A blog cannot deal with all aspects of a subject and is not intended to replace professional advice. It's purpose is to highlight information and identify areas of possible interest. Anyone wishing to discuss this blog or to make any comments or suggestions about this blog is invited to do so by either posting comments or emailing me directly.
After a long period of disconnect between supply and demand, Calgary's detached housing sector is firmly in balanced territory. Sales were still 10 percent below long-term trends in March, but above levels seen in recent years, while average inventory declined compared to last year, supporting price stability in the detached market.
Source: Used under standard YouTube licence terms.
Most people have heard the terms “Buyers' Market”, “Sellers' Market” and "Balanced Market", but do you know what they really mean and how they're determined?
There are many factors which affect the real estate market — interest rates, employment, investment growth, legislative changes and new construction, to name just 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 a little more time and look at more options before buying. Buyers also have more options because sellers are more anxious to sell. Overall, home prices may remain somewhat stable or go down in...
CREB®Now reporter Kelsey Hipkin got an exclusive chance to sit down with Kevin O’Leary at the 2015 CREB® Forecast Conference and Tradeshow.
Source: Used under standard YouTube license terms.
The keynote for the forecast was investor, authour and TV personality Kevin O’Leary. O’Leary took some time before he hit the stage to sit down for a one-on-one covering everything from success to customer service to who he thinks is the greatest guitarist in the world.
This blog post has been a few months in the making.
I was invited to a maketing seminar for a real estate coach this past spring and was wondering how he was going to attack this "hot" topic. I shouldn't have been too surprised that he stated that real estate agents should do the same things that he, and many trainers/coaches, have been espousing for the last decade: "Charge what we have always charged but add more fluff to your package to give the impression of more value. Use your clients' homes to post on social media (Twitter, FaceBook, LinkedIn, Google+, etc.) to create more business for yourself." They never really say to post it to actually try to sell the damn house, it is always just to "get your name out there." Okay, maybe I'm paraphrasing "just a bit" there. Consumers use social media to be entertained and distracted (especially Facebook), not to search for goods or services and especially not a home or the services of a REALTOR®.
I came across this article referred to on Twitter and thought the research was AWESOME. Unfortunately, I find out that my house wastes more heat than 3% of the homes in Calgary. Based on what I see in the heat maps, that is probably pretty good.
Here's an intro to the article from the Calgary Herald:
"Calgarians may have barely stirred in their sleep one spring night in 2012 as a small-engine plane flew back and forth over the city’s neighbourhoods at low altitude."
"But the images collected by a sophisticated, thermal imaging camera on board the aircraft are now waking residents to the financial and environmental cost of the heat that’s silently seeping from their homes."
"A team of researchers at the University of Calgary used the images and city data to create a web-based map that shows potential greenhouse gas emissions for entire suburbs and pinpoints hot spots in each individual home where waste energy is escaping."
New Home Market: Total Housing Starts to Increase in 2014 [This is great news to ease the demand for resale homes that has been driving prices up and frustrating buyers who have to act extra-ordinarily quick in order to buy a home.]
New Home Market: The Average Sale Prices are expected to grow higher and faster in 2014 than they did in 2013. [Again, good news for the resale market as brand new homes were becoming serious contenders to the resale inventory of homes for many buyers.]
Sales in Calgary’s existing home market have trended up throughout 2013, supported by heightened net migration, job creation, and rising wages. Demand for resale homes will keep upward pressure on prices, especially with low vacancies in the rental market and elevated migration flows to Calgary. In 2014, new listings are forecast...
As a real estate broker, I've seen all kinds of ways to price homes for sale. From experience, most sellers base their asking price on a few dollars more than the anticipated selling price. Then, there are others...
There are lots of things NOT to base your asking price on:
What you paid for the home
How much it cost to build home
How much is still owed on the mortgage
The cost of the improvements put into the home
What a past neighbour SAID they got for their home
What your current neighbours, or loved ones, suggest
What your individual tax assessment says it was worth
How much you need to net out of the sale for retirement
How much you paid for your next home
How much your dream home is going to cost
Whatever the "Magic 8-ball" indicates
What you should price your home is based upon specific market dynamics and what people can - and will - likely pay for your home. It really shouldn't be an exercise in wishful thinking.
What you probably shouldn't base your homes price...
We’re very pleased to announce that once again, RE/MAX has won the Consumer Choice Award for real estate brokers in Calgary! RE/MAX has been a fixture in Calgary for decades and remains the undisputed market leader in real estate marketing.
The research has been performed now trust the facts, the best Calgary real estate brokers are from RE/MAX. The real estate brokers at RE/MAX are invested in finding the right real estate solution for all clients. For everything real estate trust the Company voted great, RE/MAX winner of the Consumer Choice Award for the best real estate brokers in Calgary.
- Consumer Choice Award website
What are the Consumer Choice Awards?
Consumer Choice Award is the only organization in Canada to determine the top-ranked service providers in various categories by conducting an independent market research survey that is statistically accurate.
Each year, consumers are surveyed all across Canada...
The forecast painted a pretty rosy picture for Alberta for 2012 stating, "... the vast majority of signals on the economic dashboard are sending the same message: things are good. Wages, already the highest in Canada, are rising, retail sales are growing fast thanks to an expanding population, and the housing market shows little sign of overvaluation relative to other large provinces in Canada." Sounds pretty good, right?
Then you get to the last page with the statistics on whole the housing market....
An article in today's Calgary Herald, spoke of the increases in resale market activity and a price growth in the resale housing market for August 2012 over August 2011.
Many a REALTOR® are bound to sing the same old songs of, "Prices are on the rise, and houses are selling fast! Buyers should offer closer to asking price! Sellers should price above the last few houses to sell!" I know I got an email from a designated broker - an hour ago - claiming just that.
Of course now that the Calgary Real Estate Board has an economist on staff, we're seeing a few qualifications to these "news" articles. You'll actually read in the article that we are "it still has a way to go to catch up to the peak pricing of a few years ago," (2007) and "even though there’s growth, we’re not at typical levels of activity" for the Calgary area market. This translates into - we are still in a precarious position as far as the resale housing market. A small change in the economic climate...
What are your views on real estate agents being required to have a university-level education?
As many of you that have already read my bio page know, I am an advocate of requiring all real estate agents to have a university education. In fact, I think the real estate agent training program should be a two year university certificate program within Alberta.
To raise the stature of the existing and future real estate agents and bring back a sense of "professionalism" into the industry.
To weed out the agents that view this as a quick-buck, sales career (it's not - it's a service industry). And
To increase the level of confidence by the general public in the necessity of have real estate agents/brokers involved in the buying, selling or leasing of homes, properties and businesses.
Maybe if we could accomplish these things it would eventually raise the "industry" to a "profession." This would be similar to engineers, accountants, dental hygienists and nurses instead of being lumped...
Wow, my blog and Twitter posts on the forecasted effects of the new mortgage rules created the highest amount of feedback yet - albeit quite negative from other agents who felt I was forecasting "doom and gloom" that would drastically reduce sales for the next several months. One stated, "How dare I cause fear?" I countered, that I did no such thing. I merely posted the fact-based research and forecast that the City of Calgary had completed in regards to the impact of the new mortgage rules on a LOCAL housing basis. In fact, it is quite the opposite. Read on...
On a national basis, almost every economist is forecasting a ten to 15 percent price correction (price drop) - on average - over the next two years. That isn't particularly rosy, but based on the over-inflated prices in Vancouver and the super-hot condo market in Toronto, this makes total sense. Those two cities, alone, make up a significant number of the total sales in the country.
It has now been a week since the mortgage insurance rules changed. There has been lots of speculation from a number of banks and other economists over the last several days as to the impact that is forecast. For example, the TD Bank economists forecast that average home prices in Canada will likely contract 10 to 15 per cent over the next two years.
Incredibly, we still see articles quoted from a week prior to this with extremely optimistic numbers based on the conditions prior to the mortgage insurance rules change. These folks are either extreme optimists or they have their heads in the sand.
What Will the Local Effect Be?
The Corporate Economics department at the City of Calgary has now come out with a report with a significantly more local focus. As a result of their prior research and adjustments, their forecast is:
The Calgary housing market has two active sectors, entry-level and move-up level.
Low priced entry-level housing will be affected most by this...
He backs this up with research by S&P / Case-Shiller numbers and states that now, with inflation taken into account, U.S. housing values are equivalent to 1895 levels.
The implication of this very last somewhat startling sentence is that buying property may not be the strong, long-term investment it has often been positioned as. The article does not discourage buying property however, instead it argues that “...buyers should stop focusing on the vague hope that house prices will jump from here and focus instead on the functional value houses provide for the money.” In other words,...
Are your real estate agents providing you with the information that you need to hear, or aren't you listening to them?
Two months ago, a young fellow gave me a call about the price of a home that had recently disappeared off the MLS® System market. He thought that I was the agent that had listed it for sale since he had "googled the address" and, as usual, my website was the one that had always come up first in the ranking. [It's a common mistake, but it is really hard to understand why people make it. The MLS® System is where we share each other's listings and have permission to market them throught IDX websites provided we disclose who the listing brokerage is and we don't modify ANY of their data. (It's called a reciprocity agreement). Every MLS® home listing for sale should show up on every agent's websites since it is extremely rare that we would ever bring a buyer to one of our own listings. But, that's another topic.]
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