2016 Ends The Year With Total Sales Down 15 Percent From The 1- Year Average in December

City of Calgary, January 2, 2017 – Ending 2016 with total sales down 15% from the 10-year average in December.

MLS sales for the year, according to the Calgary Real Estate Board, numbered 17,809 transactions, a 5.5 per cent decline from the year before. The benchmark price was $440,650, down 3.8 per cent from 2015. The decline in the market came on the heels of a more dramatic drop in 2015, when sales tumbled 26 per cent from the same period in 2014.

Taken together, the two years of contraction have resulted in 2016 sales levels that are the lowest Calgary has seen since 2010, said CREB chief economist Ann-Marie Lurie. December sales are 15 per cent below the 10-year average of 1,100 transactions for the month.

“There was a dramatic fall in 2015, and the additional fall in 2016 is keeping sales at levels that are well below ourlong-term averages,” said Lurie. Lurie explains that the market was actually weaker in 2016 than CREB had predicted at the start of the year, when it forecast a 2.2 per cent year-over-year decrease in sales activity. In 2016, Calgary’s unemployment rate continued to rise — from 7.4 per cent in January to 10.3 per cent in November, according to Statistics Canada.

“Economic conditions were far weaker than what was anticipated at the beginning of the year,” Lurie said. The benchmark price for a detached home in Calgary fell 3.2 per cent in 2016 to $502,242, while the benchmark price in the apartment/condo category fell six per cent to $277,217. But Lurie said prices have been protected somewhat by the fact that supply was very tight when the recession began and new listings remain sluggish — in fact, the number of new listings in 2016 contracted by 4.7 per cent.

The City of Calgary Detached market segment continues to out-perform the other market segments with 20.08% of the available inventory selling in the month of December which is traditionally the slowest sales month of the year. This is a huge improvement compared to December 2015 when only 15.36% of the available inventory sold.

For those who are considering taking advantage of the low interest rates to invest in real estate there are several market segments with low absorption rates to choose from.  If you are interested in an investment strategy specific to your needs please contact us. We would love to help!

Hope this helps!

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – December 2016

City of Calgary, December 1, 2016 – Coming off a month of stronger sales activity, November’s housing market returned to previous trends. Year-over-year monthly sales totaled 1,227 units, which is nearly three per cent lower than last year and 17 per cent below long-term averages. “November was the first full month with CMHC’s new lending rules in effect,” said CREB® chief economist Ann-Marie Lurie. “As suspected, the gains in last month’s sales were temporary. Stringent conditions for borrowers are converging with the current economic climate and weighing on demand.” While supply levels eased in November, the decline in sales resulted in a slight rise in months of supply. This caused benchmark home prices to contract even further. City-wide prices totaled $436,200 in November, a 0.6 per cent decline over the previous month and nearly 4.1 per cent below last year’s levels.

Detached home prices totaled $498,300 in November, making it the first time since early 2014 that the monthly benchmark price dipped below $500,000. Despite this price change, the detached resale sector has still fared better than most of the high density sectors, as it has not faced the same city-wide inventory pressure coming from the new home market.

Year-to-date detached sales have declined by three per cent compared to last year, but have also seen some modest improvements in recent months in the high end of the market, which is likely a by-product of larger price adjustments.

While overall sales activity continues to slow in the attached segment, there was a sharp contrast in the number of transactions for row and semi-detached product. Year-to-date semi-detached sales have improved over by nearly 3 per cent over the previous year, mostly due to gains in the $300,000 to $399,999 and $600,000 to $699,999 range of the market. However, row sales have declined by over 12 per cent over the same time frame.

The market segment that has seen the largest price correction is the “row” segment, making this a great time to invest.

The best time to buy is when there is a lot of inventory from which to choose. For those who are considering taking advantage of the low interest rates to invest in real estate there are several market segments with low absorption rates to choose from. If you are interested in an investment strategy specific to your needs please contact us. We would love to help!

Hope this helps!

Susanita de Diego

Download: Calgary Real Estate Stats November 2016

City of Calgary, November 1, 2016 – For the first time in two years, sales activity in October resembled normal levels. City-wide sales totaled 1,644 units, which is an increase of nearly 16 per cent over last year.

“The shift in sales activity this month is likely related to the new mortgage rule changes, inventory gains in the lower price ranges and further price adjustments,” said CREB® chief economist Ann-Marie Lurie. “The combination of all these factors may have encouraged some purchases to take advantage of the market conditions, particularly in the lower price ranges. However, with several factors at play, the monthly shift in demand may be temporary and will need to be monitored over the next several months.”

Sales activity rose across all product types in comparison to last year, but the largest gain in sales occurred in the detached sector at 18 per cent. There was a noticeable shift in sales activity by price range in October. In the detached market, homes priced between $300,000 and $400,000 saw the largest improvement in sales, while attached and apartment sales growth was mainly occurring in the lower price ranges.

“This year has been a challenge for many sellers,” said CREB® president Cliff Stevenson. “So when we have a rise in sales, it means more buyers got into the market and more sellers got out, which is a positive for consumers on both sides of the transaction.”

Despite the monthly rise, year-to-date sales activity in all sectors remained lower than last year’s levels and well below longer term trends. In fact, year-to-date sales activity has totaled 15,642 units, which is 6.3 per cent below last year’s levels.

While increased activity in the lower price ranges had a greater impact on the average and median price, benchmark prices once again edged down in October. The city-wide unadjusted benchmark price totaled $438,900, or 0.34 per cent below last month and four per cent below last year’s levels.

What I find most interesting about the latest data is that we usually see the market begin to soften at this time of year. Again, each market segment has performed differently but it seems that the number of sales compared to the number of available homes in the detached segment has settled into a recovery pattern.

The best time to buy is when there is a lot of inventory from which to choose. For those who are considering taking advantage of the low interest rates to invest in real estate there are several market segments with low absorption rates to choose from.  If you are interested in an investment strategy specific to your needs, please contact us. We would love to help!

Hope this helps!

Susanita de Diego

Download: Calgary Real Estate Stats October 2016

City of Calgary, October 1, 2016 – The segment of Calgary’s housing market with the greatest influence on the overall market is showing signs of pricing stability. The detached benchmark price totaled $503,400 in September, which is 3.3 per cent below last year, but the second consecutive month at this price level. While overall economic conditions remain soft, for now the detached sector is demonstrating some steadiness in terms of pricing. “The decline in demand has caused many to anticipate steeper price declines for detached homes,” said CREB® chief economist Ann-Marie Lurie. “That hasn’t happened in large part because detached supply levels haven’t climbed as sharply as many expected. There was a limited amount of supply in the overall market when this cycle began, and while levels did rise and remain somewhat elevated, they were well below previous highs.” The level of detached new listings also eased compared to last year, helping push down year-over-year inventory levels for the second consecutive month.

“Consumers are really starting to come to terms with the current environment,” said CREB® president Cliff Stevenson. “Most sellers have adjusted their expectations at the same time that many buyers are realizing the prices are reacting very differently in different segments of the market. We’re just not seeing the price declines that buyers have been expecting in all segments of the market.”

It is really interesting to see how different market segments are reacting to the downturn. The absorption rates for detached homes in the bedroom communities of Airdrie, Cochrane and Okotoks are very different with Airdrie continuing to out-perform Cochrane and Okotoks and even the City of Calgary!

Despite the Detached Benchmark Price holding at $503,400 for two months it is important to note that the absorption rate for Detached homes in Calgary has declined every month since June. The best time to buy is when there is a lot of inventory from which to choose. For those who are considering taking advantage of the low interest rates to invest in real estate there are several market segments with low absorption rates to choose from.

If you are interested in an investment strategy specific to your needs please contact us. We would love to help!

Hope this helps!

Susanita de Diego

Download Calgary and Area Real Estate Statistics – September 2016

City of Calgary, September 2, 2016 – Overall sales activity was down again in August, totaling 1,567. However, this figure does not reflect the big differences in activity between the detached sector, versus the high density apartment and attached segments of the market. “While overall sales have eased for detached homes, so too has the amount of new listings on the market preventing inventories from reaching previous highs and limiting the downward pressure on pricing,’ said CREB® chief economist Ann-Marie Lurie. “This is not the case in both the attached and apartment sectors which have recorded inventory levels near August highs.”

The detached benchmark price totaled $503,200 in August, 3.3 per cent below last year, but similar to levels recorded last month. Meanwhile, condominium apartment prices continue to decline totaling $274,900 in August, 7 per cent below last year and are at levels comparable to figures reported at the end of 2013.

Price declines were higher in the apartment sectors, due to the more pronounced imbalance between supply and demand. On average, apartment inventories rose to levels well above historical norms. At the same time, sales are at their weakest level since 2003 causing months of supply to average over 6 months so far this year.

It is really interesting to see how different market segments are reacting to the downturn. The absorption rates for detached homes in the bedroom communities of Airdrie, Cochrane and Okotoks are very different with Airdrie continuing to out-perform Cochrane and Okotoks and even the City of Calgary!

The best time to buy is when there is a lot of inventory from which to choose. For those who are considering taking advantage of the low interest rates to invest in real estate there are several market segments with low absorption rates to choose from.  If you are interested in an investment strategy specific to your needs please contact us. We would love to help!

Hope this helps!

Susanita de Diego

Download Calgary and Area Real Estate Statistics – August 2016

Thinking about Buying or Selling a Home without a Realtor®?

Here are a few Realtor Myths – Busted!

1.) Realtors make a lot of commission.

Sometimes it seems like those who are not involved day-to-day in the real estate industry perceive a Realtor’s job to be pretty easy. Some would say that the amount of commission we charge is too high compared to what we do to earn the commission. Opinions are subjective but I believe that many people really don’t know what a Realtor must do to maintain the high degree of expertise necessary to best represent our clients and to maintain a successful business.

Let’s start with the hard costs of signs, lock boxes, stationary, business cards, computers, tablets, cell phones, applications and programs, web sites, courier costs and in the case of higher producing Realtors, staff.

In addition to advertising on multiple web sites, property advertising costs could also include professional photographers, professional printers, professional measurement companies, videographers and advertising in print publications and social media.

Then there’s the costs of running a business. There are licensing fees, real estate board fees, real estate association fees, errors and omissions insurance, franchise fees, and the fees a Realtor must pay to their agency. On the low end these fees are approximately $12,000.00 per year. A premium real estate office will charge their Realtors higher fees which could be closer to $20,000.00 per year or more!

Of course all Realtors must maintain a reliable vehicle with business insurance.

A highly skilled Realtor has learned from the experience of being involved in hundreds or in some cases thousands of real estate transactions. These experiences create market knowledge and negotiating skills which benefit their clients.

To cover all of the above expenses a Realtor relies only on commission income and we do not get paid in advance. We are compensated after the transaction has completed, which can be months after we have performed our duties. Sometimes we will have performed all of our duties and we don’t get paid at all. This would be if the market conditions prevented a listed property from selling or if the seller changed their mind about selling or if a buyer client decided not to buy or bought through another Realtor.

2.) If I work with a Realtor to buy a home it will be too expensive.

The Realtor representing the buyer almost always receives their fee from the agency representing the seller, not directly from the buyer.

3.) A Realtor can work part time.

In addition to the duties required to market and sell a home and the duties required to locate the right home for a buyer client, a Realtor’s working hours must include continuing education, researching new and innovative marketing methods, maintaining data bases, web sites and social media, updating processes, following up with prospects, prospecting for new clients and in the case of higher producing Realtors, training staff and/or team members.

Being a professional Realtor is really being a small business owner and is definitely more than a full time job.

In my opinion our profession requires a passion for helping people and the best Realtors use their expertise and skills to not only create monetary value for their clients but also to help ease their clients through what can be a stressful and emotional time.

City of Calgary, July 4, 2016 – Calgary home prices continue to slide in most areas of the market, but not at the rate that many might expect. This is partly due to June’s resiliency in the detached and semi-detached sectors of the market, where sales compared to new listings and standing inventory started returning to more balanced levels.

“The detached market has been gradually moving towards more balanced conditions, helping to prevent price levels from declining at the faster rates we saw in the previous two quarters,” said CREB® chief economist Ann-Marie Lurie. “While this is welcomed news for sellers, it’s very likely that pricing challenges will persist in the housing market until economic conditions start to improve.”

Detached benchmark prices totaled $502,400, which is 0.4 per cent higher than last month, but 3.4 per cent lower than last year’s levels. This is the first time in eight months that detached prices recorded a monthly gain, helping ease the quarterly decline from 2.2 per cent in the first quarter to 0.7 per cent in the second quarter.

Overall sales activity remained relatively weak in June, falling by seven per cent to 2,028 units. Inventory levels went in the other direction and continued to climb in June to 5,973 units, 16 per cent higher than last year. Both the attached and apartment segments of the market have recorded inventory gains around 30 per cent, far greater than the year over-year increase of five per cent in the detached sector.

Higher inventories and weaker demand continue to have a larger impact on pricing in the apartment and row sectors. June apartment prices slid by another 0.1 per cent over last month, pushing the average year-to-date benchmark price down 5.3 per cent below last year. Attached product experienced a monthly slide of 0.3 per cent, mostly due to steeper price declines in row style product.

Those who have been waiting for the bottom of the Calgary Detached market to buy should pay close attention to this news release from the Calgary Real Estate Board. Not only has the Benchmark Price mad a move in the positive direction but the absorption rate has increased as well.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

If you are curious about the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – June 2016

Is buying a condominium very different from buying a single family home?

In a word – absolutely!

To help you to decide if condominium ownership is right for you, we have put together the following important considerations for you to review:

Play well with others – You are not only buying your exclusive use of your unit, you are also buying a shared ownership of the common areas. Because there is “Common Property”, co-operation is one of the keys to a happy ownership experience. An owner should always consider volunteering for a board position to have input in the management of the development.

It’s all about the money – The (usually) required monthly condo fee can be as low as $150.00, up to the sky’s the limit! The fee is used to pay for regular maintenance, like snow removal, lawn maintenance and cleaning of the common areas. Sometimes the condo fee pays for your heat. A portion is also held in reserve – the Reserve Fund – to be used for future larger maintenance items, such as roof or fence replacement. Occasionally if the condominium board has not assessed a high enough condo fee early in the life of the development to cover large future costs there can be a “Special Assessment”. This is why it is so important to review all of the condominium documents during the conditional period at the time of your purchase.

The name game – It could be a Bareland or a Conventional or a Barely Blended Condominium. How does this affect an owner? The type of condominium development is registered with Land Titles and dictates the registered size of your unit. In a Bareland Condominum, the lot itself is often the “Unit”, so you will need to review a Real Property Report or survey during the due diligence period. Sometimes the registered size includes a garage or parking stall.

Does size matter? Sometimes it does! The “Registered Size” according to the condominium plan is not necessarily the actual living area. There can also be different standards of measurement according to the local real estate board and/or the industry governing body. It’s important to always double check which measurement was used in establishing an advertised unit size.

Where do I park my ride?  Parking can be anything from an uncovered stall to an attached garage. It can be “Assigned”, “Leased” or “Titled”. Older apartment style condominiums often have “Assigned” parking. This means you are not guaranteed that the stall offered when you purchased your condo will always be your stall because it could be re-assigned. In most newer developments you will receive a separate “Title” for your parking stall.

Who makes the rules?  The “Bylaws” are the rules that the owners must follow. They cover everything from allowing pets to whether exterior door and window replacement is the responsibility of the owner or the condominium corporation. Bylaws can be changed from time to time but only if the majority of the owners agree to do so.

The benefits on the condominium lifestyle include little to no maintenance responsibility, and developments often include attractive lifestyle amenities. So for those who don’t want to mow the lawn or worry about replacing the roof, condominiums offer a terrific style of ownership.

Knowledge is power! Consider working with a condominium specialist who has the knowledge to help you navigate through all of the considerations so that you will know before you buy.

If you have any questions about purchasing a condominium, or any other kind of property, we’d love to help! Call us now at 403-686-1455 or email: info@cbcalgary.ca!

City of Calgary, June 1, 2016 – Calgary’s housing inventory was on the rise once again in May as new

When compiling this information every month I am sometimes surprised at how differently market segments perform. We have seen improvements in the absorption rates in all reported segments EXCEPT for Calgary Apartments and Cochrane Detached homes.

This data demonstrates why it is so important to look at all of the factors in your particular market segment when you are selling or buying.

Despite the super-heated markets in Vancouver and Toronto, interest rates continue to stay at historic lows, making this an ideal time to buy in any market segment.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

If you are curious about the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – May 2016

I was at a business event discussing real estate marketing, and my discussion partner posed the question of the top few things someone should think about when they want to buy real estate. Here is what we came up with:

1) Rent or Buy?
First of all, I guess you should ask yourself if you really want to buy property or continue to rent. Consider that over time, real estate is typically a good investment—for the long term. Those individuals who purchased in 2006 or the first half of 2007 and had to sell a year or two down the road lost money. Conversely, those who purchased at the bottom of the cycle could potentially make their money back, but remember the closing costs when you sell. If you’re thinking that you only want a place for a couple of years, continuing to rent might be the best option. No, you’re not creating equity, but unless you plan to try to sell your home yourself, you save the money you would have spent to pay a Realtor to sell your home.

Also, home-ownership comes with other costs that you might not factor in, like home insurance (which increased quite a bit since the 2013 floods), taxes, repairs and ongoing maintenance, and utilities. Can you afford that $500 gas and electric bill in the winter months? What about the water and sewage costs in the summer when the sprinklers are going? What happens if your furnace breaks down—do you have the funds set aside to pay for repairs? Renting suddenly sounds easier and cheaper!

2) How Much Can You Afford?
Once you have decided that you do want to buy, go to your bank or mortgage broker and get pre-approved for a mortgage. Getting pre-approved is very different than being pre-qualified. Pre-qualifying really just tells you the amount you might expect to get IF you are approved for a mortgage, but in no way does it guarantee that you will actually be approved. Pre-approval means that the lender has done a credit analysis and verified your employment situation, and has given you a letter stating that you have a certain number of dollars guaranteed at a specific interest rate. However, this approval is often guaranteed for only a few months, so once you do have that pre-approval, your next step is to get shopping.

3) What Do You Need versus Want?
Define your NEEDS in a home versus your wants. Needs include type of home—do you want a condo because you live downtown, or do you have children and pets so perhaps NEED a yard? Do you have individuals in the family with special needs or mobility issues, so perhaps need wider doorways or ramps?  Do you need to be close to schools because transportation might be difficult? Do you have a home-office, so need that extra bedroom or main-floor den/office space? Most condos do not allow you to run a business, so a single-family home would be necessary. Do you play a musical instrument? Condos also have noise restrictions, and if you have frequent gatherings of individuals, the parking could be an issue, not to mention the noise impacting neighbours.

You need to decide what area of town you want to live in. If you work downtown (and we all know what a headache commuting is), and you don’t need a single-family home, there are many apartment-style and townhouse condominiums, and for first-time buyers, a condo is a great place to start because they are more affordable (providing the condo fees aren’t too high).

4) Explore!
You should go to a million open houses. Well…maybe a million is a slight exaggeration, but the more properties you can see, the better informed you become. You can go to a lot of weekend open houses (but don’t feel compelled to work with the agent there), and also drive, cycle, or walk around neighbourhoods that you think you might like so that you can explore them and discover their positives and also their draw-backs.

5) Choose a Realtor
Once you have this information, you’re armed with a lot of knowledge – we applaud your initiative! Now it’s time to work with a Coldwell Banker Realtor™ to seriously investigate some properties. (Check out How Do You Choose a Real Estate Agent for some tips!). We can set you up on a search from the MLS system so that you can see when properties are listed that conform to your needs list (so that you don’t waste a bunch of time looking at listings that just won’t work). We can return with you to some of the properties you saw at an open house, as well as visiting many more that you see in the MLS listings that we send you. When you decide on a home, we can help you craft a solid offer that makes sense.

Don’t delay – call Coldwell Banker Complete Real Estate at 403-686-1455.