedroom townhome was extremely popular in the 1970 – 1990’s and still being built today. Granted, they are quite different now but both are meant to serve a purpose. Family home in high density areas. Families have a hard time cramming into apartments and the townhome answers the call. They are affordable (roughly $190,000 – $220,000) which is similar to the 2 bedroom condo apartment but with more space and highly quality of living. I really like this market right now as they rent for $1200 – $1400 per month quite easily and have slightly better resale than the apartment condos. Sometime more space does have more maintenance but if managed correctly still works out ahead. Prices are low! Find a good complex and good location and its a winner. I would recommend older mature area with complex that has the exterior envelope work already done.

The Old Mature Neighbourhood Home with Basement Suite Potential

Another option that everyone seems to love. Back in the old days we would buy houses put a sink and stove and some sort of entrance separate form above. Call it a suite, and it was sweet. Now a days with the city and industry cracking down, it is important to get a legal suite. If you shop on MLS for properties right now you will find lots of places that have suite potential, basement kitchen, or potential separate entrance. It is much harder to find legal suites. And if you do, you need to check when it was legal as if it was legal 20 years ago, you change a furnace, bingo your suite is not legal anymore. Now here are two options. Buy an older house with suite potential, get the top floor rented and set up on its own. While making cash flow there renovate or finish the basement to today’s standard and code and get it legal before renting it out. Not only will this make it possible to rent it out with 2 doors it will drastically improve the property value and resale value of your home! Here is the typical numbers on a $350,000 old home suite project. Rent top for $1500, bottom for $1200, include utilities pay a $1200 mortgage, $250 tax, $400 utility bill and make $850 per month. Lots of sunk costs and yearly maintenance is normal but will pay off in the future. These are also fun work project that are not for everyone. I stay away as I am too busy but always love to buy the project when it is done and have the two doors! I just do not benefit form the sweat equity someone else put into the property.

The New Home with Basement Suite Potential

This is my favourite right now. Tons of homes are being built today with basement suites. Now that the city and most other municipalities have settled on a modern secondary suite bylaws and permit process these properties should maintain their value for years to come. I also like the aspect of new home warranty, less maintenance, newer areas, and quality location these new homes have to offer. I love negotiating with a builder to get the best price and walk into equity. Also have the entire property done new, form top to bottom, built for investment is huge. One project I am working on has a $400,000 house with 1 bedroom suite in basement and triple car garage for parking. This home is going to rent for $3000 per month and cost me $2000 in mortgage, taxes, utilities, lawn care, etc per month. Not to mention the future equity and quality home. This is a winner every time. Takes high initial investment and patience. Will pay off!

If you are looking to buy sell and invest in real estate contact me anytime 780-777-9703. I service Edmonton and area focusing on the Edmonton, Fort Saskatchewan, Sherwood Park, St. Albert and surrounding communities.

Have a great weekend!

Alberta’s Industrial Heartland Association aiming for $30 billion by 2030

January 24, 2019

Alberta’s Industrial Heartland Association aiming for $30 billion by 2030

The local economy is looking up, according to Alberta’s Industrial Heartland Association (AIHA).

At their annual stakeholders event, AIHA executive director Mark Plamondon spoke to the media about the future of the region.

“We’re very optimistic,” he said. “The reason we’re optimistic is because a lot of the future investments expected in the Industrial Heartland is in the petrochemical sector. That is taking natural gas resources, which is a low-cost resource right now, and processing it to a value added product.”

The association has high hopes of attracting $30 billion in new investment to the region by 2030.

“This government’s Made in Alberta upgrading program is a crucial element to ensuring these value-add investments happen in Alberta,” Plamondon added. “Upgrading more of our resources here at home means more jobs and more investment in our local communities, with new value chains that will help diversify our economy for generations to come.”

With pipelines being a hot topic of conversation lately, Plamondon said the association is not affected as much as people may think.

“The majority of products in the Industrial Heartland are moved by rail. We are of the view that the feedstock for these plants will be competitive here for a long-time and that’s the reason that companies are looking to invest here,” he explained.

On Tuesday (Jan.22), the heartland got another massive boost, as a Calgary-based company announced they’ll be investing $2 billion in an upgrading facility.

https://fortsaskonline.com/local/alberta-s-industrial-heartland-association-aiming-for-30-billion-by-2030

Category: Local News Published: Tuesday, 22 January 2019 18:47 Written by Cody Janzen