Market continues shift toward more balanced conditions after torrid start to the year – August 2021 Real Estate Statistics Report

September 8th, 2021 by Susanita de Diego

Market continues shift toward more balanced conditions after torrid start to the year

 

City of Calgary, September 2021

 

Citywide sales in August reached 2,151 units, 37 percent higher than last year and 25 percent higher than long-term trends. Sales have slowed from the record-setting pace seen earlier this year, but on a year-to-date basis, the eight-month total of 19,516 sales is higher than annual sales figures recorded over the past six years.

 

“Sales have far exceeded expectations throughout most of the pandemic, driven mostly by demand for detached homes. At the same time, supply could not keep pace and conditions shifted to favour the seller, something that has not happened in over six years,” said CREB® Chief Economist Ann-Marie Lurie.

 

“With more buyers than sellers, prices rose, providing opportunity for many of the move-up buyers in the market. Over the past several months we have seen some adjustments in supply relative to sales, helping move us toward more balanced conditions.”

 

The months of supply in August was nearly three months. This is an improvement relative to earlier in the year, but conditions generally remain far tighter than typical August levels. However, some improvements in supply compared to sales have been slowing price growth. As of August, the total residential benchmark price was $459,600, slightly lower than last month, but over nine percent higher than levels recorded last year. The price gains have ranged by product type, with the highest gains occurring in the detached sector of the market.

View the full report here: August 2021 Statistics Report

Time to Exhale! Wild Times in Calgary Real Estate

September 3rd, 2021 by Marietta Maier

Exhale…!!!

Well, that was a pretty wonderful start to a new career.Marietta Maier Calgary REALTOR

Back in October 2020 I completed my Real Estate courses and embarked on this new journey. Of course, I did spend the first few months “preparing” i.e., ordering business cards, making lists that went nowhere, etc. So basically, things really didn’t get moving until the beginning of 2021.

My first client was family and I am truly appreciative for the confidence that they had in me. Without the extensive knowledge of my partner, I would have floundered. We listed a property that created multiple Offers within the first few hours of the listing having gone “live”. Fun. Exciting. But also, very nerve wracking. Wanting to only do what was best for our client.

This momentum continued right through until the end of August. Frustration set in as residual services became increasingly busy, backed-up or entirely unavailable. Now we were all scrambling for the same deadlines.

Many people have expressed the same sentiment while being very cautious to not seem ungrateful. This has been one of the busiest years they have seen in a long time!  What was it? Pent up demand? People needing change? Epiphanies that came about during COVID lockdowns?

Whatever it was, the frustration continues with the unavailability of services that we have all become so dependent on.

So maybe it’s time for us all to just take a deep breath and realize that we no longer live in a world of instant gratification and that the best things in life are worth the wait.

It’s time to refocus on providing excellent customer service (no matter what your industry). Those customer/client relationships are what will get us through the tough times that are sure to come around again.

Namaste, everyone!

Sincerely,

Marietta Maier, REALTOR®

What do you need to know if you are in a competing Real Estate bid situation?

August 20th, 2021 by Susanita de Diego

If you are in a competing bid situation, it is important for you to know your negotiating position. You need to know how many offers are coming in, what you can afford, and what risks you are willing to take. When it comes to submitting a competing bid, you must be aware of which conditions need to be in the offer for your specific situation and which ones you can risk not having on the contract. An experienced real estate professional will help assess and communicate the benefits and consequences of each variable   to help safeguard your interests.

In Vancouver and Toronto there were lots of subject-free competing offers, Calgary has seen fewer. I would only be comfortable presenting a subject-free offer if my client is a sophisticated buyer who fully understands the ramifications of that type of offer..

Whenever I have a client considering entering a competitive bid situation, I ask, “What price will you feel good about and not regret, regardless of which way it goes?” I want to ensure if they lose the bid, they won’t feel like they should have paid an additional $5,000, or if they win the bid, they don’t feel that they’ve paid $10 000 too much. To help the client make that decision, we provide our clients with research about what similar properties have sold for in the area. It is always the client’s decision.

Have a question you would like answered?

Send us your questions here: https://www.cbcompleterealestate.com/contact

Is now a good time for new buyers to get into the Real Estate Market?

August 20th, 2021 by Susanita de Diego

It depends on why the new homeowner is buying. If they are buying because they see the long-term benefit of owning their own homes and they are ready to make the change from renting to home ownership, then buying may be a good choice because of the low interest rates. However, I would recommend they find a good real estate professional who can discuss their personal situation to determine if now is the right time for them or not. In June, we started seeing price reductions and homes coming off the market then coming back on, both are signs that the market conditions are changing.

If they are buying because they want to see a capital increase in a short period of time to make a quick buck, now is not the time to buy. It is likely that we have already seen peak prices. As inventory increases the prices will level off.

When the pandemic has passed and the balance between supply and demand results in prices levelling off, it will be a good time for new homeowners to start looking. In a more stable buying climate, they may not have to compete with others when writing an offer so they can take more time making the right decision for their families.

Have a question you would like answered?

Send us your questions here: https://www.cbcompleterealestate.com/contact

Does Calgary’s economy support a sustained housing market increase?

August 20th, 2021 by Susanita de Diego

Alberta is still largely dependent on the oil and gas industry for its economy and the North American political leaders are taking an anti-oil policy stance, so recovery may be slow. The city is starting to attract sustainable energy companies.

However, it will take decades for sustainable energies to significantly increase jobs in the province due to this sector being relatively new. We have seen growth in the technology and health care sectors which bodes well for the economic future of our economy.

Have a question you would like answered?

Send us your questions here: https://www.cbcompleterealestate.com/contact

Where will Calgary home prices go next?

August 20th, 2021 by Susanita de Diego

To judge where a market has been and where it is going, I analyze the absorption rate. Simply put, this rate measures how many properties sell in comparison to the number of properties for sale during the month. As I track this metric over time, I can see the balance between supply and demand.

Let’s look at the largest market segment driving Calgary’s real estate growth, detached homes. In March, the absorption rate was 77.46%, which means 77.46% of all homes for sale in the month of March were sold. In April, the rate dropped to 73.60%. In May, the rate dropped to 59.77% and in June the rate dropped even further to 55.78%. This signals a reduction in demand during normal times, however, in today’s environment this does not mean the demand is shrinking. The buyers are still there, they just have more to choose from as more properties have come onto the market. This is a normal occurrence after a super-heated market like March’s because people realize that they can get a good price for their home. This year it’s a bit different because along with the natural interest in getting the best dollar for a property, those sellers who would have sold in 2020 but were hesitant to list are now listing their homes because they feel safer due to Covid-19 safety protocols and vaccinations.

The next few months will be telling for the Calgary market. If the detached home absorption rate falls below 40%, we will see prices level off and potentially go down a bit.

Have a question you would like answered?

Send us your questions here: https://www.cbcompleterealestate.com/contact

Why did the Calgary Real Estate Market go crazy in 2020 and 2021?

August 19th, 2021 by Susanita de Diego

The reason all the real estate markets in Canada went a bit crazy was because two events happened simultaneously. First, we had a pandemic. Many potential sellers chose not to sell their homesWhy did the Real Estate Market Go Crazy because they didn’t want people bringing the coronavirus into their environment which caused low inventory. The lowering of inventory occurred when interest rates were at their lowest ever levels making borrowing money cheaper, thus increasing the demand in the market.

When you have low supply and high demand, prices are pushed up as buyers compete for the limited number of properties.

Experts were a bit mystified about why Calgary’s real estate market was so strong. Other Canadian cities like Vancouver and Toronto have immigration and migration of citizens looking for jobs in diverse labour economies to support the demand for homes. Calgary’s current economic prospects are not as strong, so the reason for the run-on real estate was the low cost of borrowing, a desire to be isolating and working in a bigger home, and the housing market’s low inventory. As a result, Calgary didn’t see the increase in prices as early as the other cities and the market is cooling down sooner.

Have a question you would like answered?

Send us your questions here: https://www.cbcompleterealestate.com/contact

Susanita

Ask Susanita – Your Calgary Real Estate Questions Answered

August 18th, 2021 by Susanita de Diego

Real Estate is a constantly changing industry!

Keeping up with all of the rules, regulations & market updates are things that your professional REALTOR® is equipped to handle.Ask Susanita - Your Real Estate Questions Answered

In fact, it’s part of our daily practice. We subscribe to several industry regulation bodies, local real estate boards, social media groups, etc. in order to keep up to date and collaborate with colleagues around the globe.

This blog category is dedicated to sharing answers to many common Real Estate questions we are asked.

We hope you find the information valuable and we welcome your questions any time!

Please feel free to send us a note on our Contact Coldwell Banker Complete Real Estate page and we’ll be happy to get back to you, and possibly post your Q&A for others to learn from.

Thanks for visiting! Click this link to read all of our: Calgary Real Estate Questions & Answers

Sincerely,

Susanita de Diego

Susanita de Diego Coldwell Banker Complete Real Estate

Price growth slows as supply to demand balance improves – July 2021 Real Estate Statistics Report

August 5th, 2021 by Susanita de Diego

Price growth slows as supply to demand balance improves

 

City of Calgary, August 2021

 

July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.

 

With 6,678 units in inventory in July, the months of supply rose to just under three months. These gains are leading to far more balance between sellers and buyers. However, there is a significant variation between product type, as the months of supply ranged from two months in the detached sector to nearly six months in the apartment condominium sector.

 

“Over the past several months, we have seen housing market conditions trend toward more balanced conditions,” said CREB® Chief Economist Ann-Marie Lurie. “This eased some of the upward pressure on prices, as prices are starting to stabilize following steep gains that occurred in the first half of the year.”

 

Benchmark prices in the city reached $460,100, slightly higher than last month and nearly 10 percent higher than last July. Price growth has been the highest in the detached sector, which currently sits 11 percent above last year’s price and has finally recovered from previous highs in 2014.

 

View the full report here: July 2021 Statistics Report

 

Choosing a Family Dog

July 14th, 2021 by Susanita de Diego

Time to add a dog to the family? No matter the reason you want a dog, the process of choosing the right dog takes a bit of research. When it comes to bringing a pet into the family, it is importantColdwell Banker Complete Real Estate - Choosing a Family Dog to understand the needs of both the dog and your family.

Take Inventory

First things first, take inventory of yourself and your home.

Do you have wonderful memories of having a Lab or German Shepherd chasing you around the yard as a kid and think you want another one? Do you have a yard? Are you able to take them for long walks or runs daily? How big is your home? Labrador Retrievers, Golden Retrievers, and German Shepherds are good breeds for kids and families, however they also have a lot of energy to burn. If you are busy and live in the city, your childhood memories may need to stay a memory while you look for a more appropriate breed for your current situation.

Do you live on an acreage with a lot of space inside and out for a dog to play around in or in a smaller townhouse or condo and spend a limited time outdoors? There are plenty of family friendly breeds for all types of home situations.

The Calgary Winter

As you know, it gets cold in the winter and can dip down to -40 at times, so it is important you choose a breed that won’t freeze during the colder months or you have a wardrobe ready to help them stay warm all year round and space inside for them to get their daily exercise.

To Shed or Not Shed?

How do you feel about dog hair on your furniture or vacuuming for the umpteenth time to keep the carpets from having a layer of fur?
Combing or brushing your faithful friend on a regular basis will reduce the amount of hair shed in the house and gives you some one-on-one bonding time. However, if the idea of your hand being covered in dog hair when you pet them or having to constantly comb their coats to get most of their hair into the garbage instead of the house, you may want to consider a hypo-allergenic option.

Poodles, Terriers, and the Bichon Frise have hair instead of fur, so they don’t shed. Since they don’t shed, they need to visit the doggy hairdresser to get a wash, cut, and blow out. If shelling out money for a trip to the puppy beauty parlour isn’t in your budget, you could always learn dog grooming skills.

Breeders have successfully created hybrid breeds trying to get the temperament of breeds such as the Golden Retriever or German Shepherd with the hypo-allergenic hair of a poodle. The first Labradoodle was bred by Australian Wally Conron as a guide dog for a blind woman whose husband was allergic to dog hair. The Doodle dogs started becoming popular in the last 10-15 years as families began to want a non-shedding option of their favourite pure breed.

Cost

Pure breeds and designer breeds come with a hefty price tag. If you want a puppy for your family, you will be looking at $1 000 on the low end and can expect to pay upwards of $5 000, and you haven’t even paid for their first shots or bag of kibble yet. A larger dog will cost more to feed and non-shedding breed will cost more in grooming.

Training

All breeds need to be trained, but some will need more training than others. Are you a patient person who will enjoy spending time training your new dog or are you too busy to put up with daily messes and mistakes? If you don’t want to spend too much time training and more time doing what you do on a regular basis, consider finding an older well-mannered dog whose owner can no longer care for them. There are several reasons why a pet needs a new forever home, their owner dies, moves, or has a life change the animal cannot be brought into.

If you have the patience to train an animal and deal with their misadventures or bad behaviours, consider a rescue dog with unique needs. Abused animals need someone who can give them understanding, patience, care, and love.

Buy or Adopt

Adopting can cost less than purchasing a new puppy. Adopting an older dog comes with less training, unless the dog was abused or untrained in its last home. Adoption has the added benefit of giving a dog a new home and ensuring they are not euthanised due to being without a home.

If you want to adopt, be prepared for an invasive process where your home and family will be assessed to determine your ability to own a dog. Many families abandon the adoption process due to the requirements, however, many rescue dogs need new homes. Finding the right pet takes time and the organization wants to ensure you are getting the right animal for your family.

If you decide to purchase a new puppy, make sure you are buying from a quality breeder and that the parents are healthy. Though the process is less invasive than adoption, each breeder has their own processes and approval criteria to ensure the animals are going to a good home. To ensure you are getting a healthy puppy, you will want to choose a breeder who cares about where the pup will be going.

Once you have figured out the size, temperament, cost, and training requirements you want in your new dog, it’s time to choose a breed. There are lots to choose from and each breed has its own general temperament, strengths, and weaknesses.

To help you determine which breed to start getting to know, we’ve found these online assessments to help you narrow down your search.

American Kennel Club Dog Breed Selector: https://www.akc.org/dog-breed-selector/

Dog Time.com Dog Breed Selector: https://dogtime.com/quiz/dog-breed-selector

Puppy Spot.com Dog Breed Selector: https://www.puppyspot.com/breed-selector-quiz

Have fun learning more about the dog breeds that are best for you!

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