One thing often overlooked when viewing property to buy is…
The Neighbors
When viewing homes it’s crucial to get an idea of what your neighbors are like. You don’t want the experience of falling in love with a house, purchasing, moving in and finding out your neighbors are a nightmare to deal with!
Good indicators are what their back yard and back lane look like. Is the property being well kept or piled up with junk? Do you want to live next door to a neighbor that has 3 dead cars in his back alley?
A simple knock on the door can provide invaluable information. Don’t be afraid to introduce yourself and let the neighbors know you are looking at a nearby property. Ask some questions about the neighborhood and see what they have to say.
This can help you gain a better understanding of the neighborhood dynamics and with whom you will be sharing space.
The Neighbors
July 31st, 2015Fair Market Value
July 23rd, 2015
So what is this “fair market value?”
Fair market value is what a seller is willing to accept and what a buyer is willing to pay based on sales from similar properties.
Sold properties are compared based on the price they sold for, not on asking prices.
This is different from tax assessments, which are based on the last June’s data, often out of date.
Tax assessments can reveal a pattern, but not value.
It is important to get as up to date information as possible on fair market value before making a purchase.
July Monthly Update
July 3rd, 2015Stay 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.
Find out what your Neighbor’s home sold for – Our market report is set up based on your community! Register for our Market Report at http://www.calgaryareasolds.com/
June showed very little change to inventory, sales or prices. Supply is tightening a little and we have moved back into a sellers market.
Calgary Listing Inventory: Inventory went down in all categories this month. This is typical for June as we approach the summer and holiday season and therefore see less listings.
|
Inventory |
May 2015 | June 2015 | Change |
| Detached | 2913 | 2760 | -163 |
| Attached | 1136 | 1114 | -22 |
| Apartment | 1293 | 1196 | -97 |
| Total City of Calgary | 5342 | 5070 |
-272 |
Calgary Sales:
Sales changed very little in all categories. The only significant category change is apartment condo’s where sales went up by 11.1%. A nice improvement as Condo sales have been slower that the other categories.
| Sales | May 2015 | June 2015 | Change | % Change |
| Detached | 1366 | 1335 | -31 | -2.2 |
| Attached | 465 | 449 | -16 | -3.4 |
| Apartment | 359 | 399 | +40 | +11.1 |
| Total City of Calgary | 2190 | 2183 | -7 | -.3 |
Calgary Real Estate Sales Prices:
Prices in all categories increased marginally this month. Based on the absorption rate below my prediction is that detached and attached homes will see small price increases while apartment condos should stay flat.
| Sales Prices | May 2015
Benchmark Price |
June 2015
Benchmark Price |
Change |
| Detached | 512,800 | 515,500 | +2,700 |
| Attached | 354,000 | 354,500 | +500 |
| Apartment | 294,800 | 293,600 | -1,200 |
| Total City of Calgary | 454,100 | 455,400 | +1,300 |
Sales Prices “Year to Date”
Year to date prices – All categories have decreased.
| Sales Prices | Dec 31, 2014 Benchmark Price | June 2015 Benchmark Price | Change
$ |
% Change |
| Detached | 518,600 | 515,500 | -3,100 | -.6 |
| Attached | 356,200 | 354,500 | -1,700 | -.5 |
| Apartment | 300,400 | 293,600 | -6,800 | -2.2 |
| Total City of Calgary | 459,500 | 455,400 | -4,100 | -.9 |
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:
The absorption rate decreased again for all categories. What this means is that the relation to sales over inventory decreased. This puts detached homes and attached homes into a seller’s market, while apartment condos have stayed in a balanced market but are inching their way back into sellers market territory.
| Absorption Rate | May 2015 | June 2015 | Change |
| Detached | 2.13 | 2.07 | -.06 |
| Attached | 2.44 | 2.48 | -.04 |
| Apartment | 3.6 | 3.0 | -.6 |
| Total City of Calgary | 2.44 | 2.32 | -.12 |
**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.
Worth The Risk?
June 26th, 2015
When you find a property that seems too good to be true for the price, you must ask yourself why it’s priced low.
There is a reason former grow ops have a lower price point.
Very few lenders will finance grow ops. If banks are not willing to finance, why should you be?
Think about it…
The property will always be a stigmatized property.
It’s required that you must disclose the nature of the property even if you sell 10 years later.
There are also no standards for remediation. One can only guess to the environmental damage.
Looking at a grow op? You may just want to think again.
Sweat Equity
June 17th, 2015
Should you go the DIY route to boost the value of your home? Is it all worth it?
“Sweat Equity” is a thought-provoking concept, but there are some things to consider if you are thinking of jumping in….
- What are your abilities? I’m sure you are a rock star, but jumping into knocking out walls or putting down floor tiles with no previous experience may not be the best idea. Know your limits.
- If you can’t do it right don’t do it at all, or you will see a negative effect on resale value
- Do you have a realistic budget? When it comes to renovation budgets, it’s way better to overestimate than under. You will likely run into many unforeseen costs.
- Don’t over renovate for the area you are in. If you put a lot of money into a property, surrounded by properties valued at much less, your value will not increase the way you want it to.
- And lastly, you must ask yourself if you really want to live in a home that is under construction.
Sweat equity can be rewarding, but consider the consequences before you jump into such a massive project! More info at Gordpiper.com
June Market Snapshot
June 5th, 2015Stay ahead of the curve by following our Monthly Market Snapshot of the Calgary Real Estate Market. This shows what’s really happening in the Calgary Real Estate Market. 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.
Find out what your Neighbor’s home sold for – Register for our Market Report at http://www.calgaryareasolds.com/
Calgary housing market is changing again. May saw a decrease in inventory and an increase in Sales tightening up the supply and moving us into a sellers’ market.
Calgary Listing Inventory: It is interesting to see that the inventory went down in all categories this month. This is partially due to not as many new listings hit the market and that sales increased. This is opposite of what I would normally expect for May as typically people list in May as the summer is approaching.
| Inventory | April 2015 | May 2015 | Change |
| Detached | 3024 | 2913 | -111 |
| Attached | 1207 | 1136 | -71 |
| Apartment | 1348 | 1293 | -55 |
| Total City of Calgary | 5579 | 5342 | -237 |
Calgary Sales:
Sales in all categories increased this month. This is a normal trend where getting near the summer the sales increase.
| Sales | April 2015 | May 2015 | Change | % Change |
| Detached | 1149 | 1366 | +216 | +18.8 |
| Attached | 458 | 465 | +7 | +.15 |
| Apartment | 350 | 359 | +9 | +2.5 |
| Total City of Calgary | 1957 | 2190 | +233 | +11.9 |
Calgary Real Estate Sales Prices:
Prices in all categories increased marginally this month. Apartment condos showed the largest increase.
Based on the absorption rate below my prediction is that detached and attached homes will stay fairly stable or see small price increases while apartment condos should see slight decreases or stay flat.
| Sales Prices | April 2015
Benchmark Price |
May 2015
Benchmark Price |
Change |
| Detached | 510,200 | 512,800 | +2,600 |
| Attached | 353,300 | 354,000 | +700 |
| Apartment | 291,300 | 294,800 | +3,500 |
| Total City of Calgary | 451,600 | 454,100 | +2,500 |
Sales Prices “Year to Date”
Year to date prices – All categories have decreased.
| Sales Prices | Dec 31, 2014 Benchmark Price | May 2015 Benchmark Price | Change
$ |
% Change |
| Detached | 518,600 | 512,800 | -5,700 | -1.1 |
| Attached | 356,200 | 354,000 | -2,200 | -.6 |
| Apartment | 300,400 | 294,800 | -5,600 | -1.8 |
| Total City of Calgary | 459,500 | 454,100 | -5,400 | -1.2 |
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:
The absorption rate decreased again for all categories. What this means is that the relation to sales over inventory decreased. This puts detached homes and attached homes into a seller’s market, while apartment condos have stayed in a balanced market.
If this trend continues we are going to start seeing a lack of homes for buyers causing multiple offers and larger price increases.
| Absorption Rate | April 2015 | May 2015 | Change |
| Detached | 2.63 | 2.13 | -.5 |
| Attached | 2.64 | 2.44 | -.2 |
| Apartment | 3.85 | 3.6 | -.25 |
| Total City of Calgary | 2.85 | 2.44 | -.41 |
**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
TSW Real Estate Group
Killarney-Glengarry
June 2nd, 2015
Killarney-Glengarry: NW Calgary Real Estate
Calgary has many great communities and some of them have really been going through some huge changes in the last few years. One of those communities is Killarney-Glengarry. This is a 1.8 sq/km inner- city community that runs from 17th Ave in the north to Richmond Rd in the south, and from 37th St in the west to 25a St in the east.
It was named after Killarney (in Ireland) and Glengarry (in Scotland) to help give Calgary’s new settlers a sense of home.
The first plan for the suburb was registered in 1906 and the land was formally annexed in 1910 with single–storey clapboard housing being built.
The majority of building in Killarney-Glengarry took place after WWII when soldiers returned from the war. Property lots were sold to these soldiers for just $25 to help them settle down, rebuild their lives and raise their families.
Construction back then consisted mainly of stucco and clapboard bungalows on the 25ft or 50ft lots, but since 2002, many of these structures have been replaced with infill housing. Killarney-Glengarry is now known for its urban forest of mature trees and close links to downtown – aided by the new West LRT line. It is an area that is growing and changing as it attracts developers marketing homes to young families who want to be close to down town but with the amenities of a suburb.
Our favorite part of this community is how involved their community association is, you can follow them through all the normal social media channels and they will regularly ask for input from community members for their projects. They are currently working towards a community piazza area on the corner of 33rd ST and 26th AVE as well as developing a new playground that will be accessible to all. They organize a community garden every year as well as organizing clean ups, garage sales and other community geared events.
If you are looking for newer homes, a tight knit community and a great central location in the city, you really can’t go wrong with Killarney-Glengarry. We happen to have one of these homes for sale in the area, and it’s a great example of some of the unique features you can get with a newer home built in an older community. Check out our video walk through below.
The Athlone
May 28th, 2015It should c
ome as no surprise that we love real estate, but we also love the history of real estate, especially in a city as diverse as Calgary! We recently sold a condo in this beautiful building and couldn’t help but take a peek into it’s past. The Athlone is a building located in Mission, and was built in 1940. Originally the land was occupied by Castel Aux Pres, home to Judge and Lady Winter beginning in 1895.
This home was demolished in 1939 and the Athlone was born. Built by Arthur Cumming LTD. It was the largest and one of the most interesting apartment complexes built in the 1940s. It features elements of classical revised architecture, such as the pilasters, and the decorative lintels over the windows and doorway, but breaks with classical tradition in its lack of a cornice. The main entrance has two features that were considered innovative at the time: a wall of glass blocks surrounding the door; and vitrolite paneling. Built with high quality materials and set back from the street with a spacious front lawn, the 46 suite apartment building was more luxurious than others in the neighbourhood. Quote by Jim Bowman in the Heritage Highlight.
It’s more than just the architecture that makes this building unique. The property has been restored and maintained to keep that 1940’s feeling. In the main entrance you will find a vintage Art Deco pendant light, one of four, circa 1925. The building’s hallways and stairwells feature glass light shades of the type originally found in the building. Even the incinerator chutes have been refinished with layers of paint removed to reveal the original red brick. The incinerator was retired decades ago but the care taken to preserve the buildings history just adds to its charm.
In 2008 the cliff Bungalow – Mission Community association recognized the Athlone as a community heritage site. If you are interested in seeing this wonderful building it is featured in the Calgary Historical Walking Tour of Mission. Click here to get more information on the walking tour and to get your own self-guided tour. Click here for more information on the Athlone.
The Ups and Downs of the Real Estate Market
May 22nd, 2015
The real estate market is based on the fundamentals of supply and demand.
It is a constantly changing one.
Learning the market conditions will help you make informed choices with your purchase.
How do you stay informed in this ever-moving field?
Sign up for our monthly market report, of course! http://calgaryareasolds.com
Not knowing the market can cost you a fortune in both time and money.
Don’t be caught off guard, lost and confused.
Sign up now and let us keep you knowledgeable and informed!
Foreclosures – What You Need to Know
May 14th, 2015
Foreclosure can either be a great deal or your worst nightmare. If you are considering taking one on, there are some things to know…
Foreclosures:
- Are sold as is, so there’s an increased risk
- Come with no history of sellers
- May appear to be a good deal, but most are sold at market value and often above list price
- Offers are sometimes stacked to generate competing offers
- Provide no history of how the seller lives
Before you make a rash decision that could result in years of work and disappointment, seek professional help to assist you. Gord Piper and Associates