Calgary Real Estate Blog

More positive indicators regarding Calgary’s real estate market for 2017, this time from the Calgary Real Estate Board. In its 2017 forecast, CREB predicts about a three percent increase in total units sold, with an increase in detached home prices of nearly a percent. While a far cry from the booming numbers of a few years ago, this kind of stability – with a slow upward trend – is highly reassuring as we emerge from a recession. Check out the whole forecast document here.

Call me an optimist, but I’d suggest CREB is being a bit conservative with its predictions. It’s my feeling that there’s some pent up demand in Calgary’s market, people looking to make a move within the city who were simply waiting out the downturn so as to not experience so much downward price pressure on the property they’re looking to sell. If this is indeed the case, we could see an increase in the number of transactions over the course of the year, and maybe a little bump in the average price.

Regardless, we seem to have weathered a storm and are about to see the sun peaking through the clouds.

Want to plan your sales strategy? Contact me today and let’s have a chat.

RE/MAX has released its annual Spring Market Trends report, which gives a good look at how Calgary’s market compares to the rest of the country, and predicts what the rest of 2016 will be like. It’s available here, and I suggest taking a look if you’re thinking about buying or selling this year.

Of particular note is the slowdown in residential construction across our city, which should help the resale market absorb its abundance of inventory. Further, we’re likely looking at a slight increase in average selling price by the time 2016 comes to a close. For April, we had an increase in both the median and the average selling price, with the total number of sales only dropping about 10 percent from last year, so don’t believe the pessimists who think our real estate market is in a serious decline; it remains, and will remain, strong.

The next couple of months are typically the busiest for buying and selling, so if you’re considering putting your property up for sale I’d suggest getting on it sooner rather than later. The unseasonably warm weather has prospective buyers out and about more than they might’ve been in a more typical spring, and that means your For Sale sign can have even more impact. Contact me today for an assessment of your property, and maybe some suggestions on enhancing your curb appeal for those evening strollers.

Competitive pricing has been a cornerstone of successfully selling one’s home for as long as there’s been a real estate market. In Calgary, however, pricing is now more important than it has been in years due to moderate sales and an abundance of supply. While our market remains relatively solid and stable, many buyers simply don’t have the same sense of urgency as they may have had a couple years ago, and taking more time to shop around means having a better idea of where comparable properties are listed, price-wise.

The best place to start, now and always, is with a trustworthy Realtor. When I am preparing to list a client’s home, I do a thorough cataloguing of its most attractive features, recent upgrades, popular amenities, and unique characteristics that will make it stand apart. Armed with this detailed description, I do an intensive comparison among recently-sold properties in the same and similar neighbourhoods. Thinking as a buyer, I look at what other properties the ideal buyer of my client’s home might have come across, and see how they stack up. Examining the selling price and condition of these properties gives me a solid range to present to my client.

Next, I deliver a Comparative Market Analysis (CMA) to my client featuring the information I gathered above, along with a recommendation for where I think their property should be priced. This is simply a recommendation, of course; my job, as a real estate professional, is to carry out my client’s wishes to the best of my ability, and if they wants to list at ten percent over what comparables have sold at, that’s what I’ll do. However, I’m bringing more than fifteen years of experience to bear on this relationship, and so I would advise my client of the current market conditions, pricing trends, and the potential ramifications of coming in too high: when a home sits on the market for too long, potential buyers and other Realtors can begin to assume something’s fishy, and pressure to drastically lower the price to make a sale can be significant.

The best strategy is to price wisely right out of the gate. A properly priced home tends to sell faster, and for a higher percentage of asking, than one with a more wishful price tag.

So, what is pricing wisely in today’s Calgary market? There are plenty of properties available throughout many attractive communities in our city, and the length of time the average home sits on the market is going up each month, so if you’re looking to sell sooner rather than later, an aggressive pricing strategy is probably called for. While selling prices haven’t taken a nosedive, the abundance of choice means an attractive price can really make your property stand out among the competition. Review your Comparative Market Analysis with your Realtor of choice (contact me to get me started!), and discuss what your home might go for on the low end. Add a couple of percentage points to build in some wiggle room in negotiations, and you should arrive at a price that keeps your home from sitting on MLS for too long.

Of course, there are no guarantees, and each client’s personal situation is different. Patient sellers who don’t need to sell as quickly as possible may find their patience paying off in a higher selling price. The risky part of looking for top dollar in a buyer’s market, such as Calgary’s, is that the property may take an extended period to sell, or may not even sell at all without concessions. Before deciding on a strategy, have a frank discussion with your Realtor about your goals and your tolerance of risk. Listen to his professional opinion, and then make an informed decision. In the end, the best pricing strategy in this, or any, market, is the one that fits your personal situation.

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!

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.

If you’ve seen anything in the news about residential real estate lately, it’s probably been doom-and-gloom talk about how sales in January were down nearly 40 percent from January 2014 – you know, the year of record sales when I barely had time to grab a coffee between appointments many days. That kind of talk sells newspapers (at least, as much as newspapers sell these days) and plays nicely into the narrative that Alberta’s on the cusp of an economic apocalypse, but the truth is, the market’s doing just fine, and should continue to do so throughout the year.

We’ll likely continue to see lower year-over-year sales and price increases in residential homes over the next few months, which is to be expected: not only is the lower oil price slowing our economy, but Calgary went from a red hot sellers’ market early last year to a more balanced and sustainable one in the latter half. That balance – having the right number of properties for sale in relation to the number looking to buy – is ideal, and healthy. Without needing to rush buying decisions, but still having plenty of selection from which to choose, Realtors like myself can better help home buyers find homes that meet their needs and satisfy their wants. (For more on buyers’ vs sellers’ markets, and some consideration on when is the right time to sell your home, visit here.)

Despite the actual number of sales going down in January, there was both an increase in the number of properties listed and a healthy 7.7 percent increase in the year-over-year benchmark selling price. Nothing to worry about on that front.

Could the market slow down significantly? Sure, it’s possible, especially with the talk of major cuts across the board in the next provincial budget. People who were on the fence about selling and are now afraid prices are going to crater will go ahead and list their homes to beat the rush, while others may decide to downsize as their personal financial situation changes. And without a doubt, this year’s market won’t be nearly as hot as 2014’s. Still, as you’re reading or watching news stories about the dire future of Calgary real estate, take a moment to remember the solid fundamentals on which our housing market is based; there’s no bubble to be found here, which means there may be a slowdown, but there won’t be a crash.

Questions about the right time to buy and sell in our current economy? Contact me!

Also: the Calgary Home + Garden Show is quickly approaching, and organizers have sent out a Valentine’s Day promotion. To buy tickets for the event (taking place February 26-March 1 at the BMO Centre) and save $5 in the process, click here and use the promo code LOVE. Offer is valid until February 18.

Here we are starting off a new year and, as is often the case in Alberta where unpredictable resource revenues can drive the economy like a 14 year-old with his learner’s permit, markets and fortunes are highly unpredictable. Unpredictability can lead to fear, and fear can lead to bad choices.

So, I encourage you, as much as is possible, to take a breath and not get too wrapped up in the apocalyptic talk of bargain basement oil prices and an exodus of producers from our province.

Yes, the global oil market is somewhat flooded right now, and that’s not good in the immediate term for companies operating in this province, especially smaller operations with thin margins and little cushion. Businesses will inevitably pull out or cut back, and that means lost jobs, and that’s always tragic.

However, some economists are looking at the worldwide picture and Alberta’s history, and are taking an optimistic view. Three were asked by Maclean’s magazine to give an outlook on 2015 all suggested oil prices would be back up to the $75-$80 per barrel range by year’s end.

This isn’t a blog about oil, though; it’s about real estate. Calgary’s market no doubt had the best year in the country, and while things are inevitably going to slow down a bit, there’s nothing to suggest we won’t lead the pack again in 2015. From April 2013 to April 2014, nearly 40,000 people moved to our fair city, and they gotta live somewhere. Our red hot economy might experience a bit of a cool down, but I expect Calgary will continue to offer bountiful employment in a variety of industries, keeping the real estate market healthy. Interest rates aren’t expected to spike any time soon, and inventories should remain stable; you’re probably not going to see your property value go up 15 percent next year, but it will probably go up at least a bit.

My dad and I can count 2014 as a banner year for us, as we were steadily busy throughout, with periods of extreme activity keeping things interesting. A heartfelt thank you to all of my clients, both buyers and sellers, along with my trusted vendors, and of course my family who put up with an unpredictable schedule and obnoxious hours. I truly love what I do, but it wouldn’t be possible without the support of these people.

All the best to you and your family in 2015 – it’s going to be an exciting ride!

Looking for a dedicated Realtor? Contact us!

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.

Not at all unsurprisingly, according to the Calgary Real Estate Board’s most recent statistics the tide is starting to turn with regard to supply and demand in the city’s market. More specifically, June 2014 saw nearly 30 percent more new listings added than one year earlier. As homeowners see their neighbours’ properties selling in days for above asking price, it’s only natural that they’d think about listing themselves.

Interestingly, however, Calgary’s surrounding towns are also seeing a boom. Cochrane and Okotoks are becoming prime locations for commuters looking to stretch their home buying dollar by a few percent; sales in Airdrie are up a whopping 40 percent year-over-year.

Add these communities’ properties to our own market, and there are more and more homes for buyers to choose from, which will inevitably cause prices to plateau at some point. I highly doubt we’ll see any significant downward pressure on prices – with Calgary’s population growing by more than 4 percent every year, we’ll have plenty of people looking to buy for the foreseeable future – but if the growth dials down a bit, it might be a little easier for those looking to sell and move up to calculate what they’ll be able to afford.