Archive for October, 2015

Calgary’s Housing Market Outlook Fall 2015

Wednesday, October 28th, 2015

CMHC has released this fall’s housing market outlook and there’s some great information in there! Some highlights include:

  • Single detached housing starts are forcast to remain below historical averages through to 2017
  • Multi-family starts are set to decline from the record high in 2014
  • MLS residential sales will decline in 2015 before gradually increasing in 2016 and 2017
  • Emplyment growth to slow down in 2015 and 2016 but improve in 2017

For an indepth look at what CMHC is projecting for the coming year take a look at the whole report here.

The Real Cost of DIY – Are the Savings Worth It?

Thursday, October 22nd, 2015

The Real Cost of DIYIt’s summertime, which in addition to road trips and backyard barbecues, is the season for DIY. That means lots of homeowners up on ladders, watching how-to videos online and making multiple trips to the big-box home supply store to pick up supplies and materials they forgot to pick up the first (or second or third) visit.
As Realtors we’ve seen it all, some DIY jobs have gone beautifully adding to both the appeal and value of your home. Some have gone ok- they aren’t professional looking but the average home buyer maybe doesn’t mind that squeaky step. It’s when the jobs go wrong that problems arise and sometimes they go REALLY wrong. Here’s a nice little guideline to help you decide if you are up for the task of your next home improvement project.
1. Jobs that exceed your skills.
The proliferation of YouTube how-to videos has been a boon to the persistent home improvement do-it-yourselfer. In just a few mouse clicks you can be face-to-face with a knowledgeable expert who takes you step-by-step through a project, from caulking the tub, to installing a skylight. Unfortunately, there’s no way to tell how expert any given YouTube “expert” actually is. Worse, even if the expert is knowledgeable and skilled, every home repair and maintenance project is different. As soon as your job fails to follow the script, you’re on your own. A pro has the necessary experience, tools and supplies to roll with the punches. Most DIYers probably don’t.
The costs? Poor bathtub caulking will soon cause leaks behind the tub or shower floor, where it’s hidden from view, and result in hefty repair bills for damaged walls and floor joists. And while the YouTuber makes that skylight installation look easy, it’s easy for us on the ground to lose sight of the fact that the job is up on the roof, where falling is easy, too.
2. Jobs that are dangerous.
A professional roofer will have the tools and the experience to do the job competently and safely. Most DIYers will have neither, which makes doing the job well and safely unlikely. Some electrical work falls into this category, with the danger occurring both during the work and afterward when poor workmanship can lead to risk of fire.
Some other dangerous DIY jobs to think twice about, according to the DIY experts at BobVila.com, include major tree trimming, interior wall removal, pest abatement and gas pipe repair or removal.
No savings on home maintenance and repair are worth risking life and limb. If you’re unsure, or don’t understand the risk involved, hire a pro. It’ll be cheaper in the long run.
3. Stuff that isn’t fun.
Everybody’s idea of fun is different. If you enjoy laying down hundreds of pavers for your new back patio, go for it. Learn all you can about the process and set to it. If you decide after a few courses that you do not enjoy it and dread the hours of tedium ahead, put down the stone and consider hiring a pro. Your time is valuable. Spend it on a DIY job you do enjoy, or focus your effort on developing your barbecue recipe. While persistence and determination are admirable, sticking with a job you hate too often leads to distraction and ultimately shoddy work you’ll pay for again later.
4. Big jobs that seem easy.
This goes hand-in-hand with taking on jobs for which the DIYer lacks the necessary skills. How hard could a bathroom or kitchen renovation really be? How difficult is putting up a fence, installing a deck or replacing the main sewer line?
Plenty difficult – and expensive, too. From the tools required to the supplies needed for the project, the costs for big jobs can mount, and for DIYers new to the work, estimating beforehand is not straightforward. Online project calculators can get you part of the way there, but every project is different and some DIYers lack the experience to adjust on the fly. That means more tools to buy, more supplies and more time finishing the project.
5. DIY jobs that require permits.
Permit requirements vary from jurisdiction to jurisdiction – and many DIYers may not consider permits before diving into their kitchen or bathroom renovation. Failure to get the proper permits can make it harder to sell a home later, as banks will be reluctant to loan money for unpermitted improvements. Worse, unpermitted improvements could result in lawsuits post-sale.
Reliable contractors will take care of the permits and the paperwork. Whether you do the project yourself, or hire a pro, it’s a good idea to meet with your local building or planning department to discuss the improvement project beforehand. You’ll understand the permit requirements before starting, and you can apply for the permits yourself, saving you a little money on contractor fees.

September Market Snapshot

Monday, October 5th, 2015

September Results are in and it looks like things are changing in the Real Estate front in Calgary.

Stay ahead of the curve by following our Monthly Market Snapshot of the Calgary Real Estate Market. This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and the effect on the price of Calgary Real Estate.  A simple way to keep up to date and ahead of most!

Below are the details along with a few comments, all numbers were taken from the Calgary Real Estate Boards Stats package for Realtors.

Calgary Listing Inventory

In September we saw an increase in inventory levels for all categories. New listings were up and sales we down causing this increase.

 Inventory  Aug   2015 Sept  2015 Change
Detached 2801 3012 +211
Attached 1130 1232 +102
Apartment 1215 1282 +67
Total City of Calgary 5146 5526 +380

 

Calgary Sales:

Sales for all categories decreased this month.  While the percentages look high it is important to note that some of this is strictly seasonal as September is always lower in sales than August.   In my opinion seasonal adjustments are a small part of this and  it is a bigger reflection of a weakened economy and uncertainty.

Sales Aug   2015 Sept  2015 Change % Change
Detached 1000 906 -94 -9.4%
Attached 364 283 –81 -22.3%
Apartment 279 259 -20 -7.1%
Total City of Calgary 1643 1448 -195 -11.8%

 

Calgary Real Estate Sales Prices:  

Prices for Attached and Detached homes increased slightly this month while the Apartment Condo sector prices decreased.  Looking at today’s absorption rate I predict that Detached homes will continue with small increases or stay flat while attached homes and Apartment Condos will continue to see price declines in the next while.

  Sales Prices Aug   2015Benchmark Price  Sept  2015Benchmark Price Change
Detached 516,000 517,200 +1,200
Attached 356,700 357,000 +300
Apartment 294,100 290,600 -3,500
Total City of Calgary 456,300 456,100 -200

 

Sales Prices “Year to Date”   

Year to date prices –  Again increases in detached and attached while Apartment condos have decreased.

Sales Prices Dec 31, 2014   Benchmark Price  Sept  2015Benchmark Price Change$ % Change
Detached 510,900 517,200 +6,300 +1.2%
Attached 337,300 357,000 +19,700 +5.8%
Apartment 300,300 290,600 -9,700 -3.23%
Total City of Calgary 459,000 456,100 -2,600 -.63%

 

Absorption Rate (Months of Inventory)   (the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market >4.0 Drives prices down
Balanced Market Between 2.8 to 4.0 Prices typically remain stable
Seller’s Market <2.8 Drives prices up

 

*** Absorption Rate:   

In September all categories increased with attached homes increasing the most.  As mentioned earlier this will reflect in prices in the upcoming months.

Absorption Rate   Aug   2015 Sept  2015 Change
Detached 2.80 3.32 +.52
Attached 3.1 4.35 +1.25
Apartment 4.35 4.95 +.6
Total City of Calgary 3.13 3.82 +.69

 

Price Sensitivity

It is also very interesting that starter homes are the ones that are still selling in the first day in a lot of circumstances.  The higher priced homes are the ones seeing the least amount of activity.

 

**Please note that these numbers do change on a community basis and more so for towns.  If you would like to find stats on your community just let me know.  If you have any questions about this summary, the attached stats package or any Real Estate questions please feel free to contact us.

 

If you know anyone else who might enjoy seeing our monthly summary please feel free to pass this on. Gord, Eric, Brent, Melissa

TSW Real Estate Group