Edmonton a haven for house flippers, suggest Bank of Canada indicators
A growing trend in Edmonton means plenty of newly renovated homes on the market.
And that buyers need to beware.
In a report last month, the Bank of Canada says more homes in Edmonton are being bought and flipped for profit than in every other Canadian city except one.
Edmonton is a hot-spot for home-flipping. The Bank of Canada data, in a September update on indicators of financial vulnerabilities, shows just Calgary has a higher rate of homes on the market that are being re-sold within a year of purchase, outpacing other major Canadian markets such as Vancouver, Montreal and Toronto.
Calgary leads the way in 2024 with 7.52 per cent of homes bought and sold within a year, followed by Edmonton at 5.05 per cent, Vancouver at 2.7 per cent, Montreal at 1.26 per cent and Toronto at 1.07 per cent.
"The price of housing has gotten so high, particularly in the metropolitan areas, that financially to flip has become more challenging," real estate broker Anne Alkok told CTV News Edmonton on Thursday.
Bank of Canada statistics.
James Bailey, a contractor and designer for Brixton Flips, says he thinks there are several reasons why Edmonton and Calgary are leading the country in the number of homes being bought and flipped within 12 months, starting with the ability for people to make money.
"When we buy a house, we do our numbers, we say, 'How much is this going to cost and how much is it going to be worth when I go to sell it?'" Bailey told CTV News Edmonton.
"When there's an opportunity for that number to be higher than you thought it was, it's good. There's more room for you to make money, or, if there was a foundation crack you didn't know about, at least you're not losing any, and at the end of the day, that makes people more excited about doing it. It makes people take more risks."
Jamie Keith of Access Home Inspection Services inspects flipped homes frequently and suggests buyers ask lots of questions, such as how old the shingles, wiring, windows and plumbing are and to see permits for that work.
"(Try to) get images of it prior to it being flipped because it's obviously been listed recently before and see what sort of upgrades have been completed," Keith said.
Questions are one thing. Bailey even suggests a more hands-on approach for such an important purchase.
"Rattle the door handles. Go shake stuff around. Open the cabinets, slam a couple of them. Who's going to stop you?" Bailey said.
"If it falls off, maybe it's not so good of a house."
CTVNews.ca Top Stories
Auto theft probe leads to arrest of 59 suspects, recovery of more than 300 stolen vehicles: Toronto police
Toronto police say 59 suspects are facing a total of 300 charges in connection with an auto theft and re-vinning probe.
WATCH 'It's mind-boggling': Drought reveals U.S. town submerged in the 1940s
Hundreds of people are flocking to see a rare site in Pennsylvania: remnants of a historic town that is usually underwater.
Ont. woman posed as registered nurse in Simcoe County for 4 years: OPP
An Ontario woman is facing serious charges after police allege she pretended to be a registered nurse at several Simcoe County facilities, despite being unqualified.
B.C. mayor's 'luxury' trip to Dubai climate conference was against ethics rules: commissioner
New Westminster Mayor Patrick Johnstone's all-expenses-paid trip to Dubai for a climate conference last December violated the city's Code of Conduct for Council Members and the Community Charter, the city's ethics commissioner has ruled.
Secret Service report offers new details on failures during Trump assassination attempt
A new Secret Service report into the July assassination attempt against former U.S. president Donald Trump said multiple staffers knew about clear line-of-sight risks but found them 'acceptable' and that farm equipment intended to obstruct the view from the nearby building where the gunman opened fire was never used.
Bradley Barton's sentence upheld by appeals court in 2011 death of Cindy Gladue
An appeal has been denied to extend the sentence of an Ontario trucker who killed a woman in his Edmonton hotel room in 2011.
Caught on camera: Edmonton police run over woman during welfare call
An Edmonton Police Service officer was caught on camera running over a woman with a marked cruiser last month.
Meet Decoy Ohtani, perhaps the most valuable pet of the World Series
The Dodgers' most valuable pet: Decoy Ohtani, dog of Shohei, has become a fixture of Dodgers — and dog — fandom.
B.C. landlord who evicted longtime tenant, hiked rent and re-listed unit ordered to pay $16K
A landlord from B.C.’s Lower Mainland who evicted a longtime tenant only to rent out the same unit months later for more money has been ordered to compensate him $16,480.