Alberta

The pattern continues. Our listing inventory has dropped to 9612 from 10,335 in July. That is a big drop. If we continue at this rate, then our inventory could easily drop under 7000 homes for sale. Last year (2007) we saw a drop to the 7000 level, but the inventory didn't start falling until October. Therefore, we may even see 5000-6000 numbers for inventory. If we do see this level and our sales remain strong, then price increases could be expected in 2009. Those are mighty big "ifs", but the pattern and graphs are pointing in that direction. A 5000 level of inventory with 1500-2000 sales per month would definitely create a seller's market. Before everyone gets too excited, we won't be returning to the 50% annual increases in price soon. We should come back to the 5-7% annual price increase that we had in the early 2000's and late 90's IF the patterns continue.

As for sales, we were a little softer than July. In July we saw 1752 sales and in August we have seen 1541 sales. Softer than July yes, but this is much stronger than last year, August 2008 only saw 1229 sales.

Days on market has crept up, we are now at 63 days in August. We were at 55 days on the market in July. Two things can be the causing this. This could be a signal that the market is slowing. Or, is this a signal that sellers are starting to dig in their heels and are willing to wait for higher offers? September should answer a few more questions.

Sometimes when you have a good thing you take it for granted and often treat it quite badly. As I type that sentence I don't know how many pop songs are flitting through my head. It's quite a common theme.

We do it to cities too. Let's take Edmonton it's had it's booms and busts over the years. Many complain about traffic, cost of living, lack of service, increasing taxes and house prices flattening out. Well if you look at all those things objectively they are signs of a great economy. Don't scoff.

Traffic - increased traffic means population growth. The city is working hard to improve infrastructure and the LRT and Anthony Henday are huge projects that will relieve congestion.

Cost Of Living - It's low. Albertans still pay the lowest taxes in Canada. What you pay $1.07 for at your local Walmart might cost up to $1.13 in Ontario, $1.12 in B.C and poor souls $1.15 in PEI. Having the highest salaries in Canada doesn't hurt either.

Lack Of Service - This means the economy is booming. It's sad you can't get served as quickly anywhere but that's because we can all get great jobs at high wages. No one wants to work for $17/hr at McDonalds anymore.

Increasing Taxes - Like it or not increasing taxes is good. It means your property values are going up. I don't like and I don't look forward to that time of the year but it's unavoidable.

House Prices Flattening Out - Well if they didn't we would be in a sorry state. Affordability would drop, immigration would peter out and our great economy would slow right down. One year of healthy adjustment is worth all of that believe me. Just wait for 2009 when prices start to inch up again.

The next time you start to complain about Edmonton think of the big picture, maybe you will smile.

Purchasing a home can be a stressful experience for anyone, but especially for first-time buyers who may not be aware that there are a host of costs associated with buying a home other than the actual purchase price and real estate commissions. It helps to know what those costs are in advance rather than get an unexpected surprise at closing and add to an already stressful experience.

Many of the costs are a factor of the purchase price, the value of the home and/or the amount of financing you are obtaining.

Closing costs. These generally refer to legal fees, property tax and utility adjustment costs and, in some provinces, land transfer taxes.

Legal costs go to cover lawyer (notary in Quebec) fees and legal transactions such as reviewing the terms of the offer, preparing and signing a mortgage, conducting a title search on the property, registering a new title, obtaining relevant documentation and determining appropriate adjustment costs.

You should consider hiring a real estate lawyer to handle your transaction. If you don't have or know of a lawyer, your best referral source is family or friends, or through the law society in your area.

Land transfer tax. In some provinces this tax is levied when property changes hands. It varies with the purchase price of the property.

Other costs. Costs other than closing costs can include but are not limited to the following:

Property Survey. This is undertaken to verify the location of property's boundaries, measurements and structures and identify any easements, rights of way or encroachments on your, or adjacent properties. Title insurance is often an alternative to a property survey.

Interest Adjustments. This covers any interest accrued between the closing date of the purchase and the first regular payment date of the mortgage.

Goods and Services and Sales Taxes. GST and sales taxes will depend on the type of property being purchased. Always ask if either or both of these taxes apply before signing an offer to purchase.

Service Charges. These are charges to hook up utilities such as electricity, gas, and telephone service.

Home Inspection. It can be a good idea to have an inspection done before completing the purchase to evaluate the structural and mechanical condition of the property. This could save you lots of money in future repairs.

Appraisal fees. Some purchasers want to ensure they are paying a reasonable market price for the home they are purchasing. You may want to condition your offer subject to a satisfactory appraisal by a member of the Appraisal Institute of Canada.

Mortgage Life Insurance. Special insurance coverage to cover the cost of discharging your mortgage in the event of death or severe illness is available from most lenders.

Moving costs. Although it may sound obvious, purchasers may not consider moving as a cost of buying a home. Moving costs will depend on the distance of the move and the amount of furniture and goods to be transported. Get several movers in to give you an estimate before choosing one.

Appliances. Check to see whether appliances are included in the purchase agreement. If not, you will need to go out and buy them.

Landscaping, Fencing, Decks, etc. If purchasing a newly constructed home, keep in mind that there will likely be a need to landscape and fence the yard in the first year or two.

Annual maintenance. Homes like other possessions require care and maintenance to maintain their value. You need to plan for future painting, and replacement of any needed items like roof shingles, appliances, furnaces, depending on the age of the home you are buying.

CLOSING COSTS SAMPLE CALCULATION FORM

To assist you in preparing for closing costs, Dominion Lending Centres has created this document so that there won't be any surprises come closing time. Please contact me with any questions you have regarding any of the below items. Costs will vary.

If you're in the Edmonton market and feel that it's going to bottom out, the prices will be halved and we've seen it all before then you are not looking at the big picture and you need to stop reading the newspapers.

I've seen so many articles talking about the incredible amount of listings on the mls.ca and private listing services but when you really think about prices didn't plummet as every pundit forecasted. In fact they leveled out a bit and now are holding steady at about 10.98% lower than last year.The prices rose 40% for single family residential homes from 2006 so we are still holding a 25%++ increase in values since 2007.

Take a look at this chart from EREB

Looks like a healthy market that is just adjusting to keep affordability in line - we used to be the 10th highest priced city in Canada now we are around 5th. Not overpriced and not undervalued as in 2006.

EREB predicts that the market will pick up over autumn and we will see an increase in sales which will cause the inventory to decrease and over time values to increase.

So basically this sale won't last for long! If you think you'll wait until prices "bottom out" to invest then don't hold your breath - who could predict that anyway? There are so good properties on the market with motivated sellers, it's a situation that won't last for much longer.

To see some of the investment deals we've picked up in this market click here.

On Aug 24, I had the race of my dreams ... taking 28 minutes of my best time, qualifying for the Ford Ironman World Championship in Kona, and finishing 3^rd in my age group.

About 10 months ago ... I booked my Kona accommodations from Oct 2-17 ... for WHEN I qualify for the World Championships on Oct 11. My mind set was ... Kona or bust.

Since I did not register for IMC, I had to qualify to get there. I qualified in Oliver, BC on June 1.

"Whatever you can do, or dream you can, begin it. Boldness has genius, power and magic in it." Johann Wolfgang von Goethe

I had a great race ...

Swim Time - 1:01:12

In my opinion ... this is a pretty smoking time. I don't deserve it. In the pool, I work hard to hang onto my mates that swim IM in 1:10 and 1:15.

How did you do it? I swam on the inside next to the buoys ... and looked for fast feet to draft onto. Because I can't swim in a straight line ... I try to find someone with some florescent patch on their leg ... then I just enjoy the bubbly sensation hanging onto their draft. I think many years of playing Rugby and inventing "Chinese Downhill Ski Racing" as a teenager ... turns out to assist my meditative state in chaos.

Bike Time - 5:15:21

When I did Ironman in 2006, I missed the roll down to Kona by one spot and just a few seconds. I said then that I would get ‘fitted' with gear for the next Ironman.

However, I was very reluctant. (I'm cheap.) Finally in Mid July I broke down and got a tri specific bike - a Cervelo P2C. My good friend Greg Kolodziejzyk helped me fit the bike to copy my existing position. He also set me up with an SRM (to measure power), race wheels and an aero helmet! (His help was simply amazing!)

My plan: Hold 210-220 watts for the entire bike ride, and sip on my 1500 calorie bottle and drink one areobar water every aid station.

I followed the plan ... and for the most part really enjoyed the ride. My $80 Aero Bontragger (... which supposedly would make me 2 min. faster) water bottle was really heavy ... and it actually fell off the bike early in the race. I turned back and collected it.

(Did you Pee? 5 times!)

FIRST BIKE SEGMENT - 42.5 mi. (2:05:51) - 20.26 mph

FINAL BIKE SEGMENT - 69.5 mi. (3:09:30) - 22.01 mph

Run Time - 3:24:35

My plan was to start slow for 3-10 km ... then when feeling good ... I would try to hold 8 minute miles to do a 3:30 marathon. My watch was broken and I forgot to take my new fandangle Garmin 405 ... so I had no way to measure pace.

I did start slow for about 3 km ... then picked it up. I felt great most of the run ... and just wanted to the finish and enjoy some pizza. About Mile 22 ... my newly developed Abdominal Hernia ... began to cause some grief. I thought I was well ahead ... so I slowed considerably. In the last 500m of the run ... I wasn't paying attention ... and was passed ... putting me in 3^rd place.

FIRST RUN SEGMENT - 13.1 mi. (1:42:07) - 7:47/mile

FINAL RUN SEGMENT - 13.1 mi. (1:42:28) - 7:49/mile

"You must learn from your past mistakes, but not lean on your past successes." Denis Waitley

What did I do to get to Mr. Happy going to Kona?

-I signed up with Critical Speed. I wanted training partners - who would push me.

-I lost weight. Since November I lost 10-12 lbs. On the day before Ironman I was 162 lbs. (Depending on the time of day ... and the scales I stood on ... I got down to 155. In November I was 170.)

-I got a new bike ... and Greg Kolodqiejzyk set me up and helped me with a ‘power' plan.

-I had a nutrition plan. Hammer Product works great for me.

-I had fun with age-old idea's, recently made popular by Oprah, contained in "The Secret", and "The Law of Attraction".

I'm Mr. Happy

I've been ‘visualizing' a sub 10 hour Ironman ... with the idea that I would be okay with a 10:10 ... which I figured would qualify me for Kona.

I may have wondered in the past if I could do a 9:45 ... but it would have only been a fleeting thought.

It was of course wonderful to have my wife Shirley, and kids Robin and Jacob with me. It was very special to run down the chute with Jacob.

Also, my sister Peggy and her family were all there.

It was cool.

What's next?

I'm looking forward to The World Championship in Kona ... the flights are booked ... and we are all excited.

(This far I haven't committed to a goal - other than raising money for Habitat for Humanity ... but I'm wondering why I shouldn't be able to do sub 10 hours again.!)

I'm on the ‘once an age group Ironman program'. Thus far I've done three IM ... all in different age groups. I look forward to doing more cycle and sea kayak touring, short adventure races, and short tri's. After Kona, I'll be looking for an Ironman sometime after 2012. Until then, I'll stay fit ... and I'll be strategizing on how to win my age group next time!

As Ralph Waldo Emerson said "The reward of a thing well done is to have done it."

I love being outside ... and I love training. It makes me a better Dad, and a better realtor. My reward is surrounding myself with great people, and visualizing the results I want. (Many thanks to my wife Shirley and kids Robin and Jacob. Big Thanks to Coach Cal - Critical Speed, Les Hewitt - Power of Focus, Mike Ferry - Real Estate Coach, Don Campbell - REIN and Greg Kolodqiejzyk).

... I am Mr. Happy. (I wore this T-Shirt at the awards ceremony at IMC.)