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Covid 19 affect on the Calgary Real Estate Market

Wednesday, April 1st, 2020

What is really happening in the Calgary Real Estate Market?

The market is simply a result of Supply and Demand therefore we look at both Supply (inventory) and Demand (Sales) and the relationship between the two.  We also update you on the current benchmark price for all housing sectors.

Following is a graph that shows the months of inventory for each Sector.  Looking at a 2-year trendline gives you and indication of where things are really heading.

Graph shows the 2 year trend of Months of Inventory for all housing categories in the Calgary Real Estate Market.

Following is a summary of what I deem to be the most important numbers.  Again, we look at Total Inventory, Sales for the past 30 days, Months of Inventory and of course the benchmark price.  All numbers are taken from the Calgary Real Estate boards monthly stats package.

 

CREB Stats for March 2020

 

Gord’s commentary for the month (just my opinion).

 

First and Most importantly to really understand what is happening it is critical for you to be clear on two things.

  1. Once a home receives an offer there is a delay of 5 to 10 days for the buyers to remove their conditions such as financing, home inspection etc. What this means is listings that are reported sold today actually got sold between 5 to 10 days ago resulting in what I call a lag time.  In a normal market this does not greatly affect stats but when sales are rapidly declining like they have been this in my opinion becomes important.
  2. The Covid-19 actions for social distancing did not start until part way through the month and they got stronger as the month progressed.

 

Current Months of Inventory (Absorption Rate): 

In March the overall months of inventory increased slightly. Increases were seen in Detached (.23) Semi-Detached (1.22) and Attached Row (.67) sectors while the absorption rate decreased in the Apartment Condo sector (.33).

Calgary Listing Inventory

Listing Inventory increased slightly where with the largest increase being in Detached homes with an increase of 175. Typically, in March we would see a large increase in listings.  With Covid-19 we are seeing some Seller’s withdraw their listings as they do not want people coming through their home currently. Other sellers are just not listing yet.

Calgary Sales:

I am a little surprised that in March we sold only 21 homes less than in February.  This in my opinion is a result the sales lag and Covid hitting mid month.  You will see a much steeper drop in April.

Sales Compared to 2019:

Sales in all sectors for January 2020 were 7.6% higher than in January 2019.

Sales in all sectors for February 2020 were 23% higher than in February 2019.

Sales in all sectors for March 2020 were 88.7% on Sales in March 2019 – 12.3% Lower

 

Calgary Real Estate Sales Prices:

Prices increased in Detached and Semi-Detached sectors while decreasing in the Attached-Row and Apartment Sectors. The changes were minor except for the Apartment condo sector losing $5,100.

 

It’s also important to note that these numbers vary by community, and by price range.  If you would like numbers for your community contact us.

 

 

 

 

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Just Listed 301, 823 19 Avenue SW Calgary T2T 0H6

Wednesday, March 18th, 2020

Just listed this awesome  2 bed condo in Lower Mount Royal

MLS: C4291694

View our Video Tour @ https://youtu.be/Ehvkwy_Xy9A

Welcome to Larch Manor, a quiet, concrete building on a beautiful tree-lined street in desirable Lower Mount Royal. Enjoy the walkability (walk score of 89) and convenience of all the shops, restaurants and nightlife of 17th Avenue. This renovated 2-bedroom unit offers an open floor plan, spacious bedrooms, large closets, a kitchen with granite countertops, and plenty of cabinet space along with a breakfast bar and dining area. The living room features updated laminate flooring and access to your balcony for those beautiful summer evenings. Some unique features include an in-unit storage room with a combo washer/dryer and a mostly covered parking stall. The condo is professionally managed, pet friendly and offers bike storage inside on the main level. Recent building upgrades include new roof (2015) and new flooring and paint in all common areas. Book your viewing today!

 

 

 

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What’s Really happening in the Calgary Real Estate Market?

Monday, March 2nd, 2020

What’s really happening in the Calgary Real Estate Market?  The market is simply a result of Supply and Demand therefore we look at both Supply (inventory) and Demand (Sales) and the relationship between the two.  We also update you on the current benchmark price for all housing sectors.

Following is a graph that shows the months of inventory for each Sector.  Looking at a 2-year trendline gives you and indication of where things are really heading.

Graph shows the 2 year trend of Months of Inventory for all housing categories in the Calgary Real Estate Market.

 

Following is a summary of what I deem to be the most important numbers.  Again, we look at Total Inventory, Sales for the past 30 days, Months of Inventory and of course the benchmark price.  All numbers are taken from the Calgary Real Estate boards monthly stats package.

Data from Calgary Real Estate Board’s Monthly Calgary Stats package.

 

Gord’s commentary for the month (just my opinion).

 

Current Months of Inventory (Absorption Rate): 

In February our absorption rate dropped quite substantially.  If you look at the graph above Last year (2019) after Jan the absorption rate dropped slowly every month till June.   February dropped significantly is down to the equivalent to May last year.  The highest decrease was in Detached homes which are now in a balanced market at 3.85 months of Inventory.

 

Calgary Listing Inventory

Inventory increased in every sector in February.  The largest increase was in Attached Row Homes at 10.28%.  Inventory increasing at this time of year is expected.  Total Increase was 8.7%.

 

Calgary Sales:

Sales in all sectors increased substantially in February.  Lowest % increase was 32.5% of detached homes and the highest increase was Semi-Detached at 65.88%.  Total Sales increase was 38.7%

Obviously, the sales increase is much larger than the inventory increases thus the months of inventory decrease.

 

Sales Compared to 2019:

Sales in all sectors for January 2020 were 7.6% higher than in January 2019.

Sales in all sectors for February 2020 were 23% higher than in February 2019.

 

 

Calgary Real Estate Sales Prices:

Prices in all sectors declined a little this month.  The lowest decrease was in the Detached home sector at a decrease of .1% and the largest decline was in the Attached-Row Sector with a decrease of .67%

 

It’s also important to note that these numbers vary by community, and also by price range.  If you would like numbers for your community contact us.

 

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Just Listed 206, 223 Tuscany Springs Blvd NW

Saturday, February 29th, 2020

It’s rare to find a large 1 bedroom + Den that backs onto a wooded ravine with stunning Mountain views in the 40+ Sierra’s of Tuscany.

MLS: C4288822

More Info or to View Contact us

View Video: : https://youtu.be/0STLei5IFPY

More Information: https://www.tswrealestategroup.com/search/p/tsw-listings

 

Stunning Mountain views in this unit in the Sierra’s of Tuscany

It’s rare to find a large 1 bedroom + Den that backs onto a wooded ravine with stunning Mountain views in the 40+ Sierra’s of Tuscany.   Open plan comes with engineered hardwood, 9 ft. Ceilings with Crown Molding, Kitchen features maple cabinets, plenty of counter space, eating bar and corner pantry.  Spacious dining room and living room with corner gas fireplace. Master bedroom features 4-piece ensuite and walk in closet.  Den/office is spacious with closet. Relax on your covered deck with ravine & stunning mountain views. Includes Separate laundry room with storage cabinets, Air Conditioning, underground parking with separate storage locker. Fantastic location, walking distance to LRT.  Complex offers amenities galore with car wash, swimming pool & hot tub, a movie theatre, ballroom, arts & crafts room, exercise room, bowling alley, pool table, workshop, gym, library & guest suites.

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Just listed

Tuesday, February 18th, 2020

Just listed this great condo in  Spruce Cliff,  Calgary

MLS Listing C4286288

Chcek out our Video @ https://youtu.be/mTP-idv-ZIk

Stunning, Bright, Top floor, Open concept upgraded unit with 10-foot ceilings, spacious Den & 2 Balconies. Large south windows provide loads of natural light. Relax in your living room where you can cozy up to the corner fireplace on those cooler nights. Maple kitchen features Stainless Steel appliances, pantry, raised breakfast bar, garburator and under counter lights. Dining room has door to your covered balcony. Master bedroom features a 4 piece ensuite with soaker tub and separate shower, a walk in closet and access to the second balcony. Unit comes complete with in suite laundry/storage room and the guest bath. Enjoy your morning coffee on the large south facing wrap around deck. Titled underground parking, and a separate storage locker. Pet Friendly complex provides bike storage recreation/games room, gym and car wash. Ideal location close to Downtown, LRT, Golf & Shopping.

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Another REALTOR® Says They’ll Buy My House. Should I Be Wary?

Tuesday, February 4th, 2020

Wary might not be the best word, but you do need to make sure you understand the details of the offer. This type of offer is a guaranteed sales agreement, and while there is nothing illegal or wrong with a real estate company offering this kind of arrangement, it is rarely the best option for consumers.

In a guaranteed sales agreement, a real estate brokerage agrees to buy a piece of real estate from a seller at a previously agreed upon price, if it hasn’t sold to someone else before a certain date. Only real estate brokerages can offer these agreements, not individual real estate professionals.

What sellers need to keep in mind in these arrangements is that the real estate brokerage wants to minimize its risk.

For example, it’s rare that a guaranteed purchase price will be based on the property’s listing price or the property’s market value. In most cases, the brokerage calculates the guaranteed purchase price using a formula where legal fees, carrying cost, and commission on the resale are subtracted from the purchase price. This minimizes the brokerage’s risk, but it can also greatly reduce how much that seller receives for their home.

Brokerages that offer guaranteed sales programs are required to have policies for those programs. Those policies should include how the brokerage sets the guaranteed sales price and who is in control of the property’s listing price during the listing period; it may not be the seller. It’s not unusual for a guaranteed sales agreement to include a clause that requires a seller to lower their listing price during the term of the listing. Remember, your real estate brokerage wants to minimize its risk. It prefers to sell your property to a buyer rather than to use the guaranteed sales agreement, and lowering the listing price can sometimes help that happen.

Posted in Blog, Education, Home Sellers | Comments Closed

What’s really happening in the Calgary Real Estate Market?

Tuesday, February 4th, 2020

The market is simply a result of Supply and Demand therefore we look at both Supply (inventory) and Demand (Sales) and the relationship between the two.  We also update you on the current benchmark price for all housing sectors.

Following is a graph that shows the months of inventory for each Sector.  Looking at a 2 year trendline gives you and indication of where things are really heading.

Calgary Real Estate Board  Summary of Key Stats

 

Following is a summary of what I deem to be the most important numbers.  Again, we look at Total Inventory, Sales for the past 30 days, Months of Inventory and of course the benchmark price.  All numbers are taken from the Calgary Real Estate boards monthly stats package.

Key Stats for the Calgary Real Estate Market

 

Gord’s commentary for the month (just my opinion).

 

Current Months of Inventory (Absorption Rate): 

Through January our Absorption rate increased for all housing sectors. The smallest increase was in the detached sector at +.25 and the largest was in the Attached Row Sector at +1.34

This means the listing increase is outpacing the sales increase  and it is putting us in a stronger buyers market for all sectors.

Calgary Listing Inventory

Inventory increased in every sector in January.  Most sectors increased somewhat equally except the Apartment condo sector that increased by 16.1% compared to the total increase of 11.6%

Increasing inventory is normal as many people wait till the holidays are over to list.  This is a trend that we expect to see for the next several months.

 Calgary Sales:

Sales in Detached homes and Apartment Condos increased marginally over December which is a normal trend.  Sales in the Semi-Detached and Attached Row homes declined ever so slightly. We also had about 10 Days of bitter weather which keeps buyers indoors.

Sales Compared to 2018:

Sales in all sectors increased over 2018 for a total increase of 8% over 2019.

 Calgary Real Estate Sales Prices:

Prices in all sectors declined a little this month.  The lowest decrease was in the Detached home sector and the largest decline was in the Apartment Condo Sector

Calgary Real Estate Benchmark Prices Year to Date – Same as for the month.

It’s  also important to note that these numbers vary by community, and also by price range.  If you would like numbers for your community contact us.

 

 

 

 

 

 

 

 

 

 

 

 

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Alberta Condominium Act Changes and how they affect you.

Thursday, January 9th, 2020

The Alberta government changed the Condominium act which became law in Jan 2020.  If you own your condo there are a few key points that you need to know.

Insurance:  Effective Jan. 1, 2020, condominium corporations will be able to seek recovery of the deductible portion of the corporation’s insurance claim — up to a maximum of $50,000 — from a condo owner for any damage that originates in their suite or private area.

“That means that if something happens in the unit and it’s not your fault — the toilet explodes, there’s water loss, water damage goes through to the floors below — and there’s a $50,000 deductible or a $25,000 deductible, the owners are now responsible for the deductible,”

Why this is critical now is that insurance rates for Condo Corporations has skyrocketed and so many boards are increasing their deductible.

Recommended Action

  • Find out from your condo board what their insurance deductible is
  • Call your insurance company and make sure your personal policy covers paying the condo boards deductible if something happens.

Insurance tip: When talking to your insurance company also make sure your policy covers any renovations that have been done to your unit as the standard insurance policy normally covers only original finishing. 

Condominium Documents

The other large change is that the government has put a cap on the cost for owners to obtain documents.  This only becomes relevant when you go to sell but at that time it will save you some money.

 

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What’s really happening in the Calgary Real Estate Market?

Friday, January 3rd, 2020

What’s really happening in the Calgary Real Estate Market?  The market is simply a result of Supply and Demand therefore we look at both supply (inventory) and Demand (Sales) and the relationship between the two.  We also update you on the current benchmark price for all housing sectors.

First here is a graph that shows the months of inventory for each Sector.  Looking at a 2 year trendline gives you and indication of where things are really heading.

 

Following is a summary of what I deem to be the most important numbers.  Again we look at Total Inventory, Sales for the past 30 days, Months of Inventory and of course the benchmark price.  All numbers are taken from the Calgary Real Estate boards monthly stats package.

 

Gord’s comments – Just my opinion

A few comments on this month. 

Merry Christmas and Happy new year.  Yes, you will see major change this month, but this is 100% normal as everyone is focused on the holidays and not on Real Estate.  Here are my comments.

 

Current Months of Inventory (Absorption Rate): 

The larger changes were semi-detached decreasing by .72 and Apartment Condos which increased by .96   Every other sector was less than .25 of a change so fairly stable.

 

Calgary Listing Inventory

Every sector declined giving us 1327 less listings today than a month ago.  As above this is a seasonal trend and starting January, we will start to see these numbers rise again.

 

Calgary Sales:

Sales for December declined in all sectors, and again this is to be expected.  Sales declines were the highest in the Detached home and Apartment Condo sectors and were much lower in the Semi-Detached sector.

 

Sales Compared to 2018: 

Although sales from Nov to Dec dropped, the sales for Dec 2019 were 8% higher than sales in Dec 2018.  This in my opinion is important as we are starting to show more stability in the Market.

 

Calgary Real Estate Sales Prices:

Prices in the Attached – Row and Apartment condo sectors increased marginally (by 1,300 & 900 respectively).

Prices in Detached and Semi-Detached decreased marginally (1,400 & 2,200 respectively)

 

Calgary Real Estate Benchmark Prices Year to Date

As might be expected, all sectors saw a decrease in prices in 2019.

Detached homes:  Declined by $1.900 or .27%

Semi-Detached:  Decreased by $6,200 or 2.34%

Attached Row: Decreased by $1,400 or 1.87%

Apartment: Decreased by $2,300 or 1.07%

Overall Calgary Market:  Decreased by $2,600 or .6%

 

It’s also important to note that these numbers vary by community, and also by price range.  If you would like numbers for your community contact us.

 

 

 

 

 

 

 

 

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What’s happening in the Calgary Real Estate Market?

Monday, December 2nd, 2019

What is really happening in the Calgary Real Estate Market?

 

Graph shows the 2 year trend of Months of Inventory for all housing categories in the Calgary Real Estate Market.

  

Current Report: December 1, 2019

Below see all the stats (Info taken from the Calgary Real Estate Boards Monthly Stats Package.

Gord’s Commentary 

A few comments on this month. 

Overall the market softened a little in November.

 Current Months of Inventory (Absorption Rate): 

November saw a different picture for each Sector although they all saw increases:

Detached homes increased by .14

Semi-Detached increased by 1.37

Attached Row increased by .88

Apartment increased by 1.61

Total Market increased by .56

Calgary Listing Inventory

Calgary listing inventory decreased in all sectors this month for a total of 635 listings less than one month ago. The largest decrease came in the Detached Sector with a decrease of 463 listings. Typically, this is the trend we will see until the end of the year.

Calgary Sales:

Sales for November decreased 287 or 19.83% down from October sales.  Every sector decreased a little with the largest decrease being in the Detached sector of 142 less.  Sales decreasing in November is a very typical for the month.

Sales Compared to 2018: 

November Sales were 98.9% of last years sales so we are down by only 12 sales from November 2018.

 Calgary Real Estate Sales Prices:

Prices for Detached homes showed an increase in Benchmark price of $100.  Semi-Detached, Attached Row, and Apartments all saw decreased this month.

Semi-detached decreased by 7,100

Attached Row decreased by 6,700

Apartment Condos decreased by 3,600

 

Months of Inventory/Absorption Rate: What does this mean you might ask?

The inventory divided by the number of sales in the last month).

 

**Please note that these numbers include only Calgary and do change on a community basis, and more so for towns. This report does not include rural properties and does not consider differences in different price ranges.  If you would like to find stats on your community just let me know.  If you have any questions about this summary or about Real Estate in general, please feel free to contact us.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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