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Surprising Ways Buyers Find Homes

Tuesday, July 12th, 2016

Do you ever wonder how most people find the homes they eventually buy? You might imagine them driving by a “For Sale” sign or seeing a home for sale in the newspaper and then calling to enquire. Of course, many buyers find out about listed properties that way. But, according to research by the National Association of Realtors, there are many other — sometimes surprising — ways buyers find their next dream home.

For example:

• 88% of buyers find a home with the help of a real estate agent.

• 90% of buyers search online as part of the home buying process. (Such as viewing a property’s profile on the agent’s website.)

• 69% of buyers searching for a home using Google, use a specific local term, such as “Calgary – Northwest- homes for sale”.

• 29-46% of buyers attend an Open House as part of their home hunting activities.

Overall, the research shows that buyers are using a multitude of ways — combining online and offline methods — to find homes. What does all this mean to you? If means that if you’re preparing your home for sale, you need to ensure your marketing plan takes into account all the ways buyers are finding properties — so you can be sure that they will find yours.

Looking for a REALTOR® who knows how to market your home for maximum exposure? Contact us today.

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Buyers vs. Sellers Market—What is the Difference?

Wednesday, July 6th, 2016

There are many factors which affect the real estate market–interest rates, employment, investment growth, legislative changes and new construction, to name a few. All of these factors influence the real estate market in some way.

In a buyer’s market, there are more homes for sale than there are buyers. This could be a result of high unemployment, fear of interest rate increases or other factors which make people think twice about purchasing a home for the first time or moving up into a larger home. The advantage buyers have in a buyers’ market is that they can typically take their time and look at all of their options before buying. Overall, home prices may go down in a buyer’s market.

In a seller’s market, there are fewer homes for sale to a larger pool of buyers. The factors at work could be sustained low interest rates, high employment rate, legislative changes which make it easier to purchase a property–events and conditions that make buyers think it would be a good time to buy a big ticket item like a home.

The advantage goes to the seller in a seller’s market–typically home prices will rise as buyers are quick to make an offer to secure the property.

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Tips for Buying a New Build Condo

Tuesday, March 15th, 2016

Tips for Buying a New Build Condo

With signs of uncertainty in the market, it has never been more important to analyze your next real estate investment. Jumping into the unknown and hoping for the best is risky business. While this tactic may have worked over the past few years during Calgary’s more lucrative real estate market it is even more risky in this economy. Real estate has never been a fool’s game and now is the time to switch strategies and become more diligent for a greater chance of success.

It’s also not a great idea to sit on the sidelines with your cash. Downward market shifts can be great because it amplifies the good, the bad, and weeds out the average. Keeping all of that in mind let’s take a look at some important factors you need to consider before buying a newly built condo, whether it’s for an investment, an upgrade, or your first home.

  1. Pricing

There’s an old saying in real estate – you make money in real estate by what you pay for your home, not when you sell it. Pricing is the easiest way to ensure that you are on the right track. If you are buying in a hot market or a popular neighborhood you may end up paying an inflated price for the location, and what if that location is no longer the hot spot when you are ready to leave? Stay away from inflated prices and trends.

  1. Developer Experience

The problem with heated markets is that it attracts amateurs that want to get in on the action. More often than not these products lack quality and design. They may look great on paper but the underlying issues will make you want out faster than the ink can dry. If you are looking to buy a newly built condo try to buy from a developer with plenty of projects already in their portfolio.

  1. Location and Neighborhood

Condo investments, resale or new, hinge on their location and the neighborhood that surrounds them. The neighborhood makes the condo and not the other way around. This doesn’t mean that the neighborhood has to be completely developed and urbanized; it just means that it has to have the foundation for resale and rental capacity.

  1. Location of Your Unit

Consider your view and location within the building. Try avoiding units near the buildings garbage area, parkade and the main lobby. A good view and location in the building will always make your living experience more enjoyable than one without. Keep in mind that a below average view has the ability to adversely affect your resale potential.

  1. Running the Numbers

Most first time buyers will know what they want to spend on a mortgage payment every month, and how much they have been pre-approved for but the numbers go so much deeper than that. Do you know what the monthly condo fees will be? Will you have to pay for your utilities? What about a parking stall? Even the closing costs vary when it comes to buying a condo versus buying a regular home. Make sure you have a good idea of what ALL of your monthly costs will be before you make your final decision.

 

Posted in Articles, Blog, Condos, Home Buyers, Property Values, Rental | Comments Closed

January Market Snapshot

Wednesday, February 3rd, 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 January our total inventory of listings in Calgary increased in all 3 categories. This is very typical for this time of year as many sellers wait until after the holiday season to list their homes.

 Inventory  Dec  2015 Jan  2016 Change
Detached 2138 2546 +408
Attached 1078 1223 +145
Apartment 1120 1253 +133
Total City of Calgary 4336 5022 +686

 

Calgary Sales:

Sales in all categories decreased in January.   In my opinion this is a direct reflection on what is happening in the Calgary economy as sales would typically increase in Jan over Dec.   Last year in Jan we sold 877 homes and this year we sold only 764 so we are also down from last year by 13%.

 

Sales Dec  2015 Jan  2016 Change % Change
Detached 533 465 -68 12.8%
Attached 194 170 -24 -12.4%
Apartment 151 129 -22 -14.6%
Total City of Calgary 878 764 -114 -13.0%

 

Calgary Real Estate Sales Prices:  

Prices for all detached homes showed a very slight increase this month while all other categories showed a decrease.  ***** CREB Stats Reported in our stats package show different numbers today for benchmark price for detached and attached homes for the end of the year.  It appears to me they may have reclassified something as detached homes are showing higher and attached are showing lower by about $4,000.  If I am correct then detached homes showed a slight decrease and attached homes showed a much smaller decrease.

  Sales Prices Dec  2015Benchmark Price  Jan  2016Benchmark Price Change
Detached 508,700 509,300 +600
Attached 351,400 345,600 -5,800
Apartment 285,500 281,900 -3,600
Total City of Calgary 448,800 447,300 -1,500

 

Sales Prices “Year to Date”   

Year to date prices – Same as above for this month.

Sales Prices Dec 31, 2015   Benchmark Price  Jan  2016Benchmark Price Change$ % Change
Detached 508,700 509,300 +600 +.11
Attached 351,400 345,600 -5,800 -1.65
Apartment 285,500 281,900 -3,600 -1.26
Total City of Calgary 448,800 447,300 -1,500 -.33%

 

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.  January saw an increase in the absorption rate in all categories. This puts all sectors into a buyer’s 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   Dec  2015 Jan  2016 Change
Detached 4.01 5.48 +1.47
Attached 5.56 7.19 +1.63
Apartment 7.42 9.71 +2.29
Total City of Calgary 4..94 6.57 +1.63

 

Why would people buy in this market?

Two reasons come to mind. The first is people need a place to live and Real Estate has typically been looked at as a long term investment.  The second reason is that the higher priced homes have come down substantially more than the lower priced homes so it can be smart to “Move up” in a market like this.

 

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.

 

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

Posted in Articles, Blog, Property Values | Comments Closed

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.

 

 

 

 

 

 

 

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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!

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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.

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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.

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Save Money In Your Apartment

Thursday, December 17th, 2015

Saving Money in Your HomeThere are a lot of things you do around your apartment that can contribute to bigger bills and unexpected expenses. The good news is that you can prevent a lot of these issues and potentially save hundreds of dollars in your monthly budget. Here are some of the biggest money mistakes around your home and how to avoid them.

1. Paying for cable and satellite coverage. With the rising costs of cable subscriptions and satellite coverage, many renters have been opting to get rid of them completely – and for good reason. There are many services, such as Netflix that air the same shows you love for less than $10 per month. So it might be time to downgrade your cable subscription to basic, or get rid of it altogether.
2. Buying brand-new items. With a renewed love for all things vintage happening lately and the increase in the popularity of up-cycling, there are a lot of excellent diamonds in the rough out there, especially when it comes to furniture. Buying pre-loved household items can save you a bundle, and this lets you purchase new items you’ll really need to buy new further down the line.
3. Over cooling or overheating your apartment. Many renters cringe when they see their gas and electric bills come through each month, and some of the main culprits are your air-conditioning and heating systems. It may be hot and humid outside, but your apartment doesn’t have to feel like the inside of your fridge when you walk in. Even turning down the thermostat a few degrees can make a huge difference. Additionally, you could turn off the air-conditioning completely at night and rely on fans to keep cool, as the temperatures tend to drop once the sun goes down. Creating a cross-breeze in your apartment on cooler summer days is also a good idea. Likewise, in the winter months, you can reduce your bills dramatically by adjusting the thermostat by just a few degrees and investing in well-made blankets to keep warm.
4. Paying too much for water because of leaks. This is a huge drain on your household expenses, literally. Every drip can mean extra digits in your water bill. If you notice a leaky faucet or showerhead or a running toilet, alert your landlord so that it’s repaired immediately. Water bills can rack up quickly with even the smallest leak – and one thing you really don’t want in your apartment is the mold and mildew.
5. Being less than green. Making eco-friendliness a priority isn’t just great for the environment; it’s also excellent for your monthly budget. For instance, only run your dishwasher or washing machine when you have a full load to save water. You can also take shorter showers, clean veggies by swishing them in a bowl of water (rather than running them under the faucet), and turn off the faucet when you’re washing your hands or brushing your teeth. This may not sound like much, but going green really can make a difference over time for your wallet and for Mother Earth!
6. Overpaying for lighting. While eco-friendliness and lighting go hand-in-hand, your fixtures in particular have a significant impact on your monthly bills. For starters, be sure you turn off lights whenever you leave a room. Not only is a continually running bulb unnecessary and costly, but it also isn’t so great for the environment. It might also be time to think about switching over to LEDs or more energy-efficient bulbs next time you’re shopping, as prices for this type of lighting has become much more affordable in recent years. While these fixtures might cost a bit more than regular bulbs upfront, they last a lot longer because they use significantly less energy. Who likes changing out bulbs anyway?

Posted in Articles, Blog, Home Improvement | Comments Closed

November Market Snapshot

Wednesday, December 2nd, 2015

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 November our total inventory of listings in Calgary declined in all 3 categories.  It is very typical for inventory to decrease at this time of year as people start to focus on the holiday season.

 Inventory  Oct  2015 Nov  2015 Change
Detached 2922 2680 -262
Attached 1290 1287 -3
Apartment 1366 1349 -17
Total City of Calgary 5578 5316 -262

Calgary Sales:

Sales in all categories decreased in November.   Again it is typical for us to see a decrease in sales in November with the Holidays quickly approaching.   We are down substantially from 2014 (2014 was a huge year) and are down from the long term average.  In my opinion seasonal adjustments are a small part of this and it is a bigger reflection of a weakened economy and uncertainty in Alberta.

Sales Oct  2015 Nov  2015 Change % Change
Detached 872 799 -73 -8.4%
Attached 312 269 -43 -13.8%
Apartment 237 195 -42 -17.7%
Total City of Calgary 1421 1263 -158 -11.1%

Calgary Real Estate Sales Prices:  

Prices for all categories decreased this month.  The largest decrease is in the detached home sector.    The overall price decease for November is .53% . Looking at the Absorption rate I predict that that detached home sector will continue to see small decreases while the attached home sector and apartment condo sector will continue to see higher decreases.

Why you might ask am I predicting a decrease for detached homes while we are still in a balanced market – my answer is simply that the consumer confidence level out there is low.

  Sales Prices Oct  2015

Benchmark Price 

Nov  2015

Benchmark Price

 Change
Detached 513,800 510,700 -3,100
Attached 354,100 352,400 -1,700
Apartment 288,300 287,000 -1,300
Total City of Calgary 453,100 450,700 -2,400

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 all the uncertainty.

Sales Prices Dec 31, 2014   Benchmark Price  Nov 2015

Benchmark Price

 Change

$

% Change
Detached 510,900 510,700 -200 -.04%
Attached 357,000 352,400 4,600 -1.3%
Apartment 300,300 287,000 -13,300 -4.42%
Total City of Calgary 459,000 450,700 -8,300 -1.8%

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.  Somehow detached homes in Calgary are holding steady in a balanced market position.  Both attached homes and apartment condos are in a buyers’ market.  The largest increase is absorption rate is in the apartment condo sector at an increase of 1.15% which is substantial and will reflect in prices in the upcoming months.

Absorption Rate   Oct  2015 Nov  2015 Change
Detached 3.35 3.35 0
Attached 4.13 4.79 +.66
Apartment 5.76 6.91 +1.15
Total City of Calgary 3.93 4.21 +.28

Price Sensitivity

It is also important to note that homes in the lower price ranges are still moving while 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 or 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

Posted in Articles, Blog, Education | Comments Closed

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