CREB 2010 Forecast

Every year, CREB puts together a breakfast for all members of the real estate industry and talks about the forecast for the coming year. Take a look at what some of the forecasts are for this year in Calgary.

Calgary Real Estate Update – Video

As I talked about in the video, below is the graph of the current absorption rate in Calgary…

Weekly Market Update – April 28, 2009

Over the past week we have seen the number of sales and showings increase across the board.  Single Family home sales rose over the last week while Condo sales dipped.  Another great point, is that over the past couple months, since January 2009 to be exact, we have seen the Median price of Single Family homes stay very constant around $380,000.  The Condo Median prices however have had a bigger ride ranging from $249,000 up to $260,000 since January 2009.

We should expect to see the listing count stay constant with the sales per week rising into the mid 500s as Spring season is now upon us.  As well, we should see the number of showings starting to rise per week as more buyers are starting to look more seriously.

BUYERS:

There are some great purchases out there right now.  With interests rate at amazing low’s, and home prices back to decent levels, this is your time to get into the market.

SELLERS:

In order to be successful in this market, you need to have a home that shows well and is priced well.  Don’t try to test the market in terms of price, as it could hurt you in the end.

Weekly Market Update – March 10, 2009

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…

Time Seems Right To Buy

Market Is Prime for First Time Buyers

The Real Estate Market is Prime for First Time Home 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

RRSP’s and First Time Buyers

Q. Over the past four years, my wife and I have contributed to our RRSPs. Soon, we plan to purchase our first home. Is this a good time to buy or should we wait another year or two?  Can we withdraw the maximum $20,000 under the Home Buyer’s Plan?
– Sondeep

A. The Canadian real estate market continues to show sale and price declines.  Although most experts do not expect a U.S.-style meltdown, a significant price reduction is expected. Regardless of which  province in that you live, real estate agents advise sellers “realistic pricing is key to selling your home.”  If you plan to live in the home, real estate will always be a good investment.

See Latest Calgary Market Update Here

Our federal and provincial government has made several initiatives to stimulate the economy and the housing sector. Many recent changes in the federal budget are excellent incentives for all homeowners and first-time buyers.

First-Time Home Buyers:
• New-increase!  The RRSP Home Buyers Plan withdrawal limits per individual have increased to $25,000 from $20,000, effective Jan. 27, 2009.

• New-tax credit!  After Jan.  27, 2009, homebuyers that have not owned a home in the current year or four preceding years may qualify for a $5,000 non-refundable tax credit.

Existing Homeowners:
• New-Renovations! Families that undertake renovations or alterations between Jan. 27, 2009 and Feb. 1, 2010 to their principal residence may qualify for a 15 per cent non-refundable tax credit. Cost of renovations must be greater than $1,000 and up to $10,000.

These are giveaways, check with your tax adviser/accountant.

Original Article Here by- Henry Choo Chong

Weekly Market Update – February 3, 2009

Can you believe it… January is already over… Anywho!

Over the past week, the listing count in Calgary has decreased.  This is a good thing, especially when it is mixed with the number of sales increasing.  The median prices for both condos and single family homes have stayed roughly the same as last week with condos at $248,000 (up $1,000) and single family at $377,500.  As well the average days on market have decreased and both condos and single family are sitting at 62 days on market.  With the prices staying where they are at, some would say that the market is starting to stabilize.  I do hope that this is the case, but we will need to have more than a couple weeks of data to see this.  If prices remain the same into the end of February time frame, the tides may have calmed.  We will have to wait and see.

Same as last week, many of the places that buyers are seeing are not quality listings, that do not show well.  This is one area that we try to stand out from the crowd in, and when buyers look at our listings we get many comments that the home viewed was in impeccable condition.

If you are considering buying in Calgary, right now is a great time to buy, as there are some highly motivated sellers out there.  But on the flip side, if you are needing to sell, you need to market your home a certain way, and price it properly, or it could cost you more in the long run.

Thanks for checking out our blog, and we hope that you find it informative and helpful in your real estate adventures.

Map of Calgary Show Homes – January 2009

Buying a brand new home can be a very exciting, as most likely you are getting exactly what you want, and not settling for a resale home with aspects you may or may not love.  There is a giant myth out there that Real Estate Agents are not able to work with new home builders, but in fact, this is not true, especially in this current market where builders are needing the MLS to market their homes.

Some builders will do almost anything to have you sign on the line, and with some rep’s that sit in the show homes not be fully qualified to sell homes, you will want someone on your side who has your best interest in mind and fully qualified.  We at the Chamberlain Group have had extensive experience with new homes and new home builders as we were apart of a development that sold 93 brand new condos where we did marketing and sales.

We have also had clients who wanted us to sit in on all meetings with the builder and even attend the meetings for picking out their flooring, lighting, cabinets etc. But then we have had clients that just want us to help them with all the paperwork and read over what the contract says to make sure that they are fully covered, as builders & developers use their own offer sheets that are drafted by their lawyers, and in most cases cover their ASSets before yours…

Whether you use us or not, it is very important to have a third party representative who has your interest and only yours as their number one priority.

On that note…

Below is a map of all the show home location in Calgary that was used in The Calgary Herald on January 3, 2009.  If you have any questions about new homes, show homes, spec. homes etc. please contact us at sales@tcgroup.ca or 403-366-3130

Please Click On The Image To Enlarge It

Weekly Market Update – Week 50

As we head into the Christmas season, and the focus changes to family time, and holidays, we will see a further reduction in listings, and sales.  Over one month, we are down 80 sales per week from 253 during the week of November 17, 2008 to this week at 173. Even further back we are down 143 sales per week from the week of October 14, 2008 at 316 sales.

We will most likely see the number of listings drop a bit further, but will pick up again middle to end of January.  There still will be sales happening, but in most cases you will feel the slow down, which is typical this time of the year.

The properties that are selling right now are the ones that are priced well, show well and are willing to negotiate when the offer comes in.  If you are fortunate to have an offer in this market, it is worth a serious look at, and consideration.

November 2008 Market Update

An educated consumer, watchful of current market trends, still drives Calgary’s real estate market.

While November typical seasonal slowdown was magnified by the prevailing lack of overall consumer spending compared to one year ago, the changes in the listings-to-sales ratio demonstrates strategic thinking on the part of buyers and sellers alike.

Calgary single-family unit sales for the month of November totalled 670, 18.3% fewer sales than the month before while new listings added for this market segment dropped by 32.5% compared to the previous month’s report. The larger drop in new listings added results in fewer properties offered overall and indicates thoughtful intention on the part of sellers. The median price of a single-family unit held steady at $387,300, a decrease of only 0.7% compared to the month before. The average price of a Calgary single-family unit in November recorded at $435,471, 5% off the average recorded last November.

Change in the condo market indicators revealed more consistent month-over-month buyer/seller intention. Condominium sales recorded a decline of 29% from October this year, while new listings in November dropped 30.8% below new listings added one month ago. The average price of a condominium unit dropped 1.2% below the average price the month before and recorded at $312,710 this November.

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