Archive for the ‘Resale’ Category

Downtown Condo with a View

Thursday, May 7th, 2009

Welcome to your bright & clean 1 bedroom apartment located on the 14th floor of Discovery Point. This open concept unit offers a spacious kitchen with maple cabinetry and large breakfast bar. The spacious living room leads out to the private balcony which offers city/river views with enough space for a table and a BBQ with gas hook-up. The master bedroom has a double sided walk-through closet with a cheater door to the bright 4 piece bathroom. This unit also offers 1 titled underground parking stall and in-suite laundry. Discovery Point is well situated in the West area of Downtown with easy access to the C-Train, bike, walking paths, restaurants and shopping. Enjoy the benefits of a part-time concierge service, fitness room, games / party room and a sauna.

For more information or to book a showing call the Home Sweet Home Team at 403-524-6926

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Market gets spring boost

Thursday, May 7th, 2009

MLS® sales activity of single family Calgary metro homes was 1,290 in the month of April 2009, showing an increase of 19% from 1,086 sales in March 2009, according to figures released by the Calgary Real Estate Board (CREB®).

This was a decrease of 5% from April 2008, when single family home sales were 1,363.

The number of condominium sales for the month of April 2009 was 579, an increase of 30% from the 446 condominium transactions recorded in March 2009, and a decrease of 0.3% from April 2008, when 581 condominiums changed hands.

“Spring is giving new life to the residential real estate market,” said Calgary Real Estate Board President, Bonnie Wegerich. “Affordable pricing and low interest rates are drawing buyers back to the market.”

She added that particularly, we are finding more and more first time homebuyers taking advantage of great inventory and very low interest rates.

“We expect spring sales activity will also get a boost from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers’ Plan and the First Time Buyer Tax Credit,” added Wegerich.

The average price of a single family Calgary metro home in April 2009 was $426,311, showing an increase of 1% from March 2009, when the average price was $420,354, and showing a decrease of 10% from April 2008, when the average price was $474,564.

The average price of a Calgary metro condominium was $277,953, showing a 2% decrease from March 2009, when the average price was $284,056, and a decrease of 11% over last year, when the average price was $312,586.

Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

“The average price for home sales remains below levels reached one year earlier, but year-over-year declines are contracting,” said Wegerich. “Our inventory also continued to decrease in April, which is helping to firm up the balance of supply and demand,” added Wegerich.

Single family Calgary metro new listings added for the month of April totaled 2,010, down just 1% from the 2,023 new listings added in March 2009, and showing a decrease of 40% from April 2008, when 3,377 new listings came to the market.

Calgary metro condominium new listings added in April 2009 were 967, up 7% from March 2009, when the MLS® saw 903 condo listings coming to the market. This is a decrease of 35 per cent from April 2008, when condominium listings were 1,493.

The median price of a single family Calgary metro home in April 2009 was $380,000, showing an increase of 1% from March 2009, when the median price was 375,000, and down 10% from April 2008, when the median price was $420,000.

The median price of a condominium in April 2009 was $251,000, down 3% from March 2009, when the median was $260,000, and down 13% from April 2008, when the median price was $290,000.

All Calgary metro MLS® statistics include properties listed and sold only within Calgary’s city limits.

The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time.

During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“Undoubtedly this market has been challenging for both buyers and sellers, but the improvement in recent months is an encouraging sign,” said Wegerich. “There’s more confidence in the housing market today than at the end of 2008. Prices are stabilizing, inventory is declining and the number of new listings is leveling–these are all signs that a balanced market is on the horizon.

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6 Mathematical Reasons Support Buying Your Home Soon

Thursday, May 7th, 2009

1. Rates are the lowest that they have been for 70 years.With the Bank of Canada’s decision to lower Prime a quarter per cent from 2.50% to 2.25% and its commitment to not change rates for another year, Canadians are expected to continue to take advantage of a record-low prime rates, which are 2.25% at most financial institutions. 3.80% for a 5 year fixed or 3.00% variable(Prime +.75%) are the lowest rates have been since WWII. Rates are this low due to the housing problems started in the USA. Canada followed the American lead lowering rates step for step and now is the best time to take advantage of the situation. In fact, most people with mortgages at 5% or more, who are in year 3, 4 or 5 of a 5 year term, should be better off with renegotiating their mortgage rates.

2.Prices are the lowest that they have been for 3 years .The recent price declines have seen condos that were selling at $260,000 in 2007 now selling for $199,000. The average home price in July, 2007 was $473,000 and is now $403,000 – $70,000 less. These are considered short term price reductions due to the overbuilding in the last boom produced.

Fourth quarter 2008 research by RBC, which measured the proportion of pre-tax household income needed to own a home, found that affordability improved across Canada up to 3.5%. This is due in part to rising family income, as well as lower lending rates. For example, the Bank of Canada has further reduced the overnight rate to 0.25%, from 4.5% in about a year

3 & 4. Interest rates & home prices are expected to increase due to inflation. The US has stated that they are ready to print up to $5 trillion in new funds to support their stimulus spending package, bailouts of the banks, fighting 2 wars and continue to pay their debts, including Medicaid and Medicare, which are $2 trillion underfunded today.

Printing the extra money to pay for it all (the largest increase in national debt since WWII) will increase the money supply by 40% – 50%. That means for every $5 in people’s pockets there will be an extra $2. That extra $2 causes more money to chase the same amount of goods when the recession is over and people start to spend again. Prices then increase
because the supply of goods has remained the same, but demand for those goods has increased and those extra dollars in people’s wallets cause the price to be bid up.

Real Estate is a built-in hedge against inflationThe best way to slow inflation is to raise interest rates so interest rates are expected to go up quickly when the recession is seen to be over by the governments. Raising inflation means that your house will also be going up at the same rate as inflation rises.

Let’s say you put down 5% on a house for $400,000. If inflation then goes up to 10% in one year then your house should go up at the same rate, or 10%. Your house is now worth $440,000 and all the other homes would have gone up the same amount as well. Your $20,000 down payment has now made $40,000. This is called leverage and is a great way for most people stay “even with inflation.” If you decided to keep that $20,000 as cash, it would now really be worth only $18,000 after inflation is taken into account ($20,000 – 10%= $18,000).

5. Buying can cost less than renting because rent is “sticky”. Wages and rents are ‘sticky.’ They go up fast but come down slowly as no one wants their wages or rental income to be reduced. A rental house recently purchased with 15% down for $400,000 at 6.5% interest would need to have a rent of about $1500 a month to break even. Most investors would not want to take a loss and would set the rent the same as the mortgage payment. Average rents would then tend to even out at the same $1500 a month.

Cheaper to buy then rent Because house prices are already down 15% – 20% and mortgage interest rates are less than 4% for a 5 year term, that same $400,000 house can now be purchased for $320,000 with 5% down and payments will now be about $1,340 a month plus property tax of $125 = $1,465 a month. It is now cheaper to buy than rent! Generally, the gap between renting and buying is close to the smallest it has ever been for the last 4 years. Rents are expected to stay the same or increase with the expected inflation. If they increase the same stickiness will keep them where they are even when inflation subsides. This makes buying an even better bet as you are paying your own mortgage, not someone else’s.

6. Alberta & Canada Economies Are Still Strong. • Canada is predicted by the International Monetary Fund – IMF – to be one of the first G20 countries
to emerge from the world wide down turn. Our energy and natural resources are the raw materials used for the world’s production and demand for them will kick start our economy first.

• Since October 2008, Canadian job quality has basically held steady according to CIBC’s Employment Quality Index (EQI). The bank’s EQI ranks job quality by assessing a number of factors including the distribution of part-time vs. full-time jobs; self-employment vs. paid employment; and the compensation ranking of full-time paid employment in more than 100 industry groups.

“The relative stability of our employment quality index suggests that when the labour market turns a corner, job gains will translate into income gains much more quickly than they have in the past, as the base of the existing labour pool is of a higher quality when compared to previous recessions.”

Market shaking off winter blues

Thursday, April 9th, 2009

MLS® sales activity of single family Calgary metro homes was 1,086 in the month of March 2009 showing an increase of 32% from 825 sales in February 2009, according to figures released by the Calgary Real Estate Board (CREB®).

This was a decrease of 23% from March 2008 when single family home sales were 1,418.

The number of condominium sales for the month of March 2009 was 446, an increase of 30% from the 343 condominium transactions recorded in February 2009 and a decrease of 21% from March 2008 when 565 condominiums changed hands.

“The Calgary market is slowly shaking off its winter blues,” said Calgary Real Estate Board President Bonnie Wegerich.

“Spring has brought a nice uptick in sales this month and the supply of homes has been trending lower. It is also the first time that the year-over-year decline in average price has started to decelerate–a sign that we are moving into a more balanced market.”

The president of the Calgary Real Estate Board said sales typically pick up after January and gradually increase until June and the start of the summer holiday season.

“As we enter the spring market sellers seem to be serious about pricing their homes competitively,” added Wegerich. “Record low mortgage rates and affordable prices also help explain the increase in sales.”

The average price of a single family Calgary metro home in March 2009 was $420,354, showing an increase of just over 1% from February 2009, when the average price was $415,568 and showing a decrease of 11% from March 2008 when the average price was $474,513.

The average price of a Calgary metro condominium was $284,056, showing a 6% increase from February 2009 when the average price was $268,971 and showing a decrease of 9% over last year, when the average price was $312,620.

Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas.

“Buyers will continue to have choice and affordability in this market,” said Wegerich. “Competitive pricing will remain a reality of this market, but I think pricing is now showing some signs of stability,” added Wegerich.

Single family Calgary metro new listings added for the month of March totaled 2,023, down just 2% from the 2,057 new listings added in February 2009 and showing a decrease of 42% from March 2008, when new listings coming to the market were 3,493.

Calgary metro condominium new listings added in March 2009 were 903, up 1% from February 2009 when the MLS® saw 892 condo listings coming to the market. This is a decrease of 42% from March 2008 when condominium listings were 1,561.

“It is very encouraging to see the return of a more balanced market. Our inventory has come down dramatically–more than 20% from the same time last year. If sales continue at current levels we are looking at about a four months supply of single family homes currently on the resale market,” noted Wegerich.

The median price of a single family Calgary metro home in March 2009 was $375,000, showing no change from February 2009, and down 11% from March 2008 when the median price was $420,000.

The median price of a condominium in March 2009 was $260,000 up 4% from February when the median was $249,900 and down 11% from March 2008 when the median price was $293,000.

All Calgary metro MLS® statistics include properties listed and sold only within Calgary’s city limits.

The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time.

During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“Undoubtedly job insecurity might keep some potential homebuyers on the fence. But we should keep in mind that nearly 96% of Calgarians are still working–one of the lowest jobless rates in Canada. Those who are confident in their job security can benefit from great affordability and record low mortgage rates,” said Wegerich.

For More Information please Contact the Home Sweet Home Team,sold-sign

Home sales rise as buyers tiptoe back into market!

Thursday, April 9th, 2009

Calgary’s housing market picked up in March, with both MLS sales and average house prices for single-family homes and condominiums rising from the previous month’s levels.

With house prices stabilizing in the past few months, low mortgage rates and still a high selection of properties for sale, more homebuyers entered the resale housing market last month compared with the dismal months of February, January and December.

Homebuyers such as Kristen Hulsman and her husband Devon who purchased a two-storey, split level house in Temple during the month. The couple own another town-house in Forest Heights which they are renting out. They have owned the townhouse since 2006.

“We were just kind of baby-sitting the market for a while just because we knew it was a pretty good time to buy. So we were kind of waiting for the deals to come up and this one was probably the best that was out there. It’s a beautiful home, so we’re happy,” said Kristen.

The couple had purchased another property a year ago, renovated it and sold it in December.

“We noticed how hard the market had been hit,” she said.

Over the past three months, they’ve been seriously looking at the local market to see what was available.What they found was plenty of selection and “a lot of deals.”

“There’s a ton of deals out there if you keep on top of it or if you have someone or a real-tor who stays on top of that. There’s just a lot out there,” said Kristen.

“Anybody who is motivated right now has been pricing their homes very well.”

For single-family homes, the average MLS sale price in March was $420,354, up from$415,568 in February but still down from a year ago at $474,513. Sales for the month were 1,086 properties, which was up from 825 in February, but off from the 1,418 sales registered in March 2008.

In the condo market, the average sale price in March was$284,056,up from$268,971 the previous month and down from a year ago at $312,620. Condo sales for the month were 446 properties, which was up from 343 in February, but a decrease from the 565 sales in March 2008.

“The Calgary market is slowly shaking off its winter blues,” said Bonnie Wegerich, president of the Calgary Real Estate Board.

“Spring has brought a nice uptick in sales this month and the supply of homes has been trending lower. It is also the first time that the year-over-year decline in average price has started to decelerate — a sign that we are moving into a more balanced market.”

The March MLS numbers are a hopeful sign, said Todd Hirsch, senior economist with ATB Financial in Calgary.

“Consumer confidence in Alberta is down, but I think that there is this underlying sort of latent interest in getting into the housing market and people have been waiting to see where prices are going, and over the several months they’ve kind of flattened out,” said Hirsch.

“It’s given people the sense that the market is not going to correct another 20 per cent downward. Maybe the biggest part of the falling prices is over and maybe now is a good time to get back into the market.”

Average sale prices for single-family homes peaked at $505,920 in July 2007 and for condos at $332,237 in May 2007.

Hirsch said it’s a great time to buy a home as it has become a buyer’s market with plenty of selection, prices down and low mortgage rates.

The fact average prices are”firming up” is a good sign of confidence, said Lai Sing Louie, senior market analyst in Calgary with Canada Mortgage and Housing Corp.

“There has been significant improvement in affordability,” said Louie.

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Calgary Metro MLS Sales For March

Single Family Homes 2009 2008 Change

Month-end inventory 4369 5957 –26.66%

New listings 2023 3493 –42.08%

Sales 1086 1418 –23.41%

Aver. days on market 48 40 20.0%

Average sale price $420,354 $474,513 –11.41%

Median sale price $375,000 $420,000 –10.71%

Condominiums

2009 2008 Change

Month-end inventory 2052 2781 –26.21%

New listings 903 1561 –42.15%

Sales 446 565 –21.06%

Aver. days on market 56 43 30.23%

Average sale price $284,056 $312,620 –9.14%

Median sale price $260,000 $293,000 –11.26%

Source: Calgary Real Estate Board

Resale Market Gathers Strength

Thursday, April 2nd, 2009

Maybe it was the weather, maybe it was wanting to start the new year on an optimistic note, or maybe people were just being spontaneous.

Whatever the reason, as January moved along there seemed to be more open house signs popping up around the city — and “for sale” signs with “sold” stickers slapped on them.

By the end of the month, January was slightly stronger for sales than December.

The Calgary Real Estate Board says 550 single-detached homes inside the city limits changed hands in January, up from 449 in December.

As well, 225 condominiums were sold, 20 more than the previous month.

Outside the city in the rural communities, sales in January reached 148, up from 113 for December.

“Indeed, it is a tough market (for sellers), but I’m pleased to see sales picking up over December,” says CREB president Bonnie Wegerich. “Although numbers are down from January 2008, we are seeing increased activity and more interest from buyers.”

Ron Stanners, a past-president for the board and broker/owner of Max-Well South Star Realty, says activity among realtors in his office picked up in January by about 55 per cent from December.

“Sales are up, that’s a good sign,” he says.

“And the flow of listings has slowed. I think a large number of investors have sold or rented their properties, which is one of the issues that has been affecting the market.”

The number of new single-detached resale home listings added to the market last month totalled 2,068, down from 3,023 for the same month a year ago–with the comparative month-end inventories almost unchanged at about 4,000.

The condo inventory also held steady at near 1,900.

“While there’s still a good selection of homes to choose from, we are seeing a slow but steady decrease in our inventory,” says Wegerich. “As the inventory is reduced, we will see a return to a more stable market.”

Stanners has been in the business long enough to know there will always be ups and downs, particularly in the Calgary marketplace.

“This market is not that bad — price declines were minimal from December,” says Stanners.

For January, the board reports the average price at $413,049,down from$417,398 in December. The condo average slipped to $270,940, declining from $274,919.

But Stanners says that because 2006 and 2007 were so volatile, it’s difficult to make comparisons.

He says that 2004 and 2005 were “good years” and compared to them, the 2008 market was only about 20 per cent off.

From a financial aspect, Stanners also says buyers should be getting into the market sooner than later.

“If you bought a home today and the price dropped 10 per cent in the next year and mortgage rates went up one per cent, it would still cost you less to buy today — and you’d have the home paid off a year earlier,” he says.

Marty Hope
Calgary Herald

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Calgary Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.
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