In a previous article, “6 Reasons Why Your House Might Not Sell”,  we reported that in 2016 in the City of Calgary only 17,804 residential properties sold compared to the 32,274 properties that were listed on the Calgary Real Estate Board multiple listing service during the year. This means that, shockingly, 44.82% of the residential properties that were listed did NOT sell!

To review – the 6 reasons a property does not sell when listed are:

1. The property was not market ready
2. The property was not available to view
3. The property was “under marketed”
4. Market conditions were not reviewed and prospects were not followed up with
5. The property had the wrong asking price
6. The realtor or owner did not have the tools in place to generate an offer

Let’s tackle the first reason, the property was not market ready.

When there is a lot of choice for buyers – in real estate this means lots of competing properties listed for sale – buyers will comparison shop. Buyers will choose the homes that have neutral environments, feel spacious and smell new and clean. This does not mean that you have to spend a lot of money renovating but it does mean that you need to do your best to prepare your property BEFORE you list it for sale.

At Coldwell Banker Complete Real Estate our goal is not to simply sell your house, but to help you realize the best price obtainable for your property in the shortest period of time. Based on proven marketing techniques, our Home Enhancement Guide will introduce you to practical ideas on how to successfully prepare your house for sale. These suggestions require a minimum amount of time and expense to complete and are designed to make your house stand out from the competition.

We are happy to provide you with our downloadable Home Enhancement Guide free of charge and trust that you will find it a valuable tool as you get your home ready to be placed on the market.

Should you have any questions about selling your home, or require any other real estate services, we’d love to help!

Your House Didn’t Sell – Now What?

If you’re like most people, when you first listed your home for sale, you were excited! You looked at the listing for your property on-line multiple times a day and you were excited every time your home was shown because you were certain an offer would soon follow. After a few weeks keeping your home “showing ready” became a chore. After all, even though your home was a product for sale, you still had to live there! After a couple of months you probably became frustrated and possibly dis-heartened. Why didn’t the buyer prospects want to buy your home? Was it market conditions? Was it the marketing? Was it the Realtor or the lack of a Realtor? Why!!!???

6 Reasons Why Your Home Might STILL be for Sale!

There are many reasons why a property might not sell, some reasons are market related, but the fact is that in 2016 in the City of Calgary only 17,804 residential properties sold compared to the 32,274 properties that were listed on the Calgary Real Estate Board multiple listing service during the year. To put this in perspective, this means that 44.82% of the residential properties that were listed did NOT sell!

This statistic does not make you feel any better if your property was in the 44.82 percentile. Yes 2016 was a challenging market year but why did the properties in the 55.18 percentile sell while yours did not? And, if you still wish to sell your property, how do you make sure that it sells in 2017?

1.) Is Your Property Market Ready?

Let’s start with the property itself. Objectively look at your property the way a prospective buyer would. What is the first impression? Is the exterior clean and clear from clutter? Does it need paint or landscaping? Is the interior also clean and clutter free? Are there any features that would be considered dated? Are there any location or floor plan flaws? Many improvements that will increase the saleability of a property can be made for low or no cost. To find out which improvements are worth the time and the cost consider asking a knowledgeable professional Realtor.

2.) Is Your Property Available to View?

When a serious buyer is touring properties they most often view several properties in one day. If there are a lot of available properties they will have narrowed the possibilities from their search into a shorter list. If one of these properties is not available to view during the buyer’s property tour it will often be replaced with another property. Unless there is very little inventory from which to choose the buyer might not wish to include the missed property on their next tour or, worse yet, if they are a relocation buyer who may not have time to go back to missed properties, they may offer on a property from the first shorter list. Within reason it is important to try to allow every showing.

3.) Where and How Should Your Property be Marketed?

Put yourself in the buyer’s shoes. If you were buying a home today what resources would you use to find the right property? In Calgary, every residential property listed with the Calgary Real Estate Board is available to view on www.realtor.ca. This is the obvious “go-to” web site for residential real estate because it also has private seller postings. Most buyers will also work with their own Realtor representative so that they can receive a customized property search specific to their criteria. Realtors have the ability to create a search on the Realtor side of the multiple listing service with much more specific criteria than is available on the public site. The ad copy and the photographs and all other media should accurately portray the best features of the property.

4.) What Market Data Analytics and Follow-up Procedures Should Occur?

This is where most private sellers and Realtors fail! The market conditions that existed when your home was originally listed are seldom the same conditions that exist when the listing or posting expires. It is important to know if the competition – the number of available properties that compete with yours – is increasing or decreasing and if the number of sales are going up or down. Are the number of internet visits and showings increasing or decreasing and what have prospects said about the property? What communication has occurred with interested parties? Regular review of the market data, prospect feedback and the viewing and showing activity will allow you to know if any changes are needed to get your property sold and will let you know what your negotiating position is when you receive an offer!

5.) What Should the Asking Price Be?

Price is a marketing tool. If you choose the asking price that best reflects the features of your property – your property should receive enough showings to generate an offer. Choose a price that is too high and your property will not be seen online or in person. This can be one of the biggest challenges for a property owner. Most property owners are justifiably proud of their properties and how they have maintained them. In addition many property owners may have a value in mind that reflects what they have paid or what they want or need from the proceeds of sale. Objectively reviewing the sale prices – not the asking prices – of similar properties will reflect what buyers have been willing to pay. If these sale prices do not reflect what you want or need it may not be the right time to sell. When looking at the asking prices of your competition, put yourself in the buyer’s shoes. Buyers comparison shop and will choose the best priced property based on their individual criteria.

6.) Do You Need a Realtor?

Maybe not. If you are confident in your marketing and follow-up abilities and your property is available to show at times convenient to the buyer prospects, you may want to “earn” the commission saved by working with a company that provides private seller postings on the multiple listing service.

If you prefer to have a Realtor advocate consider conducting interviews for the job. Ask the interviewees the appropriate questions regarding their processes and procedures for all of the above vital components of a successful property sale.

For a free no obligation diagnosis, complete the form below and we will get back to you right away!

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

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