Weekly Market Update – March 10, 2009
Filed Under Calgary Real Estate Stats, Weekly Market Update · Tagged: Calgary Real Estate Market, Calgary Real Estate Stats, weekly calgary real estate stats, Weekly Market Update
Over the past week we have seen the number of listings increase along with the median price for Single Family homes stay at $375,000 and the median price for Condos dropped $1,000 to $247,500. The number of sales have slightly decreased from the week before for both Single Family and Condos.
Over the next couple weeks will be a real tell all with what the market will do for the coming spring of 2009. If the listing count rises up past 7,500 than we will just have to hope that the number of sales also increase past 450 per week or we could see a further reduction in the values in Calgary. However, if the listing count remains constant and under 7,000 we could see the values in Calgary stay strong and most likely not decrease further for the time being, and if we combine this with stronger sales, this would make a great spring market for both buyers and sellers.
We are seeing more buyers starting to look, and want to be in a new home before the summer months. We are also seeing first time buyers starting to come out of hiding which could spur on the spring market.
ADVICE TO SELLERS:
Now is a great time to sell if you are serious… You will have to be competitive in this market, and homes that are priced well DO SELL… and sometimes very quickly…
ADVICE TO BUYERS:
If you are looking to buy right now.. it is a great time to purchase a new home. See my past articles below for more info on this…
Market Is Prime for First Time Buyers
Time Seems Right to Buy…
Filed Under Buying, Education, First Time Buyers, Investing, Listings, News Articles, Selling · Tagged: calgary, Calgary Market, Calgary Real Estate, real estate investing
Shaken consumer confidence due to the world economic crisis has clouded the fact that it’s a great time to buy, says a leading real estate investor.
“People need to be telescopic in their thinking, not microscopic,” says Don Campbell, president of the Real Estate Investment Network, which has more than 3,400 members across Canada.
“Look five to seven years from now. Eventually, oil is going to come back, albeit not super hot, but between $70 and $80 a barrel, which will do super well here and create jobs.”
Calgary is in a relatively good position, he says.
“Calgary has a fairly diverse economy, average incomes are strong, and unemployment is down,” says Campbell.
“There’s strong in-migration (of people to the city) and the government is starting to spend money on infrastructure, so it will create jobs. People are coming here for jobs, but staying for the lifestyle.”
However, in the meantime “we’re on an 18-month rollercoaster ride,” says Campbell.
The Calgary-based real estate expert recently updated his bestselling book, Real Estate Investing in Canada, Creating Wealth with the ACRE System.
Campbell says his system works no matter if it’s a buyers’ or sellers’ market.
“What it will do is stop you from buying dogs,” he says.
Campbell tracks trends in the various cities, including each area’s economic outlook, migration, politics and municipal plans.
His system helps potential buyers spot markets that are over-or under-priced; before it happens, shows buyers how to spot towns that will boom or bust; and helps people accurately analyze each property.
As an example, if you’re buying, “follow the transit tracks,” says Campbell. “That’s where real estate values are going to increase.”
Interest rates are currently at record lows — and he’s predicting they will drop further.
“I see a 25-to-50 basis point drop in rates in the next couple of months,” he says. A basis point is a hundredth of one per cent.
“Right now, you can lock in for five years at 4.37 per cent — take it,” he says.
If you’re selling, “the important part is to not hope for the market of 18 months ago when you’re setting your sale price,” says Campbell.
“Be realistic. Think about it: today, there is a lot of competition — but there are buyers out there. Price it right and work on curb appeal.”
article from Calgary Herald
Bank of Canada: Prime Rate 2.50%
Filed Under Contributors, Mortgages · Tagged: Calgary Mortgages, mortgage news, new financing, new mortgage
As predicted, the Bank of Canada lowered their overnight rate to 0.5% on March 3rd, which brings prime rate down to 2.50% from 3.00%. Based on a recent article from TD Bank, one of the main reasons for the cut was due to tight credit. A proposed framework for easing future credit is expected to be released in April. However, a new policy alone will not be the only solution. The report indicates that external factors affecting Canada, such as the US recession (in particular, mention of the auto and housing industry) will plague us and until there is a form of "stabilization of global financial markets around the world" we will take time to recover.
On the rate front: a further 25bps decrease making the overnight rate 0.25% is anticipated (prime rate = 2.25%) and these rates wouldn't be expected to rise again until the latter half of 2010.
How does this information affect you if you are currently looking into a mortgage?
Banks continue to offer variable products at prime plus 0.8%/5 years. One particular credit union associated with TMG The Mortgage Group is offering the full savings at prime rate (2.50%) although payments are based on 5.4%. The good news is that you are instantly building equity and paying down a large portion of your principal while enjoying the added benefit of being capped at 5.4%. Should prime rate increase to 7,8,9% (it's anyone's guess these days) your payments would be capped at 5.4%. Alternatively, 5 year fixed rates are historically low (4.39%/5 years) and for comfort and peace of mind, this is a guaranteed low rate.
Bank of Canada: Prime Rate 2.50%
Filed Under Interest Rates, Mortgages · Tagged: mortgage, Prime Rate
As predicted, the Bank of Canada lowered their overnight rate to 0.5% on March 3rd, which brings prime rate down to 2.50% from 3.00%. Based on a recent article from TD Bank, one of the main reasons for the cut was due to tight credit. A proposed framework for easing future credit is expected to be released in April. However, a new policy alone will not be the only solution. The report indicates that external factors affecting Canada, such as the US recession (in particular, mention of the auto and housing industry) will plague us and until there is a form of “stabilization of global financial markets around the world” we will take time to recover.
On the rate front: a further 25bps decrease making the overnight rate 0.25% is anticipated (prime rate = 2.25%) and these rates wouldn’t be expected to rise again until the latter half of 2010.
How does this information affect you if you are currently looking into a mortgage?
Banks continue to offer variable products at prime plus 0.8%/5 years. One particular credit union associated with TMG The Mortgage Group is offering the full savings at prime rate (2.50%) although payments are based on 5.4%. The good news is that you are instantly building equity and paying down a large portion of your principal while enjoying the added benefit of being capped at 5.4%. Should prime rate increase to 7,8,9% (it’s anyone’s guess these days) your payments would be capped at 5.4%. Alternatively, 5 year fixed rates are historically low (4.39%/5 years) and for comfort and peace of mind, this is a guaranteed low rate.
Leah Plaizier
TMG The Mortgage Group
The Future of Home Buyers in Alberta
Filed Under Buying, Calgary News Articles, Recession in Canada, Selling · Tagged: home buyer, home buyers, RBC
Below is an article that was done in The Calgary Herald today. It talks about a report done on Home Ownership by RBC (Here is the link for the full report).
To summarize:
- 72% of Albertans believe it’s a buyer’s market
- 57% of Albertans believe it makes more sense to wait until next year to buy
- 86% of those polled in Alberta said buying a home is a good or very good investment (highest in the country)
- 39% of those that will buy, say they will because the price look attractive.
- 17% cited the need for a larger home
- 71% said they plan to purchase resale and of those 63% will opt for a detached home.
Home-buying intentions in Alberta have rebounded and are back to 2007 levels, according to an RBC home ownership survey released Wednesday.
The survey found that 35 per cent of Albertans are likely to purchase a home within the next two years, well above the national average of 27 per cent and up from 29 per cent in 2008.
“Home-purchase intentions in Alberta have not only shown big gains over last year, they also remain higher than any other region in the country,” said Don Peard, vice-president for RBC mortgage specialists. “More favourable mortgage rates and home prices may in part explain this increase, and Albertans still believe firmly in the long-term value of a home.”
The survey, conducted by Ipsos Reid, found that a large majority (72 per cent) believe it is a buyer’s market. Given current housing prices and economic conditions, most Albertans (57 per cent) believe it makes more sense to wait until next year to buy.
According to the survey, 86 per cent of those polled in Alberta said buying a home is a good or very good investment — the largest percentage in Canada.
Among those who plan to purchase this year or next, 39 per cent said they will do so because housing prices look attractive. Seventeen per cent cited the need for a larger home, and another 16 per cent said they will purchase because their current home does not meet their needs.
Seventy-one per cent said they plan to purchase resale and most (63 per cent) will opt for a detached house.
This news comes a few days after the Calgary Real Estate Board released its February MLS numbers showing activity in Calgary’s resale housing market picked up last month from a dismal January and average house prices stabilized.
There were 825 single-family home sales in February with an average MLS sale price of $415,568. Sales were up 50 per cent from the previous month, but down 34 per cent from February 2008. The average sale price was up just under one per cent from the previous month, but down nearly 12 per cent from a year ago.
In t he condominium market, there were 343 sales for the month of February at an average price of $268,971. Sales were up 52 per cent from January, but off by 39 per cent from February 2008. The average sale price decreased by less than one per cent from the previous month and was down nearly 14 per cent from a year ago.
In releasing the data earlier in the week, real estate board president Bonnie Wegerich said, “Undoubtedly, the global economic downturn has battered consumer confidence. But there are promising signs we are moving toward a more balanced and stable market. Sales are making some modest gains this month, prices are stabilizing and our inventory absorption rate is improving.”
Dan Sumner, economist with ATB Financial in Calgary, said the market is showing some signs of life.
“MLS home sales jumped to 1,431 units in February from 949 units in January. As a result, the inventoryto-sales ratio is returning toward a more balanced market with a ratio of 6.9, after peaking at 11.0 in December,” said Sumner.
Are They Serious
Filed Under Real Estate General · Tagged: "Are They Serious"
Here’s a place my wife Rebecca came across on MLS last night…
I think this place comes fully furnished…
At least you don’t have to move your stuff, you can use theirs!!!
And it looks like you get a dog with chew toys included… what a deal my friend…
Weekly Market Update – March 3, 2009
Filed Under Calgary Real Estate Stats, Weekly Market Update · Tagged: Calgary Real Estate Stats, Weekly Market Update
calgary real estate stats weekly market update
The listing count over the last week has declined, while the sales have risen. This is a good thing, and hopefully is a move towards a more balanced market. The absorption rate in Calgary went from just under 10 months worth of inventory in calgary in January 2009 to under 7 months currently. Again this is another move towards a balanced market.
“Affordability is the silver-lining in this market. With low interest rates, broad selection and improved affordability, buying opportunities have not been this strong in years.”said Calgary Real estate board presidents Wegerich.
The interest rates also just dropped today down to prime down to 2.5%, which in my mind is basically free money when borrowing…
Is Real Estate Spring Upon Us?
Filed Under Buying, Calgary Forecast, Real Estate General, Real Estate Seasons, Selling · Tagged: Calgary Forecast, Calgary Real Estate, chamberlain group, re/max
As you may or may not be aware of, there is a cycle that happens in the Real Estate Market each year. Spring, Summer, Fall and of course Winter. Just as you experience different seasons throughout the year, the Real Estate Market also experiences different seasons through the year.
In the Summer months, it tends to be slower as potential buyers and sellers are off prancing in the sun and on holidays. During the fall, we see a rise in the number of sales and typically this is good time to try selling your home. Then we have Winter. This usually happens from December through to February where again, buyers and sellers are staying indoors, because our Canadian winters are so cold! And during these months there are some days where I will sit and rip styrofoam cups to speed up the global warming process… but it never works, and I wouldn’t suggest it, as it gets really messy too. Rebecca’s not happy with me when I try this.
Then we have Spring. This is usually the best time of year to sell your home, as many buyers come out of hibernating, and are looking for a new nest. Over the past year, in 2008 and even into 2007, we haven’t really seen any normal cycles. Will this year be different? We are starting to feel a buzz out in the market place with many buyers, and first time buyers coming out of hibernation and starting to look for a new home. Only time will tell if we will have a ‘normal’ spring season.
The Real Estate Market is Prime for First Time Home Buyers
Filed Under Buying, First Time Buyers, Listings, Selling · Tagged: Calgary Real Estate Market, first-time buyers
They’re back… — but if they’re not, they should be. A few years ago, before diminishing affordability sent them scurrying to the sidelines to continue to share accommodation or hang out at their parents’ homes, first-time buyers were a force to be reckoned with.
If they had full-time jobs and could muster together five per cent of the value of a home for a down payment, they were in.
They were the starting point that set the whole chain reaction in motion.
They would buy a resale home and the sellers would move to something else, and those sellers — well, you get the idea.
I recall a housing seminar that strongly suggested first-time buyers were accountable for something like 35 per cent of all homes sold in Calgary.
Then, prices started to jump. Homes were selling in a matter of hours at above asking prices.
Multiple offers forced many potential purchasers to bail because their budgets just weren’t high enough to compete.
Sellers, meanwhile, were reaping the benefit of being behind the steering wheel.
Well, things have turned. Firsttime buyers are back in the game, if they want to be.
Sellers are having to bring their asking prices back to more realistic levels to attract an anxious, but cautious, pool of buyers who know they now have more say over what happens in the marketplace.
At the same time, though, jobs are being lost in some sectors, salaries are likely being frozen, and consumer confidence has taken a hit. While there is some pent-up demand for homes, the buyer pool has gotten shallower. Sellers have to realize this.
There also seems to be a new emphasis on quality now that the market has somewhat calmed.
Bill Bobyk, general manager of the Sterling Group of Companies, says there are two basic reasons people should be buying: “very good” prices and attractive mortgage rates.
Another factor to consider is that “because this is not the market to be flipping homes, people should be buying with the intention of living in them for a few years,” he says. “Buy them because they can be homes, not a shortterm investment.”
Another thing to remember are the tax breaks for buyers and home renovators in February’s federal budget, presented by finance minister Jim Flaherty.
“The federal government’s recent budget has added more reasons for Canadians who aren’t yet homeowners to consider entering the real estate market this year,” says Gary Siegle, Calgary-based regional manager for mortgage brokerage Invis. “For those who are feeling secure about their income and want to take advantage of low rates and a more affordable market, the budget provisions could make an enormous difference in terms of the properties they can afford.”
Homebuyers can now withdraw up to $25,000— up from $20,000 — from their RRSPs as a down payment under the Home Buyers Plan.
Secondly, they can qualify for a $750 tax credit to help them pay for closing costs, such as appraisal or legal fees.
“We are now seeing more firsttime buyers seriously considering making the jump this spring into ownership,” says Siegle.
In this type of market, there is room to negotiate with sellers on prices as well as any other terms set out in the listing, such as possession date, appliances being added, and home inspections.
There are plenty of homes to choose from, so don’t rush things.
Original Article from Calgary Herald:
MARTY HOPE
Calgary Herald
28 Feb 2009
