Buying an Edmonton home situated on leased land 

Usually Edmonton buyers purchase thier homes on land which are not leased. However there are several properties where the dwelling is sitting on leased land. This could be anything from apartment condominiums near the University of Alberta, retirement condos in Spruce Grove, a few Edmonton neighborhoods, an additional green space attached to your back yard or other instances.

How do you know if the home you are purchasing is sitting on leased land?

Leased land is usually crown owned land where the government owns it. Usually a land lease will be for between 50 and 99 years. This can be found on the land title certificate.

What are the advantages of land lease contracts?

The most significant advantage of a land lease is that the purchase price is almost always less than that for a home bought in the traditional manner. Not buying the land saves money. This enables you to purchase a higher quality home in a more expensive residential area than you might otherwise be able to do. Also, because you don’t own the land itself, you will have lower property taxes to pay.

What are the disadvantages of leased land?

There are downsides to holding property under a land lease contract. It is often problematic finding financing for land lease homes and makes them harder to sell. If the remaining lease term is less years than what you want a mortgage for, it will be very difficult to obtain the financing. If the lease is near the end, the owner will generally renew it, although with a rental increase.

Are new homes on leased land?

Not necessarily. Most new builds in Edmonton are not located on leased land. However keep in mind with Canada's housing shortgage, many future new builds in Canada may be built on crown land which will be leased land. 

30 Year Mortgages are back.

Starting August 1st, first time home buyers purchasing new home will be allowed to obtain a 30 year amortization instead of 25 years which will help lower your monthly mortgage payments. There are a few catches.

1. Can not be a new build or spec home

2. First time buyer will be anyone who has not owned a home in the last 4 years.

There is also a change to RRSP withdrawals for first-time home buyers. The limit presently is a max withdrawal of $35,000 per person. This is being raised to $60,000. This will take effect April 16th.

Any question, feel free to contact us.

When it comes to buying or selling a property, transparency is crucial. Courts have found that both sellers and agents have a responsibility to disclose any relevant information about the property's condition.

It is important for listing agents to educate sellers about the risks associated with not disclosing relevant information about the property's condition.

Failure to disclose can lead to lawsuits and financial consequences down the line. By being transparent, sellers and their agents can avoid potential legal issues.

When buyers have a complete understanding of what they are investing in, they are making an informed decision. This protects against a buyer suing their agent when they become aware of an issue they feel should have been disclosed.

Material Latent Defects

Sellers should disclose any material latent defects, which are hidden flaws or issues that may not be easily visible or known to the buyer but give rise to an argument that the property value is impacted by them. Past issues or claims related to the property should be disclosed, regardless of whether they have been resolved or remediated. This includes previous insurance claims, repairs, or renovations.

Read more on Latent Defects

Yes, you can! 

What is real estate co-ownership and how does it work?

The most common type of co-ownership of property aside from are tenancy in common and joint tenancy. Tenancy in Common is ownership of title to property by two or more persons. 

With the newest fad of co-ownership, it is easier to make your real estate dreams become a realty. If you ever wondered if there is a stranger out there who wants to purchase a single family house instead of buying into the condo market, you've come to the right place. Instead of buying a townhouse condo for $300,000, you can own a $600,000 house! We bring qualified strangers together and find them the best homes. 

How does it work?

Both you and "the stranger" will view homes together and together, you both choose the best one. This is also a great opportunity to meet the strangers to learn if they will be compatable with you. The stranger MUST have their mortgage pre-approval in place prior to viewing any homes. Once you both have decided on a property, the offer is still contingent to finance approval and property inspection. Once all contingincies are met, you are both proud owners of your dream home.

Can I sell my portion of my home anytime?

Absolutely! You have the legal right to sell your share of ownership anytime. In Edmonton, selling 50% interest/equity is less common than other large cities such as Toronto and Vancouver where prices are extremely high, but as Edmonton REALTORS®, we see this more and more since interest rates have risen. 

If you are interested in a co-ownership in a property within Alberta, simply fill in this form and we get back to you with 2 business days. 

The Government of Alberta announced an unexpected change to the Land Titles Registration Fee during the release of its Budget 2024 on February 29, 2024.

Homeowners will soon see an exponential increase in closing costs. Currently, consumers pay a $50.00 fee and an additional $2.00 for every $5,000 of the property's purchase price for the title transfer and an additional $50.00 fee plus $1.50 for every $5,000 of the mortgage amount.

With this change, homeowners will now pay a $50.00 fee and an additional $5.00 for every $5,000 of the property's purchase price for the title transfer, and an additional $50.00 fee plus $5.00 for every $5,000 of the mortgage amount.

For example, the price of registering a $450,000 home with a 10% down payment, will jump to $955, an increase of $553.50 from the current fees.

The increased costs are intended to provide support for the continued modernization of the registries system. No implementation date has been announced, but we will inform members once we receive more information.

Graphic provided by the Government of Alberta. Please note: there is an error as it should be cited as a 10% down payment for proper calculations.

As an Association, we are disappointed by yesterday's announcement as it came as a surprise to many within the industry. Purchasing a home is one of the biggest financial decisions that consumers will make, and the additional cost could inhibit or impact the dream of homeownership for many.

Although Alberta's land titles registration fee remains lower than other provinces, we know this will have a direct impact on the clients you serve every day. The Alberta real estate association has committed to advocating for the subsequent removal of the increased fee once the land titles modernization project has been completed.

Read more on home buying closing costs

Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for January 2024 came to 1,439, an increase of 17.5% from December 2023, and 46.8% higher than January 2023. New residential listings amounted to 2,195, a number 49.3% higher than in December 2023, and 2.3% lower than January 2023. Overall inventory in the GEA decreased 1.9% from December 2023 and 12.1% from January 2023.

For December, detached unit sales totalled 876, higher than the previous month by 25.0%, and up 51.0% from the previous year. Semi-detached unit sales held steady at just 0.7% higher month-over-month but showed an increase of 41.0% year-over-year. Row/Townhouse unit sales had a similar nominal increase of 0.5% compared to December 2023 and an increase of 31.1% from the previous year. Apartment Condominium unit sales also saw a significant year-over-year increase coming in at 50.0% over January 2023, and increased 16.9% from the previous month.

Total residential average prices came in at $398,724, a 2.5% increase from December 2023, and a 7.6% increase from January 2023. Detached homes averaged $484,365, decreasing 1.0% from December 2023 and up from the previous year by 7.3%. Semi-detached units sold for an average of $378,421, resulting in a 6.6% increase year-over-year, and a 4.0% increase from the previous month. Row/townhouse prices were up 2.8% from December 2023 and 8.6% when compared to January 2023, selling at an average of $268,948. Apartment Condominium average prices hit $192,660, increasing 12.8% over last month and 1.1% higher than the previous year.

The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $376,700, decreasing 0.1% from December 2023, and a year-over-year increase of 2.9% from January 2023.

“Edmonton real estate market is off to a good start for the year, with strong sales and prices compared to last year,” says REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles. “But we’ll be watching our inventory very closely leading up to the spring market. We want enough new listings available to meet the demand that is clearly there.”

Detached homes averaged 60 days on the market, increasing seven days from December 2023. Semi-detached homes averaged 53 days on the market, an increase of 12 days from the previous month, and row/townhouses’ days on the market increased three days to 53. Apartment condominiums averaged 65 days on the market, showing a nine-day increase from December 2023. Overall, all residential listings averaged 59 days on the market, a month-over-month increase of 7 days and a 7-day decrease when compared to January 2023.

Yes. You read that correctly. Canada now has 40 year mortgages. 

The government just announced 40 year mortgage amortizations to help Canadians lower their monthly payments. When I first heard this, I thought there may be some help for those who are struggling to make their monthly payments. After doing more research, I discovered there is a catch and personally I think this is a joke! 

Advantages

- Slightly lower payments

Disadvantages

- Higher interest Rate 

- Canada’s major banks do not offer 40-year mortgages

- Requires a minimum down payment of at least 20%

- Takes several more years to pay off your mortgage 

The only people this new 40 year mortgage amortizations will help are the investors who need to lower monthly payments on their revenue properties. This will enable landlords to keep rents a bit lower. But for most Canadians who are struggling to make current mortgage payments with today's interest rates - this is a complete joke. Even if you have the 20% equity in your current home and switch to a private lender for a 40-year mortgage, you will still be paying about a 9% interest rate. This makes absolutely no sense.  

Read more on 40-year mortgages

Embracing Affordability: A Guide to Relocating to Edmonton

Moving to a new city is an exciting adventure, and for those considering a move to, Edmonton stands out as a vibrant and welcoming destination. Nestled in the heart of Alberta, this city boasts a unique blend of urban sophistication and natural beauty. In this blog post, we'll explore the reasons why relocating to Edmonton might just be the fresh start you've been dreaming of.

1. Thriving Job Market: Edmonton is a city with a robust economy, offering ample opportunities for career growth. As the capital of Alberta, it serves as a major hub for industries such as oil and gas, technology, healthcare, and education. Job seekers will find a diverse range of employment options, making Edmonton an attractive destination for professionals looking to relocte and advance their careers.

2. Rich Cultural Scene: Culture enthusiasts will feel right at home in Edmonton. The city is home to a vibrant arts community, with numerous theaters, galleries, and cultural events throughout the year. The Art Gallery of Alberta and the Royal Alberta Museum are just a couple of the cultural gems waiting to be explored. Additionally, Edmonton hosts numerous festivals, celebrating everything from film and music to food and winter sports.

3. Natural Wonders at Your Doorstep: For nature lovers, Edmonton is a paradise. The city is surrounded by stunning landscapes, including the iconic Canadian Rockies. Within the city itself, the North Saskatchewan River Valley offers an extensive network of parks and trails, providing ample opportunities for outdoor activities such as hiking, biking, and picnicking. Edmontonians take full advantage of their beautiful surroundings, no matter the season.

4. Family-Friendly Communities: Edmonton has consistently ranked as one of the best places to raise a family in Canada. The city offers a range of excellent schools, family-friendly neighborhoods, and recreational facilities. From interactive museums like Telus World of Science to the Edmonton Valley Zoo, there are plenty of educational and entertaining activities for families to enjoy together. Top family communities include Terwillegar, The Meadows and Hermitage.

5. Diverse Culinary Scene: Food lovers rejoice! Edmonton's culinary scene is diverse and thriving. From local farmers' markets to international restaurants, there's something to satisfy every palate. The city takes pride in its farm-to-table ethos, with many establishments featuring locally sourced ingredients. Whether you crave comfort food or exotic flavors, Edmonton has it all.

6. Affordability: Dispite, real estate prices skyrocketing accross Canada, Edmonton is still a very affordable place to purchase real estate. Whether you choose to purchase a single family house, townhouse or retirement condo, Edmonton has many great places to live with a focus on 15 minute cities. 

Conclusion: Relocating to Edmonton is more than just a change of address; it's an opportunity to embrace a high-quality lifestyle in a city that values community, culture, and the great outdoors. Whether you're drawn to the economic opportunities, the cultural richness, or the natural beauty, Edmonton has something for everyone. So, pack your bags, and get ready to call this dynamic Canadian city your new home. Welcome to Edmonton – where adventure meets opportunity.

With so many people moving to Edmonton in the last few years, virtual buying has become a popular way to purchase homes. Thinking of relocating to Edmonton and need to buy virtually? Learn how virtual home buying works. 

What is a 15 Minute City and does Edmonton have them?

The concept of 15-minute cities is an urban planning and design idea that aims to create more sustainable, livable, and interconnected communities. The idea is to organize cities in such a way that residents can meet most of their daily needs within a 15-minute walk or bike ride from their homes. This concept was popularized by Professor Carlos Moreno, a French-Colombian researcher.

In a 15-minute city, residents are in close proximatity of essential services such as grocery stores, schools, workplaces, healthcare facilities, and recreational areas are located within a short distance from residential areas. The Streets are designed to be pedestrian and cyclist-friendly, with well-maintained sidewalks, bike lanes, and green spaces for a high walkability.

It is a mixed land use developement which is diversified within neighborhoods, promoting a mix of residential, commercial, and recreational spaces. This reduces the need for extensive commuting and an emphasis on supporting local businesses, encouraging a more self-sufficient local economy.

The goal of 15-minute cities is to reduce reliance on cars, decrease commute times, promote a sense of community, and enhance the overall quality of life for residents. The concept is being explored and implemented in various cities around the world as a response to urbanization challenges and the desire for more sustainable urban living.

Does Edmonton offer 15 minute cities

Edmonton offers several communities which are close to 15-minute cities. However, Edmonton has plans in place to create more in the Orchards, Meadows and Heritage Valley.  These neighborhoods offer several potential benefits that contribute to a more sustainable, enjoyable, and community-oriented lifestyle especially for those who work remotetly.

Overall, the 15-minute city concept aims to create urban environments that prioritize the well-being of residents, promote sustainable living practices, and build strong, interconnected communities. It aligns with the growing awareness of the importance of sustainable development and the desire for a more balanced and fulfilling urban lifestyle.

Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for October 2023 came to 1,812, decreasing from September 2023 by 12.0%, but showing an increase of 21.0% over October 2022. New residential listings amounted to 2,753, which is 8.8% lower than September 2023, and 5.8% higher than October 2022. Overall inventory in the GEA showed decreases of 12.7% from October of last year and 4.9% from September 2023.

For October, detached unit sales totalled 1,055, a decrease of 12.7% from September 2023, but up 12.6% from the previous year. Duplex sales were down 9.2% month-over-month but showed an increase of 20.7% from October 2022. Row/Townhouse unit sales were down 2.2% from September 2023 and up 26.4% year-over-year. Apartment Condominium unit sales saw numbers increase 57.3% from last year and dip 19.2% lower than September 2023.

Total residential average prices came in at $396,550, a 0.6% increase from September 2023, and a 0.7% decrease from October 2022. Detached houses averaged $486,751, amounting to a 1.8% year-over-year increase, but a 1.4% decrease from September 2023. Semi-detached sold for an average of $385,895, resulting in a 4.2% increase year-over-year, and a 9.0% increase from the previous month. Row/townhouse prices were down 3.1% from September 2023 and down 0.6% when compared to October 2022, selling at an average of $258,779. Apartment Condominium average prices hit $203,663 showing increases of 11.8% from last month and 8.9% from last year.

The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $377,000, resulting in a decrease of 0.8% from September 2023, and a year-over-year increase of 0.6% from October 2022.

“We’ve seen in other markets what a low supply of inventory can do to home prices,” says REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles. “And that applies on a smaller scale to any market during the colder season. There are buyers who can’t wait until spring when more properties become available, and they’re willing to spend more on the right place. But until we see interest rates come down, for many people those detached homes are still out of reach.”

Detached homes averaged 43 days on the market, increasing one day from September 2023. Semi-detached homes averaged 47 days on the market, an increase of 10 days from the previous month, and row/townhouses showed now change, averaging 42 days on the market. Apartment condominiums averaged 61 days on the market, showing a seven-day decrease from September 2023. Overall, all residential listings averaged 46 days on the market, increasing by two days month-over-month and dropping by four days in comparison to October 2022.