Calgary Real Estate Today...

 B's Blog

Cogent, insightful, interesting, and informative, Bryan (or "B" as he's called by his friends) regularly posts his thoughts on the Calgary Real Estate market. Check back from time to time or... sign up for an e-mail alert.

July 9, 2011

Holy smokes! I have not updated this missive for many months now and - simply put - I haven't really had much to say and, on top of that, we've been very busy but...that is no excuse I know. So, even though we are still very busy, it is also time to take care of business and put a few thoughts on paper so...here goes:

It goes without saying that we were glad to see federal politics take a back seat to the economy for awhile, now that Stevie has his majority. Now get me wrong here, I still think his moves to slow down the real estate market were ill advised however, we are glad that, for the first time in a long time, we have some political stability in this country. And we thank our lucky stars for that - given what is going on in the U.S & Europe and frankly - most of the rest of the world.

Apart from that, and while we remain long term bulls on the Calgary real estate market, we are also somewhat perplexed by the fact that, for 2 years now, the market has made a drastic slowdown inso far as sales are concerned, and while the upper end - over $800,000 - has remained quite buoyant, the broad middle of the market from say $300,000 - $700,000 or so as gotten very sluggish, with fewer sales and declining prices. However, the local economy has actually improved quite nicely with a rebound in employment and oil prices in the $100 per bbl range. Why, even natural gas has made a minor move up. Go figure!

As for interest rates, they remain in the basement and are likely to stay there for the foreseeable future. After all, with the U.S. broke and with Europe in disarray, we find it hard to contemplate higher rates for perhaps many years to come but...that remains just rank speculation on my part.

When will the market start to advance is surely anyone's guess but, from where we sit we think we could perhaps make a turn up in activity next spring and a significant rise in prices starting in 2013 with the next peak coming in 2015/2016 so stay tuned...it gonna get interesting round heah!!

Today it is Wendy's Blog... "I  am all of the above and more"

June 23rd, 2011

There is something afoot in the Calgary Real Estate Market. There are more people looking and buying high end homes, and more high end homes are coming onto the market. By high end I mean houses over $650,000.

Also, there are more low end homes coming onto the market, low end either by virtue of having having a deluded owner or realtor aiming for an unachievable price and consequently when reality strikes reducing to a price that becomes appealing or by educated sellers who price the property  right the first time or bank owed or court ordered foreclosures.

But here's the rub;

In order to sell, a high end home has to be  really really really spiffy. It must have been upgraded to the nines or brought up to snuff and priced right. It has to have both a knock out location and it must have top end granite and stainless steel and excellent finishing, plus all the functional bells and whistles.

BUT HERE IS THE ANOMOLY...

In order to sell, a low end home must be really really really cheap and be really ugly. It can't have had any improvements and not a single bell or whistle.

Buyers want a percieved value, real or imagined of either.

What does that say about your real estate? Well, if you have an ordinary home on an ordinary street you must make your home stand out above the crowd. Get outside and give it beautiful curb appeal, if you can't do it then hire someone who can. This will pay off. Create a welcoming feeling right from the street. A little shady nook with a couple of chairs. Plant a tree and some shrubs, create a pleasant walk way. Bring the buyer into your home in a good mood. If you get them at the curb...then you got'em.

We have some wonderful properties listed for sale right now. The estate home in Canyon Meadows is a step back in time. This one truly is waiting for an imaginative designer and the result will be a million dollar baby.

We have a lovely little condo in Acadia that is just perfect for a low budget but proud homeowner.

As well, we have a number of foreclosures that will fill your bill.

Statistically...homes SOLD in the Calgary real estate market were on the market for 41 days and ACTIVE listings have been on the market for 51 days....make of this what you will.

February 7th

Sometimes buyers en mass hold their breath and don't make a move unless one or both of these factors raise their heads.

Fear and Greed

So far this year we haven't had either of these factors influence our Real Estate market. Big sigh of relief.

 Fear of loss is a strong motivating factor and this is generally present when interest rates go up or if there is an impending real estate tax, change in lending laws or even a rise in construction costs. "Get in quick before the prices go up", or this old gem "How will our children ever be able to afford to buy a house?"

 Greed is not even on the horizon. This an ugly market manipulator and it is generally present when a herd mentality takes over. For what ever reason, it could be a massive employment move into the city or some other demographic influence. Real Estate is suddenly the talk everywhere, and everyone is an expert. Even your gas jockey is talking about it.  Everybody wants to be a landlord and real estate flipper. This is when you want to run for the hills.

A Balanced Market I think that is where we are right now. Property is taking an average of 52 days to sell on the Calgary Real Estate market.  Buyer's are attracted to a price that they perceive is a good number and a purchase fits their life plans. There are so many other influences on a person's decision to sell in this type of market that we can't lose sight of the fact that people make real estate choices for all kinds of reasons.

• House is too big or too small. This happens to everyone at some point.
• Retiring to a warmer climate. This will be a huge influence in the next ten years as zoomers and boomers head for Arizona or BC.
• Inherited a big wad of dough. This will continue to happen to a lot of people in the next ten years as their aging parents pass away and will influence the investment and the recreational market.
• The neighbourhood no longer suits their lifestyle, This is a decision made by people who like to plan their retirement years and who are quietly buying into the beltline or surrounding close in apartment neighbourhoods and leaving the big barn in the burbs.
• Just itchy feet. Over the years I have had clients who either buy or sell or both who just can't stand where they live because they are bored and they just feel it is time for a change and market conditions be damned.
• Need a house because they want kids and a dog. and then the opposite is true
• Too much junk, borderline hoarders who have filled the garage with junk and can't develop the basement because it is too full of junk and they have to move.
• and then there is inertia............folks who can't decide what to do so the decision is to do nothing and then when the market changes these folks are trampled over by the herds and blame us for the price changes. Oh My!

And on and on it goes.

Right now, buying conditions haven't been better in years and a slow recovery from the slap in the face of 2007 is definitely here. 

Our weather has been horrible and that may keep some buyers away although I have shown and sold houses in blizzards and on "9,11", on Christmas Eve and during the peak of the flood of the century, so when a buyer has to buy, nothing will stop them from doing so.

Serious is serious.

January 17, 2011

It's in the air again...have ya noticed? And no, it's not the smell of spring silly...it's talk of interest rates and, more specifically, the prospects of and for...rising interest rates. So, and because everyone and his brother are scared to death of them (rising rates), our friends The Feds, today tightened up on the rules for mortgage borrowers; which leads me to wonder why they have not tightened up on the rules for credit cards but gee...I digress. Anyway, the way I see it is...The Feds want things back to The Way They Were so...they're gonna get there; which is to say a 75% conventional first, 90% high ratio loans and a 25 year amortization so count on it - they're not done yet - not by a long shot.

Will it be good for business? No it will not. At least not in the short term. Longer term...it won't matter - at least not in Alberta when crude is over $100 per barrel but - there I go digressin' again...

Apart from that, we've had a crazy/busuy start to the year and as a result have not had a chance to update our stats but - come what may - I'm putting a push on this week and, once finished, I'll be posting more thoughts on the year just past and yes, what's left of 2011.

Take care and...we'll be back in a bit.