Wednesday, October 28, 2009

Condo Inspection - Newer Construction

Should you get your newer condo inspected? The answer is YES. Even though, newer high rise and low rise buildings carry warranties, it may take sometimes a long time before you can get the builder to fix any deficiencies. If I was buying, I would definitely hire an inspector. The costs can vary but the average inspection is around 400.00 dollars.

I have recently worked with a client who was buying a condo in a newer downtown high rise. Upon inspection, we found that 3 electrical plugs that didn’t work, a worksmanship deficiency when the building was constructed. The problem could be as simple as a broken wire connection or more complex where the entire line would have to be rewired which would involve removing part of the drywall and so on. To make the story short, the cost to fix it could be as little as couple hundred dollars or as much as couple thousand. In such case the buyer may proceed with the purchase if the seller agrees to further price reduction because of the false wiring. The question is how much should you ask for, which in this case is hard to assess. Well, my client was ready to walk away. However, after further conversation with the other party, the sellers agreed to fix the problem. Peace of mind for my client, definitely worth to spent that few hundred bucks.

Saturday, October 17, 2009

Downtown and Oliver Real Estate Market update

We surely got a jump start to winter with couple warm days to follow.  I'll take it.  

Downtown and Oliver Edmonton real estate market seems to be steady in the first two weeks of October.  As of today, there are 255 condos for sale in downtown area and 214 below 500K mark, that is 3 percent lower than in September .  The inventory is getting lower again ( see the below trend) and yet sales are decreasing as the Christmas holidays are getting near. 

Inventory in June 332, July 293, August 273, September 263, 1/2 of October 255

34 condos have sold through MLS® system in Oliver and Downtown Edmonton , 32 under 500K and 2 above that price.  The average sold price was 260,950 / 280 per square foot and list price 270,092 / 290 per sq.foot. Days-on-market ratio is higher at 58 and sold-to-list price is sitting at 96%.  No change in absorption rate which is 4.2.  Even though the per square foot price is lower this month by 3.7 percent so far, I wouldn't get to excited till we see the monthly statistics. 

If you would like to add your thoughts as to the future of Downtown Edmonton real estate market, please don't hesitate to comment.

Sunday, October 4, 2009

Downtown and Oliver Condos Market Update

It's already October and it seems like the summer was never here. The colder temperatures and yellow leaves on the ground are just the reminders of the inevitability of cold winter coming our way. Will Edmonton real estate market bring cold or warm welcome to our homes as the new year approaches? The answer by some is "neutral". I let you figure out what they mean by that.
The last months number of Downtown and Oliver condos sold through the Edmonton MLS® have decreased slightly by 8.5 percent as September is historically a slower month. 63 condos have sold in total for the average price of 265,552 and list price of 275,556 and 60 under 500K mark.

Below graph shows average sold price per square foot - Downtown and Oliver condos under 500K mark
The price per square foot have increased by 4.8 percent from 277 per sq.foot in August to 291 in September. The inventory has also decreased by 3.7 percent, good news for the sellers. The absorption rate stood at 4.2 with an average sold-to-list price ratio of 96% and days-on-market of 42.
Number of Downtown and Oliver Condos Sold
Statistics table For Downtown and Oliver Condos sold in September under 500K double click for a closer look

Data provided by REALTORS® Association of Edmonton
When looking for properties visit our Edmonton MLS® Search