The Battle of Edmonton Condos: New or Remodeled?
With all the marketing dollars spent by Edmonton condo developers on their new condo projects it’s hard not to love those shiny new condos. But what about the tried and tested downtown condominiums with solid upkeep and maintenance?
The River Vista in Edmonton
I’ll be the first to admit that visually, the exterior of Edmonton condos built in the 70’s and 80’s are uninspiring for the most part. The irony is that when you are inside your unit looking out, you don’t see your exterior, you see everyone else’s. All else being equal, I’m sure we would all like to have that “wow” factor when we walk up to our condo building, or better yet when our friends drive up to visit!
But is all else equal?
Let’s take a closer look at Edmonton downtown and Oliver condos; both newly built (or almost new) listings, and remodeled units listed for sale from buildings that are older. These two bedroom condos for sale downtown: RES A Email Large, were built in 2005 or newer. The median asking price for these condos is $411.62 / SqFt which is considerably more than market value. Buying a home or condo can be an emotional decision, especially for first time home buyers, and these buildings offer the style, colours, and finish that modern day condo-seekers want.
Top of the Valley - Edmonton Condominium
As of April 28, 2009 there were 59 two bedroom condos for sale in Oliver and downtown Edmonton that were built between 1970 and 1989. They can be found here: RES A Email Large. The median price per SqFt of $264.47 for these older units is quite different from those active condos that were built in ‘05 or newer; almost $150 dollars per SqFt.
With such a significant difference between the asking price of older and new condos; are there opportunities to purchase an older condo in Edmonton for a lower price? Could some of the money saved be spent on renovating your condo to your personal style?
Thoughts on Edmonton’s Economy
These are interesting times for economics enthusiasts. Staying current with economic data reports and news stories from Canada and the US seems like a full time job.
Crunching economic data, making sense of it, and then making predictions is complicated and time consuming. I feel it is important to stay on top of the economy, but my first priority are my real estate clients, so I will resist the urge to get too deep into economic theory.
The other day, my attention was brought to an article in the Globe and Mail which painted the economic picture in B.C. and Alberta as catastrophic. I could talk about the blatantly biased tone of the article but what is more disturbing is information that is left out of the article.
The authors report:
“In Alberta, personal bankruptcies soared by 27 per cent year-over-year in the 12-month period ended December, 2008, the Office of the Superintendent of Bankruptcy Canada said yesterday. That was nearly double the 14-per-cent increase for the entire country.”
Wow, sounds bad.. right? Well something didn’t feel quite right about that stat - they didn’t give any absolute numbers. So I thought I would check it out at the source. (See Table 3: Bankruptcies filed by consumers). So here’s the thing: Anytime you start with a small number, it takes a smaller absolute increase to equal a large percentage increase, than it would if the base number was large.
I thought I would compare apples to apples so I decided I would determine the Per Capita Bankruptcy Rate for Alberta and Ontario and then compare them.
What I found was that for the year ending December 2008 even after Alberta’s bankruptcy rate increased for the year, if the populations of both provinces were equal Ontario still had 65% more bankruptcies than Alberta (remember this is per person). Based on recent population numbers, the percentage of the population who filed for personal bankruptcy was 0.2785% in Ontario (36,200) and 0.1685% in Alberta (6,066) for 2008.
Although personal bankruptcy is a terrible experience for the person (and family) of those going through it, my opinion is that employment has a much more significant and widespread impact on an area’s economy.
Based on the latest monthly job stats, Alberta lost 200 jobs while Quebec lost 26,000 and Ontario lost 71,000 (the largest drop in more than three decades). Edmonton in contrast has one of the lowest unemployment rates in Canada at 3.6%.
Prosperity is relative. In the past as other regions of the country have struggled, workers have moved to Alberta for better job prospects.
Is it possible this might continue?
Buying a Condo or Home in Edmonton for the First Time
If you are thinking of buying a home for the first time in Edmonton, whether its a condo or single family detached home, I recommend taking advantage of our Online Seminar for First Time Home Buyers which will put on by my partner Sheldon Johnston who is also the Broker of Coldwell Banker Johnston Real Estate.
Often people who are thinking of buying for the first time email us with many questions which are similar to one another so this is good opportunity to have your questions answered by an experienced Edmonton REALTOR® and to learn from other home buyers questions as well.
The seminar will cover aspects of buying a home which are common to both detached homes and condominiums. There are also unique challenges buyers can face when purchasing a condo that don’t apply to detached homes. For example each condo complex is different in how they are managed and their current state. If you have specific questions about certain condos in Edmonton you can also ask me.
Edmonton Condo Market: Weekly Update
2 Comments
Author: Nathan Mol
Sales were down for most types of Edmonton condos this week. The drop in condo sales was most noticeable for Edmonton townhouses. Although inventory is down (Edmonton low rise condos have dropped below 1000 units) I expect that will increase substantially in January once people have digested their Christmas turkey. Buyers are continuing to have lots of choice with strong negotiating positions.
(Previous week’s numbers are in brackets). For the past 7 days:
New Condo Listings:
- Edmonton All Types - 109 (106, 98, 116)
- Edmonton High Rise - 17 (19, 21, 18)
- Edmonton Low Rise - 64 (46, 49, 64)
- Edmonton Townhouse - 28 (41, 28, 34)
- Surrounding Areas - 16 (19, 17, 24)
Sold Condos # of Units:
- Edmonton All Types - 38 (44, 64, 50)
- Edmonton High Rise - 7 (4, 9, 9)
- Edmonton Low Rise - 21 (23, 34, 25)
- Edmonton Townhouse - 10 (17, 21, 16)
- Surrounding Areas - 5 (7, 10, 5)
Sold Condos Avg Selling Price (000’s):
- Edmonton All Types - 236 (227, 231, 237)
- Edmonton High Rise - 230 (253, 249, 210)
- Edmonton Low Rise - 233 (243, 211, 227)
- Edmonton Townhouse - 249 (206, 254, 268)
- Surrounding Areas - 262 (235, 251, 229)
Active Condo Listings:
- Edmonton All Types - 1977 (1987, 2156, 2179)
- Edmonton High Rise - 330 (322, 343, 338)
- Edmonton Low Rise - 988 (1001, 1083, 1099)
- Edmonton Townhouse - 655 (664, 730, 742)
- Surrounding Areas - 348 (347, 391, 385)
Price per square foot for the past week reversed its declining trend and was up overall for condos in Edmonton, and was up fagain for Edmonton low rise condos. There was a noticeable drop in the price per sqft for condos in places like St. Albert and Shewood Park. Below is a comparison of the Avg $ / Sqft: 60 days vs. the past 7 days.
December 12 Avg Selling PRice per Sqft
Edmonton Condo Market: Weekly Update
1 Comment
Author: Nathan Mol
Not a steller performance for the Edmonton condo market this week. Continued economic uncertainty, mixed with some political instability poured on top of what’s typical for the time of year and you end up with lacklustre condo sales.
Condo sales were down for Edmonton highrise, lowrise, and townhouses. Average price was also down. The bright spot was the drop in inventory of condos in Edmonton and the surrounding areas.
(Previous week’s numbers are in brackets). For the past 7 days:
New Condo Listings:
- Edmonton All Types - 106 (98, 116, 118)
- Edmonton High Rise - 19 (21, 18, 22)
- Edmonton Low Rise - 46 (49, 64, 54)
- Edmonton Townhouse - 41 (28, 34, 43)
- Surrounding Areas - 19 (17, 24, 26)
Sold Condos # of Units:
- Edmonton All Types - 44 (64, 50, 42)
- Edmonton High Rise - 4 (9, 9, 7)
- Edmonton Low Rise - 23 (34, 25, 25)
- Edmonton Townhouse - 17 (21, 16, 10)
- Surrounding Areas - 7 (10, 5, 11)
Sold Condos Avg Selling Price (000’s):
- Edmonton All Types - 227 (231, 237, 208)
- Edmonton High Rise - 253 (249, 210, 267)
- Edmonton Low Rise - 243 (211, 227, 194)
- Edmonton Townhouse - 206 (254, 268, 205)
- Surrounding Areas - 235 (251, 229, 259)
Active Condo Listings:
- Edmonton All Types - 1987 (2156, 2179, 2217)
- Edmonton High Rise - 322 (343, 338, 341)
- Edmonton Low Rise - 1001 (1083, 1099, 1125)
- Edmonton Townhouse - 664 (730, 742, 751)
- Surrounding Areas - 347 (391, 385, 386)
Price per square foot for the past week continues to decline, down another $2 / sqft, although it was up for Edmonton low rise condos. Below is a comparison of the Avg $ / Sqft: 60 days vs. the past 7 days.
Edmonton Condo Market: Weekly Update
1 Comment
Author: Nathan Mol
This week new condo listings are down again which is to be expected considering the time of year, and condo sales saw a respectable uptick of 14 units over last week (64 compared to 50 last week).
The average selling price for the overall condo market was down, including Edmonton townhouses and low rise condos, but actually rose in the surrounding areas, and for high rises in Edmonton. Inventory is declining very slowly with a drop of 23 units over last week. (Previous week’s numbers are in brackets). For the past 7 days:
New Condo Listings:
- Edmonton All Types - 98 (116, 118, 181)
- Edmonton High Rise - 21 (18, 22, 34)
- Edmonton Low Rise - 49 (64, 54, 83)
- Edmonton Townhouse - 28 (34, 43, 64)
- Surrounding Areas - 17 (24, 26, 30)
Sold Condos # of Units:
- Edmonton All Types - 64 (50, 42, 44)
- Edmonton High Rise - 9 ( 9, 7, 3)
- Edmonton Low Rise - 34 (25, 25, 25)
- Edmonton Townhouse - 21 (16, 10, 16)
- Surrounding Areas - 10 (5, 11, 12)
Sold Condos Avg Selling Price (000’s):
- Edmonton All Types - 231 (237, 208, 229)
- Edmonton High Rise - 249 (210, 267, 204)
- Edmonton Low Rise - 211 (227, 194, 223)
- Edmonton Townhouse - 254 (268, 205, 241)
- Surrounding Areas - 251 (229, 259, 245)
Active Condo Listings:
- Edmonton All Types - 2156 (2179, 2217, 2222)
- Edmonton High Rise - 343 (338, 341, 338)
- Edmonton Low Rise - 1083 (1099, 1125, 1140)
- Edmonton Townhouse - 730 (742, 751, 744)
- Surrounding Areas - 391 (385, 386, 426)
Price per square foot for the past week continues to decline, down another $1 / sqft which doesn’t sound like much but is a decline of over $4000 per month on a 1000 sqft condo. Below is a comparison of the Avg $ / Sqft: 60 days vs. the past 7 days.
Edmonton Condo Market: Weekly Update - Part 2
Comment
Author: Nathan Mol
Judging from condo sales this past week it appears that the market held fairly steady in Edmonton but not so well in the surrounding areas of St. Albert, Spruce Grove, Stony Plain, Leduc, Beaumont, and Sherwood Park. Sales in Edmonton were up 19% over the week before (50 vs. 42), while the surrounding communities saw less than half the number of sales from the previous week.
After collecting data on Edmonton condo sales in the past 60 days (Sep 22 - Nov 20) we can see that the overall sold price / sq ft in seems to have stabilized somewhat - the noticeable exception being the price of Edmonton high rise condos.
Below is the complete Edmonton condo sales stats from September 22 to November 20.
| Sold Past 60 Days (Sept 22 - Nov 20) | Sold | Avg. Sales Price | Avg. SqFt | Price / SqFt | Avg. Days on Market |
| Edmonton | 578 | $238,353 | 1018 | 234 | 64 |
| High-Rise | 75 | $276,286 | 939 | 294 | 71 |
| Low-Rise | 292 | $219,331 | 925 | 237 | 65 |
| Townhome | 211 | $249,842 | 1176 | 212 | 61 |
| Surrounding Area | 87 | $266,313 | 1201 | 221 | 65 |
Edmonton Condo Market: Weekly Update - Part 1
1 Comment
Author: Nathan Mol
Over the past few weeks I have been experimenting with different formats to show the weekly condo update. I have three weeks stats now so I will be able to start showing trends. This week I will be publishing the condo update in two posts. Here is part one of this weeks update on the Edmonton condo market (previous week’s numbers are in brackets). For the past seven days:
New Listings:
- Edmonton All Types - 116 (118, 181)
- Edmonton High Rise - 18 (22, 34)
- Edmonton Low Rise - 64 (54, 83)
- Edmonton Townhouse - 34 (43, 64)
- Surrounding Areas - 24 (26, 30)
Sold Condos # of Units:
- Edmonton All Types - 50 (42, 44)
- Edmonton High Rise - 9 (7, 3)
- Edmonton Low Rise - 25 (25, 25)
- Edmonton Townhouse - 16 (10, 16)
- Surrounding Areas - 5 (11, 12)
Sold Condos Avg Selling Price (000’s):
- Edmonton All Types - 237 (208, 229)
- Edmonton High Rise - 210 (267, 204)
- Edmonton Low Rise - 227 (194, 223)
- Edmonton Townhouse - 268 (205, 241)
- Surrounding Areas - 229 (259, 245)
Active Condo Listings:
- Edmonton All Types - 2179 (2217, 2222)
- Edmonton High Rise - 338 (341, 338)
- Edmonton Low Rise - 1099 (1125, 1140)
- Edmonton Townhouse - 742 (751, 744)
- Surrounding Areas - 385 (386, 426)
| 21-Nov-08 | New Listings | Sold | Ratio | Active Listings | AVG Sales Price | Price / SqFt |
| Edmonton | 116 | 50 | 43.10% | 2179 | $237,427 | $230 |
| High-Rise | 18 | 9 | 50.00% | 338 | $210,444 | $252 |
| Low-Rise | 64 | 25 | 39.06% | 1099 | $227,272 | $230 |
| Townhome | 34 | 16 | 47.06% | 742 | $268,473 | $221 |
| Surrounding Area | 24 | 5 | 20.83% | 385 | $228,962 | $209 |
Let me know if you have any requests or feedback!
What is a Condominium?
What is a Condominium?
Simply put: A condominium is a type of real property ownership where the owner holds a private ownership in his or her specific unit, and shares ownership with the other unit holders in all the common areas of the property.
Although “condominium” technically refers to this type of property ownership, it has become common over the years for people to use the terms “condominium” or “condo” to refer to a condominium complex as a whole, or an individual unit in a complex.
Condominium Ownership
The most complete and highest form of private ownership of real property in Alberta is fee simple ownership. Fee simple ownership is based on the English common law system, and therefor this type of ownership is found in every jurisdiction in Canada, the UK, and the United States except for Quebec.
Fee simple ownership gives the property title holder a bundle of rights which include the right to possess, control, use, lease, sell, give away, or the right not to carry out any of these things in relation to the property. This bundle of rights is no less complete for condominium ownership than it is for non-condominiums (such as single-family homes in most cases), but certain rights may be limited and regulated by the condominium bylaws; which can vary greatly from one condo complex to another. For the purpose of mortgage, tax, sale, or inheritance, each unit owners fee simple ownership is separate from all others.
Intro to Common Areas
Every condominium consists of the private dwellings (called units), and the common areas of the building or property. Each dwelling unit is owned by, and registered in the name of, the owner of the unit, while the ownership and responsibility of the common areas are shared amongst all the unit owners. In future posts I’ll discuss in more detail what buyers and owners should know about common areas, and how to play an active role in the management of your condominium.
Edmonton Condo Market: Weekly Update
Comment
Author: Nathan Mol
Those buying a condo in Edmonton this week were frugal with their choices.
The average sales price for condos in Edmonton between November 7 and November 13 was $208,600; down over $21,000 from a week earlier. The average price drop also partly a result of buyers opting for smaller condos as the average square footage was 955 compared to 1016 the week before. The downsizing resulted in a drop to $218/sqft this week, from $226/sqft.
Buyers in surrounding areas (St. Albert, Sherwood Park, Spruce Grove, Stony Plain, Leduc, and Beaumont) were willing to pay more to get the condo they wanted. The average selling price in these areas actually increased from $245k the week before to $259k this past week. The price/sqft for condos surrounding Edmonton this week was $240.
| 14-Nov-08 | New Listings | Sold | Ratio | Price Changes | Active Listings | AVG Sales Price |
| Edmonton | 118 | 42 | 35.60% | 133 | 2217 | $208,638 |
| High-Rise | 22 | 7 | 31.80% | 24 | 341 | $266,857 |
| Low-Rise | 53 | 25 | 47.20% | 58 | 1125 | $193,956 |
| Townhome | 43 | 10 | 23.30% | 51 | 751 | $204,590 |
| Surrounding Area | 26 | 11 | 42.30% | 22 | 386 | $259,364 |
With most of the selling activity in the lower end of the condo market lately it was positive to see two highrise condo sales downtown this week over $300k, which helped to keep the avg. prices for highrises up.
| 14-Nov-08 | Sold | AVG Sales Price | Sold: Avg SqFt | Price / SqFt | Avg. days on Market | AVG Sales Price |
| Edmonton | 42 | $208,638 | 955 | $218 | 81 | $208,638 |
| High-Rise | 7 | $266,857 | 1035 | $257 | 94 | $266,857 |
| Low-Rise | 25 | $193,956 | 892 | $217 | 74 | $193,956 |
| Townhome | 10 | $204,590 | 1057 | $193 | 91 | $204,590 |
| Surrounding Area | 11 | $259,364 | 1080 | $240 | 53 | $259,364 |
While selling price/SqFt has dropped for every type of condominium in Edmonton compared to the avg for the past 60 days, the price/SqFt for condominums in the surrounding areas has held steady.
| Sold: Past 60 Days (Sept 15 - Nov 14) | Sold | Avg. Sales Price | Avg. SqFt | Price / SqFt | Avg. Days on Market |
| Edmonton | 625 | $249,000 | 1017 | 244 | 63 |
| High-Rise | 84 | $294,000 | 943 | 311 | 70 |
| Low-Rise | 310 | $231,000 | 923 | 250 | 63 |
| Townhome | 231 | $258,000 | 1171 | 220 | 60 |
| Surrounding Area | 101 | $282,000 | 1195 | 235 | 66 |
What are your thoughts on the stronger prices outside of Edmonton?
Other News- Record Breaking Home Sales in Edmonton July 1, 2009
- Edmonton Real Estate Sales Watch June 30, 2009
- Edmonton Real Estate Sales Watch June 29, 2009
- Edmonton Real Estate Market Weekly Update June 26, 2009
- The Real Property Report: What is it and why do I need one? June 24, 2009