Calgary, February 1, 2012 – Home sales in the City of Calgary are off to a slow start as buyers show continuing caution, according to figures released today by CREB®.

“Overall, the market is behaving as expected for the winter season,” says Bob Jablonski, president of CREB®.

The year-over-year volume of residential sales in the City of Calgary dropped, but the inventory of available homes declined even faster in January 2012.

The City of Calgary residential market recorded 1,078 sales in January, nearly one per cent below the same month in 2011. This is in part related to the drop in new listings, which declined by 8 per cent over January 2011, causing inventory levels to continue to contract over 2011.

“A lower number of sales is not uncommon for the month of January,” says Jablonski. “The number of sales is offset by the number of listings, ultimately pushing the housing market towards a balanced market territory.”

The single-family market recorded a one-per-cent drop in sales over last year levels, while the condominium market recorded a one-per-cent gain.  However, the decline in new listings in the single-family market was much higher than the condominium market, with a year-over-year decline of 11 per cent and 6 per cent, respectively. 

“As presented in our housing forecast report, a slow start to the year is anticipated, as consumers continue to be cautiously optimistic regarding purchasing and/or listing their home,” says Jablonski.

The average price of single-family homes in January 2012 was $438,683, a 3-per-cent drop over last year, and over December 2011.  Meanwhile, median prices in the single-family market remain relatively stable over last month at $395,000, while posting a 1-per-cent gain over the previous year. 

“The price changes are related to the composition of what was sold.  The rise in the median price was likely due to the increase in the number of homes sold in the $450,000-$549,999 category, as this category recorded a significant jump in activity in January.  The decline in average price is due to the rise in sales in the under-$300,000 category, as well as the decline in the number of homes sold in the upper-price ranges,” Jablonski explains. 

The condominium market continues to favor the buyer; however, this market is trending towards balance.  The average and median price of condominiums for the month of January 2012 were $268,526 and $245,000, respectively.  This corresponds to a 7-per-cent decline in average prices and a 4-per-cent decline in median prices.

“Last January, there was a significant jump in sales in both the $600,000+ price range and the under-$200,000 price range in condominiums.   For January 2012, while sales under $200,000 remain strong, there has been an increase in activity in the $200,000-$299,999 price range, mostly at the expense of the condominiums priced above $400,000. This explains the significant decline in condominium prices,” Jablonski concludes.

Please note! CREB® will change the way it reports statistics with the February 6 release of the first MLS® Home Price Index (HPI). The HPI, years in development, provides a more accurate picture of the real estate market and how prices are affected by market factors. Average and median prices often misrepresent true price trends because they are affected by factors such as the change in the mix of homes sold, and the number of sales in different price categories. 

The 5,260-square-foot condo will cover the entire 12th floor of the 15-storey development called The River, located along the Elbow River, which flows through the southern portion of the city.

"These (buyers) are business leaders. They are leaders in not only business, but in our community," Clarke said.Other sales in The River have included units for $5.7 million and $5.5 million.

"It signifies we really do have a need for this type of product," Clarke said.

"In talking to our buyers and our focus groups over the last 18 months, it became very clear that there was a lot more demand for larger units."

Not knowing your credit score

Not budgeting for the costs of home ownership

Not researching down payment choices

Focusing too much on interest rates

Not choosing your own payment schedule

Forgetting about closing costs

Meanwhile, other centres outside the city limits had one of the highest vacancy rates at 3.6 per cent.

For all bedroom types, the vacancy rate in 2011 declined from the previous year. Vacancies in October ranged from 1.8 per cent for one bedroom units to 3.3 per cent for units with three or more bedrooms.

Despite the reduction in vacancies, the average rent in Calgary remained relatively stable.

These two zones also had among the lowest average two-bedroom rent in the October 2010 survey.

The average condo rent in CMHC's October survey was $1,378 per month, up from $1,355 in 2010.

In the other secondary rental market, the number of renter households reached 54,878 in October compared to 53,312 in the same month in 2010.

 

Specifically, the report adjusts a September forecast to show slower growth this year in Ontario, Quebec and B.C., while also adjusting for faster growth in Alberta, Saskatchewan and Nova Scotia.

“The corresponding revision to our provincial outlook was unevenly distributed among provinces, but all regions are vulnerable to the uncertainty and volatility expected over the next six months,” said Marcil. “These headwinds will likely intensify at a time when constrained public finances leave very few tools available for Canadian governments to stimulate demand, or at least restore confidence.”

Alberta is expected to see Canada’s strongest employment growth, up 1.5% this year, compared to 0.8% nationally. It was already up 3.7% in Alberta last year. While unemployment will rise from 7.4% nationally last year to 7.6% this year, Alberta will replace Saskatchewan as the province with the lowest rate, at 5%.

“Saskatchewan, which usually acts as a responsive pool of spare workers for Alberta, is failing to do so currently because its economy is performing nearly as well as Alberta’s,” said Marcil.

Overall economic growth, based on real GDP, will increase most in Alberta, up 2.6%, followed by 2.4% in Saskatchewan. Nationally, it will rise just 1.7% this year, following a 2.4% gain last year.

The real estate markets in Vancouver and Toronto, however, are expected to hinder economic growth in their respective provinces, said the report. Toronto will be especially affected by its recent growth in condo developments, said Marcil.

“In addition to the growing pipeline of supply, the knock-on effects of financial market volatility to buyer confidence will likely result in a cooling down in condominium sales in the region in 2012 and 2013,” he said.

“The centre will be approximately 1.3 million square feet and will sit on just under 80 acres,” she said. “Target has selected sites for its distribution centres that will help to ensure that our supply chain needs are met for our Canadian stores. Target intends to open its first stores in March/early April 2013 and its distribution centres will be completed in time to support the needs of the stores.”

“They will manage all recruitment and hiring and will communicate those needs and plans with local communities in the coming months,” added Snyder.

The centre will be located off of Range Road 291, east of Nexen’s Balzac Power Station.

Earlier this week, Target announced the location of its first 24 stores in Canada. As previously announced, Target purchased the leasehold interests of 189 sites currently operated by Zellers Inc., and plans to open 125 to 135 stores in Canada, the majority of which will open in 2013.

Target intends to announce additional store locations in the coming months.

Minneapolis-based Target has 1,767 stores across the United States.

Calgary Target locations will be at Chinook Centre, Forest Lawn Shopping Centre, Market Mall, the Shoppes at Shawnessy, Signal Hill Centre and Sunridge Mall.

“It just really speaks to the critical mass that has already been achieved, that has been built — the synergies that are achieved and the importance of the sector to Calgary and the region,” he said.

The region’s road network, with access from highways and the ring road, is one of the primary reasons for the growth in the sector, he said.

“Each company has its own criteria and determines the kind of facility and the location that works best for them,” said Dixon. “That was the basis of the Target decision. But it’s very much part of the northeast, the airport development pattern. And it’s complemented by what’s happening in the southeast which is more rail-oriented at the CP logistics and intermodal yard.”

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The reason is a growing economy that is quickly adding jobs, leading to population growth.

Most other provinces will see a double-digit drop in starts, with only Manitoba seeing a more moderate drop of 5.3% next year.

Alberta will see housing starts in 2012 increase to 27,800 units from the 24,881 this year. In 2010, there were 27,088 housing starts in the province.

Nationally, housing starts will drop 5.4% from 192,000 units this year to 181,600 units in 2012. There were 189,930 starts in 2010.

"With interest rates no longer expected to increase over the next year, home buying intentions have improved modestly,” said the Altus Group in its forecast. “However, deteriorating economic conditions internationally are affecting the outlook for Canada’s economy and leading to lower forecasts of GDP growth in 2012, which will act as a constraint to housing demand.”

Peter Norman, chief economist for Altus Group, said the declines were not overly concerning, however.

1.     People who look for a home during the Holidays are more serious buyers!

2.     Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!

3.     Since the supply of listings will dramatically increase in the Spring, there will be less demand for your particular home! Less demand means less money for you!

4.     Houses show better when decorated for the Holidays!

5.     Buyers have more time to look for a home during the Holidays than they do during a working week!

6.     Some people must buy before the end of the year for tax reasons!

7.     January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market!

8.     You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!

9.     You can sell NOW for more money and negotiate a closing in early next year!

OTTAWA — Home prices rose during the third quarter of 2011, but the raw numbers may not be telling the whole story of the Canadian housing market, a new survey says.

The average price of a detached bungalow was $349,974, a standard two-storey home was $388,218 and a standard condominium was $239,300, according to the survey.

Royal LePage said that the rise in price defied expectations and suggested that record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence.

Vancouver had the highest priced homes in the country during the third quarter of 2011 and was the only city in the survey where the average bungalow or two-storey home cost more than $1 million.

Call us right away at 403-852-6583 to book your appointment and get the answers you are looking for.

Enhancing curb appeal isn't as cumbersome - or costly - as it may sound. It's all about timely exterior prep to boost a property's value.

Here are some simple, low-cost ideas almost any everyday homeowner could do.

1) Wash the home's front, sides and windows: Rent a pressure washer and do a thorough clean. When a potential homebuyer looks at it, if it's dirty, they think, it's all rundown. Washing dirty windows is also an easy fix and just like the eavestroughs,

2) Paint exterior trim: You want people to notice a clean and proper exterior. So paint the window frames and battens if it's flaking off.

3) Pay attention to your front door: The front door is so obvious yet easily forgettable.  Fix peeling paint or clean a dirty door. Replace broken screens. Simple stuff but very powerful.

4) Exterior lighting:  Upgrading an older light fixture to something more modern or classic provides an instant facelift.

5) Fix loose railings: Tighten or fix any loose railings. This contributes to the home's overall appearance.

6) Clean out the eavestroughs: Fix anything as needed. Replace parts that are damaged. And reattach areas that are loose. Also, clean our dirt, leaves etc.

7) Repair roof shingles: If your roof still has a lifespan, perhaps you may not need to replace it all.  A few shabby shingles can be recovered at low cost.

Calgary HOUSING MARKET ON THE ROAD TO RECOVERy

Market improvements driven by clients looking for value   

Calgary, August 2, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), residential sales continue to trend towards recovery.  After the first seven months of the year, single family and condominium sales totaled 11,798, a 5 per cent increase over the previous year.  While the improvements signal market recovery, overall sales levels remain 17 per cent below the 10-year average for this period.

“The recent rise in average days on market, especially in the single family sector, shows that while properly priced homes are selling quickly, over-priced listings remain on the market for a longer period of time. Improving market conditions may have signaled some sellers to be overly optimistic regarding pricing, resulting in a disconnect between seller and buyer expectations,” says Sano Stante, president of CREB®. 

Single family sales for July 2011 were 1,153, with a total of 8,380 sales for the first seven months of 2011, an 8 per cent increase over the same period last year.  Meanwhile, year-to-date listings continue to remain lower than last year, resulting in inventories trending lower than last year as well.  Overall months of supply remain around four months within a balanced range.

“A good selection of housing inventory, combined with positive economic fundamentals, is encouraging buyers into the market,” says Stante.  “Buyers are still quite value conscious, and in the current market are able to take advantage of the range of selection in a stable price environment.”

Condominium sales continued to bounce back this month.  July 2011 condominium sales total 453, a 14 per cent rise over last year, while year-to-date sales remain 3 per cent lower than the same period in 2010. 

“Excess supply and lower demand have negatively impacted the condominium market over the past year,” says Stante. “Nevertheless, the recent pickup in sales, combined with fewernew listings, has gradually reduced inventory levels of condominiums, lowering the month’s supply of inventory from over six months last year to just above four months in July 2011.” 

The average price of single family homes in July 2011 was $455,849 and the median price $409,000, similar to levels recorded in July of last year.  Condominium prices also remained at levels similar to the previous year. 

1. Newly Finished Basement – This is a common way to hide past problems. Were Permits pulled?
2. Odd Smell – Could be mould, mildew, caused by moisture or a past drug operation.
3. Exterior Cracking – Any unsealed opening on the exterior can cause water entry.
4. Slope Toward the House – Grade should move water away and not toward the house.
5. No Downspouts - Indicator of potential water issues at foundation.
6. Hot Water Tank Damage – Any sign of wear and tear on a hot water tank should be addressed quickly.
7. Cold Spots / Drafts – This can be poor insulation or improper construction.
8. Swellings Around Windows and Wall Seams – Possible water entry.
9. Water Staining / Soft Drywall – Bad news. 
10. Restrictive Covenants on Title – This could restrict the ways you can use the property, or what you can build in the future.
11. No RPR or Survey – This is the only protection you have to ensure that the house is built in the proper location on the lot and that you are getting the amount of useable land you paid for.
12. House Feels Small – The square footage listed may not be accurate.
13. Curled or Cracked Roof Shingles - Clear indicator of shingles past their lifespan.

Why Do People Actually Buy a Home?

The odd thing about all these questions is that survey after survey keeps telling us that price is not the reason families actually buy a home. When money is considered at all, it is in light of not paying rent to a landlord. Let’s look at two recent surveys as examples:

National Housing Survey

The top five reasons given in the survey for buying a home, in order, are:

• It means having a good place to raise children and provide them with a good education
• You have a physical structure where you and your family feel safe
• It allows you to have more space for your family
• It gives you control of what you do with your living space (renovations and updates)
• Paying rent is not a good investment

The Myers Research and Strategic Services Survey

 The top five reasons given in the survey for buying a home, in order, are:

• Home ownership provides a stable and safe environment for children and other family members
• Home ownership means the money you spend on housing goes towards building equity, rather than to a landlord
• Home ownership creates the opportunity to pay off a mortgage and own your home by the time you retire
• Home ownership creates the opportunity to live in a neighborhood that you enjoy
• Home ownership allows you the right to decorate, modify and renovate your home as you see fit

Bottom Line

5 REASONS TO BUY NOW!

On the fence about purchasing Real Estate in Calgary?

You should strongly consider buying NOW rather than waiting. Here are FIVE reasons why:

The financial industry worldwide is still feeling the effects of the 2008 financial collapse and global recession. We are still experiencing historical lows with lending rates. It cannot continue indefinitely and they have nowhere to move but up. Don’t get caught wishing you could have the best rates when they are available right now!

·        Unemployment is Down: (http://bit.ly/k7QmK6)

·        Western Canada has the Hottest Economies in the Country (http://bit.ly/lGlppd)

·        Alberta is Headed for a Shortage of Workers (http://bit.ly/md9dbz)

All this equates to fundamental reasons why buying NOW is the right time.

There are GREAT opportunities in the marketplace right now. This will change as the economic market keeps improving. Soon the great deals will have passed you by because....

We at MyHomeAgent have our ears to the ground and are contacted daily by people moving here from out of province. This will impact housing inventory because some landlords will not look to sell their homes (since rents will increase). Fewer homes for sale will mean higher demand for housing and prices will increase.

Don’t wait to BUY. This ‘sweet spot’ of buying opportunity will pass – it’s just a matter of How soon? Call MyHomeAgent TODAY to get the Best Deals in Calgary.