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
20% Further Price Reduction?
Filed Under Buying, Home Prices, Selling · Tagged: Calgary Market, Calgary Real Estate Market, Calgary Real Estate Statistics, decreasing real estate, real estate prices
In a recent Calgary Herald Article that was published this past weekend (Saturday September 13th) stated that a couple realtors in Calgary said that the home prices would be decreasing another 20% over the coming year. One agent stated…
“Prices went up nearly 100 per cent in 2-1/2 years,” he says. “Let’s just say the ‘why’ for the decline can be found in the words, ‘Too far, too fast’.”
I do agree that there was a huge increase, but I do disagree that it was too far, too fast. If we had increases like this over 5+ years, than yes, but in this case, the market is adjusting and finding it’s new bottom. Every booming economy has it’s moments of breathing. The market is alive and therefore needs to breathe. As a seller in this market you really need to be on your game and know your ’stuff’.
Seller’s also really need to think like a buyer in this market. By this I’m saying that you need to put your feet in the shoes of a buyer, and clearly understand what they think, so you are able to market to them properly.
The market is changing, and will do so for a while. Prices will most likely decline, to what extent and for how long? Great question… don’t know… When the market finds it’s new bottom, then we will be able to for sure say… “The Sellers Market is Back”.
On the flip side, it is truly a great time to purchase a home. If you are planning on living in the home for 2+ years, there are some great deals out there. If you are looking to do investments… again, great time! If the investment will be a flip of a home, you might want to stear away from that right now, but for long term rentals… that’s the place to be!
Cheers!
