The calls over the last few days have been with clients that are shortly closing on their purchase/sale or those that have questions as they figure out their next steps.


In the short term, those owners that are transferring property in unaffected areas will see some issues or delays as the City of Calgary development and Land Titles are closed. A real property report (RPR) cannot currently get a stamp of compliance and Land Titles is being done through Edmonton. You should contact your lawyer to see how your particular sale or purchase will be affected but most will close though some paperwork may be delayed.

 

For those transactions in evacuated or damaged areas, you need to contact your lawyer. Every situation is different and legal guidance is required. If your law office is closed, leave a message as most are trying to check on clients even if they cannot access their offices.

 

The market continues and homes are still being sold and purchased. Please consider road closures and updated news when making plans.


Current news regarding updates/road closures: http://www.calgarycitynews.com/

Twitter: #yycflood

 

Moving forward, those homes that were evacuated will be sold at some point in the future, be that in 1 year or 30. Take photos of your home, especially if it is in an evacuated area but you had no damage, taking stock of what was saved as well as what was damaged. It's hard to remember while trudging through mud, but taking stock of repairs and keeping photos, receipts and a diary of events may help you in the future. For condo owners, contact your property management company and understand what information will be available in condo documents for future owners.

 

If you are considering a purchase of a damaged property in the short term, before homes are repaired and insurance and relief funds are understood, careful due diligence is required and most likely specific contract conditions and legal assistance will be needed.

 

If you feel lost and need assistance, please reach out and ask for help. The City of Calgary has opened 9 Support Centres today (June 26). Please go and ask for help at one of the 9 centres. Locations:  http://www.cocnmp.com/eoc/community-support-centres.pdf or call 311 for assistance. 

 

We are still in a state of emergency and it isn't business as usual. In terms of real estate and time sensitive items, get the professional assistance you need.

 

Some folks are at the edge of their patience and under great stress.  Businesses need your support so please buy  local, support local services and sign up at yyhelps.ca with any special skills if you can.

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The market is heating up and there are homes listed at market value, listed over market, priced below market value to encourage competition and multiple offers. A look at the overall listings these days may leave you scratching your head at reviewing home value.


At the end of the day, market value is what someone is willing to pay for a home. In that end, current active listings really don't give you a real view of pricing. Sold information does.

 

Looking at sold information recently with clients, we got into an interesting conversation about why some very similar homes often sell for a difference of $10,000 or even $20,000 when there isn't any material difference. They are built to similar standards with similar finishes, styling, lot size, location and even color and decoration style.

 

It is only on touring these homes that you begin to understand. Some homes are loved and some are not.

 

Some homes have been cared for over the years, with fresh paint on the trim, recaulked windows, the roof checked and repaired, downspouts intact, and landscaping and plants carefully selected. The carpets are cleaned, there are no scratches on the floors or counters. Any minor needed repair was made and someone took care to install the new crown molding perfectly so. There are no loose cubboard hinges and the door hardware and home fixtures all match.

 

On the other side, the alternate house next door was lived in. It may have a granite counter, but there was no special attention to regular furnace maintenance, the weeds have taken over a little bit, the carpet is a bit more worn, the doors have odd little knicks and bumps, the walls and floors scratched. It doesn't smell as nice as the first house.

 

The pictures don't show it but a walkthrough does. Some people are willing to pay more for the house that was loved because it is a home and they want it to be their home. Special homes pass from dedicated homeowner to dedicated homeowner. There are often thank you cards, keys laid out and labelled, a map to the mailbox, and warm wishes. Pride of ownership has value to those with pride of ownership.

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"Inventory levels are 17 per cent lower than levels recorded in 2012. These two factors are creating market conditions that favour the seller, causing stronger than expected price growth."

 

As many buyers have noted, it is getting harder and harder to get that amazing house at a great deal. There are just too many other buyers with their eyes on the daily listings to watch a gem slide by. The result is not just increased sale prices and quick turnover for some types of property but a new reality for some buyers in terms of how they prepare themselves. You must have your financing in place prior to offering. You will lose in a multiple offer situation if you are not ready to purchase. The one thing sellers can ask about is about a buyer's ability to purchase. If you are not preapproved you may lose out not just on pricing, but on the strength of your position to offer.

 

Also, buyers are finding they have to be realistic when it comes to home inspections. Sellers have more choices so haggling over minor issues is no longer accepted by many sellers. Of course, defects will always be raised, but the haggle over a $150 service item is now gone. This may be a great reason to check out homes under contract. You never know when a conditional sale falls apart and you will be ready to go should your dream home be again available.

 

From a seller's perspective, this activity is good news. But I have seen quite a few listings recently where sellers are pricing beyond the current market and not seeing the anticipated results. We are not in a period of overpricing and holding out offers for days expecting to see a dozen people lined up at the door. We are not seeing 2007 hype. We are seeing well presented, well priced homes get a lot of activity and sell quite quickly.


I've been to many showings lately where we have had to wait our turn to view a property. Does it create urgency? Yes. Do people get emotional? Yes. Are people willing to pay $40,000 over market even if they love it? Usually not when they wake up the next morning (and their bank won't like it either.)

 

Notable Numbers from the CREB Press Release:

The unadjusted benchmark single-family price totalled $456,900 in May, a seven per cent increase over 2012 and a one per cent increase over the previous month.

With less supply relative to demand in resale, condominium prices are on a path to recovery. In May, the benchmark price for condominium apartments totalled $263,600, a year-over-year increase of seven per cent. Condominium townhomes reached a benchmark price of $292,100, a five per cent increase over the previous year.

 

Full CREB Monthly Statistics Package

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