This comes as no surprise for me!  The latest CTV news article, Decrease in listings increases demand for Calgary homes, outlines some of the reasons why this year is proving to be a hot one for real estate sales.  There are nearly 20 percent less home listed compared to the same time last year, which is driving prices upwards and days on market downwards.

As our city sprawls out there is also increasing demand for inner-city property.  The Calgary Herald recent posted an article stating that inner-city neighbourhoods saw an increase of 250-260% between 2000-2012.

If you want to take advantage of this market contact me today!

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So this was unusual: Finance Minister Jim Flaherty apparently convinced Manulife Bank to reconsider a rate cut the institution had put in place, citing concerns about consumer debt levels. Manulife had just posted a five-year fixed rate mortgage at 2.89 percent when Mr. Flaherty’s office called the bank with a message that such a move would be “unacceptable.” Two weeks ago, BMO received a similar warning after posting a 2.99 percent five-year fixed rate; that bank, however, decided against rolling back.

While very good, these rates are certainly not unheard of in the broader market.

This type of basically unprecedented intervention is concerning and problematic, even if you can see where the government is coming from. Unlike in Calgary’s market, real estate sales are down significantly in the rest of the country, but prices aren’t yet dropping a commensurate amount. That means those who are looking to buy a home are still paying big prices, and some are taking on large mortgages to cover the costs. Should the market continue to stagnate, prices will inevitably go down and a segment of those new buyers may end up underwater. Flaherty has already made stricter rules around qualifying for mortgages with less than 20 percent down (meaning, those that require insurance through CMHC) four times in recent years, and has now, it seems, taken to pressuring private lenders directly.

At the end of the day, though, banks should – and still do – have the right to set their rates as they see fit, competing for, in some places, a shrinking pool of buyers. The meltdown in the US was a cautionary tale, but our financial system is a far cry from being as corrupted as that one was, and while house prices have room to go down, panic that we’re on the cusp of a bursting bubble is, in my opinion, somewhat misplaced. Limit CMHC-backed mortgages to 25-year amortizations? Sure, sounds reasonable, and limits the government’s exposure. But let the lenders do their thing.

227 Tuscany Drive NW

Original owner home. Clean, neat and ready to sell. New carpet and new paint. Developed basement with a wet-bar/kitchenette. Dual laundry, one in the main bath upstairs, and one downstairs. Split side entry. Double garage. Landscaped South back yard. In the walk zone for Tuscany School. Act fast, this will sell right away.

View more photos and full listing details on our webpage.

According to a just-released Harris/Decima poll, 47 percent of Albertans would take a fixed-rate mortgage if they were applying for one today, as opposed to just 26 percent preferring the variable-rate alternative. That’s pretty close to the national number – 45 percent favouring fixed – and not really that surprising. People tend to like predictability, and are often willing to spend a bit more to get it; the popularity of gas and electricity contracts, in a time when both are pretty inexpensive, is another example of this.

There are plenty of reasons to go fixed, and plenty to go variable. The Globe and Mail reported in December that variable-rate mortgages have been cheaper than their fixed counterparts some 90 percent of the time over the past 25 years, meaning those who rode out market fluctuations came out significantly ahead. On the other hand, right now fixed-rate mortgages are being offered for within one percent of variable rates, meaning the premium paid for stability is lower than it has been in the past.

Ultimately, buyers must make their own decisions based on their immediate circumstances, plans for the future, and tolerance for risk. I know some great experts that can help sort through the choices, and am happy to refer my clients to them, but a hard look at one’s own financial goals is key to setting up a mortgage that won’t lead to any lost sleep.

I’ve been talking a lot in this space about how Calgary’s housing market is outperforming all comers; well, here’s more proof: we broke a record in February for the highest average selling price for single family homes. The figure, $518,452, comes in a little over two percent higher than the previous record set in 2007 (also known as Calgary’s most recent boom). Now, of course there are extenuating factors coming into play here – notably the fact that the all-time most expensive home sale in the city’s history closed last month, as did a record number of other $1 million plus sales – so CREB’s benchmark numbers are maybe a little more useful when determining what the average Calgarian entering the market is looking at. Those put the typical single-family home at about $440,000, which is still close to $90,000 more than January’s national average.

So is Calgary’s market on-track to price itself out of reach for the average young family looking for a starter home? I don’t think so. The vast diversity of neighbourhoods – and their proximity to downtown – available to residents ensures there’s a price point for everyone, and as Mayor Nenshi wrote in the Herald last weekend, more than 22 square kilometres of serviced land are available for new development, enough to house hundreds of thousands of people at fair prices.

This has already been a banner year for me, and it’s only March; the proverbial sun is shining, so I’m making some hay. I did, however, find the time to add some new functionality to our website: our new, free Market Report tool allows you to see your neighbourhood’s detailed sales history, including addresses and prices. Check it out!

I pay for a professional stager to evaluate nearly every home I represent. Sure, after thirteen years in the business I have a pretty good idea what a property that’s going to move looks like; I don’t necessarily need a second opinion to get most of the way there. Still, I recognize the value of people who are good at what they do, and specialize in their field, and moreover I believe proper staging is one of the most reliable ways to sell a house for at or near asking price.

What does a stager do? Well, the one I use surveys the property and scrutinizes it the way a buyer might, then prepares a detailed report filled with recommendations on how to make the home show better. This might be shifting around some furniture (or getting rid of some), paring down items on shelves, and just general decluttering. A stager is a design professional who knows about the relationship of objects in space, and how that relationship makes people feel. The same way a clever Realtor came up with the idea of baking cookies in a home before an open house to elicit warm fuzzies in potential buyers, a stager helps make a home feel wonderful to visit and therefore attractive to buy. All those fabulous properties on magazine covers, they don’t just look like that naturally – they’re carefully staged to give off a particular vibe: to look larger, warmer, breezier, more modern.

Clients can choose to hire a stager to do the work of staging the house, even to the extent of renting furniture, artwork, and other props to create a unified look (particularly useful in a vacant property). At the very least, though, I usually insist on the consultation, as the relatively small investment of money and time usually translates to a faster sale for a higher price. And we all like that.

233 4 Ave NE

Legal, grandfathered (called non-conforming) up-down duplex. Good one bedroom suite down with a separate entrance. Many recent upgrades in the suite including a new kitchen. Other upgrades in the home include a recent furnace, wiring and water systems and newer windows. Main floor has two bedrooms and it’s own laundry. This property is located within walking distance of the downtown core. Only a half-block away from Rotary Park and it’s tennis courts. This is a prime property for re-development, and is a very good holding property that generates good revenue.

View more photos and full property details by visiting our webpage!

Don’t forget that the RRSP contribution deadline for 2012 is a mere two days away, on March 1.

If you’re considering 2013 as the year you enter Calgary’s housing market – and property is more affordable than it has been in years – make sure you consider this excellent money-saving opportunity. While your RRSP funds won’t be earning interest for you until you repay them, a larger down payment on your first home means lower mortgage payments and often better terms.

According to a RE/MAX report released today, Calgary’s housing market appreciated by a significant amount over the past ten years – the average house price in the city jumped 108 percent, compared with the national average 15 percent lower. While the bulk of the gains were made in the first half of the decade thanks to the 2008 economic slowdown, the vast majority of property owners have seen a nice bump in their equity.

Will the next decade have similar gains in store? No one knows for sure but I’d say probably. Alberta’s economy is among the strongest in the country, despite some budgeting pain making the news lately, and the outlook is good for it to stay that way. For my money, Calgary’s a great market to get into right now.

The Alberta government has announced it is opening the Condominium Property Act for review and public consultation, something that hasn’t been done in thirteen years. It’s about time, I’d say. Apartment-style condominiums have become the de facto starter home: they’re relatively low cost, often come with appealing amenities for singles and couples, and tend to be located where the action is rather than in quiet suburbs (although there are plenty of non-central condos in the city too, holding special appeal for seniors and young families). Calgarians love condos, is my point, and in my opinion management companies have been, shall we say, benefitting a little too much because of it.

What’s my beef with some management companies? Well, among other things, the fees they charge owners for copies of their own condominium documents at the time of sale are simply ridiculous: $400 for a complete package is common these days. To put that in perspective, condo sellers might pay in the neighbourhood of $600 to their lawyers for that same transaction, with all the various tasks a lawyer performs; the management company is getting two-thirds’ that amount to merely run a photocopier or upload docs to an online repository. To make matters even more absurd, the documents requested belong to the condo corporations, yet those corporations don’t see any of the money paid to the management company for putting them together – and they’re already being paid a fee by the condo corp!

Of course things are never quite this black and white, and I’m sure management company reps would have a thing or two to say in response. But my point is, our market continues to boom and a good chunk of the properties changing hands are condos. There’s not going to be a better time to let the government know what is and isn’t working with the Condominium Act. Beyond the fees charged at the time of sale, warranty issues, dispute resolution, board governance and a host of other elements could use tweaking; I encourage anyone with skin in the game to take the government up on its offer to listen to what you have to say. Participate in the survey and make your voice heard.