Lyndon Sommert

It sure feels like Spring Fever has hit early this year. I think it’s due to two major factors, one being the weather, and the other is just pent up pressure that the market has. How can you not feel good when you spent the last 3 months mentally preparing yourself for minus 30°C of bone chilling cold and it doesn’t even come close.

Its February now and March is often thought of as the first month of spring. I don’t know about you but knowing that spring is only a month away makes me feel warm inside. All these warm fuzzy feelings create happiness and as a result the regular Real Estate Spring Fever catches on.

The numbers of showings are pushing up every day and the phone is ringing. Could it be another gangbuster year like 2006? Probably not as the market just isn’t ready yet, 2012 will be a solid year in Real Estate with confidence just getting stronger, the real next push on pricing probably won’t happen until 2013.

What I believe is the most exciting part is how sustainable and strong it will be for a long time after. When large companies, like the ones in Alberta, that are expanding put plans together, its well planned for a long period. What this all means is that the gradual momentum has built roots to keep it strong in a storm.

Investors of all sorts see this as the best risk place to put their money and if you look at the rest of the world, we are definitely in the top 5% of the places to invest. Money is always flowing and there is always someone getting financial benefit in any economy. This is the bottom line! Those who invest in Real Estate and hold for the long term are guaranteed a huge ROI (Return On Investment). It’s going to be a great year and Albertans are lucky.

Prices up to $2 million expected in 35-storey downtown building aimed at affluent buyers with taste for city living

By Gary Lamphier November 16, 2011

EDMONTON — Is there a market for $2 million condos in a city where the average unit currently sells for about $224,000?

Regency Developments thinks so, and the low-profile, family-run Edmonton firm is putting its money where its mouth is.

Regency’s 35-storey Pearl condo project — on the south side of Jasper Avenue at 120th Street — is expected to be the tallest, most luxurious condo tower in the city by the time it’s completed in early 2014.
With units ranging from roughly $300,000 at the low end to $2 million at the top end, The Pearl is aimed at affluent buyers with a taste for city living, and who see plenty of upside ahead as downtown Edmonton undergoes a dramatic transformation.

“We felt there was a new bar (for quality) to be set in Edmonton, and that’s what The Pearl will represent,” says Raj Dhunna, Regency’s affable young chief operating officer, and the son of company founder Rakesh Dhunna.
“Our marketing slogan is: live the luxury, own the legacy.”

With panoramic views from any of its top 20 floors or outdoor balconies, floor-to-ceiling glass curtain walls and upscale finishings, The Pearl has already attracted more than 1,000 prospective buyers who have registered on its website, Dhunna says.

Regency will host a splashy VIP launch for The Pearl from 4:30 p.m. to 8 p.m. today at its sales centre a block west of the project site on Jasper Avenue. About 150 suppliers, partners and other guests are expected to be on hand.

“We visited cities like San Diego, Vancouver and Toronto, we drew on condo projects in those cities and figured there was demand for a product like this in Edmonton,” Dhunna says.

“But it has to be done right. We’re not trying to be Vancouver or Toronto. We’re making it fit what Edmonton is ultimately going to be. So we drew on what the downtown plan has to offer and what the arena district is doing as well as the city’s cultural scene. That’s really what we’re trying to tie into.”

Flanked by the Illuminada’s 12-storey twin condo towers to the east and the older, 12-storey Jasper House apartment complex to the west, The Pearl’s soaring profile will soon redefine the city skyline on the western edge of the core.

“It will stand out for sure compared to the buildings surrounding it. It’s going to be unique, and we’re hoping that’s the way Edmontonians see this project,” Dhunna says.
“Hopefully this will be one of those projects where people from out of town say, ‘Wow, that’s a great building.’ So we’re trying to change the way we see the world, and the way others see Edmonton.”
The Pearl isn’t Regency’s first major condo project in Edmonton. Its 22-storey, 116-unit Quest tower — located across from MacEwan’s main downtown campus on 104th Avenue — was completed last fall and is now 75 per cent sold.

Quest’s top-end units are in the $1-million range, and despite a relatively sluggish condo market over the past year, Regency hasn’t dropped its prices.
“We’re not blowing the units out,” Dhunna vows. “When we hit the ground with the Quest we were riding the boom, so we survived the boom and the bust. It wasn’t the easiest thing to go through, but we stuck to our guns because it was our signature project.”

With the city’s proposed downtown arena district taking a big step forward recently, he notes, condo values in the area are likely to benefit in the years ahead.

Meanwhile, Regency has sold all but two units at its 80-unit Madison condo project on Whyte Avenue in the Bonnie Doon neighbourhood, and construction is well underway on its Serenity Gardens project, at 105th Street and 56th Avenue. It includes 30 townhomes and 142 low-rise condo units.

Looking further ahead, Regency hopes to break ground in 2012 on another massive urban condo project, east of the downtown core at Jasper Avenue and 82nd Street. The Edgewater Village project — formerly known as RK East — will incorporate a mix of lowrise and highrise condo towers, plus street-level retail.

“It will take five to 10 years to build out the whole project, that’s the plan. Our goal is to compete with the suburbs for buyers, so units will be priced in the $200,000 range,” he says.

So why is Regency so bullish on the Edmonton market, where average residential prices remain far below the 2007 peak?

“What we’re selling is our quality and our location, and we think now is the time to build in terms of construction costs. They’re steady right now, but with the boom we expect the city to go through over the next five to 10 years, it’s just a matter of time before costs start rising. So now is the time to act,” Dhunna says.

“With The Pearl for example, it’s probably the only highrise condo under construction in downtown Edmonton right now, so there’s no real competition. And with our other projects, we’re focusing on the neighbourhoods and price points that make sense.”

glamphier@edmontonjournal.com
© Copyright (c) The Edmonton Journal

http://www.edmontonjournal.com/business/Lamphier+Developer+envisions+Pearl+jewel+Edmonton+condo+towers/5722319/story.html

Edmonton, October 4, 2011:

The owners of single family homes in Edmonton and area have seen the value of their property increase more than many other investments. While the stock market and dollar have plunged recently and interest on savings accounts is minimal, local homeowners are seeing a five percent increase in the value of their residential property this year. Compared to prices on December 31, 2010, a single family dwelling has increased on average* 5.1% and a condo has increased 4.7%.

"REALTORS® remain optimistic about the future of the local market," said REALTORS® Association of Edmonton President Chris Mooney. "In January, we forecast that single family homes would be priced about three percent higher at year end. Now they are priced five percent higher and we don't anticipate that prices will soften very much in the fourth quarter. We did not anticipate an overall increase in condo prices so we are a little surprised that condo prices are also up almost five percent."

The average price for a single family detached home in September was $375,738, up 1.4% from a month earlier. The average price of a condo was up 2.1% to $236,125 during the same period. The average residential price in the Greater Edmonton area in September was up 2.6% to $332,782 from $324,217 in August. Duplex and rowhouse sales of just 66 units in September showed an average price drop of 3.2% to $296,117.

The consumer confidence that has allowed housing prices to rise has also spurred sales. There were 1,345 residential property sales in September, with listings of 2,585 residential properties. The residential sales-to listing ratio was 52% with homes resting on market for an average of 56 days. Total MLS® listings numbered 3,292 with total MLS® sales of 1,536 properties of all types.

"Movement of properties in the lower half of the price range is faster than the more expensive properties," said Mooney. It takes 48 days on average to see an SFD priced below average compared to 53 days to sell a home priced over the average. "The consumer is price conscious and with 8,062 homes currently on the market, the buyer has lots of choice. Sellers should ensure that their home price is based on current market reality and not a fantasy if they want to sell in a reasonable time period."

There were 3,178 REALTORS® ready to serve clients at the end of September 2011.

http://www.ereb.com/News&Events/LatestMarketStatistics.html

The Canadian Real Estate Association released national housing figures today and show that Canadian home sales hold steady in August.

Compared to national housing prices released by CREA today, the Edmonton market is affordable. While the average price for a home nationally is $349,916, the local homebuyer will find an average priced home for just $324,217. Of course prices will vary from neighbourhood to neighbourhood. Nationally housing prices have jumped up 7.7% over a year ago, while locally prices have dipped about a third of a percent from August 2010.

According to the REALTORS® Association of Edmonton the local market is balanced with a sales-to-new listing ratio of 51%. Nationally the same ratio is 51.6%

Nationally, the number of months of inventory stood at 6.2 months at the end of August while locally there was just 5.5 months of available inventory. In the Edmonton area, residential sales in August dropped 3% from July figures as typical for this time of year. However, the sales numbers were higher than same month sales in 2010 both locally and nationally.

Consumers are reminded to keep their eye on local trends and to discuss their home buying and selling needs with a REALTOR® who can advise on strategies that reflect local market conditions.

For more complete information on local housing figures released on September 2 by the REALTORS® Association of Edmonton, see Latest Market Statistics.

http://www.ereb.com/News&Events/LatestMarketStatistics.html

Edmonton, September 2, 2011: The average* price of a single family home has remained remarkably stable for the past four years according to figures released by the REALTORS® Association of Edmonton. The average selling price in August has varied from a high of $372,000 in 2008 to the low of $367,700 in 2009. Last month SFDs sold on average for $370,438. Prices have varied within a range of just over one percent.

“Consumers are wary in the face of uncertainty in the global economic markets and they receive constant reminders from federal officials about the dangers of carrying too much debt. Other real estate markets have seen recent boom and bust cycles that are not evident in our local market,” said REALTORS® Association of Edmonton President Chris Mooney. “Residential property is holding its value and the economic prospects for the Alberta and Edmonton markets show real growth potential in the next few years.”

Condo prices have slipped seven percent since 2008 because of an oversupply and lack of demand resulting from tighter mortgage qualification rules. In August 2008, the average price for a local condo was $248,000. This past August it was just $231,735. Overall, the all residential price has varied from $329,600 in 2008 to $324,217 this year (August figures).

In August 2011, there were 969 single family homes reported sold through the Multiple Listing Service® with 428 reported condo transactions with a total of 1,507 reported sales of all types of residential property. There were 1,564 total residential sales in July 2011 reflecting the typical pattern of slower sales as we head into fall.

“A stable market place and slightly lower prices combined with a slower sales cycle means that there are homes available in all price ranges,” said Mooney. “The residential median price ($315,000) remained almost the same as the previous month while the average prices dropped. This indicates that there is a softening of prices at the upper end of the market. Under these conditions, sellers with property priced below the average price for their property type and location will attract more attention and get a quicker sale.”

The sales to listing ratio notched up four percent to 51% as a result of steady listing activity and the typical sales cycle stretched to an average of 57 days-on-market indicating slower sales in August.

http://www.ereb.com/News&Events/LatestMarketStatistics.html