Thursday, May 3, 2012 Calgary Real Estate Market Update - May 2, 2012by Monika Furtado on Thu, May, 3, 2012 03:03 AM
Calgary residential sales total 2,200 for the month of April, a 26 per cent increase over levels recorded last year!
My personal experience over the last month is that sellers that are appropriately priced and well presented as selling within a short window with multiple offers becoming more common. Sellers can use pricing strategies to their advantage in ways that weren't possible for some time.
Staging has improved the bottom line for many of my sellers recently. Buyers are looking for value and are still adjusting to a market that is moving quicker than before. Buyers are still carefully reviewing comparables and prices and some even have concerns about potential negative impacts on the real estate market by changes to CMHC and other national pressures. Although statistically we are moving towards a sellers market, buyers still have many options. That being said, good homes are moving so buyers need to be preapproved and educated before submitting an offer.
Interest rates are low. Employment and migration numbers are strong. Momentum is building. The new index and benchmark pricing information is showing a positive increase in property price as are more traditional values. Regardless of the overall numbers, a review of comparable listings and sales will give you the information you need to understand pricing trends for your sale or purchase. Where will prices move? It depends on the ebb and flow of new listings. Many sellers have been waiting for a price increase before listing so we will see how the market adjusts to this recent sales surge.
Some notable info from the CREB press release:
The single-family market continues to tighten, with months of supply dropping below three months. Sales growth continues to outpace new-listings activity, placing downward pressure on inventories. As the market tightens, single-family homes are selling quicker, and there has been some upward pressure on pricing. The MLS® Home Price Index for the month of April recorded a year-over-year price increase of 5.5 per cent for a total benchmark price of $449,500.
NOTE: The single family benchmark price has been pushed up to levels comparable to those recorded in 2007, but the index continues to remain below peak levels. Why the difference? This is mostly due to the community weighting factor inherent in the benchmark price. The index figure does not have the same bias, and therefore is a better measure of the true price appreciation in the market.
“While the balance between demand and supply in the single-family market has shifted towards sellers’ territory, there are several components that make today’s market different from five years ago,” says Bob Jablonski, president of CREB®. “The main difference is there is still significant supply for consumers in surrounding towns and the condominium market in the city, and the new-home builders do have the ability to absorb some of the excess demand,” Jablonski adds.
After the first four months of the year, the condominium apartment sales totaled 1,133, a 2.2 per cent increase over the same period last year. Tighter supply in the single-family market has translated to improved demand for condominium apartments, and consumers active in this market have a sufficient amount of supply and new listings to choose from.
New condominium apartment listings for the month of April rose by 5.9 per cent compared to last year, and remain at similar levels on a year-to-date basis. As the gap between inventories and sales narrows, the months of supply continues to trend toward levels that are more consistent with a balanced market.
While the condominium apartment market moved into more balanced territory, index prices remain relatively unchanged. The condominium townhouse market is trending in a similar fashion to the single family market, and recorded a year-over-year index price increase of 2.7 per cent. Overall for the month of April, the condominium townhouse and apartment markets recorded a benchmark price of 294,500 and 248,300, respectively.
Tuesday, April 3, 2012 Calgary Market Update - April 3, 2012by Monika Furtado on Tue, Apr, 3, 2012 09:52 PM Spring is here and so is the start of a brisk season in the real estate market in Calgary.
City of Calgary residential sales continued to rise in March 2012, reaching 2,167 units, an increase of 12.6 per cent over last March. Single family home sales are now in a balanced market while condos still remain in a buyer's market.
Buyers generally are finding that well presented, appropriately priced homes are selling quickly and there are more multiple offer situations. Sales and price increases are reported on average across the city, but there is significant variation between communities and property types as always.
As some people have been waiting for the market to turn before they list their home, the balance of new supply and buyer demand will create an ebb and flow over the coming months. It is important for sellers to review the comparable sales in their area, to price appropriately and to present their homes as best as they can to achieve a higher sales figure. Buyers quickly see the difference between homes priced to market and those 'testing the market'.
As more sellers are reviewing multiple offers, it is essential for both to be prepared. Getting paperwork, financing, condo documents, RPR's and other information ready to go will set you up for a successful transaction.
Notable numbers from the CREB press release:
Single family homes continue to record strong activity, with sales increasing by 10.3 per cent at the end of the first quarter. Meanwhile, quarter totals for listings of single-family homes remain 8.3 per cent lower, resulting in a tightening of supply. The benchmark price reached $433,500, while the MLS® Home Price Index points towards a price growth of 3.6 per cent compared to last year.
The apartment condominium market continues to exhibit lower sales, with 782 sales recorded in the first quarter of 2012, a decline of 2.1 per cent compared to last year. However, March sales activity did post a 7.2 per cent gain over last year and is closer in line with typical March sales in this sector. New listings recorded a year-over-year improvement of 9.1 per cent for the month of March, but still remain 2.3 per cent lower than last year at the end of the first quarter. Despite the monthly rise in new listings, inventories continue to decline. Overall market conditions continue to favour the buyer.
As always, feel free to give me a call with any questions or comments.
Sunday, March 4, 2012 Real Estate Market Update March 3, 2012by Monika Furtado on Sun, Mar, 4, 2012 03:44 AM The Calgary Real Estate Board (CREB) have released their February numbers along with many new stats associated with the new Home Pricing Index (HPI). The numbers confirm what we have been seeing in the market and that is increased sales compared to last year and a quick start to the spring market. Multiple offer situations are increasing and some amazing properties have sold so quickly they didn't even make it to the public MLS system.
The increase in sales has been coupled with lower inventory numbers from last year. Some areas of the city have very little inventory so new listings see a lot of attention. Buyers are saavy and been experiencing a buyers market for some time so the value must still be there for sellers to realize a sale. Within Calgary, we are now in a balanced market in a general sense for single family homes and still in a buyer's market in the condo market.
The stable growth in our area has been predicted and expected to continue throughout this year and into 2013 and beyond. The federal government is however, reviewing additional changes to mortgage rules so we are expecting a slow growth in prices rather than a sudden surge.
What does all this mean to sellers and buyers?
Sellers: A focus on clean, well presented homes will continue to add to the bottom line. It has been a buyers market for some time so the shift will be slow and appropriate pricing is necessary. Many current buyers are first time buyers or folks moving to Calgary in support of our strong economy. They are looking for move-in-ready homes so take the time to make yours stand out.
Buyers: Preparation is needed to recognize a great value when you find it. Buyers need to have their financing pre-approved and be prepared to make an offer as the days on market are reducing and multiple offer situations are becoming more common.
An interesting note is that I am seeing more developers/professional renovators back looking for property. They have been absent for a while, but now see the potential in redeveloping older homes.
As always, give me a call if you are ready to make a move.
Some numbers from the CREB press release:
Single family sales and condominium townhouse sales were the bright lights in the city of Calgary, while condo apartments continue to lag in volume of sales. There were 1,284 single-family homes sold in February 2012, a 10.9-per-cent increase over last-year figures, and a 5.6-per-cent year-to-date increase. Condo townhouses gained 11.4 per cent year-over-year in February sales.
Meanwhile, condominium apartment sales totaled 248 for February 2012, an 11.7-per-cent decline over last-year figures. Despite the 12.7-per-cent year-over-year decline in new listings, inventory levels rose to 1,031 units.
Fewer new city listings are coming to the market, with a year-over-year decline of 10.2 per cent. Inventories also fell by 8.5 per cent over last year’s figures, with a total inventory of 4,736 for the month. The opposite is true in the surrounding towns, where listings recorded a year-over-year improvement of 12.1 per cent and no significant change in inventories.
Pricing showed modest improvement in February 2012 over January, with the single-family MLS® Home Price Index increasing by 1.0 per cent after several months of relatively flat pricing. Single-family prices rose by 3.2 per cent over February 2011. While prices continue to remain below peak levels, the improvement points to stable price growth.
The apartment index rose by 2.1 per cent over January figures, and increased by 0.7 per cent over last year’s levels. Prices remain well below peak levels, but are trending into positive territory, pointing towards recovery in this market. Overall index levels for townhomes remain similar to levels recorded in January 2012.
Despite the variances in the specific property types, all indicators in the Calgary region continue to point towards stable growth in Calgary’s overall housing sector.
View the full statistics package Thursday, February 16, 2012 Saving Money on your Mortgage: Dual Benefit of a Low Rateby Monika Furtado on Thu, Feb, 16, 2012 04:56 PM So you got ultra lucky and managed to secure a 3.29% fixed 5 year mortgage on your recent home purchase. This incredibly low rate is a consequence of our recent years of economic uncertainty and it is bound to increase in the years to come.
A great way to avoid the shock of the rate change later on is to use the low rate as a double benefit in paying down your mortgage.
Act as if you had a higher rate today and save yourself thousands of dollars in interest costs.
An example: Using a $400,000 mortgage with 30 year amortization and comparing a 3.29% to a 4.29% rate. This would be a common scenario for an average single family home purchase in Calgary.
The difference in payment is about 13% or $224 per month. Monthly payments based on 3.29% are $1745 vs a payment of $1968 if the rate was 4.29%.
If you prepare yourself now by opting to raise your regular payments by 13% (using the privileges within the mortgage contract) to $1968 per month you will actually save $21,000 in interest costs which equate to 5.5 years off the mortgage amortization.
Not sure if you can make the change? Add the extra $224 per month into a savings account and put down the lump sum payment on your mortgage once you are comfortable with the payments. If the extra $224 is a challenge, then you know now that you will need to make financial adjustments when your mortgage term expires if rates are higher.
If you want to know all of your options in paying down your mortgage faster, speak to your mortgage advisor.
Numbers supplied by Allan Bowerman, Senior Mortgage Planner, The Mortgage Alliance Company of Canada-S&R Mortgage Group
Wednesday, February 1, 2012 January Calgary Real Estate Market Update - Stability is the word of the dayby Monika Furtado on Wed, Feb, 1, 2012 09:46 PM The January numbers were released from CREB this morning with some minor fluctuations in single family as well as condo stats.
Although the number of sales has dropped a bit since last January, the reduction in inventory and new listings is pushing us towards a balanced market. As previously seen, condos are lagging a bit in the move, but are also moving toward balance.
Some new condo developments have adjusted to the market by presenting product in lower price points (and sizes).
There are pockets of areas where inventory is quite low and well priced and presented homes are getting snapped up within hours/days of going on market. Specifically, the $450,000 - $549,999 category saw a significant jump in January. If you are waiting to list your home for sale, this may be the year to list earlier as you may be able to take advantage of low inventory pockets.
It is interesting to watch the movement trends both on a micro level with my own clients and across the city. City plans, transit/bike and transportation options, schools and accommodation, buying power, and year of design and style preferences drive the market in ways that overall stats just don't show. Review per community, zone and price point reveals the finer details.
I am curious to see how the demographic change in our city will affect the type of property styles that are in demand (condo, villa, townhouse, bungalow, 2 storey, etc.) and how the availability of immediate possession spec homes from new home builders will drive buyer expectations.
This is the time of year lots of folks start looking as they prepare for a spring/summer move. People are playing a bit of wait and see and the weather can dictate timing and motivation. We are continuing to see migration to Calgary from across Canada and other parts of the world. This is helping to push the rental market and if the trend continues we will see the predictions of increasing sales and prices in the numbers as a tighter rental market motivates folks towards home ownership.
The average price and median price numbers continue to move about and make great headlines but a deep look at sales numbers show they are somewhat misleading. Average price can easily be swayed by sales in the higher/lower price categories that change 'average price' but not the resale value of an 'average home'. In February, CREB will begin discussing the MLS Home Price Index (HDI) to report statistical information and that should provide more clarity to the market than 'average price'.
Check out the full CREB statistics package.
Monday, January 23, 2012 CREB Forecast and the MLS HPIby Monika Furtado on Mon, Jan, 23, 2012 09:35 PM This past Wednesday the Calgary Real Estate Board (CREB) hosted their annual forecast breakfast. Expert presentations were offered. A big takeaway was the 2012 outlook. If you are interested in reviewing the statistics behind the press releases and headlines, then have a read.
The last week has been very busy in the marketplace so this is a great indication for the momentum building for the year.
Another statistic you will soon see in the media is the MLS House Pricing Index (HPI). Coming to Calgary in February, this index is intended to clear up the misinterpretation that often accompanies 'average price'. As average prices can be skewed by the composition of sales, it does not reflect price trends based on the type and features that a home provides. For example, one luxury home sale in a community can raise the 'average price', however that doesn't mean other homes have increased in value.
The MLS® HPI is calculated using a sophisticated statistical model that estimates home prices based on their quantitative and qualitative feature. More information will be available as this new metric is made available and I am curious to see how it is understood and adopted.
At the end of the day, if you want to understand the market and the value of your home, give me a call. You don't need to understand statistical models or the economic forecast, that's where I help out. If you want to understand the numbers that are behind the 30 second tv spot then enjoy the read.
Cheers,
Monika Wednesday, January 4, 2012 Calgary Real Estate Market Update - Jan 4, 2012by Monika Furtado on Wed, Jan, 4, 2012 10:11 PM I hope you enjoyed a wonderful holiday, a very Merry Christmas and are looking forward to a great year in 2012.
The year has started out quickly with the recent upturn in activity resulting in various predictions about the future of the market. The number of listings has reduced significantly over the holidays but is stabilizing in a general sense as well. The number of sales has increased last year especially towards the latter half of the year. Prices remain relatively consistent with last year but it also depends where you are in the city. I personally feel that sales and prices will slowly start to increase this year as long as international economic forces don't once again put a lid on our enthusiasm.
One item of note in the shift of buyers expectations over the last while. As new home builders have added more features and upgrades to their packages to new buyers, some buyers have begun to expect more from resale homes such as hardwood floors, granite counters, updated fixtures, cabinet styles, etc. If you are in an area competing with new construction, it is these upgrades as well as price that are pushing the market. As a result, some neighbourhoods may see the price shift quite differently. Other items such as finished garages or installed audio systems may sway buyers. It is not about price per square foot as buyers are looking to compare builders, quality of construction, features, finishes and upgrades.
If you are considering a sale or looking for a new home, give me a call to get started as this year is going to look different than what we have been used to.
Some numbers of note from the CREB press release:
Calgary residential sales in 2011 increased eight per cent over last year, with 18,568 sales for 2011 compared to 17,267 in 2010. Recovering from tepid sales activity in the first half of 2011, early improvements in employment and migration resulted in a pickup in housing demand in the second half of the year. By the end of June 2011, year-to-date sales activity had only increased by two per cent compared to the second half of the year, where residential sales improved by 15 per cent.
Meanwhile, the condominium market recorded declining sales for nearly half of the year, but favorable pricing and improved economic conditions pushed sales up by double digit rates for the second half of the year. 2011 condo sales totaled 5,382, a 4 per cent increase over the previous year. The rise in sales was complemented by an annual 12 per cent decline in listings. This helped to tighten the condominium market, causing inventories to decline to 1,287 and months of supply to remain just above four months.
“The demand recovery in the condominium market lagged the single family market, as price adjustments in both the single family and condominium markets resulted in more selection for consumers,” Stante says. “For the first time in several years, consumers had additional selection of single family homes at a lower price range, which directly competed with the condominium market.”
Single family average price in 2011 reached $466,402, a one per cent increase over last year. While there have been some strong monthly increases, primarily due to sales in the upper end skewing the prices, overall prices have remained fairly stable. Meanwhile, the year-end median price of 405,000 remains at levels similar to 2010.
Condominium prices have remained persistently low in 2011, while some of the monthly figures have been boosted by high end penthouse sales. By the end of 2011, the average price of $287,172 remained one per cent lower than the previous year.
As always, feel free to give me a call and I am happy to assist with the purchase or sale of a home.
Wednesday, January 4, 2012 Changes to Real Estate practices in Calgaryby Monika Furtado on Wed, Jan, 4, 2012 09:57 PM When it comes to purchasing or selling a home, some fundamental rules have just changed.
1. If you have purchased a home recently, the Inspection Schedule you previously saw has been revised. The schedule now removes any connection of dollar amounts to an inspection conditions. In simple terms it means that if the buyer is not satisfied with the condition, they do not waive and the sale does not complete. Any deposit will be returned to the buyer in this case. If other arrangements were negotiated in the purchase, they have to be clearly stated in the contract.
2. Sellers now have the choice to not post that a sale is pending on MLS so conditional/pending sales can remain marketed as active listings. Buyers may then be looking at homes that are conditionally sold without knowing it until they write an offer. Sellers may also receive additional inquiries and offers once a home is conditionally sold. This change is new to the Calgary market and it is not yet clear how it will be adopted.
There have been a number of changes to the rules and standard practices over the last couple of years. I'd be happy to answer your questions so that you are best prepared to make your move.
Thursday, December 15, 2011 CMHC Rental Market Report for Calgary showing a significant reduction in vacancy ratesby Monika Furtado on Thu, Dec, 15, 2011 02:24 PM CMHC released the Rental Market Report for Calgary a couple of days ago and a review shows significant drops in vacancy rates across the board. While prices are showing just marginal increases, they are sure to follow soon given the current trends.
The fall rental market survey of the Canada Mortgage and Housing Corp. shows the city's apartment vacancy rate decreased to 1.9 per cent in October compared with 3.6 per cent in October 2011.
What is fueling this change? Increased demand.
With an increase in migration to Calgary and Alberta in general, available inventory has been reduced. This is even in spite of new projects coming on line.
The changes to mortgage and lending rules last year may have also resulted in less new inventory coming to market. While a majority of large investors weren't affected, there is a significant group that has had to shift their investment patters.
What does this mean to you? If you are renting, prepare for a potential rate increase this coming year or more competition for available units. It may also be a signal that the resale home market is also about to see a positive shift.
Friday, December 2, 2011 Calgary Real Estate Market Update - November Numbers are Releasedby Monika Furtado on Fri, Dec, 2, 2011 01:44 PM The November 2011 CREB Market stats were officially released yesterday to no great surprise. Things are chugging along with no large scale changes from the past few months. There was an increase in November sales to last year by 8% along with a 2% reduction in listings compared to last year, but although it is great to see those numbers moving in the right direction we remain at overall flat pricing compared to last year as well as overall slower market when looking at our 10 year average. Condos are also starting to see a growth trend. If this trend continues we will slowly start to see lower inventory levels with prices increasing.
The future predictions for the market are all over the papers, economic reports and such and the vast majority are calling for a strengthening market with prices beginning to move up in either 2012 or 2013. Timing and strength of change will depend in part on international factors. We won't know a shift has happened until the numbers are in and then it has already passed so timing the market will remain challenging as always. We aren't expecting huge sudden changes though so expect slow and steady shifts.
There are a few items of note from various investment and economic folks out there. The rental market has seen a change with a decrease in vacancies and the beginning of price increases. While people are taking longer to purchase right now, they are moving to Calgary and often look to rentals before purchasing. The changes to mortgage requirements for investors may be resulting in fewer investment properties coming on market and therefore renters may be in more competition for prime units. Our labour market numbers are good and Calgary again is a bright spot on the map. As rental prices increase and interest rates remain at very low marks, we will begin to see folks running their numbers and looking to invest in a home instead.
As always, feel free to contact me anytime to assist you with your sale or purchase.
Numbers of Note:
Calgary, December 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), Calgary residential sales in November increased eight per cent over last year, at 17,538 after the first 11 months of the year.
While sales activity tends to taper off in the winter months, so far this year Calgary area sales remain significantly stronger than levels recorded last year. Single family home sales totaled 962 for the month, an increase of eight per cent from November 2010. Meanwhile, year-to-date sales totaled 12,464, a 10 per cent increase over last year. Over the long term, however, sales remained a tepid 17 per cent below the 10 year average.
November listings have edged down over last year’s levels, decreasing by two per cent. Lower listings combined with the increase in sales helped reduce the months of inventory to less than four months.
The year-to-date average and median price of single family homes were a respective $467,140 and $406,500. Overall, prices remain relatively flat compared to last year.
Condominium sales for the first 11 months of the year totaled 5,074, a five per cent rise over the same period last year. Inventory levels declined to 1,676 units, helping push down the months of supply.
“The rise in condominium sales can be attributed to the confidence in the market, and is typical of this phase of a normal market recovery,” says Stante.
Condominium year-to-date average and median prices in 2011 were $287,545 and $261,500, respectively, a decline over the first 11 months of 2010, mostly due to increased sales in units priced under $200,000.
Full CREB Statistics Package Monday, November 14, 2011 Preparing for sale - Consider a pre-sale home inspectionby Monika Furtado on Mon, Nov, 14, 2011 04:39 PM An item to consider when prepping your home for sale is a presale home inspection. It is difficult to lose a sale due to an inspection deficiency, so it is best to be prepared. If you are budgeting for some repairs and improvements, the inspection can help you target your efforts.
Should the home inspection show no major issues, it can be provided to prospective buyers as part of the pre-review process which could potentially help expedite the sale process.
Should issues arise, you can address them BEFORE you have an offer on the table or else give you time to get quotes for repairs that can be provided to prospective buyers. For example, if windows require replacement, buyers will often overestimate the cost resulting in more difficult negotiations.
Review your appliances. If they are very old or out of standard for your neighbourhood, consider replacements.
Gather together the warranty information for your home and appliances including the furnace and hot water tank. If items remain under warranty that is transferrable to the new buyer, let them know as this can enhance the perceived value of the house.
First time home buyers often do not have extra funds for repairs and may not have knowledge about what is required to repair various issues. Depending on your target buyer, a small investment in repairs may reduce time on market and result in a higher sale price than the cost of the repairs.
If you are planning to sell your home and wish to meet for a pre-sale consultation just give me a call at 403 850 2446. I am happy to help.
Thursday, October 6, 2011 Monthly Market Update - September 2011 Stats Numbers are outby Monika Furtado on Thu, Oct, 6, 2011 05:20 PM Are we getting used to a little uncertainty or do we have some confidence in our local market?
In figures released by CREB® (Calgary Real Estate Board), residential sales continued to gain momentum in Calgary this year, totaling 14,832 after the first three quarters, a seven per cent per cent rise over last year.
There seems to be more stability in single family home sales than condos, but even the condo market is seeing new projects come on line with success. I am noticing that move in ready homes are selling faster than those that need some maintenance or work, so if you are considering a sale, it is worth the time to update any required maintenance, remove some old wallpaper and show off a well staged home. All those shows on HGTV have put some high expectations into the minds of home buyers. At the same time, if you are handy, this a great time to buy that home with the fabulous layout but ugly purple carpet and pink wallpaper. You may find it is a great deal.
“Despite recent turmoil in the global economy, Calgarians are showing confidence in the long term prospects for the city and are taking advantage of affordable and stable home prices,” says Bob Jablonski, president-elect of CREB®.
“Undoubtedly, there are a lot of unknowns in the world’s current financial situation, but Calgary and Alberta may be relatively safe havens amidst this uncertainty. Granted, gains in the housing market have been very gradual—but we are seeing signs of improvement. Our province’s growth is expected to outperform the national average, and this will help buoy consumer confidence in Calgary and Alberta.”
Have you noticed the hiring signs and job fairs happening in our city. It is a sign that more great people are needed to keep up with the growth in our city. Recent announcements in the oil and gas sector as well as health care and staffing up required hospitals will bring more great folks to our city. If you have family or friends considering a move to Calgary, have them give me a call and I would be happy to introduce them to what Calgary has to offer.
Some notable numbers:
Single family home sales totaled 1,036 for the month of September, 2011, an eight per cent increase over last September. Year-to-date sales totaled 10,518 units a 10 per cent increase over last year. Monthly gains in listings brings inventory to 4,753 units, a level still lower than the previous year.
The average price of single family homes for the month of September, 2011 was $466,167, while the median price was $400,000. Jablonski indicated that while prices have marginally improved compared to September 2010 figures, on a year-to-date bases both the average price and median price have remained relatively stable.
After the first three quarters of this year, condominium sales totaled 4,314, a two per cent rise over the same period last year. “While the increase is modest, it is a move in the right direction,” noted Jablonski, adding that a boost in condominium sales, along with a lower number of listings is helping to tighten this market. At the end of September, 2011, condominium inventories totaled 2,008 units compared to 2,204 units recorded in September 2010.
Average condominium prices reached $299,508 in September, 2011, appearing to record a significant increase. However, the increase in price is not caused by a general price rise, but has been pushed up by a $4 million plus sale. In fact, both the median price of $260,000 and the year-to-date figures continue to trend lower than figures recorded last year.
As always, feel free to give me a call if you have questions about the sale of your home or a move to your great new home.
View the full stats package Tuesday, September 13, 2011 My little garage sale raised $187.50 for the Royal LePage Foothills Shelter Foundation - Thank youby Monika Furtado on Tue, Sep, 13, 2011 05:15 PM Thank you to everyone that stopped by and bit by bit raised some money for the Royal LePage Foothills Shelter Foundation this weekend at my little garage sale. A couple folks added some extra coins here and I just wanted to say thank you. It would have been a bit more, but a very nice family struggling to get settled needed some furniture so away it went.
Even though Calgary is very prosperous, there are folks out there that find themselves in circumstances. The foundation has one goal - to raise money for the development and protection of women and children living under abusive and stressful conditions.
Every time I help someone buy or sell a home, I make a donation to the foundation. Hopefully the number at the end of the year is a good one and I hope to increase it with every year.
Friday, September 9, 2011 Market Update - August 2011 stats publishedby Monika Furtado on Fri, Sep, 9, 2011 11:39 AM Stability seems to be the word of the day based on the August numbers from CREB. To view the full creb package, see the link below. CREB has also released the 'City of Calgary Residential Resale Market Update' recently along with the 'Calgary and Region Economic Update' from the City of Calgary CFO Office. All of these docs are publically available for the economist in all of you. :) If you wish see a copy just send me a note.
From a local perspective the numbers are looking more encouraging with more migration into the city and positive news from the energy sector. With many major projects coming on board in the province the increase in career search ads has been noticable.
Depending on what newspaper you read, you may be seeing the current international economic ups and downs as uncertainty or as opportunity. If you look just at local indicators, we would expect the market to start booming, however, international indicators seem to be putting a lid on the pot and holding the current status in simmer. It is a time of risk/reward so folks are reviewing their numbers and reviewing their options.
What is the result of all of this? Sellers have to present at their best and buyers have to be on the lookout for great properties and take advantage of the opportunities. With the interest rates expected to remain at current levels for at least another quarter, the combination of buying power and low interest rates is an opportunity that many buyers are considering and we'll see if the simmer in the local market has the opportunity to flourish.
Happy Shopping.
From the CREB Press Release
According to figures released today by CREB® (Calgary Real Estate Board), the year to date average price for single family resale homes reached $468,051, a one per cent rise over last year. Condominium prices continue to remain one per cent lower than last year’s figures with an average price of $288,167 after the first eight months. The 2011 year to date median price of single family and condominium homes were a respective $410,000 and $263,000.
“When looking at Canada’s major cities, Calgary is one of the most affordable regions for homeownership in the country,” says Stante. “Buyers are benefiting from improved selection at all price ranges in the market. In fact, nearly half of all single family homes sold year to date were priced below $400,000. Well priced properties seem to be moving in this market.”
The single family market recorded 1,106 sales in the month of August 2011. This is an increase of 28 per cent when compared to August 2010 sales, which were the lowest levels of August sales since 1994. Year to date sales of 9,485 are 10 per cent higher than last year’s figures.
Single family inventory levels reached 4,573 in August, a nine per cent decline over last year’s levels. The recent rise in listings was counteracted by robust sales, keeping absorption levels at four months compared to the six months recorded in August 2010.
As in the single family market, condominium inventories of 1,997 were lower than last year’s levels. The market conditions have changed significantly as inventory levels continue to decline. Recent improvement in sales, combined with lower listings, has resulted in a year over year decline in the months of supply.
Condominium sales amounted to 468 units in August 2011, with a year to date total of 3,885 similar to levels recorded in the first eight months of 2010.
Stante states “With Calgary’s energy sector slated to grow, it is expected to lift the city’s employment, income and in-migration, and in turn help contribute to growth in the resale market. We expect price growth to improve as we approach the end of 2011 and move into 2012.”
Review the full stats package.
Monday, August 8, 2011 July Real Estate Market Updateby Monika Furtado on Mon, Aug, 8, 2011 10:35 PM The trend for July is a relative repeat from June with a continued trend toward recovery. Prices are remaining stable, interest rates remain low and and the condo market is showing signs of a more balanced market. Until the news of recent days relating to the American economy, most folks were beginning to feel much more positive about the global economic outlook.
Calgary is doing well, with myself and fellow realtors very busy with sales, relocation clients, and new clients coming on board. At the same time, there are great houses out there that are well priced that haven't sold. Sometimes things just aren't logical, but then real estate isn't always logical. It is often emotional and all about timing. Sellers need to work hard to show their homes at best and as clean as possible. Buyers have a lot of choice in some areas and are looking for great homes, great prices and clean inspection reports.
I have assisted a number of families in finding new homes in the last couple of weeks and I have shown dozens and dozens of homes during that time. Buyers often like a number of homes, but they only buy one. Many homes score a 7 or 8 out of 10, but we need to find a 9 or 10 to make a sale. If you need some help either finding your new home or setting yourself up for a successful sale, just give me a call.
Tuesday, July 5, 2011 June 2011 Real Estate Market Updateby Monika Furtado on Tue, Jul, 5, 2011 10:36 PM The real estate market in June 2011 is displaying more consistent signs of recovery. A balanced market has been maintained during the recent surge in sales. Although sales have been increasing, prices seem to be stable and are on par with the same time last year. If look back in the recent months, there has been recovery from the lower prices and slow sales we saw in the fall and winter of 2010.
I continue to list homes and have been showing a large number of homes to prospective buyers. I see buyer reactions every day and I have to continue to emphasize to sellers that it is a competitive market. Pricing, presentation and marketing are essential to get folks through the door and then to be impressed once they visit. Before accessories and upgrades, the most important factors in accentuating a home are cleanliness, home maintenance and general state of repair. That loose door handle or paint scratches can cost much more on a sale than the cost of repair. Many current new home buyers are in the younger demographics and they have high expectations.
June 2011 was also the first month of improvement in the condo market since April 2010. There continues to be a large inventory of new units, but resale numbers are starting to reveal a balanced state.
What does all this mean to you? It depends on your goals and where you wish to buy or sell. Whether you work with me or some of the other great Realtors in Calgary, get the advice and guidance you need to make your best decisions.
Some numbers and info from the CREB stats release:
According to figures released today by CREB® (Calgary Real Estate Board), residential sales surged in the month of June 2011 to 1,979 units. While this indicates a third more sales than June 2010, the year-to-date increase proved a moderate 2 per cent. Strong monthly increases does not imply a housing boom, as it is important to put into perspective that sales activity remains below long term averages. While the single family market has shown signs of improvement throughout the first half of this year, this is the first time since April 2010 that condominium sales have recorded a year-over-year increase.
With 581 sales for the month of June 2011, the condominium market improved by 31 per cent over June of 2010, however year-to-date figures show a 5 per cent decrease over the same period last year.
The single family market recorded 1,398 sales in the month of June 2011. This is an increase of 32 per cent when compared to June 2010 when 1,059 single family homes sold in the city of Calgary. With a total of 7,231 sales after the first half of the year, year-to-date single family sales are 6 per cent higher than last year.
Year-to-date average price of a single family home in Calgary is $472,330, while the median price is $410,000, virtually unchanged over levels recorded in the previous year. The distribution of sales by price range has not shown any significant shift compared to last year, pointing to continued stability in the market.
“After the first half of the year, it appears the recovery in the housing market is starting to find its footing. This gradual leveling has been fueled by growth in employment, and in particular growth in full time jobs. Improved job prospects, combined with an increase in the number of people moving to Calgary, will give lift to our housing market for the remainder of this year and into the next,” says Stante.
Friday, June 3, 2011 May 2011 Calgary Stats Real Estate Market Updateby Monika Furtado on Fri, Jun, 3, 2011 11:18 PM I read an article lately that made light of comments that blamed the real estate activity on the less than stellar weather we have had lately. Well, they should have watched my phone during the recent week of rain. Rainy day = few calls. The day after rainy day = non stop phone calls, showing bookings and property inquiries. Yes, we are rather worn out by the long winter, thrilled to see sunshine and maybe in a little bit of watch and wait mode. Buyers and sellers are also definetly on different pages right now when it comes to pricing and expectations.
The inner city market has been picking up more than other areas and the current market trends reflect the move by many folks toward a lifestyle with a great emphasis on local amenities and shorter commutes to work. The expansion of the LRT is also a topic of conversation with most buyers and a couple of recent purchases have focused on transit access to work and school. Did you know you could zoom in on maps.google.ca and see all the local transit stops and bus lines to find out how close your prospective home is to transit?
With positive growth forecasts issued by many institutions and the stabilization of inventory we are expecting continued strengthening of the local markets. The effect on any particular property is very dependent on location, type of property and how well a home is presented.
Some notable numbers from the CREB stats update:
The average price for single family homes in May 2011 was $489,482 and the median price $423,000, comparable to levels recorded last year. Single family home sales were 1,313 in May 2011, a 5 per cent increase over last year, while 2,552 listings came to market, a 14 per cent decline over the same period last year.
The decline in listings has caused inventory levels to come down to 4,616 units, an 18 per cent decline from last year. Moderate sales and a reduction in inventory have resulted in a decline in months of supply compared to May 2010.
To date, the single family market has fared better than the condominium market, as prices have come down from peak levels recorded in 2007 providing individuals more options with regard to home ownership, noted Stante. After the first five months of the year, single family home sales were 5,835 units, consistent with sales levels during the same time frame last year.
“With just under four months supply, we expect single family home prices to remain stable in the coming months,” says Stante. “Provided that interest rates remain moderated, we are positive about the near term stability and recovery in the Calgary real estate market.”
The inventory of condominiums continues to remain higher than average, but has declined by 21 per cent from levels recorded in May 2010.
Condominium sales were 503 for May 2011, 3 per cent lower than last year’s figures. Year-to-date condominium sales are 11 per cent lower than last year’s levels, however, listings have declined by 19 per cent as well over the same time frame, placing downward pressure on inventories.
As always, if you have any questions or need assitance with the purchase or sale of a home, give me a call anytime.
Tuesday, May 3, 2011 April 2011 Real Estate Stats Updateby Monika Furtado on Tue, May, 3, 2011 09:06 PM I personally wonder how much the weather dampened enthusiasm in April as many folks opted to seek a sun filled week away or hide inside rather than search for a new home. April was a slower month in 2011 than 2010 both in sales and new listings coming on market. Although the numbers are less, the balance of supply and demand has resulted in lower inventory levels and moderate growth in average prices. As prices are expected to slowly rise this year, we will see how buyers react to the opportunities of the spring market. This month I posted some information about shopping for a mortgage. It is worth the read. As well, I posted some great resources for getting around calgary on transit and bikepaths.
Some notable numbers from the CREB Stats Package:
“We are seeing improvements in the sale of homes in the higher price points. Homes above $700,000 are selling within an average of 41 days. This is consistent with pre-recession levels,” says Stante.
The average price of single family homes in the City of Calgary in April 2011 was $479,575, a 4 per cent increase from April 2010 levels. Meanwhile, the median price of $420,000 rose by 1 per cent over levels recorded in April 2010. The price differential comes as a result of high end home sales. In April 2011, two single family homes were sold in the price range of $3 million to $4 million, skewing up the monthly average price.
“Condominium listings declined 27 per cent in April, helping to offset a 16 per cent decrease in year-over-year sales. The decline in listings is significant and has helped place downward pressure on inventory levels. This will improve stability in condominiums and begin to move it towards a more balanced market,” says Stante.
Year-to-date condo sales were 1,883, a 13 per cent decline compared to the first four months of 2010. The condominium average price for the month of April 2011 was $289,158, similar to the previous year when condominiums sold for an average of $289,588. The median price for condominiums in the month of April 2011 was $260,000, down 3 per cent compared to the same time last year.
I listed some great properties in the last couple of weeks. Check out details on my listing page.Thursday, April 28, 2011 Shopping for a Mortgage: Beyond the interest rateby Monika Furtado on Thu, Apr, 28, 2011 09:32 PM One of the first conversations folks usually have when they are preparing to purchase a new home is financing. Sometimes people are very focused on the interest rate but don't always ask questions about payment options, payout penalties, admin fees and other terms of their mortgage. Life happens so even though you may think 5 years is a short time, you may need to pay out your mortgage early.
I highly recommend the read and to ask all the questions outlined when researching your mortgage options. I often suggest people speak to their current bank where they have an established history as well as a great mortgage broker to determine their best options.
If you need some help planning your purchase, give me a call. I am happy to help. Saturday, April 2, 2011 Market Update - March 2011 Statsby Monika Furtado on Sat, Apr, 2, 2011 08:49 PM CREB released the March monthly stats package yesterday. Single family home sales continue to drive the market with NW Calgary seeing the larger increases to sales in the city. We are currently in a balanced market with an average 3 months of inventory across the city, however location and property type have an effect. Homes that are well priced and show well are selling quickly so careful attention to pricing, presentation, and marketing are essential.
Condominiums continue to lag behind in sales and prices from 2010, however, they are expected to rebound in the later half of the year so it is a great time to see what options are out there. Purchasing a condo is different than purchasing a single family house so if you are considering a purchase of a condo, check out my recent post: "So you Want to Buy a Condo?"
Although today's snowfall has put a damper on even my enthusiasm for being outdoors, we are very quickly approaching the spring market and the usual increase in activity. I'm really looking forward to seeing my garden again.
Some notable numbers from the CREB stats update:
Single family home sales in the first quarter of 2011 were 3,309, a 4 per cent increase over the first quarter of 2010. The combination of stable home prices, low interest rates and year-over-year improvements in employment are the primary factors fueling the growth.
March 2011 single family home sales totaled 1,355, a 3 per cent decrease over March 2010 figures. The decline in sales was accompanied by a 19 per cent year-over-year decline in new listings. As a result, inventory remained at three months, which indicates a balanced single family market.
The NW sector boasted the largest gains in single family home sales in the first quarter of 2011 with 1,198 sales, a 13 per cent increase over the first quarter of 2010. Sales in the SE posted quarterly gains of 5 per cent, while the SW remained relatively unchanged and NE sales declined by 9 per cent.
The SW sector recorded the highest single family average home price in the first quarter of 2011 at $570,748, while average home prices in the NW and SE were $464,990 and $422,821 respectively. The NE sector continues to remain the most affordable, with average prices hovering around $282,713.
Calgary Metro average price of single family homes in March 2011 was $462,947, a 2 per cent decline from March 2010, and virtually unchanged from the previous month. Meanwhile, the median price declined by 5 per cent compared to March 2010.
Quarterly condominium sales continue to fall over levels recorded in the previous year, down by 11 per cent compared to the first quarter of 2010, while quarterly average prices are down by 1 per cent. It is important to note the quarterly average price of condominiums is skewed upwards for 2011 due to the sale of a $4.1 million condominium. If we remove this sale, quarterly average price would have declined by over 2 per cent.
If you have friends or family interested in selling or purchasing a home, please pass my name along. A referral is the greatest compliment. |
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