Business & Marketing Trends in Edmonton
Edmonton Realestate is undergoing some changes. Looking at the Edmonton Marketplace from the perspective of housing, business, and community. The city has much to offer and continues to get better as the years progress. You might be just getting your feet in position to explore what the city has to offer. So use good posture, stand up straight, and lets see what we can find.
Buying a home is, for most, the biggest financial decision made in a lifetime. The financial responsibility and the necessary care and maintenance of the property are an ongoing responsibility, that can be both stressful and ultimately rewarding.
If you’re a new homebuyer, your first home will likely be the biggest financial obligation you’ve ever faced. You should already be an experienced saver and good at managing debt like student loans or credit cards. Ideally, you’ve also saved up some money for a nice down payment. There are programs to assist those who are just getting into a home for the first time. The Home Buyers Plan (HBP), for example, is a one that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. Making use of a program like this during a buyers market can be a significant advantage in getting into a new home.
But when is it time to Buy? When is it time to sell? These are highly personal questions, but market indicators are always valuable to assist in the decision making process.
Edmonton Realestate Prices have been Decreasing in the past year.
A common understanding in the world of investing whether it be Edmonton real-estate or otherwise is that in order to be successful one must buy low and sell high. We all understand this concept, but the average person does that exact opposite in action. They tend to buy while prices go up and sell when prices are stagnating or diminishing. Perhaps this is more relevant within an, often shorter term emotionally driven investment, apparatus like the stock market, but we do see elements of it in the Real estate sector as well.
For example, the Edmonton residential market, and the surrounding region has cooled off in the past couple of years. That latest figures from the Realtors Association of Edmonton indicate that “the average selling price for all types of housing was $377,880 in June 2018, a decrease from $393,468 in June 2017.” It goes on to say that condo’s had the largest price drop, down by a year-over-year of 8.6 percent to $238,141. This was compared to a price decrease average of only 2.4% for single-family homes. ( $443,210)
One would suspect that buyers and investors would take advantage of cooling prices in the market, but instead, condominiums spent an average of 67 days on the market, which was five days longer than the previous year, and it took 50 days to sell a single-family home, four days more than in June 2017. Figures for the first half of the 2018 calendar year show that prices are down about 0.85% which is nominal and relatively stable, and yet marketing inventory rises while time on the market increases.
Does The LRT Effect Market Prices?
The City of Edmonton has been expanding its LRT service over the past couple of years and with the retreat of Greyhound bus services from western Canada, there is a larger need for the LRT. How does this potentially impact Housing and rental prices?
City of Edmonton
A Building Design and Construction report, albeit it based in the United States, said that buildings located in close proximity to the LRT stations can bring in lease rates 65% higher than buildings that are car-dependent. The analysis that was done within fifteen large metropolitan cities concluded a significant difference in average rent. Statistics demonstrated a differential the had a range as high as 80% between locations from which transit was the best way to get to work as compared to where employees needed to drive a car. Rental rates varied from $43.48/sf in LRT friendly zones, compared to $26.01/sf in zones where driving was a necessity. Something to be considered for those using Real estate as investment rental properties.
Edmonton Business might behave at less of a difference than comparative metro areas, due to the fact that the LRT is far less developed than most large cities, and as a prairie city is sprawled out over a much larger land area than most American cities of similar population. That said, there is still rental rate differential but perhaps at a percentage that is not as high. Phil Goh, a senior VP specializing in leasing and sales for Colliers International, speculated a range closer to 10-20% for a location like Edmonton.
Just factor in the downtown parking rates for Edmonton and Calgary (which are the highest in Canada ) and second most expensive in North America, according to global real estate firm Colliers International’s 12th Annual Parking Survey. This study dates back to 2012, however, the two Canadian cities still rank high in 2018. In the 2012 report, Edmonton was not far behind, ranking as the fourth most expensive place to find parking downtown. Calgary was behind only New York city which had a rate at (US$562 Midtown, US$533 Downtown) compared to Calgary’s (US$439.93)
These parking rates are likely to adjust as supply a demand factors adjust. For example, the increase of driverless cars which do not require parking in busy areas would affect these prices. They can drop off the passenger and then move themselves to another free parking location to remain dormant when not in use. Another factor is the Digitization of many businesses. Such as online retailers, digital marketing services, and other entrepreneurial businesses which are happening increasingly online. These developments mean that fewer people need to travel to congested metropolitan downtown areas as they are able to work from a non-geographically specific area. Interestingly there are statistics that indicate that over half of us find our realtors by doing online searches. Which speaks loudly to the reason why Edmonton SEO companies and SEO Consultants are so popular in the industry.
Understanding The Real Estate Basics
Real estate is an industry that requires skills, knowledge, and intuition. Only smart and knowledgeable real estate agents manage to become successful and to make a great living out of this trade. The good news is that you can train to become a real estate agent at any age, provided that you are willing to learn the nuts and bolts of this profession. This article shows you how to understand the basic real estate rules and principles and how to seek for more in-depth information and training resources. You won’t become a seasoned professional after reading it, but at least you’ll know where to start your research from.
First of all, you need to be aware of the fact that you won’t be able to cover a very wide area by yourself and do a great job at finding your clients their dream properties. You should choose an area and learn it very well, and then seek for the best opportunities in the real estate market. You also have to learn what property owners in this neighborhood seek for in a real estate agent. You have to be ready to understand their needs and their requirements, in order to be able to market their properties like a pro.
On the other hand, you have to understand the psychology of the buyers. This should enable you to work less, as you’ll be able to find their dream homes much easier. Both real estate buyers and homeowners will love you for not wasting their time. Sellers want their properties to sell very fast and for the best possible price. Buyers want to find their ideal home fast and easy and to pay a fair price for it. You have to understand the local market by watching it closely for a while before you are able to do the best work for your clients.
By narrowing down your market, (is it a buyers market?)you’ll be able to position yourself as an authority on your local real estate market. People will come to you to help them sell their houses before they list them on various websites or on real estate directories. You’ll be the first to know about all properties that become available, so you’ll have an excellent competitive edge. This will enable you to offer potential buyers the properties of their dreams before anyone else. They will be grateful for this opportunity to acquire a house or a commercial property they want, without having to wait for weeks or even months. Nobody wants to attend hundreds of open house events before finding what they want. The more efficient you can be, the more clients you’re going to have. Recommendations and word of mouth marketing work like a charm in this industry. It would be a shame not to take advantage of this great opportunity to build your brand awareness and to position yourself as the absolute authority on your local real estate market.
The other thing you have to learn is how to prepare a property for sale. Your clients won’t know what to do to make their homes more appealing to potential buyers. You’ll need to give them advice on what to improve and what to ignore, in order to curb the appeal of their properties without spending a fortune on furniture, landscaping and other major improvements. If needed, you should take an interior design course, as it might serve you well in your work as a real estate agent.
Home inspections are yet another thing you have to mater before being able to call yourself a realtor. you have to know how to identify the hidden flaws of a building and how dangerous they are to the property. You won’t need to do a thorough inspection by yourself, but you’ll have to hire professional inspectors to do it whenever required. Real estate buyers want to pay the right price for the properties they acquire. If there are flaws, the price should be lower, as they will have to fix these problems before being able to move in safely. You, as the real estate agent, are responsible for offering your clients fair deals that both the seller and the owner will be happy with.
Last but not least, you may have to improve your negotiation abilities and your presentation skills. These soft skills are easy to learn, provided that you find the right trainers.
All these being said, you are on your way to becoming a real estate agent. As you gain experience, you’ll become wiser and more prepared to handle all challenges and issues that may occur. This is both a skill and an art. You have to do your best to offer your clients a win-win situation. This is what will bring you recognition and fame on your local market. You’ll also make a very good living, as real estate is a very lucrative business. If you are lucky to work in an area with lots of luxury properties, you won’t need to sell more than a couple of home per year to live happily with your family. However, you should take into account the fact that very expensive properties are extremely difficult to sell. they require you to find the right buyer, and that may take many months or even years. If you don’t want to wait for that much, you should focus on less expensive neighborhoods, where you’ll be able to sell or rent multiple properties per month.
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