Calgary Real Estate Blog

You can’t really blame people – including many in the media – for getting all Chicken Little about Calgary’s real estate market. Layoffs and downsizing at corporations have led to a significant, but not catastrophic, slowdown in homes changing hands, and some prices have been reduced accordingly. The benchmark price actually went up a little over a percent in 2015, but total sales were down about a quarter. We’re solidly in a buyers’ market, and that’s something Calgarians haven’t seen in a long time.

But things aren’t necessarily so dire, really; our fundamentals are strong, prices aren’t artificially inflated, and desirable communities remain desirable. While there are fewer buyers competing for properties, well kept homes in good neighbourhoods are as motivating as ever.

That said, it’s more important than it’s been in years for you to put your home’s best foot forward, and for you to work with an experienced Realtor to help navigate the rapidly changing waters of today’s real estate market.

A Realtor such as myself participates in frequent professional development, ensuring my skills are ideally tuned to the current market. Realtors know the city inside and out, have been around the block enough times to bring historical context to what’s on offer today, and use well-honed negotiation skills to get the best price for your home. Realtors have access to the most accurate and timely data about market conditions and trusted predictions, giving their clients an edge when it comes time to set or adjust a price. Realtors know what will attract buyers and get them to write an offer rather than move on to the next property on the list. And Realtors can save hours decoding the piles of paperwork that goes along with a real estate transaction. Those who go it alone, without the help of a Realtor, are taking a big risk and are probably leaving money on the table.

As part of the services that my Dad and I offer, we’ve just added a comprehensive ‘Local Info’ section to our website that breaks down vital information about Calgary, Airdrie, Chestermere, and Cochrane for those who may be coming from out of the area. We detail civic governments, neighbourhoods, cultural events, schools, shopping, sports teams and more. Even if you’re not in the market to buy or sell right now, I’d encourage you to check it out – you may learn a few things!

For many years now, Calgary Realtors and their customers have relied on the MLS System for the most accurate and timely information on homes for sale in our city. Now the Calgary Real Estate Board (CREB) has chosen to align its MLS naming conventions with the City of Calgary’s official terms for communities.

In some cases, the changes are as simple as corrected spelling: Bel Aire becomes Bel-Aire, Saddleridge becomes Saddle Ridge. In others, neighbourhoods are consolidated: Varsity Acres, Varsity Village, and Varsity Estates become, simply, Varsity.

Zone names are also being changed from four quadrant letters, A, B, C & D, to eight more meaningful names titles: North, Northwest, Northeast, Centre, West, East, South and Southwest.

What will this mean to you as you use the MLS System? It means the community names referred to by the City of Calgary will now correlate directly with those in the System, making for an easier, more straightforward experience. A database is only as reliable as its data, and so CREB should be applauded for taking this step to start 2016 off right.

Speaking of starting the year off right, the Calgary Home + Garden Show is only a little over six weeks away, and you can get 2-for-1 tickets if you purchase before January 14 using the promo code NEWYEAR. Click here to get yours today!

Want to talk about putting your home on the market, the updated MLS naming conventions, or the new Star Wars movie? Contact me!

As we near the close-out of 2015, Calgary is settling into mild buyer’s market and will likely stay that way for a good chunk of 2016. However, if you’re looking to sell your mid-range home – especially sub-$450,000 – you’ll likely have plenty of interest. It’s the higher end that’s really taking the hit of job losses and low oil prices in Alberta.

We haven’t seen a buyer’s market in Calgary in quite a while, and so many looking to sell may be a little concerned and uncomfortable about the prospect. If that’s you, allow me to set your mind at ease.

First, Calgary’s real estate market, even in economic slowdowns, tends to remain pretty strong thanks to solid fundamentals. You won’t need to hold a fire sale on your well maintained home just to move it; priced and marketed appropriately by a real estate professional (like me!), you can still get what your property is worth. So, relax.

Second, to get top dollar, your home needs to look like it’s worth it. Professional staging, decluttering, yard maintenance and home repairs are key in a buyer’s market. When there’re plenty of homes to chose from, many shoppers are going to lean toward those that look ready to move into without a lot of work. Little touches make a huge difference, logical or not.

Third, trust your Realtor to manage expectations and give you honest opinions on pricing and strategy. She or he wants to move your property as badly as you want it to sell, and is motivated to secure the best price. Realtors live and breath real estate, and know the truth behind the headlines, so find someone you can trust and let their experience guide you.

Keep these things in mind and you’re set to have a positive experience selling in a buyer’s market.

Want some inspiration? Put the Calgary Home + Garden Show on your calendar for February! Use this link, with the promo code HOLIDAYS and get 2-for-1 tickets!

I’d say the performance of Calgary’s real estate market in recent weeks is yet more proof that, contrary to the belief of some, we are not in the midst of a bubble on the verge of popping.

We went from a habanero hot sales year last year, when oil was high and so were spirits, to recession-level unemployment and plenty of economic uncertainty with only a minor adjustment in the market. Sure, sales and listings are both down, but it has been a far from precipitous drop; indeed, mid-priced homes in good neighbourhoods have actually seen a small increase in selling price, as buyers look for properties that meet their needs and their budget.

This cushioned fall is not at all what you’d expect from a bubble scenario: if prices were artificially inflated while the economy was booming, they’d bust just as fast, but they didn’t. So, now is not the time to hurriedly sell before you’re ready, nor to rush into buying without your ducks in a row. Price fluctuations will happen, but probably not significantly enough to drive your purchasing behaviour. Call a Realtor you can trust (I’m available), talk about your goals and your fears, your need to haves and your nice to haves, and let’s make a plan.

On a separate note, I’ve got a new discount code for the Calgary Home + Design Show running September 17-20. Buy tickets online with the promo code SHOWWEEK and get them 2-for-1! The offer expires September 16, so get clicking!

Thinking about installing a secondary suite in your home to generate some extra income? There’s no better time than now, as the City of Calgary is waiving Development Permit requirements until March, 2017.

To qualify, your home must be properly zoned for a secondary suite and must meet Land Use Bylaw requirements.

The City is interested in making it easier for homeowners to develop secondary suites, increasing the inventory of lower-cost rental suites on the market. For more information, click here. And as always, you can reach me through my contact page.

The sustained low oil prices and a marginally increasing unemployment rate (although it’s not nearly as catastrophic as some might have you believe) are finally starting the affect the prices of mid range homes in calgary, with the August average selling price moving from $475,000 to $466,000. Now, that’s less than a two percent drop, from a record setting year to a recession, so it’s certainly not a major correction, but the graph is moving downwards and that’s something of which to be aware.

The question is, are we on the verge of a buyers’ market – and if you’re looking to buy, should you wait? The answer to the first part is, it depends on who you ask. Google “buyers’ market calgary” and the first two results are, “Housing Affordability Index shows Calgary is a buyers’ market,” and, “For some in Calgary, it’s still a seller’s market.” Both articles are from June, 2015. The upshot is, if you’ve got a house for sale for under $450,000, you’ve got a hot commodity on your hands and will likely sell post haste. Overall prices are going down, though, with fewer buyers thanks to economic uncertainty, meaning sellers in some neighbourhoods will need to cater more to their potential customers to make the sale.

So, what to do? In my fifteen years of experience, I can say waiting or not waiting is not going to have much of an impact on most buyers or sellers. Usually people need to sell their current house before buying a new one; banking on prices going down means banking on the value of your own property dropping as well. If you intend to stay within the same category of home, it’ll probably be a wash. Jumping to a much more expensive house from something in the mid range, however, could offer an argument for waiting a bit: as the economy slows, prices tend to fall the most in the high end of the market, while the middle stays relatively stable, so there may be deals to be had if oil remains low. That’s a significant ‘if’, though.

For the most part, the best time to buy your house is when you need to, whether it’s relocating to be closer to the kids’ school, to shorten commute times, or to get a property with more bedrooms to accommodate a growing family. There are just as many stories of people’s new residences shooting up in value after purchase as there are of them going down; as long as you buy a home that suits your needs, for a price you can afford, there’s no reason for regrets.

Why don’t we discuss this more – contact me and let’s start the ball rolling.

As we enter into the second half of 2015, things are looking up for Calgary’s real estate market. June sales figures show a year-over-year decline of well under 20 percent, not bad at all when going from a record year to an economic slowdown. Sweet-spot homes, priced under $500,000, continue to be a hot commodity, and certain Calgary neighbourhoods are as sought after as they ever were. Ours is an increasingly balanced market.

I expect things to continue to improve throughout the next several months. The fall is traditionally busier than the summer, and the new government’s rolling back of the real estate fee increases announced in April will keep about a thousand dollars in the average homebuyer’s jeans after a close. Consumer confidence is slowly coming back, and that can only help the real estate sector.

From a buyer’s perspective, the market conditions are great. Lots of supply, in many cases sellers are motivated, and interest rates remain highly favourable. While it’s not a definitive buyers market, due to the strong performance of mid-priced properties, it’s undoubtedly a good time to be looking for a home to fit your lifestyle and budget. I can help get you started.

If you’re listing right now, proper pricing is key. Any Realtor will tell you, now is not the time to shoot high with the hopes of getting a windfall. There are simply too many properties on the market for a potential buyer to give the time of day to an overpriced home. So do a few cosmetic touch-ups to maximize curb appeal, consider getting as much out of your home and into storage to make it feel as open and airy as possible (a professional stager can help with this, which is included in my listing package), and consult with a reliable Realtor on pricing and strategy.

While we’ve definitely transitioned to a balanced market, as lower oil prices have cooled Calgary’s economy somewhat, it remains a great time to sell your home, especially if it’s valued at less than $500,000. The luxury market is taking a hit right now – if you’re looking for something in the $1 million-plus range, I can get you a great deal – but low interest rates are driving strong demand for detached, single family residences priced between $400,000 and $500,000, with many selling within a couple of weeks of listing for very close to asking price. The number of properties on the market in May 2015 was down by more than a quarter from previous years, and that means the best priced properties available will be snapped up quickly – average resale prices are down only 1.5 percent year-over-year.

Things are certainly looking more positive than they were a couple of months ago, and make me rather optimistic for how things will play out in the next six months. Yet more proof that our properly managed real estate market, backed by a reliable banking system, has warded off any hint of a housing bubble; the growth we’ve seen, while impressive, is both reasonable and sustainable.

To talk about your options in listing your own property, please contact me today!

As you may or may not be aware, lenders offering a mortgage to those purchasing a home with less than a 20 percent down payment usually require that mortgage be backed by mortgage loan insurance; the most familiar provider of mortgage loan insurance is the Canada Mortgage and Housing Corporation, a government of Canada operation. This is a good thing, as it protects banks against defaults, while lowering the barrier to entry into the housing market. Homebuyers can purchase (typically their first) homes with as little as five percent down, so long as they’re willing to pay the CMHC premium as part of their mortgage.

Last month, CMHC announced it was increasing premiums effective June 1, 2015. These new premiums only affect buyers with a down payment of less than ten percent, and are intended to maintain CMHC’s capital holdings.

Homebuyers putting ten percent or less down will now pay a CMHC premium of 3.85 percent, up from 3.35 percent. According to CMHC, this should result in affected buyers paying about $5 per month more in insurance.

Like all insurance companies, CMHC maintains a large amount of capital holdings, which rise and fall as investments do. The money the company makes on these investments helps to pay for claims; by using this model, insurance companies are able to keep premiums relatively low while still having cash on hand to pay claims. So there you go; the more you know.

Want to know more? Contact me!

New Real Estate Fees for 2015 As reported by the Calgary Herald, last week’s provincial budget included some pretty hefty hikes to land title and mortgage registration fees, which are paid by the buyer at the time of a transaction’s closing. These fees are calculated, in part, as a percentage of a home’s selling price, and have remained stable since 2011.

After July 1, 2015, buyers will pay 0.12 percent of their new home’s purchase price in mortgage and land title registration fees, up from 0.02 percent, in addition to a flat fee of $75 (increased from $50). What that means to the average homebuyer is that instead of paying $290 (based on a $500,000 home with a 20 percent down payment), they’ll now be forking over $1,230.

User and registration fees went up virtually across the board in this latest budget, and so it’s not a huge surprise that these particular ones did too. Alberta’s land transfer and mortgage registration fees were among the lowest in the country, not to mention our being blessed with no land transfer taxes, and so its unlikely this will have any effect on Calgary’s real estate market other than inspiring some grumbles as buyers write cheques for closing costs. When Ralph Klein slashed these fees from 0.1 percent to 0.02 percent, interest rates were higher and the market slower than we currently enjoy; in our present economic climate, this increase is a fairly obvious move.

It is always important to consider closing costs when determining how much house you can afford. Remember, while the mortgage will likely be paid off over 25-plus years, closing costs are due right away and add up to several thousand dollars. Curious about what closing costs you may be looking at when you purchase? Check out our Buyer’s Guide, then contact me!