Calgary Real Estate Blog

Well, the view out my window this weekend would seem to contradict my previous post’s allusion to the snow being gone and it being time for yard work to commence, but I guess that’s just the way 2014 is playing out, weather-wise. It sure hasn’t cooled our red-hot market, with year-over-year prices jumping a whopping ten percent. The average days-on-market numbers are better than they’ve been in years, which is great for sellers: the quicker a home sells, the more likely it is to be at or over asking price.

In more good news, Calgary, Toronto, and Vancouver were named the three most resilient cities in the world for real estate development, according to a Grosvenor Research report. Our relatively well thought out city planning, and large migration numbers are the main factor for Calgary’s positive showing here.

Easter weekend has passed, and I enjoyed both spending some quality time with my family, and eating a sugar-coma-inducing amount of chocolate. I hope you had similar fun!

As the temperature continues to dip into the minus twenties and below, and spring break quickly approaches, for many of us thoughts turn to tropical vacations. Whether it’s Mexico, Cuba, California, Jamaica, Hawaii, or a cruise, a week someplace warm can be just the ticket for conquering those Canadian winter blues. Before heading to the airport, though, you need to make sure your home is safely secured both for your own peace of mind and to keep your insurance valid should anything happen.

Let’s start with insurance: first of all, make sure you have enough of it. Most banks require homeowners insurance as a condition of extending a mortgage, but it’s your responsibility to be certain your policy covers everything you own. Talk to your broker to review your coverage, especially if you have any especially valuable jewelry or collections – these may require specific riders to be covered at their full value. Once the policy is in place, take a video camera (or your phone) and walk throughout your home documenting everything in it: should you be broken into, this will help you discover if anything is missing, and also acts as proof of an item’s existence to the insurance company. Just don’t keep the only copy of this footage on your home computer, as that’ll probably be stolen if you were broken into; put a copy on Dropbox, Google Drive, or a similar cloud storage solution.

Also related to insurance is the need to have someone look in on your home regularly while you’re away. Most homeowners policies require someone check on your house at least every three days; read your policy documents to find out what your obligation is. If you’re away for an extended period and something happens to your house that doesn’t get discovered until you return, you may not be covered.

Otherwise, you simply need to ensure your home is as secure as possible, and that all essential systems are working properly. Have your furnace inspected annually, as if it decides to conk out during a cold snap while you’re away you may return to burst pipes and flooded property. Check the condition of your front and back doors and their locks, along with those of your garage if you have one. Lock all of your windows, pull the blinds, and put your lights on a timer if you can. Even if he won’t be the one physically checking on your home while you’re away, let a neighbour know you’re leaving; the more eyes looking out for suspicious activity, the better. Handyman and ‘doing it right’ guru Mike Holmes penned a good article in the National Post last year that has some additional tips.

Knowing your home is secure and your property is safe will be a huge load off your mind, and will help you truly relax on that beach, margarita in hand, without a thought of the Hoth-like temperatures awaiting your return. Have a great trip.

People have often speculated on when exactly the best time to buy a house might be – what combination of a bountiful market and a scarcity of buyers will lead to the best deal on a great home. Charts and graphs have been studied, deep thinkers have thought deep thoughts.

Well, there’s definitely a right answer, but it’s hardly scientific.

The best time to buy a home is when you’re ready to buy a home.

Okay, maybe that’s a little anticlimactic, and a touch glib, but the truth is a buyer’s preparedness is the most important factor in making a successful purchase. If you’re thinking of selling and moving up to something larger, bear in mind that the high tide raises all boats: waiting for your property to go up in value is also waiting for your future home to get more expensive too. Maybe there can be an advantage to be found on this front when it comes to downsizing, but generally if we’re in a market that’s raising prices, it’s because there are an increased number of buyers at all levels, and so everything becomes more valuable.

Low interest rates are sometimes cited as a driving factor for more sales, but for the majority of us the purchase of a home requires a long term mortgage that will weather potentially massive fluctuations due to the health of our economy; the early 1980s saw rates as high as 22 percent, which dropped to around eight percent by the mid ‘90s. So, sure, today’s low rates can certainly make entry into the market easier, but they shouldn’t be the only reason to buy a home right now.

No, there’s no external factor that should shove a potential homebuyer who’s sitting on the fence into the market. Instead, look inward and examine your family’s financial position, anticipate upcoming expenditures and cash flow boosts, come up with a list of reasons to move and another of reasons to stay put, and have candid conversations with your family. Then, when you’re ready, get pre-qualified on a mortgage, spruce up your present dwelling, call a great Realtor, and, most of all, have fun shopping for that dream house. Good luck!

What a year 2013 has been for Calgary’s real estate market. We saw a return to a sellers’ market, with multiple offers on hot properties (i.e. anything under $500,000), and well-appointed two-storeys selling in days. Prices hit record highs as inventories dropped, and predictions for 2014 are to see these trends continue, with more people looking to move up while interest rates remain low.

All of this has led to me having one of my busiest years ever, and I extend my heartfelt appreciation to all of my clients who trusted me to help them find their prized new home. As I enjoy a bit of respite during the holidays, sharing meals and gifts with family and friends, I find I am looking forward to all of the new clients I’ll get to meet and work with in the coming months. Next year’s going to be a good one, I can feel it.

Take some time, amongst all of the season’s hustle and bustle, to reflect on your past year, the successes and learning opportunities, and to appreciate all that we have in this great province. I know I certainly have much to be thankful for, starting with my supportive, adorable family.

All the best to you and yours throughout this holiday season, and I wish nothing but good fortune for you in the New Year. Stay safe, take care, and I’ll hope to see you in 2014.

With the civic election just weeks away, city planning is a hot topic of conversation in the media thanks to a rather scandalous video taped surreptitiously at a home builders’ meeting earlier this year, with city aldermen called out for being friendly or unfriendly to developers’ interests, and the not always amenable relationship between our mayor and the Home Builders’ Association.

That’s led to some pretty serious propaganda surrounding Calgary’s housing market, including a website launched mid-September by Common Sense Calgary that warned of city planners making Calgary unaffordable for our children, citing the high price of property in Vancouver as an example of what we can look forward to.

Don’t be fooled; we’re not Vancouver. There is already a great deal of land within Calgary city limits set for new neighbourhoods to be constructed, neighbourhoods that will offer starter homes at relatively affordable prices. According to the Royal Bank Affordability Index, which measures how much of an average family’s income would be taken up by housing costs, Calgary is one of the most affordable major cities in which to own a home in Canada. Our affordability index is 33.6 percent. The national average is 48.4, and Vancouver’s is a whopping 85.8. And these are 2013 numbers, as we’re in the midst of a seller’s market.

Why are homes so expensive in Vancouver? Well, the obvious answer is it’s a coastal city, so land is at a premium. Add to that, the commute for people who work in Vancouver but live in the neighbouring communities – Burnaby, Langley, and so on – is hellish, so a small house in the city is still extremely appealing. Compare that to Calgary, a city built on the prairie with so much land we have the country’s largest green space (Nose Hill Park) in our city limits. Suburban life here doesn’t mean commutes of three hours each way; someone can live in Tuscany and still get to work downtown in under 45 minutes during rush hour. Plenty of residents of Airdrie, Cochrane, and even Didsbury happily commute daily, with travel times a fraction of those for commuters to Vancouver.

So, no matter what you think of Calgary’s city planning, or whether you approve or disapprove of the way the mayor’s office relates to home builders, don’t be swayed by the fear tactics employed by a special interest group looking to influence the upcoming election. Do your own research, and judge on facts, not hyperbole.

The 35 year-old community of Edgemont, in Calgary’s northwest quadrant, is one of the city’s largest, boasting a population of nearly 16,000 in 2012. Butting right up against the formidable Nose Hill Park, Edgemont residents have access to some of the most extensive hiking trails available within the city limits of any North American community.

Edgemont has an active community association, hosting business expos, craft sales, a skate park, and hall rentals. Kids in Edgemont attend one of three schools in the community through junior high, then move on to nearby Sir Winston Churchill and Saint Francis high schools.

Median household income in the community is on the high side, about $88,000, with about a third of the residents having immigrated from other countries.

To see homes available in Edgemont, do a Quick Search.

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

Here’s a record I didn’t expect to see made: a week ago this last Friday, twelve homes sold for more than a million dollars each, at the end of a month that saw 67 percent more luxury homes change hands than in any previous month, ever. Even in the standard market, some are reporting homes selling for $100,000 over list price. Yep, it’s a seller’s market alright.

If you’re considering getting in on the fun as a buyer, I can’t recommend strongly enough that you secure a pre-approved mortgage before going shopping. When competing offers are involved, potential buyers without pre-approval are at a serious disadvantage, so a trip to your lender is a half hour well spent.

Those of you looking to sell, work with your Realtor (I’m available) to come up with an appropriate price for your neighbourhood and you should have no problems getting your home sold.

I’m often writing/bragging about how well the real estate market is doing locally, and with good reason: it’s on fire like we haven’t seen in eight years. But it’s encouraging to hear some good news coming in from around the country, especially major markets like Vancouver and Toronto.

The Conference Board of Canada predicted today that the condo market is unlikely to plummet, even in Toronto where there has recently been concern about an abundance of new multi-family dwellings being built. While things may cool a bit, especially if interest rates rise, the Conference Board concluded that banks were doing a good job of keeping construction from getting out of control by virtue of construction loans being contingent on pre-sale thresholds, and growing populations in metropolitan areas will continue to be on the lookout for condos.

And the Canadian Real Estate Association is talking about Vancouver’s market growing nearly ten percent year-over-year for July, while Toronto’s up almost thirteen percent.

So, while we’re leading the charge thanks to generous incomes and a growing population, ours isn’t the only city with busy Realtors. I love good news.

It should come as no surprise to readers of this space that 2013 is on track to set a sales record, with well over $9 billion in sales being transacted; to date, the city has seen nearly $7 billion in real estate changing hands. Resale prices are up, and people are still buying, thanks to some very solid employment numbers (we’re one of the country’s only bright points on that front), relative affordability (especially in the condo market), forced moves due to the flood, and just the general appeal of our city to people from all over. Calgary’s a place where you can get a good job and raise a family without too much fear of the bottom falling out of your lifestyle.

So, of course, there’s gotta be the end times coming, and naysayers point to a slowdown in the purchase of land for new properties to show that they’re almost here. Call me optimistic, but I just don’t buy that as proof that we’re in a bubble about to burst. Developers have bought up huge swaths of land recently to keep up with the demand in our hot seller’s market, but they still recognize that the country’s fragile economy will likely lead to some ebbs and flows. So the houses get built, they sell, then new rounds of purchasing can begin. While suggestions that land purchases have dropped more than 50 percent in Calgary year-over-year may sound alarming, the other way to look at that is there was a lot of land bought up last year that’s becoming homes sold this year.

Real estate markets cycle, they don’t generally boom and bust without outside factors manipulating them (as was the case in the US some years ago). So, as I seem to say often around here, take the alarmist news with a healthy dose of skepticism.

With relatively low inventories – and not just because of flood damage – the Calgary real estate market is on fire right now. The Calgary Herald reports that condos, bungalows, and two-storey homes have all increased in price by 6 to 7 percent in the second quarter, year-over-year, as listings regularly receive multiple offers. The flood certainly didn’t help with the inventory crunch, but the overall trends shouldn’t be affected long-term by that mess; this isn’t a short term blip, it’s a larger trend.

And it’s not just the common-man homes that are moving: a record number of $4 million-plus homes have been sold so-far in July (and it’s only the 9th). There’s more inventory available in the luxury market, and the higher prices and low availability of mid-range homes, combined with interest rates that look like they’ll stay low for another couple of years, are all factors encouraging people looking to move up.

So, if you’re thinking about selling your present home and move into something larger, be prepared to act fast once you find that perfect place. And have a solid idea of the maximum you’re willing to spend – those susceptible to getting caught up in a bidding war could take a hit in today’s market. Smart buyers approaching transactions logically and not emotionally, however, should still be able to find the right home at the right price.