Posts Tagged ‘Buyers Market’

A Rise in First Time Homebuyers in Alberta

Tuesday, January 22nd, 2013

A recent national survey sent out to prospective buyers in Alberta reports that over the next two years Alberta will see a rise in first time homebuyers. If this is any indication, Albertans remain confident in the marketing heading in to 2013 and the future.

Even more surprising is that 20% of the prospective buyers that plan to buy in the near future are single. Calgarians no matter the demographic, remain confident that the market will continue its recent success and housing values will continue to rise.

Calgary Best Performing Real Estate Market in Canada

Tuesday, January 15th, 2013

CALGARY — Calgary was the only major Canadian market to see a year-over-year rise in MLS residential sales in December as the national market plunged and the city finished 2012 with the best annual sales growth in the country, according to the Canadian Real Estate Association.

In releasing a report Tuesday, the association’s data indicated Calgary MLS sales in December of 1,343 were up 7.2 per cent from December 2011 while Canada saw a decline of 17.4 per cent to 20,538 sales.

The average sale price in Calgary in December rose by 6.9 per cent from last year to $419,811 while Canada’s average jumped by 1.6 per cent to $352,787.

On an annual basis, Calgary sales of 26,634 were up 18.6 per cent year-over-year while they fell by 1.1 per cent throughout the country to 453,372.

The average annual sale price in Calgary rose by 2.3 per cent to $412,315 in 2012. It was up by 0.3 per cent in Canada to $363,740.

“Calgary bucked the national trend in 2012 as the market began to come alive, while others began to enter a long sleep. This occurred because of two main influences,” said Don Campbell, senior analyst and founding partner of the Real Estate Investment Network. “Over the previous three years, Calgary had not over-performed its underlying economic fundamentals like many other major markets across the country, especially Toronto and Vancouver. A lack of new housing being poured into the market also helped to keep the average sale price in check.

“Population growth in Alberta neared a record high in 2012 as many moved here to take advantage of the job growth. This expansion of the number of citizens who call Calgary home, whether temporarily or permanently, put upward pressure on the rental market in the city. This increase in (rents) pushed many into the purchase market and therefore began the upward demand on the home-purchase market. This trend will continue, and inevitably get stronger, in 2013.”

Calgary’s market is showing no signs of letting up in January. According to the Calgary Real Estate Board, month-to-date from January 1-14, there have been 375 MLS sales in the city, up 9.97 per cent from the same period last year while the average sale price has jumped by 11.75 per cent to $428,063.

In December, sales in Alberta fell by 1.9 per cent to 2,855 transactions and the average sale price went up by 4.8 per cent to $363,340. Over the year, sales in Alberta in 2012 rose by 12.3 per cent, the highest of any province, and the average sale price increased by 2.8 per cent to $363,208.

CREA’s Home Price Index in December, of seven major Canadian markets, saw the average benchmark price increase by 3.32 per cent in Canada. Regina led the country with 10.53 per cent growth followed by Calgary at 7.37 per cent.

“Similar to what we saw in September, December sales had fewer business days compared to the same month last year and most other years,” said Gregory Klump, CREA’s chief economist, about the national picture. “It factored into December’s year-over-year decline in sales activity.”

But he also said that “successive rounds of tightening mortgage regulations have kept the housing market in check during what has become an extended low interest rate environment.”

Sonya Gulati, senior economist with TD Economics, described 2012 as a lacklustre year for the Canadian housing market.

“With the whopping 17.4 per cent year-over-year change in sales seen in December, we suspect that the impacts from the mortgage rule tightening in July are now fully priced in,” she said. “We expect the Canadian housing market to stabilize at current levels over the next few months. When looking at previous mortgage rule tightening episodes, the housing market impacts have been temporary in nature. There is no reason to think that this time will be any different.”

Benjamin Reitzes, senior economist with BMO Capital Markets, said the Canadian housing market continues to cool.

“While some will focus on the deep dive in sales from a year ago, it looks as though prices are providing a better read on the health of the sector, as homeowners are in no rush sell,” he said. “Prices are easing gently, consistent with a soft landing through much of the country.”

mtoneguzzi@calgaryherald.com

Twitter: MTone123

© Copyright (c) The Calgary Herald

Calgary Home Sales and Prices Spike Higher in 2012

Friday, January 4th, 2013

Calgary’s real estate market has been very active this year.

 

 

CALGARY — Rising population numbers drove Calgary housing sales higher and brought average prices within a hair of the record set in 2007, according to the Calgary Real Estate Board.

On Wednesday it announced that 15 per cent more residential real estate sales were completed in the city of Calgary in 2012 than in 2011 and that average prices were up five per cent.

“Calgary’s housing market has finally started to recover,” said Ann-Marie Lurie, CREB’s chief economist, in a news release. “While prices remain shy of the highs recorded in 2007, this is a move in the right direction.”

There were 21,207 residential property sales in 2012, up from 18,496 in 2011.

The news comes as ATB Financial economist Will van’t Veld reported that Alberta likely welcomed more new Albertans in 2012 than in its boom years a decade ago.

“This isn’t surprising, as the labour market here has been the best in the country and housing costs are relatively affordable,” he wrote in a report.

“The stage is set for the trend to continue in 2013 and beyond.”

Through the first three quarters of 2012, almost 56,000 more individuals came to Alberta than left the province, ATB noted, adding that’s 6,000 more than in 2006, the year Alberta saw its largest in-migration, and 16,000 more than in 2005, the second highest in-migration year.

“The last time Alberta welcomed so many newcomers there wasn’t enough housing to shelter everyone and that sparked the housing boom,” said van’t Veld in a report.

“In the early 2000s, housing starts in Alberta weren’t strong and there was little surplus inventory, so the mid-decade influx of migrants put pressure on existing housing stock. The jump in real estate prices caused a building boom, which is why there is no major shortage today.”

Lurie attributed the recent growth in Calgary’s real estate sales to the energy sector.

“There is no question employment and migration growth has supported housing demand, a trend that is expected to continue this year, albeit at a slower pace,” she said.

CREB figures show that single-family sales rose by 15 per cent in 2012 compared to 2011 but new listings fell by seven per cent, significantly reducing the inventory and pushing prices higher.

“Consumers in the market were looking for value, and, if a home was priced right based on a longer term view of their housing needs, they were buying,” said CREB president Bob Jablonski.

The unadjusted average price of a single-family house in Calgary was $497,000 for the month of December, nine per cent higher than $455,000 in the same month of 2011.

For the year, average single-family prices were up three per cent to $481,000.

CREB said its “benchmark” or typical single family house sold for $434,800 in 2012, two per cent below peak pricing in 2007.

Sales in the apartment and townhouse sector recorded annual increases of 12 and 16 per cent, respectively, while listings declined in both sectors

Condominium apartment average prices totalled 304,000 in December, a 13 per cent increase over December 2011 but CREB cautioned that there were several multimillion-dollar condominium sales in 2012 that skewed figures higher.

Townhouses posted an average price of $306,000 in December, up 4.5 per cent from $293,000 a year earlier.

dhealing@calgaryherald.com

© Copyright (c) The Calgary Herald

Coventry Hills Townhouse – $299,900

Wednesday, September 9th, 2009

This unit shows 10 /10! This very well maintained original owner, non-animal, non-smoker’s house is in the desired Community of Coventry Hills. The main floor offers an open plan with upgraded kitchen that includes stainless steel appliance, maple cabinets & breakfast bar. The main floor also offer a 2 piece bath, a large living/dining room area with patio doors that lead out onto a green space. The upstairs offers 2 spacious bedrooms with walk in closets and a large 4 piece bathroom. The basement is undeveloped and ready for your creative touch. This unit also offers hardwood floors, ceramic tile back splash, built in sound system, roughed in wiring for a security system,single attached garage , upgraded maple railings and a park view. This property is in a great location close to major road ways, public transit, schools, playgrounds, shopping, restaurants, golf, Cardel Place Recreational Center & Movie theater. All appliances are included. This unit is in mint condition, don’t miss this opportunity.

img_1002

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.

arriva

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.”

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.

———

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

5 Reasons this might be the right time to BUY!

Thursday, April 2nd, 2009

If you’re a renter wondering whether current market conditions should delay your dreams of purchasing a home, take heart. There are many reasons what could actually make this a good time for you to buy. Here are five to consider:

1. HOME PRICES – Home prices have leveled off and even dropped significantly in many locations, when compared to prices a year ago. Some of the most competitive Canadian housing markets, such as Vancouver & Calgary have become much more affordable over the last few months. In many areas, lower prices may allow you to consider housing options across a wider choice of neighbourhoods.

 2. HOUSING SELECTION – While  there is still a wide range of homes available, a lower market may mean you have less competition. This can relieve pressure on you to offer a higher price or to make a hasty purchasing decision. Be aware, though, that unlike many of the U.S. counterparts, sellers in Canada generally aren’t under pressure to sell.

 3. INVESTMENT – Owning your primary residence has almost always been a good way to build equity. Real estate, over the long term, has tended to rise in value, despite short term fluctuation. Plus, when you eventually sell your home, the capital gains are likely to be tax-free. Since you’re paying rent anyway, why not put that money toward a place you will eventually own? You’ll also be able to customize your space exactly the way you want it.

 4. INTREST RATES – Mortgage interest rates, firmly in the single digits, have been at historically low levels. This can help keep the cost of financing an entry level home relatively affordable.

 5. PERSONAL TIMING – The most important reason to buy a home is that it;s the right time for you. If owning a home is a high personal priority and if your financial situation is sound – you have a steady income and a manageable debt load – them that could be the most compelling reason to start looking.

 Remember: there’s no “right” or “wrong” time to buy. Since it’s almost impossible to time the market, the ideal times to buy a home is usually when you are ready.

A mortgage professional can review your current financial situation the you can decide weather its a good time for you to own your home!

Cashing in on a slumping real estate market – Buyers Market – CTV Calgary

Thursday, April 2nd, 2009

Article from : ctvcalgary.ca

It appears Calgarians are cashing in on a slumping real estate market. Rose Matjasic and Kevin Knight are looking to buy a new home. They currently own and live in a downtown condo purchased before the real estate market took off. Now Matjasic says they feel it’s the perfect time to get something bigger.

“Now that the prices have come to something a little bit more reasonable, it’s a great time to start looking.”

Matjasic feels it’s the perfect time to take advantage of what many are calling a buyer’s market.

“A lot of people right now are so scared to buy, but what they’re not realizing is it’s a great time to buy because you know, sellers are going to be a little more reasonable on their prices and there’s a lot more room to negotiate, so hopefully somebody who wants to buy my condo will think the same way.”

Elizabeth Huculak, Homes by Avi General Manager, says in the last month or so, show homes are busier, and sales are up.

“We’re definitely selling and that’s definitely encouraging. Obviously people have come to an understanding that there’s a bit of a market difference than what it’s been like the last couple years. February is three times as good as January as far as numbers are concerned.”

Homes by Avi owner, Avi Amir, says the real estate market is cyclical and he believes the current trend will continue.

“There was some changes made in the market. I guess there was some price adjustment and besides there is, I believe, a pent-up demand in the market. People haven’t been buying for a long time and nobody is really leaving the city.”

The most recent statistics show the average price of a single family home in Calgary last month was $413,049. That compares to $455,297 in January of 2008.

For more details on this CTV Article please click : http://www.facebook.com/ext/share.php?sid=63296247717&h=oxCk-&u=WZfTl

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.
MLS® MLS REALTOR® Realtor