Calgary Real Estate Blog

As is pretty common in real estate news articles lately, the Herald kind of buried the lede in its latest survey of Calgary’s market. Yes, it’s true that year-over-year sales were predictably down once again, as sectors of our economy continue to suffer. More interesting, though, at least from my perspective, is the fact that detached home sales were down a mere 1.4 percent from last year. Think about that: despite unemployment in the province hitting a 20-year high, houses are still being bought at a rate very close to last year’s. Add in the fact that average sale prices are actually up in some segments, despite a substantial increase in supply, and you have just one more example of the strong fundamentals underlying our real estate market.

The weaknesses in the market right now, rightly noted by the Herald, are the apartment, and attached home (including townhouses and duplexes) sectors, which have seen sharper declines in both sales and selling prices. Still, the drops have been nowhere near as precipitous as you might have expected if the market had been overheated.

The fact of the matter is, real estate in Calgary offers good value for money. We’re a resilient, optimistic city, and a great place to live.

So when you notice a particularly dire headline about the state of our real estate market, consider the purpose of that headline (to encourage clicks and sell papers), and read the entire article before forming an opinion. That’s solid advice for any article you might come across these days, actually.

As always, I’m available to consult on your property, or just to chat, through my contact form.

Suddenly a lot more people know what Airbnb is.

The company has been in the news of late as a Calgary couple rented out their home using the online service for some extra cash, only to return to find it had been completely trashed in what police called a “drug-induced orgy.” Damages to the King family’s northwest property are now estimated at $150,000.

Airbnb offers a “$1,000,000 Host Guarantee”, reimbursing up to one million dollars in repair bills to homeowners whose properties have been damaged by Airbnb customers, and the company has stated they will pay to have these Calgarian victims made whole again. But nothing can take away the memories of a family home decimated and disrespected so fully.

So, is it worth it to rent out your home on Airbnb? Like most means of earning extra income, there are risks and rewards. Apartments in Calgary start at around $65 per night, more depending on location and amenities (some homes can fetch $800 per night), and there are nearly 900 rentals listed in our city on Airbnb’s site; during Stampede, rates can quadruple. The vast majority of people who rent out their property have no problems at all, especially since renters must register with the service and both renters and homeowners can be reviewed, making them at least somewhat trackable should anything happen. Further, many choose to simply rent out a single room in their primary residence, which allows them to meet new people from around the world as tenants.

The first risk factor is self evident given recent events: the trashed house in the news was rented using stolen credit cards, and two weeks later no culprit has been nabbed. While the host guarantee means victimized homeowners won’t be out of pocket for long, irreplaceable items are, when destroyed, irreplaceable. Also important to know: if you’re a renter, it may be against your lease agreement to sublet your apartment. Review your agreement and check with your landlord before listing your property.

Many advise that the ideal method to use Airbnb for extra cash is to rent out a second home, keeping your primary residence for you and your family. Otherwise, think about the worst case scenario – basically what happened to the Kings – and see if it’s something from which you could move on with no lasting scars.

Do you have home ownership questions? 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!

As oil prices drop due to increased production and reduced global demand (I filled up for 98.9 at Costco this week), I’ve heard rumblings from people fearful of property values plummeting along with the price of crude. It’s not a foolish worry: Calgary’s market fluctuations have often risen and fallen along with our province’s energy economy, as one would logically expect. Not this time, however, at least, not yet.

The Globe and Mail ran an excellent breakdown in early October describing Calgary’s continually strong market growth, as the median house price rose to nearly $490,000 in September, up $10,000 from the month previous. According to PricewaterhouseCoopers and the Urban Land Institute, Calgary and Edmonton are the top markets in Canada for real estate investors. The survey quoted by the Herald notes the increasing numbers of young adults moving to Alberta for employment are helping drive condo sales as they enter the market looking for urban dwellings; as they age, their housing needs will progress, too, meaning we will likely see a very healthy market for a decade or more.

While increased prices aren’t necessarily music to the ears of those looking to buy their first property, they speak to the stability and robustness of the city’s market, making investment in Calgary real estate a sound decision in many cases (although your personal mileage may vary – I’m not offering personal financial advice here). Thinking of jumping in? Check out my Buyers Guide, then contact me to set the wheels in motion.

Interesting article from the Herald recently on the growing number of first-time home buyers. You’d think the record prices would deter first-timers from jumping into this red-hot market, but increasingly low interest rates combined with a healthy amount of confidence have led to the majority of properties changing hands in 2013 going to newbies.

I expect this trend will carry forward through 2014, as mortgages can now be had for less than two percent.

It’s nice to see the ‘housing bubble’ talk die down in the media lately: for close to a decade it’s been all the rage to predict how we’re on the verge of a US-style meltdown thanks to high personal debt loads and unsustainably low interest rates. Just wait till the good times get a little less good, they said, and it’ll be foreclosure sales left and right. Well, that kind of talk might sell magazines and get people to tune in at 6:00, but it’s just not the reality, especially in Calgary.

The steady population growth, solid employment situation, and smart city planning all lead to ours being a very livable city. I mean, in Toronto or Vancouver if you work downtown but live in the ‘burbs, you’re in for a multi-hour commute each day, but here, thanks in large part to a well designed c-train system, few are en-route for more than 45 minutes. Heck, our largest community (Tuscany) buts right up against the city limits, and when the new station opens this fall transit riders will be in the core in about 25 minutes.

So bravo for Calgary residents realizing the great value our city holds and jumping into the housing market. Obviously, making up 55 percent of the sales means first-timers are essential to the healthy and sustainable that we enjoy, and so it’s vital for everyone’s property values that we see real estate in Calgary for what it is, and not through an alarmist, sensationalist filter.

It’s a (bidding) war zone out there right now. There are nearly twenty percent fewer homes on the market than there were a year ago, yet sales are up just over three percent; well-priced, attractively located homes are being snatched up as quickly as hours after hitting MLS, according to the Herald. While this doesn’t mean people should be overpricing their homes, it does mean that sales for above-asking price are possible for savvy sellers.

Before you list, make sure you discuss with your Realtor (hey, I’m available!) which features of your home are the most appealing, and maybe put a little money into enhancing those areas as applicable. Then, when your home hits the market, your Realtor can ensure the right people are coming to take a look.

For buyers, there’s never been a more important time than now to ensure you have all your proverbial ducks in a row before diving into the market. For the love of Pete, get pre-qualified on your mortgage before doing anything else. Discuss with your spouse and any other stakeholders what the absolute must-haves of your next home are, and decide what you might be willing to sacrifice to obtain those features. Research the neighbourhoods at the top of your list to find out what kind of home you can expect to find there in your price range. Then, when the time comes to go shopping, bear in mind that you may need to move quickly to get an offer in before another buyer.

While it’s not a market for the timid, the right Realtor can reassure and guide you throughout the process so that you can find the right home, at the right price, for you and your family without too many sleepless nights.

I talk a lot about the detached home market in Calgary, and how remarkably well its doing, but our city’s condo market is also on fire right now. The Herald reported recently that new condo sales are near the records set in 2005 – when prices were significantly lower – as people look to live closer to the action of our downtown core.

Condos have a lot of great benefits for the right homebuyer. First, you get the financial advantages of owning a home with a lot of the mitigated responsibilities (for things like shoveling snow, replacing the roof, and so on) that go along with renting. Second, singles may feel a greater sense of security living in a highrise condo building, surrounded by helpful neighbours and with a monitored entrance, rather than in a big suburban home. Third, a major element of the condo lifestyle is living with less stuff: you just plain don’t have the room to store a pile of collectables, and so you learn to live with less.

It’s not for everyone, of course, and it does have risks: a poorly managed condo board can leave maintenance undone, for example, leading to major repairs paid for out of residents’ pockets. For those who do their research and know what they’re getting into, though, condos hold a lot of value and appeal. If you think you might like getting into the condo market, give me a call or visit my web page to view those I currently have listed.

Interesting article in the Calgary Herald recently posits that the now-moving-ahead southwest portion of the ring road could dramatically increase property values in nearby neighbourhoods. Especially encouraging, from a homeowner’s standpoint, is the fact that much of the land being discussed is already developed, meaning it’s owners themselves – not developers – who’ll see the profit.

It all comes down to accessibility. Commuting in Calgary’s not bad at all compared to other major markets, and thoroughfares like the ring road just make getting to work from the burbs that much easier. Anytime you can combine efficient access to services and workplaces with the quiet suburban lifestyle available near our city’s limits, you’re going to see values increase.

Of course, it’ll be years before the ring road is finished. I’ll be interested to see how many people build and buy in areas that will eventually be near the completed freeway in a short term pain, long term gain strategy.

Mount Royal is one of Calgary’s most wealthy neighbourhoods, and as such is home to some of the most stunning real estate in the city; in the mid-2000s, one family that owned three adjacent lots was profiled in the Calgary Herald for its plans to construct one massive home in the style of the Chateau Lake Louise.  The economic downturn in 2008 put a hold on those plans, but it still gives an idea of the imagination (and resources) with which property is approached here.

Located in the southwest, Mount Royal was originally called “American Hill” due to the large proportion of US-immigrants who chose to reside there. Just under 3200 people currently call Mount Royal home, served by the public schools Earl Grey Elementary and Mount Royal Junior High. The community is split into Lower Mount Royal, which is mostly comprised of condominiums and townhomes, and Upper Mount Royal, which is almost entirely single family homes; median income in Upper Mount Royal is nearly four times that of Lower Mount Royal.

With its close proximity to downtown and the bustling strip of 17th Avenue SW, amenities are plentiful in Mount Royal, with a vast selection of restaurants to choose from and a complete compliment of cultural opportunities. Additionally, Elbow Drive provides easy access to Chinook Mall and other nearby attractions. Residents may also access the Glencoe Club, a private sports and recreation facility serving Mount Royal and Elbow Park, founded in 1931.

To see homes available in Mount Royal, do a Quick Search.

To get a complete market report on Mount Royal, or any other neighbourhood you are interested in, use our quick and easy market report request.

The Calgary Herald, whose paywall experiment seems to have gone away, reports today that there’re more houses being sold and bought than you can shake a stick at, despite July traditionally being a slower month, what with the Stampede taking everyone’s time (and speaking of Stampede: bacon-wrapped corn dog. That is all). The Herald uses the word ‘deluge’ to describe the rush of buyers looking to enter the market or move somewhere not described as a flood plain.

I’ve never been one to complain about having too much work, despite it elbowing its way into my personal life more and more (I continued negotiations on two offers during an intermission at Stage West not long ago) and leading to a highly irregular meal schedule, so this is great news for me. I’m still camping with the family (mobile Internet is a beautiful thing for telecommuting from the mountains), still enjoyed some Stampede shenanigans, and still managed to help some great families find great homes. This pace won’t continue forever, so right now I say, “bring it on!”.