The Sky Isn’t Falling… Prices in Calgary Come Back To Earth

The sky isn’t about to fall on Calgary home owners, although what used to be the country’s hottest housing market is poised for an uncharacteristically average year in 2008.

The price of a detached bungalow in Calgary rose 5.2 per cent in the fourth quarter of 2007 from the same quarter the year before. That compared with double-digit gains in the previous eight quarters, according to data released yesterday by Royal LePage Real Estate Services.

“People deal in relatives, and when the relative rate of price appreciation over the course of two years moves from 50 per cent to 5 per cent it feels like the market’s in decline,” said Phil Soper, chief executive officer of Royal LePage.

Calgary’s slowdown bucked the trend in much of the rest of Canada, where house prices blasted at warp speed through what is usually a holiday breather.

The national average price of a detached bungalow increased by 11.6 per cent to $337,555 from $302,497 the year before. The price of an average two-storey property rose 11.3 per cent to $399,738, and a condo unit 11.7 per cent to $240,395.

More modest gains all around should be the norm in 2008, Mr. Soper said.

However the slowdown is being felt sharply by some sellers in Calgary, where for two years price increases have blown the doors off the national average.

“People have gotten so used to their house appreciating 2 per cent every darned month, it’s taking a while for reality to set in. There’s still lots of money, there’s still lots of confidence, but there are also a lot of people out there who think they’ve got more house than they do.”

If you are wondering what your home is valued at, with the price of homes changing, give us a call or send an email!

Jared & Rebecca Chamberlain
www.ChamberlainRealty.ca

Source of Article: Report on Business.com

Home Seller Guide Part 1 – When Is The Best Time To Sell?

As we are now into a new year there may be many questions you have about selling your home. Over the coming months we will have articles and blog posts that will answer many of your questions. Here we go…

When is the best time to sell your home?

Downsizing, upsizing, relocation to a new job or lifestyle changes are just a few of the many reasons why people sell their homes. Regardless of the reason, each seller wants the same thing: selling a home without hassles, quickly for the best possible price.

Before selling your home, spend some time thinking about your reasons for moving. Is your home too large? Is it too small? Will you be looking for new accommodation in a new city because of a change in employment? Perhaps you just need a change in lifestyle. When you clearly have answers to these questions, your search for a new home, plus the sale of your existing home should be more manageable.

When is the best time to sell your home?

In the spring, not during the Christmas season, not during the school year. Some people look for bargains during the winter and then try to sell again in the spring. Summer is a good time. Each person has a theory or reason why selling a home at a certain time is better than another. Some theories are based on the economy, while others suggest that some buying months are better than others.

• Do you children need to be closer to school?
• Do you need to be closer to work?
• Do you need to be closer to hospital or medical facilities?
• Is your home too large?
• Is your home too small?

Most professional REALTORS^® agree that your situation should determine the time when you sell. It also depends upon your objectives. Perhaps you’re an investor looking to capitalize on market conditions, or require the funds of the sale for financial obligations. In most cases, however, the best time to sell is likely when your existing home no longer meets your needs.

Economic factors are an important factor

Another key consideration is the economy. How do interest rates compare to your current mortgage? Are they higher or lower? If rates are higher, your monthly payment amounts may be higher than your existing ones upon the purchase of another home. If rates are lower, you may be able to trade up to a more expensive home, and not a significant increase in your monthly financial obligations.

You’ll also want to research the market. Is it a buyers’ or seller’s market? In a buyers’ market, there are more homes for sale then there are buyers. This usually means a high inventory of homes, and few buyers compared to available homes. Homes typically stay on the market longer. Prices are stable or may drop. With this type of market, buyers often spend more time looking for a home. Upon negotiation, they have more leverage. You could benefit if it’s a buyers’ market, especially if you have accumulated equity in your current home.

In a seller’s market, there are more buyers for the available homes on the market. This translates to fewer homes for many buyers, resulting in quicker sales and price increases. Buyers tend to make decisions quickly, multiple offers are common, and sellers tend to look less favorable upon conditional offers, for those that are free to close.

In a balanced market, the number of homes on the market tends to be equal to the demand. As demand equals supply, sellers accept reasonable offers. Homes sell within a reasonable time period and prices generally remain stable.

We here at The Chamberlain Group have the experience, knowledge and resources to help you make the most of your move. Trained in economics, supply and demand, and local market conditions, we can assess your situation and help you determine the right buying or selling time.

Until Next Time,

Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca

Source

December 2007 Market Review

Year end sales for residential and condominium held steady in 2007, showing very slight decreases in both categories, according to figures released by the Calgary Real Estate Board (CREB®).

Year-to-date Calgary single family metro sales as of December 31, 2007 were 18,438, a decrease of 3.53 per cent from the year-end 2006 sales figure of 19,113. Single family Calgary metro sales for December 2007 were 846, a decrease of 28.91 per cent from the 1,190 sales recorded in December 2006. Single family Calgary metro new listings added for the month of December totaled, 984, a 1.55 per cent increase over the 969 new listings added in December 2006. New listings coming to the market year-to-date were 31,722, an increase of 17.44 over the 27,011 new listings brought to market in 2006.

The median price of a single family Calgary metro home in December 2007 was $406,788 showing a 10.54 per cent increase over December 2006, when the median price was $368,000. The year-to-date median price was $421,000, an increase of 16.62 per cent from the 2006 year-to-date median price of $361,000.

“As we can see from the final numbers in 2007, sales have definitely held steady. In my opinion this can only point to two things; consumer confidence and stability in the market place. Calgarians continue to have confidence in our economy and real estate market”, remarked CREB® President, Ron Stanners. “The spring of 2007 was an unpredictable market, with multiple offers and relatively low inventory. As we moved into the summer months we saw a slow down in the sales activity and an increase in the amount of inventory on the market. This was a correction in the market, which was inevitable.” concluded, Stanners.

As we move into 2008, it will be very interesting to see where the market will go. As I stated in a post yesterday with the number of listings that went off over the last month, and what could happen this spring, could make our market flooded with properties again.

Jared Chamberlain

Source: Calgary Real Estate Board Stats December 2007

Today’s Current Listing Count

Hey Everyone,

I just wanted to make aware that over the holiday season, there has been a good change in the listing count. Right now there are 3,351 Single Family homes listed in the Calgary market place and 1,527 Condo properties (including townhomes, apartments etc.) listed. These numbers have dropped considerably over the last couple months. At the end of November 2007 there were 4,984 Single Family and 2,196 Condos on the market.

I wish I knew if this means that the market has settled and we are back to a balanced market, but I can’t. The reason I say that, is that over the last month (December 2007) there has been 1240 properties (single family and condos) that have gone off the market by them actually selling. But there has actually been more properties over the same time period, 1,711, that have been taken off the market via being terminated, withdrawn or the listing has expired. This says to me, that these sellers may be delaying the sale/listing of their property. Historically speaking, spring is usually a good time of the year to have your property listed, but it will be interesting to see what happens this coming spring and summer with the listing count, and if many of these home owners will try to list their homes all at the same time again, and yet again, create an overflow in the listing numbers. But then again on the flip side, we could actually be out of the high listing months, and back to a bit of normality…

Only time will tell!

But there is another side to this all as well… We have listed some homes over the last couple months and have had great success in selling them with various listing strategies, even with a very high number of competing properties. If you are in need of selling your home, please give us a call or contact us and put us to work for you!

Thank you for making us your Real Estate Team!

Happy New Year

Hey Everyone,

We just wanted to wish you and yours a happy new year.  I hope any resolutions that you have made that you will keep them and see them through.

Jared & Rebecca Chamberlain

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