Archive for January, 2016

2016 Economic Outlook

Wednesday, January 20th, 2016

2016 Economic Outlook

CREB has released their 2016 Economic Outlook and Regional Housing Market Forecast. In this document they outline their forecast of the next year and go into depth on the following topics:

  • The global economy
  • Interest rates
  • The energy sector
  • The local economy
  • Employment
  • Population growth
  • Calgary housing market, including rentals, resale and new builds
  • Surrounding area housing markets.

This is a fantastic read for anyone interested in local real estate and has some great insights into what we may expect in the coming year. If you would like to read the full report please check it out here.

 

 

 

 

 

 

 

Posted in Articles, Blog, Education | Comments Closed

Home Buyers Stress

Wednesday, January 13th, 2016

Minimize HomebuyersMany things can cause stress to homebuyers.
Purchasing property can be a large and overwhelming task. However, it doesn’t have to take over your life! With the right guidance and assistance, you will have the clarity you need to confidently move forward.

We want to help make the process as easy and enjoyable for you as possible.

Our philosophy is, to first educate you, the client, and then guide you through the process at your speed. Educated clients typically have a less stressful experience.

Issues are Unpredictable, but…
In real estate unexpected issues may come up, but experienced agents know how best to deal with those issues.

Let us help you achieve the ultimate goal of home ownership with the least amount of stress and worry! Let our professional staff help you!

Posted in Articles, Blog | Comments Closed

Inner City or Suburb?

Friday, January 8th, 2016

Inner CityThe battle over deciding whether to buy a home in Calgary or within one of the several smaller towns or suburbs outside of the city is a debate that plagues many prospective homebuyers. Here are some reasons one area may be more suited to your needs over the other.
There are a lot of weird biases against the suburbs – no you don’t have to wear “mom jeans” and lose all semblance of “coolness” – the SUBURBS are where it’s AT!
• Bang for your buck – generally you will get more square footage for less than it will cost in the city. Why buy a two bedroom cramped condo in the inner city when you can have a three bedroom home with a garden in the suburbs? Young families need affordable space – and the suburbs offer that!
• Less crime – statistically, the suburbs are safer. Chances are you will know everyone on your block, something that doesn’t often happen in the bustle of the city. Knowing that the neighbours will watch the house when you are away, or feed the cat – well that’s something money can’t buy!
• With a mix of big box shopping, boutiques, and everything else, you’ll be able to find everything you need, without the hassle of finding a parking spot, AND having to pay for it!
• Access to more outdoor activities – you’ll generally find more parks, community centres, and ice rinks, not to mention pools and golf courses.
The inner city offers many draws, especially if you are not looking at starting a family, or are more interested in being close to work.
• Typically less market volatility – losses are typically less dramatic but gains are usually higher due to the urban core being “built out.”
• Convenience – let’s face it, every possible amenity is available at your doorstep in major urban centers
• Established neighbourhoods and amenities – beautiful mature lined streets, heritage buildings, architecture, and specialty stores not to mention the incredible shopping, are established city trademarks.
• Transit – there is better access to all types of public transit as well as service route options.

Posted in Articles, Blog | Comments Closed

December Market Snapshot

Tuesday, January 5th, 2016

Find out what is really happening in the Real Estate Market. Stay ahead of everyone else 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 most importantly the relationship between the two and how it affects 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 December our total inventory of listings in Calgary declined in all 3 categories.  This is very typical for this time of year as people are focused on the holiday season and wait until the New Year to list.

 Inventory  Nov  2015 Dec  2015 Change
Detached 2680 2138 -542
Attached 1287 1078 -209
Apartment 1349 1120 -229
Total City of Calgary 5316 4336 -980

 

Calgary Sales: Sales in all categories decreased in December.  Again this is typical for us to see a decrease in sales in December with the holidays.  We are down from 2014 (2014 was a huge year) and are down from the long term average.  What is interesting is the decline from November was approx. 30% in 2015 and the drop from November to December in 2014 was 39%.

Sales Nov  2015 Dec  2015 Change % Change
Detached 799 533 -266 -33.3%
Attached 269 194 -75 -27.9%
Apartment 195 151 -44 -22.6%
Total City of Calgary 1263 878 -385 -30.4%

 

Calgary Real Estate Sales Prices:   Prices for all categories decreased this month.  All the decreases were modest with the largest being in the detached home sector.  I think the reason this sector took the largest drop is that it has been relatively stable for the last year while we have seen decreases in the other sectors.  The overall price decrease for December was .42%

  Sales Prices Nov  2015     Benchmark Price  Dec  2015Benchmark Price Change
Detached 510,700 508,700 -2,000
Attached 352,400 351,400 -1,000
Apartment 287,000 285,500 -1,500
Total City of Calgary 450,700 448,800 -1,900

 

Sales Prices “Year to Date”    Year to date prices – The numbers here speak for themselves. As you can see the largest decrease is in the apartment sector. Overall I am surprised at how well Real Estate has held up so far with the oil prices, unemployment rate and all the uncertainty in Calgary.  If you compare how much the prices have changed with the Absorption rate below there is a direct correlation.

Sales Prices Dec 31, 2014   Benchmark Price  Dec  2015Benchmark Price Change$ % Change
Detached 510,900 508,700 -2,200 -.4%
Attached 357,000 351,400 -5,600 -1.6%
Apartment 300,300 285,500 -14,800 -4.9%
Total City of Calgary 459,000 448,800 -10,200 -2.2%

 

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 my opinion this is the most critical number to look at. December saw detached homes move from a balanced market just into a buyers’ market putting all housing sectors into buyers’ a market position. Based on this I would have to predict further price easing in the upcoming months especially in the attached home and apartment condo sectors.

Absorption Rate   Nov  2015 Dec  2015 Change
Detached 3.35 4.01 +.66
Attached 4.79 5.56 +.77
Apartment 6.91 7.42 +.51
Total City of Calgary 4.21 4..94 +.73

 

Price Sensitivity It is also important to note that homes in the lower price ranges are still moving much quicker than homes in the higher price ranges. **Please note that these numbers do change on a community basis and more so for towns.  This report does not include rural properties.  If you would like to find stats on your community just let me know.  If you have any questions about this summary or Real Estate questions please feel free to contact us.

Posted in Articles, Blog, Education | Comments Closed