Despite the undeniable impact of energy industry woes on Canada’s real estate market, overall property values in Calgary have not suffered any significant impact. Even more importantly, consumer confidence remains high.
In the Calgary Real Estate Board’s (CREB) August 4, 2015 report entitled Calgary Regional Housing Market Statistics, Chief Economist Ann-Marie Lurie reports, “Despite weaker absorption rates, market conditions remain relatively balanced and helped maintain month-over-month stability in benchmark prices, which remained unchanged from the previous month at $455,400….And despite the recent retraction, we have not seen all those previous gains eroded.”
In a city as diverse as Calgary, market conditions will, of course, vary in different market sectors and neighbourhoods. CREB President Corinne Lyall notes, “…it’s important to stay current and become educated with the market dynamics in the communities where they may be making real estate decisions.” For instance, despite the overall steady numbers in residential sales, the apartment sector has experienced a slight but noticeable dip in value (1.61%) from the beginning of the year, due to decreased demand and expanding inventory.
Another important economic indicator to focus on is new home starts. Applications to pull permits for single and multi-family dwellings plummeted in July and are down by 31% and 24%, respectively, since the start of the year. While the pullback will help to maintain market balance by limiting the pool of available housing inventory, it also reflects the overall uncertainty with the economy and unemployment.
In CREB’s Mid-Year Update to its 2015 Economic Outlook and Regional Housing Forecast, the editors stress the fact that despite the cloud of economic uncertainty hanging over Calgary, consumer confidence in the prospects for real estate investment remain high. “Positive long-term prospects and reduced concerns about the bottom falling out in the near term could minimize the pullback in demand, keeping market conditions in relatively balanced territory and preventing further aggregate price declines.”
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
Canada’s low mortgage rates have been in the news for so long that they have essentially become the norm. The 18 percent plus rates of the 1980’s are ancient history. It seems that we have become so accustomed to cheap money, that we have forgotten that it might be temporary and just maybe, it may also become a thing of the past. Although the Bank of Canada hasn’t given us any indication of a rate increase in the immediate future, it’s still important to use our (borrowed) money wisely and plan for the future. After all, most of us are locked into 25-year mortgages, and we know just how much change can occur over two and half decades.
Be aware of how much a change in interest rates will affect your housing costs. To put things in perspective, a $350,000 mortgage would cost the average buyer $1570 per money at a borrowing rate of 2.5%. If rates went up just 1%, the same mortgage would cost $1750 per month. That’s a $180 difference. What’s even more significant is that same 1% increase would add an additional $54,600 to your cost of borrowing over the lifespan of your mortgage.
Take advantage without over extending yourself. It’s hard to predict what will happen to interest rates over the next few years. Even some of Canada’s most educated economists were surprised when the overnight rate went down instead of up. That being said, it’s a wise idea to be prepared for a rate increase. If your mortgage renews at a higher rate at the end of your current term, what will it mean for your household budget? Do you expect your income to be the same, or are you planning on starting a family? Talk to your mortgage professional about your long term plans so they can choose a financing option that meets your needs.
Take advantage of your pre-payment options. The best way to protect yourself against a future rate increase is to decrease the size of your mortgage. Some mortgages allow you to increase your payments each month, or make a lump sum payment up to a certain percentage of the balance. In most cases, it makes more sense to tackle your higher interest debt first, but if your credit cards are clear, you will never regret knocking a few thousand dollars off your mortgage. Remember, the quicker you pay it off, the more you will save in interest over the long haul, and that could amount to tens of thousands of dollars in savings.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
Fear is a powerful emotion. It shapes the way people think and react. Have you ever read a news article and wondered how the story applied to you, your job, or your financial situation? Most of us have. We view the media as a current and often reliable source, to tell us what’s happening in our city and province. Over the last few months, there is no doubt that economic headlines have had an impact on consumer confidence in Calgary.
Our access to information has never been as fast and widespread as it is today. By the time you finish your morning coffee, you have probably checked out your local newspaper, read about a variety of recent events south of the border, and brushed up on your global current events.
Social media adds a whole new layer of complexity to the way we perceive the world around us. While it’s interesting to hear what others have to say, we are often bombarded with uninformed opinions lead us to question our own position on important events.
Earlier this year, the headlines in Calgary’s news reports had a dramatic effect on consumer confidence. People read about job loss and questioned their own security. We heard that the housing market was in for a major correction, and many buyers put their house hunt on hold. Experts and analysts voiced their predictions and consumers adjusted their behaviour accordingly.
Now that we are halfway through the year, we have hindsight in our favour. Did sales take a dramatic hit? Absolutely, but according to the latest figures from the Calgary Real Estate Board, home values in our city are holding strong. The average sale price is down slightly, but the median price is actually up nearly 1% compared to June and July of last year. Skeptical buyers who were standing by hoping for a dramatic drop are likely questioning their strategy as the market begins to gain momentum.
We know one thing for sure after watching our friends south of the border weather a real, drawn-out recession. Bad news sells newspapers – or rather, it promotes “clicks” in 2015 – but it doesn’t necessarily give us an accurate picture of what’s going on, and more importantly, predictions don’t always come to be. We teach our kids to think critically about the things they see and hear, but sometimes we need a gentle reminder to do the same. Where is our information coming from? Do the statistics make sense? Is it fair to compare this year’s mediocre sales data with last year’s – a record setting period in the Calgary real estate market?
How we respond to headlines often creates a self-fulfilling prophecy. In any economic situation, you need to take the good with the bad. If sales are down, what kind of opportunity does this create? In real estate, we guide our clients to work with the market, not against it, and find ways to capitalize on the opportunities, rather than miss out on great deals because of the looming uncertainty.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
As anticipated, home sales in Calgary Market Information were much slower this spring compared to last year. Inventory remains very high, and buyers continue to exercise caution. Despite the surplus, property values have remained strong. The Calgary Real Estate Board reported that the average price in April was only down 1.04% over the prior year. This is good news for homeowners that are continuing to build equity as they pay down their mortgage.
It’s safe to say that the rock bottom interest rates have played a key role in keeping buyers active in the market. To put things in perspective, the Bank of Montreal is currently offering a 5-year fixed mortgage rate at just 2.74%. This means a $300,000 mortgage, amortized over 25 years, would only cost $1,380 per month. For many families with some savings in the bank, buying a home is still more affordable than renting.
If you are thinking of making a move this year, a smart pricing strategy has never been more important. Buyers in this market have plenty to choose from, so they are more likely to steer clear of an overpriced property. That’s not to say you need to sell yourself short. The latest CREA numbers are proof that Calgary’s home values are strong and sellers can expect a fair offer if their home is priced well.
It’s equally important to align yourself with a Realtor who can put together a selling strategy that works for your property and neighbourhood. The numbers demonstrate what is happening in the city as a whole, but the market trends vary from one area to another. The size and style of your home can also make a difference. According to the Calgary Herald, detached bungalows have increased in value by nearly 4%.
As always, proper staging, enhanced curb appeal and cleanliness go a long way in setting your home apart from the competition. Preparing your home for the market isn’t always easy, but a little extra effort can go a long way and pay off big when it comes to appealing to the right buyer.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
Although the average buyer may be feeling a little extra cautious in today’s market, investors are still seeing the unique possibilities that this type of economy presents. Investment opportunities are everywhere. So, despite the difficulty in anticipating when things will change, Calgary has always proven itself to be amazingly resilient.
Developers are used to market fluctuations and are optimistically pushing forward. While the average consumer may be holding back, large development firms see the big picture. They look past the headlines and short-term projections. So, since condo projects and subdivisions take years to complete, new developers continue to buy up land in and around Calgary. Positive net migration has maintained a steady trend this year, and buyers are seeing the value in the Calgary real estate market.
There will always be home owners who NEED to sell. For investors looking to scoop up a few rental properties, this market is immensely favorable. Inventory is much higher than it was last year, and sellers having a sense of urgency are more than happy to negotiate. Though this type of market can be very costly for the impatient, it’s precisely what the savvy investor is looking for.
An uncertain buyer’s market fuels rental demand. It’s easy to get caught up in the chaos. A shaky job market and the low cost of oil has undoubtedly kept buyers at bay since the beginning of 2015. As a result, rental vacancy remains quite low in Calgary and market rent is holding strong. Those who invested in condos or multi-unit rental properties are benefiting from the current climate and can expect a steady demand to carry on in the future.
The low cost of borrowing makes investing a no-brainer. Although today’s new home buyers are extremely rate-sensitive, seasoned investors still recognize our current mortgage rates as incredibly beneficial. Never before has it been so affordable to borrow money. Even though it’s unclear how long the low rates will last, locking into a 5- or 10-year term gives borrowers the stability they need to keep their overhead in check.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
The spring market is already in full swing in Calgary. There is no doubt that our real estate climate is quite a bit different during the same time last year. Although we’ve had a bit of a slow start, it’s important to remember that we are constantly comparing the market to 2014, which was a record-setting time. If you are seriously considering making a move, the changes in the economy have made it essential to have a smart plan in place.
As a buyer, you are in an excellent position to find exactly what you are looking for, without finding yourself in a bidding war over and over again. First-time buyers need to take advantage of the current market conditions while they last. The interest rates are unbelievably low and entry-level homes are in abundance. Still, many like to exercise caution in the market – values may decrease or a better deal maybe just around the corner. The key is to not wait too long. We have seen similar states in Calgary in the past, so there is really no guarantee that this buyer’s market is here to stay for the long haul.
As a seller, recognize that buyers are still seeing the value in the real estate market. They may be a little more cautious than they were in 2014, but they certainly know good value when they see it. Homes are taking a little longer to sell simply because there is no shortage of inventory. Now, more than ever, it is crucial to have a strong pricing strategy and go the extra mile to make sure your home shows a 10+. There are plenty of resources available, and home stagers, in particular, can make an ordinary home look quite exceptional for a reasonable investment.
If you are finding yourself on both sides of the transaction, be sure to work with an experienced Realtor who can help you create the right strategy to accomplish your real estate goals. Should you buy first then, put your house on the market? Should you set out to find your ideal home after selling? The right answer varies depending on the type of property you have and are seeking to upgrade to. In a buyer’s market, it is advisable to sell your home first. This will allow you to move forward knowing exactly how much equity you’d be able to bring into your new purchase.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
What do buyers really want? Achieving a quick and stress-free sale requires a unique strategy for each home. The Calgary real estate market is in a much different place than it was last spring, but that doesn’t mean you should put your real estate goals on hold. These four smart tips will help your property stand out and appeal to the right kind of buyers:
Know how your property compares to the competition. It’s important to understand what buyers are looking for. Check out some of the listings nearby, and work with your Realtor for an honest evaluation on how your home stacks up. Does your home have certain features such as a larger yard or updated finishes that others might be lacking? Be sure to showcase the details that make your property stand out from the rest.
Take the time to make a great impression. Getting your home prepared for the market is hard work, but it will be well worth the effort. Whether it’s a professional staging or deep cleaning, give your place the TLC it needs to look its best. Don’t be afraid to ask for help. There are a lot of competent people just a phone call away.
Price it right. Price is the number one driving factor for a quick sale. Particularly in a challenging market, it’s important to fine-tune your strategy. Buyers are highly educated, so they won’t be willing to pay more than the market value in today’s economy. Take a look at recent sales in the area, and determine an asking price that will motivate buyers to check out your listing as soon as it hits the market.
Anticipate deal breakers before they happen. Ordering a home inspection ahead of time is a great way to avoid potential problems during the sale process. This will give you the opportunity to fix any problems with the home or detect some of the bigger issues that might scare buyers away. Some buyers try to use the details of a home inspection as a bargaining tool, which is why the home should be presented with no surprises. This will help you finalize the negotiations on the spot.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
There is no doubt that this year is much different than the last. As we head into the spring market, many home owners are wondering how the recent changes in Calgary’s economy will affect their real estate decisions. Here are a few things worth noting:
Homes may take a little longer to sell. According to CREB, homes are taking an average of 38 days to sell. This is longer compared to the 33 days last year during the same period. Consequently, the number of sales transactions has dropped significantly. This means that buyers would rather wait on the sidelines for a better deal to come along if they are skeptical of the value.
Values have dipped slightly, but there hasn’t been a dramatic drop. Does a challenging economy impact our real estate values? To a certain degree, yes, but it would seem that the headlines have a more significant effect on consumer behaviour. In fact, a recent article in the Calgary Herald explained that our city has actually been through a similar slump five different times in the last thirty years. Home values were only slightly affected in each case and always managed to bounce back eventually.
Buyers are out there; they are simply exercising caution. Have consumers lost interest in Calgary’s real estate? Are buyers unwilling to trade up to their next home? The truth is, buyers are still active in the market. Some are just holding off on making a purchase in case prices drop, while others are simply hoping for a little more clarity on what the future holds.
Buyers have far more to choose from this year. If you were house hunting last year, one thing was for certain – there was very little to choose from. Today’s market is quite the opposite. Inventory is plentiful, and there is less competition. If you are selling your home, but aren’t desperate, price it well and don’t feel pressured to sign the first offer that comes your way. Remember, this isn’t the first time Calgary has weathered a tough economy. Despite everything, this city remains a highly desirable place to live and own a home in.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.
