Cooler prices in July are still up 1.5% from last year

Edmonton, August 4, 2010: While the summer temperatures rose in July, housing prices cooled and prices for all types of residential properties dipped slightly according to figures released by the REALTORS® Association of Edmonton. Single family dwelling prices slid 3.1% while condo prices were down 1.5% and duplex/rowhouse prices dipped just less than one percent. The all-residential average price dropped just 1.7%.

“The number of homes in the inventory is giving buyers’ choice,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “As a result many buyers are taking their time and prices are beginning to soften slightly. At the same time, some sellers who have been standing firm have been pushed to discount their initial list price.” Less than half of the active listings over 30 days have had a price reduction. However, 93% of July sales sold below the list with about 40% having already taken a price reduction. Read the rest of this entry »

Edmonton, April 6, 2010: Housing figures released by the REALTORS® Association of Edmonton for March and the first quarter of 2010 show that resale housing prices are up; listings and sales are up.

“There is consumer confidence in this market and both buyers and sellers appear eager to enter the housing market,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Prices are up about 10% from a year ago and sellers are eager to take advantage. Buyers are aware of higher mortgage rates ahead and are getting into the market before the rates rise.” Read the rest of this entry »

Source: Yahoo Finance
What do you all think about what Mr. Kioyaski has to say?

http://finance.yahoo.com/expert/article/richricher/211091;_ylt=Auf82MjK3eqhkP2irW.HiSuER4V4;_ylu=X3oDMTFidHI0c3VuBHBvcwMxMwRzZWMDYmxvZ0luZGV4Q2h1bmtzBHNsawMyMDEwdGhlYmVzdG8-

Robert Kiyosaki Why the Rich Get Richer

2010: The Best of Times or the Worst?

“It was the best of times. It was the worst of times.”   
– Charles Dickens

Is the recession over? Are happy days really here again? Paraphrasing Dickens, my answer is, “For people who are prepared, 2010 will be the best of times. For many, 2010 will be the worst of times.”

The following are a few of my predictions and reasons behind them…

Prediction #1:  The real estate market will crash again.

Pictured above is a graph of mortgage resets. In simple terms, a mortgage reset is when a mortgage comes due. In normal times, refinancing was a simple process…but these are not normal times. Some points of interest:

1.  In September 2008, the mortgage resets hit $35 billion that month. That was the exact time the financial crisis hit. When people could not afford to refinance and began to default, the stock market and banking industry crashed. 

2.  The eye of the storm: In the summer of 2009 mortgage resets were low — around $15 billion a month. This is when optimists began to see “green shoots” in the economy. The green shoots were the eye of the storm.  In 2010, as I see it, the second half of the financial hurricane hits. By late 2011, the resets climb to nearly $40 billion a month. The storm will not end until 2012.

3.  The first half of the storm was primarily due to subprime defaults. The second half of the storm will hit more solid homeowners. The question is, can they weather the storm? Will Mac Mansion foreclosures be next?

4.  In America, there are over 40 million people who own more than two homes. Can they afford to carry and refinance two or more mortgages?

5.  Since home values have gone down, many homeowners will find they owe more than their home(s) are worth. Will the bank be kind to them?

6.  The time for using your home as an ATM is over. This is crushing retailers and retail real estate. Shopping centers are in trouble. Strip malls are empyting as shopkeepers close — permanently. This will lead to the crash of the office, warehouse, and other commercial properties.

My prediction:  Obviously these are the best of times if you are a buyer of distressed properties and the worst of times if you are a seller.

Other things I am watching for in 2010:

1. Will China crash? America’s crash has hit China in the gut. The Chinese are laying off millions of workers. Only massive government bailout is keeping the economy afloat. The Chinese boom will eventually go bust…but will it bust in 2010? Only time will tell.

2.  When America stopped importing from China, China stopped importing from the rest of the world. This affects Asian countries as well as Australia, Brazil, and other suppliers of raw materials.

3.  Fed Chairman Ben Bernanke is replacing toxic debt with new debt. By protecting his friends in the mega-banks, he is turning the U.S. into a zombie nation. The recession is over, but America is entering an era we will be calling The New Depression, a period when the rich become extremely rich but everyone else becomes poorer. Taxes will kill anyone working for a paycheck.

4.  The U.S. dollar will grow weaker. If the dollar strengthens, we will have more unemployment because our goods become too expensive and we will export less. 

5.  The deficit will increase.  The bailouts for the rich are killing the economy.

6.  Israel may attack Iran. Israel will not tolerate Iran developing nuclear power, even if Iran claims it is for peaceful purposes. If there is an attack, oil prices will go through the roof. 

7.  Dead cat bounce. The current stock market rally will probably turn into a dead cat bounce. If the Dow drops below 6500, 5,000 may be the next stop.

The Best of Times

I know I sound painfully pessimistic. I know my predictions are bad news for most people. Yet, for others, bad news is good news.

The following are the bright spots for people who are prepared. Read the rest of this entry »

Homebuyer confidence creates record real estate results

At the mid-point of the year, the REALTORS® Association of Edmonton is confident that the local real estate market has regained stability. The 9,741 sales of residential properties sold through the MLS® System in the first six months surpassed the six month year-to-date figure for last year (9,567) and residential sales in June set a new record for the month. Residential sales in June totalled 2,552 units which surpassed the 2007 record of 2,203 units sold and was the third best month for unit sales in MLS® System history.

“Buyer confidence, especially among first time buyers, was evident in Edmonton despite lingering economic concerns in other markets,” said Charlie Ponde, president of the REALTORS® Association. “When mortgage rates looked like they might start to rise, many potential buyers locked in lower mortgage rates and then went searching for a qualifying home.” Read the rest of this entry »

Home sales jump in April

Third straight monthly increase puts numbers up 32 per cent from January’s decade-long low, but still far below last year

OTTAWA — Home sales soared in April for the third month in a row, but the real estate market has not yet made up for all the lost momentum of the past year, the Canadian Real Estate Association says.

Sales of homes in Canada, seasonally adjusted, jumped 11.2 per cent in April compared to March, the largest month-to-month increase in more than five years, CREA said. The gain compounds advances of 10.3 per cent in February and 7.7 per cent in March. Read the rest of this entry »

MLS® Activity for the month ending February 2009

 Unit Sales Average Price
 2009 2008 Change 2009 2008 % Change
Edmonton      
Residential 1,075 1,287 -16.47% $309,000  $338,300  -8.66%
Total MLS® 1,161 1,423 -18.41% $312,500  $348,000  -10.20%
      
Calgary      
Residential 1,392 2,162 -35.62% $370,200  $415,000  -10.80%
Total MLS® 1,438 2,258 -36.32% $387,000  $426,800  -9.33%
      
Fort McMurray      
Single Family 31 64 -51.56% $659,300  $654,600  0.72%
Total MLS® 52 137 -62.04% $543,100  $521,700  4.10%
      
Alberta      
Residential 3,185 4,443 -28.31% $327,500  $363,400  -9.88%
Total MLS® 3,435 4,889 -29.74% $334,400  $370,800  -9.82%

Stats provided March 25, 2009  by the Realtors Association of Edmonton.

Source of Information is the Edmonton Realtors Association

MLS® activity for the month ending December 2008

Unit Sales  Average Price                2008           2007       Change       2008               2007       Change
Edmonton       
Residential                              608                857         -29.05%   $311,000  $329,700  -5.67%
Total MLS®                           693                  945        -26.67%   $313,700   $349,700  -10.29%
        
Calgary       
Residential                           777                 1,455    -46.60%   $362,600  $400,100      -9.37%
Total MLS®                         824                   1,530    -46.14%   $393,100  $416,500      -5.62%
        
Fort McMurray       
Residential                           32                         65       -50.77%   $656,100  $632,400        3.75%
Total MLS®                         66                      120       -45.00%   $610,900  $523,800       16.63%
        
Alberta       
Residential                      1,830                    2,958    -38.13%   $328,800  $356,000       -7.64%
Total MLS®                    2,066                    3,286    -37.13%   $345,200  $367,700        -6.12%

In today’s turbulent market place I have clients calling in to check the value of their investments in the Edmonton Real Estate Market and surrounding areas. The one consistent thing that seems to be coming from everyone is that their properties may be down a bit from year or so ago, in general for most of you though they are still worth more or the same value that you paid (depending upon when you bought). There are definitely people with property that are down in value from when they purchased it. But, for the most part everyone that I have been speaking with seems to be more confident that their Real Estate Investments will bounce back before their Mutual Funds, RRSP’s and Stocks.

Read the rest of this entry »