Calgary Market Update – January 2010

Notice that sales declined substantially between November and December (like it does every year).  Remember, December is ALWAYS the slowest month of the year.

But what a difference a year makes!  Remember what it was like a year ago?  The recession was in full swing, the news was full of depressing stories, and we sold fewer houses in Calgary than ANY month as far back as the CREB keeps statistics (over 12 years).

	Oct-08	Nov-08	Oct-09	Nov-09
SINGLE FAMILY
Month End Inventory	5,522	5,803	3,003	2,658
New Listings Added	2,322	1,567	1,819	1,365
Sales	820	670	1,285	1,095
Average Sale Price	449,100	435,471	462,465	464,444
Median Sale Price	390,000	387,300	410,000	408,000
CONDO
Month End Inventory	2,640	2,399	1,482	1,434
New Listings Added	1,071	741	859	705
Sales	399	284	601	504
Average Sale Price	289,148	285,820	289,155	294, 264
Median Sale Price	268,000	251,800	263,500	264,900

All statistics reported above are for “Calgary Metro” (within Calgary city limits)

The board recently reported that sales of Single Family homes increased 78 percent, compared to the same month last year, which is true…  But really…  Let’s keep things in perspective.
 
If the sales hadn’t increased by 78%, THAT would be news!

Anyway, not to put a damper on the fact that we’re clearly starting out the year in a market that has fully recovered from the doldrums.  That’s now seven months in a row of a balanced and stable market.

I’m maintaining an attitude of cautious optimism that the market will remain healthy and stable, barring any unforeseen disasters.

That’s your Calgary Real Estate Market Report for January 2010.

Until Next time

Dave

WeList

You’ve heard the ads for WeList.com, right? I have clients ask me this all the time and of course I do, their main goal is to make you believe that selling is easy and profitable.  Read on.

I’m paraphrasing here but some of thier ads go something like this, “Why pay a REALTOR^® $20,000 when you can do it yourself?  It’s easy!”

Umm… Not really…

There are a whole LOT of great reasons why you should NEVER try to sell your house on your own.  There are security issues, legal issues, etc.  But here is the #1 fundamental problem with WeList.com, in my opinion:

You’re trying to save the commission, right?  Of course you are!

Well, so is the buyer!

The typical FSBO (For Sale By Owner) buyer can’t find anything “cheap enough” on the MLS^®, so they start scanning WeList.com and other FSBO sites.  Sometimes they’re sophisticated investors who purposely prey on unsuspecting FSBO’s.

The fact is that FSBO’s often end up selling for FAR under market value.  Then they brag to their friends that they “saved the commission”…

Besides the bargain hunters there are also the completely unqualified buyers, the tire kickers (they just like “looking”), the crazies (lots of those), etc, etc.

Aside from taking up all your time dealing with all of these types, don’t forget that you’re completely missing out on the vast majority of potential buyers who would NEVER even consider looking at a FSBO!

Do you want to expose your property to the ENTIRE market, or just the fringe few “buyers” (see above) on WeList.com? 

I’ve found from experience that almost all serious buyers are willing to pay a fair price in exchange for receiving expert independent advice, as well as the security of dealing through a licensed Real Estate brokerage.

Quite frankly, I think it’s bordering on crazy to attempt to sell a valuable property on your own in ANY market.  Yes, that includes a super hot market; perhaps even more so.

I’ve heard lots of FSBO’s in a hot market bragging how they’d “sold in three days so why would you need a REALTOR^®?”

But I always feel sorry for them.  How do you tell someone they could have gotten $40,000 or $50,000 more for their house?  Answer: You don’t.  You just keep your mouth shut and let them think what they want.

I’m not saying it’s IMPOSSIBLE to sell on your own.  What I am saying is that very, very rarely do FSBO’s come out ahead of the game.  They might think they’ve “saved the commission” but they haven’t.  In most cases, they’re putting LESS money in their pockets at the end of the day.  So why take on all the hassle and risk?

Hire a skilled and experienced REALTOR^®.  They’re worth every penny.

Until next month … Dave

Rate update

A quick update on Mortgage Rates.  All of my mortgage sources are communicating no big changes to rates in the near future (this usually means a few weeks at best) and we should see a continuation of the current great low rates for at least the short term.

The market buzz continues to indicate that we will see increases in the rates over the next 6 months.  There is no information whether this will happen gradually or all at once. 

If you are considering a purchase or move up this year I would suggest that we discuss your plans and we can get you locked in now so that we don’t miss getting you the best rate now.

As always I am always happy to help your friends, family and loved ones with any questions that thye might have about the market or their situation.

Until next time…Dave.

Calgary Market Update – December 2009

With the year ending with six months in a row of a very balanced and stable market; this is a very good sign heading into 2010.

Most people are speculating that this trend should continue and we should have a healthy market throughout 2010. I would very cautiously agree.

Despite the generally optimistic outlook, we’re certainly a long way off from being out of the woods yet as far as the economy is concerned. This has been a brutal recession and most economists agree that the recovery will be long and painful.

	Oct-08	Nov-08	Oct-09	Nov-09
SINGLE FAMILY
Month End Inventory	5,522	5,803	3,003	2,658
New Listings Added	2,322	1,567	1,819	1,365
Sales	820	670	1,285	1,095
Average Sale Price	449,100	435,471	462,465	464,444
Median Sale Price	390,000	387,300	410,000	408,000
CONDO
Month End Inventory	2,640	2,399	1,482	1,434
New Listings Added	1,071	741	859	705
Sales	399	284	601	504
Average Sale Price	289,148	285,820	289,155	294, 264
Median Sale Price	268,000	251,800	263,500	264,900

It’s easy to be optimistic about things after how grim it looked a year ago. But let’s not ignore the fact that we’re STILL hearing recession-type news, like the Talisman layoffs just last week. And don’t forget, people think this is an oil town. It’s not. It’s an oil and gas town. Gas prices have been depressed for a very long time, and it seems like the only stories you read about gas are why the prices will remain depressed for the foreseeable future.

Hey, I’m not trying to be a downer here! Just a realist!

Here’s something I’m noticing in the Real Estate market. There seems to be an unusually high number of “future listings” where people are planning to list their home but “not until after the New Year”. It’s not actually an unusual phenomenon for this time of year, but I would say that the numbers are definitely higher than normal. Will we see a flood of new listings in January?

I would say, “Yes, without a doubt.” The only question is whether the sales will pick up enough to offset the number of new listings and keep us in this blissful state of balance.  With the prospect of the current mortgage rate increase these buyers could offset the flood of listings however only time will tell.

Like I said, I’m very cautiously optimistic, but not without some level of concern. Only time will tell.

Until next time

Dave

Holiday Table Setting Ideas – by Jodi Beckwith /Essential Living

Start out by picking the theme of your table décor – this will be an extension of the theme you have already selected for your home décor’s Christmas decorations.

• Start out by picking the theme of your table décor – this will be an extension of the theme you have already selected for your home décor’s Christmas decorations.

TIP …
Don’t worry if your tableware doesn’t all match. Mixing and matching are hot trends right now. Use the pieces that work the best, and then add accents within your chosen theme and colour scheme.

• Plan to have a signature drink and make it an extension of your themed entertaining décor…..super festive!

• Add themed extras such as thank yous, place card holders and party favours to your holiday event.

A FEW EXTRA TIPS …

• Add Soft ambient light (whether it be candles, dimmed lights, or even holiday mini-lights) are a quick way to add atmosphere to your table.

• Don’t forget the music. The music you play will definitely set the tone for the evening. Do you want your event to be fun-filled and casual, or refined and elegant? Choose your music accordingly.

AND MOST IMPORTANTLY …

• Enjoy yourself — don’t plan so much that you can’t enjoy the evening yourself. Prepare as much as possible ahead of time.

TIP …
Don’t worry if your tableware doesn’t all match. Mixing and matching are hot trends right now. Use the pieces that work the best, and then add accents within your chosen theme and colour scheme.

• Plan to have a signature drink and make it an extension of your themed entertaining décor…..super festive!

• Add themed extras such as thank yous, place card holders and party favours to your holiday event.

A FEW EXTRA TIPS …

• Add Soft ambient light (whether it be candles, dimmed lights, or even holiday mini-lights) are a quick way to add atmosphere to your table.

• Don’t forget the music. The music you play will definitely set the tone for the evening. Do you want your event to be fun-filled and casual, or refined and elegant? Choose your music accordingly.

AND MOST IMPORTANTLY …

• Enjoy yourself — don’t plan so much that you can’t enjoy the evening yourself. Prepare as much as possible ahead of time.

Thanks to Jodi Beckwith, owner and head designer of Essential Living Furniture and Design Boutique for her contribution.

Mortgage Rate updates and advantages Q4 – 2010

Here is what we have been seeing for the last 3 months for mortgage rates and some of the news affecting them.  

1. Mortgage interest rates are continuing to bouncing between the all time low of 3.99% and 4.50%.
2. Rates will continue to bounce until the world economies show solid recovery. Experts expect that inflation will cause mortgage rates to increase back to the long-term average of 6%.
3. The Bank of Canada has announces that their intention  is to hold the Consumer Prime Lending Rate at 2.25% until June, 2010 if possible to avoid undoing the positive effects that this stimulus package has created. 

How do you take advantage of these rates and the current market? 

1. Buy a new home you will be able to lock in your mortgage at today’s record rates for 4-5 years.
2. Renew an existing mortgage before rates increase and take advantage of this unique opportunity to lower your rate and month expenses.  This will depend on your financial institution and any possible payout penalties.  Please call me and I can have one of my mortgage specialists review your mortgage to see if there is a better structure for you.

 We are seeing stabilized home prices for the first time since 2007.  This is creating a more balanced market if you are thinking of buying for the first time or if you are a seller moving up. I am seeing increased confidence from first time buyers and my move up clients due to the current conditions due to the stability that has been achieved in the last 6 months.  We may not be out of the woods but with rates continuing at these levels it may be a good idea to get in to one of these rate packages before they are gone.

 If you have any questions about this or have any other questions about the market today, please call me and let me know what I can do to help.

 Until next time

 Dave

Calgary Market Update – November 2009

Total sales for October exceeded September slightly which is quite unusual and a very positive sign for the market.

The total number of listings remained in check as well, continuing the trend toward stabilization and a market that is very much in a balanced state.

That means it’s not a sellers’ market; nor is it a buyers’ market.  It’s just “normal” which seems “abnormal” after the roller coaster ride we’ve endured for so long!

SINGLE FAMILY	Sept 2008	Oct 2008	Sept 2009	Oct 2009
Month End Inventory	5,387	5,522	3,148	3,003
New Listings Added	2,631	2,322	1,857	1,819
Sales	1,152	820	1,257	1,285
Average Sale Price	444,048	449,100	459,085	462,465
Median Sale Price	395,000	390,000	399,900	410,000
CONDO
Month End Inventory	2,569	2,640	1,515	1,482
New Listings Added	1,186	1,071	940	859
Sales	465	399	580	601
Average Sale Price	287,426	289,148	290,253	289,155
Median Sale Price	265,000	268,000	265,000	263,500

Consider this only a sidebar, but one trend I think we’re going to be seeing in the near future is a lot more foreclosures.  This will be fallout from the recession (lost jobs) combined with a fairly prolonged period of time when Real Estate prices were declining (upside-down mortgages).

There is a lot of optimistic talk out there about the recession being over, but I think we’ll be seeing the delayed effects for quite a while yet.  Remember, in Canada the process of foreclosing on a property can typically take a full year or longer.

Even if foreclosures increase dramatically, it’s still only a tiny segment of the overall market and it will not materially affect the general market conditions moving forward.  Even at its worst, the foreclosures in Canada are not even worth mentioning compared to the absolutely disastrous conditions in many parts of the U.S.

Overall, it’s “steady as she goes” for Calgary, with nothing on the horizon expected to tip the scales in favour of either sellers or buyers.

That’s your Calgary Real Estate Market Report for November, 2009 .

Until next time,

Dave

Calgary Market Update October 2009

September continued to enjoy strong sales and with only a slight drop off compared to August.  Month to month and Year over year we are seeing continued improvement and market stability.   The year to year trend has continued from August with a increases to the average sale prices in September over last year’s pricing.  This is definitely a result of the declining inventories, affordable mortgage options and the increased buyer confidence witnessed in the past 4-5 months.  All price ranges are benefiting from the lower inventories and current stability.

	Aug-08	Sep-08	Aug-09	Sep-09
SINGLE FAMILY
Month End Inventory	5,541	5,387	3,296	3,148
New Listings Added	2,270	2,631	1,910	1,857
Sales	1,170	1,152	1,277	1,257
Average Sale Price	440,625	444,048	454,130	459,085
Median Sale Price	398,000	395,000	400,000	399,900
CONDO
Month End Inventory	2,699	2,569	1,479	1,515
New Listings Added	1,054	1,186	832	940
Sales	495	465	632	580
Average Sale Price	287,832	287,426	283,330	290,253
Median Sale Price	268,500	265,000	260,000	265,000

Recent news indicates that 5 year bond rates are soaring and that we are going to see an increase in mortgage rates which will increase pressure on active buyers with rate holds expiring in the next 60-120 days.  First time buyers may also be trying to get in prior to the New Year to enjoy a $5000 tax credit currently available to eligible applicants.

It is true that Calgary housing has experience a faster than expected rebound catching some of the buyers who were trying to time the market “bottom” a bit off guard.  The sentiment in Calgary is still a bit shaky and with good reason, other markets are going through turbulent times and this is causing a continued ripple effect into the Calgary Real Estate market however right now, we are seeing the most stable market we have seen in a long time.

Here are some factors that will help maintain stability in the short term.

• Inventory Levels – Overall we are in a balanced market, some price ranges with healthy inventory and  some price ranges seeing competing offers and homes coming off the market in days
• Interest Rates – a major factor to the recent stability is the affordability created with recent record low interest rates.  Low rates will continue for the next 60-120 days
• Seasonality – the entire market begins to slow down into the holidays and New Year.  The interest rates may extend the fall season as buyers rush in.
• Pricing Reality – Always a major factor – some sellers are getting good advice and pricing in a range that Buyers are agreeing with.  As always some sellers are trying to get 10% more than a similar home sold for down the street… which one would you buy?. 

If you want to know how the market is affects you personally or are just curious to what is selling in your area or an area you are interested in, please pick up the phone and call me or send me an email and let me know what I can do to assist you with any of your Real Estate needs

Until next month

2009 fall décor trends – Q&A

Thank you to Jodi Beckwith of Essential Living Design Studio and Funiture Boutique for the following information on cutting edge trends for your home.

Q: What decor trends are leading the way for fall 2009?
A: Rustic glamour, reclaimed wood furniture mixed  with fabulous lucite and chrome accents…… design elements that reflect both modern, glamorous pieces mixed with unexpected raw materials like concrete or wood…super tactile…great layering

 Q: What are we seeing when it comes to:
Colour
A: Every shade of  white is strong. Grey continues to be a strong colour, with soft mixes of brown, inspired by nature, stone and soil.

Furniture
Green is making a play. We’re seeing a lot of 60s-inspired lime green, leaf green, muted pastel and earthy tones, but done in luxe fabrics with graphic patterns….lots of texture

Walls
Wallpaper has exploded….. Three-dimensional fabric both layered and embellished……everything from  glitzy damask’s to fabulous organic birch inspired…

 Accessories
Again, upscale eclectic chic is evident in accessories. Think: Accessories that incorporate old and new, like an oversized, ornate mirror done in a stunning ornate shiny black laminate frame . ….. Eclectic “found” objects, such as old bottles and curiosities continue to be popular.

 
Q: Is eco-design/decor still a “trend”? How can people make greener choices for their homes?
A: Yes, I think it has surpassed being a “trend” and become a way of life. People think before they buy. I think it changes how we shop. We ask ourselves what or who was harmed in making a particular product, will it last, will it end up in a landfill? If everyone starts thinking this way, a greener way of life (and probably a more stylish one) will evolve.

If  you would like more articles from Essential Living please click here for a link to their Newsletter/Blog

Mortgage Rates on the rise again

I have just received the flurry of emails from a few of my lenders indicating that some of the major banks are announcing rate increases and most lenders will follow suit in the next few days.  If you are considering a move in the short term or your mortgage is up for renewal it would be a good idea to get your rates locked in now.  Most lenders have a rate holds up to 120 days depending on the length of mortgage and some of the features.  There is still the ability to get locked in under 4% with most of the major lenders for a 5 year term.

If you would like to see the difference between todays rates and some of the rumoured rates around the corner please call me and I will put you in the hands of a professional mortgage specialist for a free assessment of  your situation.