Feb
27
Canadian real estate markets remain “remarkably buoyant”, especially in light of the deepening housing downturn in the United States and the generally softening conditions in most other advanced economies globally, says a national report released Tuesday.
The report, authored by Adrienne Warren, senior economist at Scotiabank, said from a housing demand standpoint, “economic conditions still favour Western Canada, with its booming resource-based industries and extremely tight labour markets.”
“The odds of significant overbuilding, or of the price declines that are now occurring in the United States, are still relatively low. Inventories of unsold homes, including condominiums, in Canada’s major centres are well contained, particularly when compared with the housing-market upswing of the late 1980s.
The current housing boom in Canada is the strongest and longest of the post-war era, she said. Between 1998 and 2007, average inflation-adjusted home prices have soared some 65 per cent, easily besting the 32-to-56 per cent appreciation of the prior three housing cycles of the 1960s, 1970s and 1980s.
“The current housing upswing is going on 10 years, whereas the prior three cycles ranged from five to six years,” said Warren. “It has also outlasted the housing booms experienced in many other advanced economies this decade.”
Mario Toneguzzi, Canwest News Service
To Read Full Article Click Here
Feb
14
Home Sellers Guide Part 7 - 9 Biggest Relocation Mistakes
Filed Under Relocations, Selling | Leave a Comment
The 9 biggest relocation mistakes and how to avoid them
On the one hand, moving can be an exciting adventure. On the other hand, it could be a stressful time if things go wrong. This report explains the 9 (nine) most common mistakes when people relocate. When you plan ahead, you’ll avoid these pitfalls and ensure your move is handled smoothly.
1. Lack of information
Contact the chamber of commerce, tourism department, municipality, or library in your new community. At the same time, compare salaries, cost of living, taxes and housing prices.
2. Home not priced and ready for showing
Before you sell your home, complete repairs. Often, it’s the little things, like chipped paint, worn caulking and sticky doors that potential buyers notice. Have your home cleaned, including carpets. Have a Comparable Market Analysis (CMA) completed by one or two Realtors to ensure a competitive price.
3. Not planning for temporary housing between destinations
You may need to set up temporary housing arrangements until the closing of your new home. This could take from a few days to a few months. If you need interim housing for a few days, perhaps staying in a hotel is the simplest solution. For housing longer than a month, you may want to consider an apartment with a short-term lease.
4. Not being pre-approved
Sellers are usually eager to negotiate with someone who has immediate buying power. Please contact Joshua Taylor at Centum Mortgage to become pre-approved, and tell him Jared & Rebecca sent you…
5. Not completing a professional home inspection
This applies for both the home you’re selling and the one you’re buying, although who pays for the inspection (buyer or seller) is negotiable in each separate contract.
6. Insufficient time to handle children’s concerns
During relocation a child could feel lost, sad, angry or confused. Sometimes, under the stress of completing so many details, the temptation is to get settled as quickly as possible so everyone feels at home. Talk to your children during the process. They’ll feel safe, cared for and comfortable. Acquaint your children with the new neighborhood. If possible, have them meet new teachers and other children in their new school before moving. Try not to move in the middle of a school year.
7. Not being prepared for culture shock
Sometimes, when people move from familiar surroundings to a new community, culture shock can manifest. Symptoms can range from headaches, stomach aches, impatience, sleep problems to anger. These feelings are all normal, and do pass over time. It may be helpful to incorporate the old with the new. This could include taking classes, joining clubs, and pursuing activities you once enjoyed. It takes about six to ten months, for someone to feel “at home” in a new community.
8. Not using local, licensed professionals
Every area is different. Understanding the communities that make up your destination city, a Realtor can find you a home that matches your needs. You’ll save time and energy by having a professional do the work for you.
9. Not reading your employer’s relocation policies
Read your employer’s relocation policies carefully, for the amount of reimbursement. Keep good records and copies of your receipts, as moving expenses are deductible under certain conditions established by Revenue Canada.
If you are relocating, and are in need of an experienced associate to help you out, give us a call today!
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Feb
12
We were interviewed a while back from the globe and mail regarding adult kids, who have their parents helping them out to purchase homes. It is a very interesting article on the generosity of the aging baby boomers, and how they want to help their children out. Below is an excerpt from the article where myself and my client were quoted.
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Other twentysomethings feel they have to resist their parents’ generosity where they can. Tyson, a 25-year-old who works in the film and television industry in Calgary and asked that his last name not be included, is currently looking for a townhouse. Because he works freelance, he needs his parents, who have just rounded the age of 50, to co-sign the mortgage. They were willing to help him more, but he declined because he’s not proud of his generation’s cushy situation.
“I’ve seen a lot of young people who get everything given to them with no appreciation for it,” he says. “I’ve seen a lot of kids whose houses were paid in full - they didn’t even have a mortgage.”
His real estate agent, Jared Chamberlain, who is 27, says he has seen parents buy themselves a new home and install their children in the original. He says he and his friends know they’re lucky.
“We were brought up in a generation where we had lots. Our parents were brought up in a generation that didn’t have as much. They want to provide us with more than they had.”
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To read the full article go to Globeandmail.com or click on the link and it will take you directly there.
Feb
6
Alberta’s Been on a Wild Ride…
Filed Under Oil Sands, Real Estate General, Special Reports | 1 Comment
If you haven’t noticed, Alberta’s real estate market and job market has been lately on a wild ride. Todd Hirsch, senior economist for ATB Financial was quoted in The Calgary Sun saying
“there are no ‘dire signals’ Alberta’s economy is in danger of running out of gas, or crashing. The speed of growth might be slower, but the signs point to more sustainable growth in 2008. It’s been a wild ride for the past few years, but a chance to take a breath - and catch up with runaway growth - should not necessarily be considered a bad thing”
He also compared “the ride we’ve been enjoying to a high speed cruise down the autobahn. When you have become accustomed to moving at 130 km/h, a deceleration to 80 km/h is very noticeable”
“Canadian energy giants such as EnCana, PetroCan and Husky plan to expand their oilsands operations and big international oil companies are manoeuvring to increase their stake. That’s not surprising when you consider the area is believed to contain some 175-billion barrels of oil, second only to Saudi Arabia’s reserves”
It appears that the Alberta market isn’t going to crash, but is rather taking a well deserved breath. The growth and increase can’t continue on like it has… that’s unsustainable. Just last week, Suncor sets to expand another $21 Billion just a day after it said that it would pay higher royalties to the Alberta government. I think we might still have a ways to go…
Jared Chamberlain
jared@tcgroup.ca
www.ChamberlainGroup.ca
Feb
5
January 2008 Market Review
Filed Under Monthly Stats | Leave a Comment
“We experienced a slower market toward the end of December, which is expected during the holiday season, however, January has been a relatively good month for the resale market. This is the month when peoples lives are getting back on track, and consumers may be entertaining the idea of listing their home,” remarked CREB® President, Ed Jensen. “I think this ?rst quarter of 2008 will pick up momentum, and I anticipate a more balanced and stabilized spring,” concluded, Jensen.
The average price of a single family Calgary metro home in January 2008 was $455,297, showing a 2.37
per cent increase over December 2007, when the average price was $444,769. The average price of a metro condominium was $311,232, showing a 2.14 per cent increase over December 2007 when the average price was $304,719. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas.
As you can see in the graph, that the inventory is starting to decrease since it hit it’s high in Sept. 07. On a daily basis, we are having 50-60% of total listing number are the number of solds, the same day. This says that the market will continue to be a buyers market, and the inventory will be around for a while.
Regards,
Jared Chamberlain
jared@tcgroup.ca
www.ChamberlainGroup.ca
Feb
5
Canadian Residential Real Estate Future is Solid
Filed Under Real Estate General, Special Reports | Leave a Comment
This was a news release from The Canadian Real Estate Association (CREA) on January 23, 2008. Here are some excerpts from the news article.
“Three key economic ingredients will keep Canada’s housing market on a different track from the United States. One is consumer confidence, the second is employment, and third is affordable interest rates. The Bank of Canada cut interest rates on January 22nd because of weaker prospects for Canadian economic growth in 2008. “Those lower interest rates will also help temper the erosion in housing affordability due to additional home price increases,” Bosley added. The Bank of Canada is expected to cut its trend-setting rate again in March.
CREA’s Chief Economist Gregory Klump says that the Canadian housing market in 2008 will pull back from the breakneck pace set in 2007, but this is still forecast to be the second-busiest year on record in almost all provinces, with residential unit sales reaching an estimated 512,705 units.”
I would love to hear your comments on what you think the Real Estate market in Canada will go???
Regards,
Jared Chamberlain
jared@tcgroup.ca
www.ChamberlainGroup.ca
Feb
3
When you are buying or selling your home, naturally, your most important concern is getting the best price. As a seller, you may have lived in your home for years. You’ve contributed towards the mortgage each month. You’ve maintained your home. And now, it’s only right that you should reap the rewards of your efforts.
As a buyer, you want to ensure you are paying fair value for a home. How then, do you get fair market value for your home? In this article we’ll explain, specific house, present condition and 30 to 90 days, the three factors that influence market value.
In this article, we refer to market value, as it applies to single-family homes only. Evaluation methods are different for apartments and commercial properties.
The term, “market value,” is a broad and confusing term. Consumers shop in a store and pay the price indicated on the price tag. A book is worth $18.95 according to the tag. A car is worth $15,000 because the price tag says it is. We rarely question the value or worth placed on these items. We just pay the price.
At the end of the season, if an item did not sell, its value changes. The $18.95 book did not attract enough buyers. Therefore, the store puts the book on sale to entice people to buy the unsold books.
Initially, the market value of the book was $18.95. However, when new titles arrive on the shelf, or the subject of the book is no longer popular, the market value could drop to $9.95.
Therefore, market value is the price that an item will sell for, within a reasonable time period. When considering real estate, “reasonable” refers to one to three months.
When it comes to determining fair market value on a home, the following definition is helpful:
“Market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days.”
Three criteria make up this definition;
- Specific house
- Present condition
- 30 to 90 days
To determine a home’s value, most people use an appraisal or comparative market evaluations.
An appraisal, conducted by a certified appraiser, is a professional opinion of a property’s market value, based on recent sales of comparable properties, location, square footage, construction quality, floor plan, shopping, schools, transportation, etc. On average, this type of evaluation costs $300 - $500. Lenders require an appraisal as part of the mortgage application process.
A comparative market evaluation (CMA), performed by a REALTOR®, is a free, informal estimate of market value, based on sales of comparable properties.
Specific house
Market value is limited to your specific house. The location and neighborhood of your particular home is the starting point for this determination. The exact same house in another city, or another neighborhood across town, does not matter for your determination.
For example, a house in Calgary could be worth $475,000. But if the exact same home was located in Okotoks or Red Deer, it may only be valued at $425,000.
Home prices also fluctuate significantly from city to city and from neighborhood to neighborhood. Therefore, when considering the market value of your home, it must be compared to similar homes in the same or adjoning neighborhoods.
Present condition
The second factor in determining market value is the condition of your home. Is it in “showing” condition? Does it need some improvements? The condition of your home determines the number of buyers who may want to view and purchase the property. This relates to the time your home will remain on the market before it sells. Most home buyers want a reasonably priced home, in good condition. They may look less favourably on a home that requires major work.
Some people determine a market value by subtracting the amount of estimated fix-up costs from the selling price. This may not be the best way to evaluate a home. A home in good condition sells for $80,000. A home you may like needs $4,000 in repairs. This may not equate to a market value of $76,000 ($80,000 - $4,000). Why not?
Homes that require work take longer to sell. To attract more buyers, the price may have to be reduced beyond the cost of the repairs. It’s all a matter of how much someone is willing to pay for these repairs. Additionally, determining market value for a home that needs some work, is not an exact science. Some REALTORS® suggest subtracting approximately two to three times the amount of the fix-up costs.
30 to 90 days
In most markets, a home will sell within 30 to 90 days. If it doesn’t, the price is probably too high. Even homes that are “perfect” won’t sell in this time, if the price is too high.
On the opposite end: if a house sells within a short period, perhaps the asking price was too low. Or, it could be a hot market, and it really didn’t sell too fast at all. When there are housing shortages, or fear of rising prices, many homes are purchased within a matter of days or sometimes hours of the listing.
Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
The Chamberlain Group
