Calgary’s real estate market is still very price sensitive. Price and Condition are SO IMPORTANT, because I can sell the worst property, in the worst condition, in the worst neighbourhood, “if the price is right.” However, I can not sell the best property, in the best condition, in the best neighbourhood, “if the price is wrong.” How do you know if you’re priced too high? You’re priced too high if you’re getting no showings, or if you’re getting showings but no offers. Remember, everything will sell if the price and condition are aligned.
Calgary’s real estate market is still strong, yet price sensitive. We have a slight shortage of property on the market but that has not seemed to affect prices. Prices usually go up when supply is down but we are seeing that properties priced above market value are not selling, whereas properties priced around market value are selling for up to $5,000 above the list price, and 2-4 competing offers. Like last year, buyers are buying but only if they see value.
Calgary is still on top…while Vancouver and Toronto are experiencing declines in sales we continue to see an increase in our sales activity. Overall the sales of Single Family homes have increased almost 20%, and condos almost 10%. Remember not to confuse this with price. Our prices have only increased a mere 1 or 2%. As I’ve said before, it’s a step in the right direction, and after all, our sales activity is almost back to where it was before the recession.
The number of real estate sales (actual number of transactions) in Calgary are practically back to normal, and the market is balanced for the most part. Prices have stabilized and we are seeing modest increases in the price of real estate. We probably won’t see more than that until things improve globally.
Well, I have finally done it, I’ve taken my iPad and become paperless. From contracts to presentations, there are so many “apps” that enable me to have a completely mobile office, eliminating the need for me to go into an actual office. I wish I had made the switch a couple of years ago, however, I believe I’m still one of the few Realtors in Calgary that have made the switch to being paperless. My wife is happy too, because it’s great for the environment. Enjoy your summer!
HIGHEST ACTIVITY SINCE THE RECESSION…Sales of residential properties in May increased by almost 32% compared to last year at this time. The number of new listings are up, sales are even higher, and this is causing a slight shortage of properties for the first time since 2006. Even though homes are selling faster, and we have a slight shortage of properties, prices are still relatively the same, probably due to the weak U.S. economy and uncertainty in the global markets.
PRICE CONTINUES TO BE KEY…The number of sales (transactions), the average price, and the median price are all basically the same as last month. The one change is that compared to a year ago (April 2011 saw a significant drop), the number of sales are up 26%. Even though we have a slight shortage of properties on the market, overpriced properties are not selling, so price is still very important.
STATUS QUO…the number of sales in real estate are up 9%, so that’s good. Prices are up a meager 1.8% from last year at this time. The inventory of property on the market is lower than usual which usually causes prices to go up, however interest rates going up a few weeks ago will likely keep that from happening. It appears that we will see a modest or little appreciation this year unless something drastic happens.
CALGARY IS TOPS!…Calgary is one of the most affordable cities in the country to own a home. The average price of a home compared to the average income in this city make it so. To own a home here, buyers need to budget about 35% of their pretax income. In Vancouver, the most expensive city to live, buyers have to budget 86% of their pretax income. Calgary is at its most affordable level in six years, which is great news for the anticipated migration to the City, and ultimately for the health of our economy.
NEW MLS HPI (Home Price Index)…Home sales are off to a slow start as expected for this time of year, but all indicators are still pointing towards price stability. In partnership with the major local real estate boards from Calgary, Vancouver, Toronto and Montreal, the Canadian Real Estate Association (CREA) developed the HPI. The HPI identifies turning points sooner and is the most current and accurate gauge for Canadian home prices. You can view it online at http://homepriceindex.ca/hpi_tool_en.html.