The Gord Piper & Associates Real Estate Blog

Tips for Buying a New Build Condo

March 15th, 2016

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.

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.

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.

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.

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.

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

February Calgary Real Estate Market Snapshot

March 1st, 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 February 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. This seasonal trend should continue for the next few months.

Inventory	Jan 2016	Feb 2016	Change
Detached	2546	2943	397
Attached	1223	1336	113
Apartment	1253	1402	149
Total City of Calgary	5022	5681	659

Calgary Sales:

Sales in all categories Increased in February. This again is seasonal and it’s important to note that this Feb we are 6.63% under sales for Feb 2015.

Sales	Jan 2016	Feb 2016	Change	% of Change
Detached	465	691	226	48.60%
Attached	170	268	98	57.65%
Apartment	129	168	39	30.23%
Total City of Calgary	764	1127	363	47.51%

Calgary Real Estate Sales Prices:

Prices for all detached and attached homes showed decreases in February. Apartment Condos showed a slight increase in price. This may be because apartment condos have been showing price decreases for several months.

Sales Prices	Jan 2015 Benchmark Price	Feb 2016 Benchmark Price	Change
Detached	509300	504400	-4900
Attached	345600	338900	-6700
Apartment	281900	283600	1700
Total City of Calgary	447300	445000	-2300

Sales Prices “Year to Date”

Year to date prices

Sales Prices	Dec 31, 2015 Benchmark Price	Feb 2016 Benchmark Price	Change $	% Change
Detached	508700	504400	-4300	-0.85%
Attached	351400	338900	-12500	-3.56%
Apartment	285500	283,600	-1,900	-0.67%
Total City of Calgary	448800	445000	-3800	-0.85%

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. Of interest the trend reversed this month. The last several months our Absorption rate has been increasing and this is the first time in several months that it decreased. Does this mean the market has changed – I would not be so quick and would suggest that one month does not make a trend so let’s watch.

Absorption Rate	Jan 2015	Feb 2016	Change
Detached	5.48	4.26	-1.22
Attached	7.19	4.99	-2.21
Apartment	9.71	8.35	-1.37
Total City of Calgary	6.57	5.04	-1.53

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 share.

TSW Real Estate Group

Tags: Calgary Home Prices, Calgary Real Estate Market, calgary real estate prices, Northwest Calgary Real Estate Prices, sell my home calgary
Posted in Blog, Real Estate Board's Statistics | Comments Closed

House or Condo?

February 25th, 2016

The decision to buy a house or a condo is personal and a matter of lifestyle.

The Pros and Cons

Condos can be less money to get into, but you likely will pay a monthly condo fee. These fees will factor into your mortgage approval amount.

There are huge lifestyle differences when it comes to the house vs condo debate.
A condo comes with the benefit of less upkeep like not having to mow the lawn or shovel the walkway.

Others may prefer a home for that traditional neighborhood, family environment. Maybe the buyer loves the idea of a yard or garden to keep.

Yes, the Condo/House debate is truly a personal one.
After all, it is the buyer making the investment.

A professional can assist you with needed information. But in the end, it will be you who must decide what is important. Weigh the pros and cons for you, your family, and your lifestyle.

Posted in Uncategorized | Comments Closed

January Market Snapshot

February 3rd, 2016

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.

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

January 20th, 2016

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

January 13th, 2016

Many 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?

January 8th, 2016

The 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

January 5th, 2016

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

Save Money In Your Apartment

December 17th, 2015

There 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

December 2nd, 2015

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

The Gord Piper & Associates Real Estate Blog

Tips for Buying a New Build Condo

February Calgary Real Estate Market Snapshot

House or Condo?

January Market Snapshot

2016 Economic Outlook

Home Buyers Stress

Inner City or Suburb?

December Market Snapshot

Save Money In Your Apartment

November Market Snapshot

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