Ken’s Market Update -May-6/20

Thu, 07 May by Ken MacAulay
I hope all is well with you and your family!
It looks like we will be getting some more freedom in the weeks to come..Hurrah! 
Here we are in May, can we re-start 2020 over now,? With no fires , no floods & looks like Covit-19 seem to be somewhat under control.
I believe we will see more people who are now renting turn into homeowners! 
Why?
1- They will want their own space which they won’t have to share with other renters such as in Hi-Rise apt.buildings etc.
 
2-Homes with larger lots between neighbors and those backing onto more green spaces such as Fish Creek, Strathcona, Valley Ridge, Elbow Valley & Heritage Point, etc .as well as the ravines that are scattered through the area will be more desirable ( the most showings on all my listings throughout Covit has been our listing in West Bragg Creek )
  
3-There will be more Buyers than Sellers as Sellers will not be too anxious to list just yet.
 
4-Only motivated Buyers & Sellers will be in the market as they will be more diligent in what they want and will look and want 3-D Videos, drive-byes, great pics before they proceed with a showing.
Until next time. Please contact me or follow me on Facebook, Insta & Twitter!
Please, Stay Healthy!

Ken’s Take on the YYC Real Estate Market Post Covit-19!

Fri, 17 Apr by Ken MacAulay

I hope all of you folks are doing well, Staying Home, checking in on family, friends & neighbors just to keep in touch & making sure they are staying well.

I will be sending out my Rants on the 15th as well as the 1st of every month going forward to keep all my clients up to date on every changing Real Estate market during these “different times “& what Realtors are doing to keep sellers & Buyers Safe.

I hope you are all practicing your MEDS!

Meditate, Exercise, Diet & Sleep, very important during this term of Social Distancing & Self Isolation.

Here is an overview of what has happened in the Calgary Real Estate Market as of April-15th 2020

 

  • CALGARY* TOTAL
  • Total Sales-April-1-15th 2020 =244
  • New Listings – April-1-15th 2020 = 603
  • Active Listings – April-1-15th 2020 = 5791
  • Average Price- April1-15th 2020 =$429,561
  • Days on Market (DOM) -April-1-15th 2020= 53

 

We are seeing a drop in New Listings so far by over 18%, for two reasons

1-Sellers are not interested in Buyers coming through their homes. There is a new Covit-19 protocol where Buyers & Sellers have a checklist they must fill out before viewing homes after they viewed the video & pics, floor plans, etc. Buyers must use masks & gloves while in the home.

2-Sellers that are in the Market now are “very motivated” to say the least. they have to move, either for work, family situation, etc

-We do not expect market pricing to change by too much as there are fewer homes coming to the market at this time, this may change after the deferred payment schedule is completed.

-Interest rates are low, I saw a 5yr. fixed today for below 2.50%

-Buyers now very cautious wondering if the prices are going to go down just a bit or drop 5-10%? This will depend on the number of listings we have, supply & demand always rules the market.

-The homes priced under 400k will always do well in any market, homes from 4-600K will be OK as well. The properties above 7-900 K will be a little less & over 1m will be a totally great buy!

-For all my Covit updates I look at a great blog post-https://rheuminfo.com/blog .to get the latest updates on the Covoit-19 situation that is very precise & to the point with the stats and advice which I find very helpful rather than watching the “rotating news channel” which is very “nauseating “

That is all I have for now!

Stay Safe, Stay Home, Stay Well,

Please don’t hesitate to contact me if you have any questions or would just like to chat .

Ken MacAulay

Cell or text – 403.471.6929

Or

kenmacaulay@remax.net

 

The Ultimate Professional!

Thu, 20 Feb by Ken MacAulay

Ken is the ultimate professional who is always kind to his clients but equally so to the other party to the transaction as well.  He works hard every day and keeps the transaction process stress free for his clients. Ken understands the Calgary market and is realistic about outcomes and communicates his advice effectively. There is no detail that Ken overlooks from a Seller’s perspective. He will showcase the assets of your house with amazing photography as he understands what sells a home. A true and fair advocate for his clients’ interests.

CREB Stats – July 2019

Fri, 02 Aug by Ken MacAulay

MONTHS OF SUPPLY AND PRICE CHANGES RESIDENTIAL Months of Supply Trended Y/Y Benchmark Price Change Source: CREB® City of Calgary, August 1, 2019 –

For the fourth consecutive month, inventories in the market declined compared to last year. This is due to the combination of improving sales and a decline in new listings. The market continues to favor the buyer, but a continuation in supply reduction compared to sales is needed to support more balanced conditions. “We are starting to see reductions in supply across the resale, rental and new-home markets,” said CREB® chief economist Ann-Marie Lurie. “This adjustment in supply to the lower levels of demand will support more balanced conditions. It is starting to support more stability in prices. If this continues, the housing market should be better positioned for recovery as we move into 2020.” Year-to-date sales activity remains just below last year’s levels and well below longer-term averages. However, the reduction in inventory has caused the months of supply in July to ease to 4.5 months, a significant improvement from the 5.5 months recorded last year. With less oversupply in the market, prices are showing some signs of stability on a monthly basis. This is causing the rate of a price decline to ease on a year-over-year basis. Overall, year-to-date benchmark prices remain over four percent below last year’s levels.

Sales improving and inventory #declinesforthefourthmonth in a row July-2019

Detached • Sales activity in July was #slightlyhigher than last year’s levels, but it was not enough to offset earlier declines, as Y-T-D sales remain just below last year’s levels. Despite overall declines, trends vary significantly by price range. Year-to-date sales for a product priced #below$500,000 have improved by #11percent compared to last year, while sales over $500,000 have declined by nearly 16 percent. • New listings continue to ease for a detached product, reducing inventory across most price ranges. This is also starting to result in year-over-year declines in the months of supply for all prices ranges except homes over $1 million. • Adjustments in sales and inventories also vary significantly by the district. Year-to-date sales have declined across all districts except the North West and South districts. Easing inventories have not occurred across all districts, with year-over-year July inventory gains occurring in both the #CityCentre and #Westdistricts. • Buyers’ Market Conditions Persist, with detached benchmark prices at $488,400 in July. This is over three percent lower than last year’s levels. Price declines range from a high of 5.7 percent in the South District to a low of 1.4 percent in the North East district.

Apartment • Despite the improvement in July, year-to-date sales for apartment condominiums eased by over four percent and remain well below longer-term averages. • Available rental supply and ample selection in the new-home sector have impacted sales in the resale market. However, inventories continue to adjust, reducing the oversupply in this sector. • With conditions favoring the buyer, prices continue to edge down. However, year-to-date benchmark price declines are not occurring across all districts, with modest gains occurring in the North East district.

Attached • The attached sector is the only sector with recorded growth in year-to-date sales, up nearly four percent. The affordable nature of this product, relative to detached, has likely supported some of these gains. • The number of new listings continues to ease. This is causing inventory declines and reductions in oversupply. Like the other sectors, this segment continues to favor the buyer, preventing any significant changes in prices. • Both row and semi-detached prices remain over three percent lower than last year’s levels and well below historical highs. Attached price declines have been the highest in the City Centre district at over five percent.

 

Time to Sell & Buy Again!

Tue, 30 Jul by Ken MacAulay

When we moved from the Greater Vancouver area 3 years ago, Ken MacAulay handled the purchase of our house with the professionalism we have now found to be his style. When the decision was made to make “the move” again, there was no question who’s hands we were putting the responsibility in for selling and relocation. Ken’s experience got us the selling price we needed and the purchase of our new place was seamless. His extensive list of contacts has allowed the quick, efficient and cost-effective Renos we required to move in. We have and will continue to recommend Ken.

Look Forward , Never Back !

Wed, 11 Jul by Ken MacAulay

A real smart client I had many years ago always use to say ” Don’t Look Back as all you are going to get is a Sore Neck “!

That is so true when you are thinking of Buying or selling your home!

There has never been a better time to Buy or move up in the area.

We seem to constantly reflect on  2005-06 busy markets when we home prices sky-rocket. This was not a true market. This was fueled solely form the re-location of Imperial Oil form Toronto.

So why are we waiting for this market to re-occur …”get over it”. If you are looking to move – then as the Nike ad says ” Just Do It ”

 

 

Latest Radon Info from Dr Aaron Goodarzi of The Arnie Charbonneau Cancer Institute .

Fri, 01 Dec by Ken MacAulay

Just had a great conversation with Dr Aaron Goodarzi from The Arnie Charbonneau Cancer Institute , discussing the need for Radon testing in Alberta Homes .The day is coming sooner than later I hope when mandatory Radon testing & mitigation is mandatory for every Listing & Purchase contract in Alberta , so lets be pro-active folks . It is documented that 16% of all Lung Cancer in Canada is caused by Radon Gas .They have a great website that you can sign on for more info & take part in their survey the web site is … evictradon.ca and for further info there e-mail address is radon@ucalgary.ca. Lets do our very best to Stop Lung Cancer !

http://calgaryherald.com/news/local-news/scientists-mapping-deadly-radon-in-calgary

Kens Take On – CREB’s YYC Stats for Sept-2017

Mon, 02 Oct by Ken MacAulay

The Big Picture – According to CREB’s Latest Stats – Sept-2017 

Inventory increases and sales drop in September, but overall sales for the year remain higher than last year.  ( Kens Comments ) 
Strong gains in the first-half of 2017 has put the Calgary year-to-date sales at seven per cent above last years’ levels and 11 per cent below long-term averages, but challenges remain with easing sales and rising new listings. ( pent up demand from 2016 ) 
Inventories rose across all property types to 6,861 units, while both apartment and attached-style properties saw the highest inventory on record for the month of September.
“The recent rise in inventories is preventing further price recovery as sales activity has moderated over recent months. This does not come as a surprise as sales activity is expected to remain modest by historical standards until moresubstantial economic improvements take hold,” said CREB® chief economist Ann-Marie Lurie.
“Some may consider this a setback, but it is important to note that recent movements are balancing out the higher than expected gains that occurred in the first-half of the year.”
“There are several factors influencing new listings. Given the falling prices over the past two years, some sellers were waiting for market conditions to improve prior to listing their homes. More stability in the market hasprompted many of those sellers to no longer delay their listing decision,” said CREB® president David P. Brown.
New listings in September totalled 3,266 units, a year-over-year gain of nearly 10 per cent.( Sellers are finally realizing after a 2 year drop the YYC RE Market is not bouncing back like they thought )
“In some segments, rising new home inventories are also impacting total housing supply. Ultimately, prices are affected. However, this inventory also opens up opportunity for buyers to step up into a home that was financially unattainable.” ( Especially first time or move-up Buyers ) 
As of September, unadjusted benchmark prices totaled $441,500. This is 0.2 per cent below last month, but nearly one per cent above last year. Downward price pressure this month occurred across most product types.However, year-to-date benchmark prices in the detached sector remain comparable to last year. ( This is the indicator CREB & I like to use on a monthly bases , which means the detached market is relatively flat)  
Prices in the detached sector remain relatively stable compared to last year.
Condominium apartment prices remain4% below2016 levels and twelve per cent below 2014 highs.This sector continues to struggle with price declines resulting from excess supply as months of supply pushed above eight months.
Prices in the detached sector remain relatively stable compared to last year.
Condominium apartment prices remain four per cent below 2016 levels and twelve per cent below 2014 highs. This sector continues to struggle with price declines resulting from excess supply as months of supply pushed above eight months. (According to the Aug 2017 stats from CMHC .. the new condo starts in YYC , 2745 units  in 2016 & 2520 units  in 2017 with another 1028 un-occupied, may make you believe there maybe a glut of condos on the Market soon … )

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Real Home Value Calculator: Assessed Value vs Market Value

Thu, 20 Jul by Ken MacAulay

Understanding a home’s true market value is about more than pictures, software assessments and price-per-square-foot. Whether you’re a current homeowner thinking of selling or are house-hunting, it’s crucial you understand what factors affect home valuation. By partnering with a local market expert, sellers will avoid pricing their house out of the market (the kiss of death in real estate) and buyers will ensure they get a good deal on their next home.

So, how do you accurately calculate a home’s value? After all, the value a home is assigned by its town or county and the one it’s given when it’s listed are often dramatically different from one another. Which one is accurate and what does it all mean? Read on to learn more.

Assessed Value vs Market Value: What’s the difference?
When it comes to home value, you’ll often hear two terms, assessed value and market value.

A home’s assessed value is often the lower number of the two, and is the value given by your municipality or county. Investopedia defines assessed value as “the dollar value assigned to a property to measure applicable taxes.”1 Although property tax laws vary, assessors commonly arrive at this number by taking into account the following:

● What comparable/similar homes are selling for in your area.
● The value of recent improvements.
● Income from renting out a room or space on the property.
● How much it would cost to rebuild on the property.

A home’s market value, or Fair Market Value, is the price a buyer is willing to pay or a seller is willing to accept for a property. A skilled real estate professional will arrive at the value using a variety of metrics, including:

● External characteristics, such as lot size, home style, the condition of the home and curb appeal.
● Internal characteristics, such as the number of rooms and their size, the type and condition of the heating or HVAC system, the quality and condition of construction, the flow of the home, etc.
● The sales price of comparable homes that have sold in your area.
● Supply and demand; that is, how many buyers and sellers are in the area.
● Location; that is, the quality and desirability of your neighborhood and other community amenities.

Why are these values often so different? An assessor usually estimates your property’s market value during a reassessment or if you make a physical change or improvement to it.2 As a result, a property may not be reassessed for many years. While your home’s market value may fluctuate with the market, your home’s assessed value is more likely to remain steady.3

What Determines a Home’s Value?
You’ve likely heard the motto of real estate: “Location, location, location.” This means a home’s value relies on its location. While the home and structures on the property will likely depreciate over time, the land beneath it tends to appreciate. Why? Land is in limited supply and a growing population puts increased demand on the housing supply. As a result, values increase.4

Other factors that affect your home’s value include the function and appearance of the property, how well the home and other structures are maintained and whether the home is a lifestyle property, such as a ranch style with mountain views or beach bungalow.

Ultimately, the best indication of a home’s value is the overall supply and demand of the market. This is why we recommend you partner with a real estate professional who takes all of these factors—the assessed value, local market conditions, home features and has physically walked through and experienced your home— into consideration to determine the most accurate market value.

How to determine if a property is comparable to yours.
Both assessed value and market value are partially determined by the sales price of similar, or comparable, homes in the area. To determine if a home is comparable to yours, look for the following characteristics:

● Lot size
● Square footage
● Home style or similar architecture
● Age
● Location

While you may not find a home with the same exact characteristics as yours, you’ll likely find a few that are close. To account for any disparity, adjust the sales prices of the comparable properties. Look at the differences between your property and the one in question and determine if the differences increased or decreased the sales price and by how much. For example, if your home has two bathrooms and a similar home only has three, estimate how much that extra bathroom increased the sale price of the similar home. The adjusted sale price is the estimation of what the property would sell for if the properties were exactly the same.2

Where can you find comparable sales?
Fortunately, you can find comparable home sales in a variety of places.2
● Your local assessor’s office is able to provide a list of recent sales you can browse and compare or a sales history of a particular house, home style or neighborhood.
● Your municipality. Many cities keep local sales information in their offices or post it online.
● Online databases, such as a real estate database
● Your local newspapers may offer some real estate information in the form of quarterly sales reports in the business or real estate sections of the newspaper.
● Our office. We regularly do Comparable Market Analysis of homes in our local area.

How to calculate your home’s value.
By answering a few questions about your home, property and the local market, you can begin to estimate your property’s value. We’ve also included a worksheet for you below…

Home Value Questions:
When was your home last assessed?
What was its CMA assessment value?
What is your area’s average sales price?
What is your area’s average price/square foot?

Structure:
● Is the architecture and exterior structure of the home consistent, superior or inferior to other homes in the area?
● Does the era or genre (Modern, Victorian, Ranch, Cottage, etc.) add a premium based on current design trends?
● How does the floor plan and room size proportions of the home compare to other homes on the market?
Interior Structure:
● How does the kitchen compare to others on the market?
○ Updated or outdated
○ Floor plan
○ Appliance packages
● How does the Master Suite compare to others on the market?
○ Size
○ First/second floor
○ Updated or outdated
○ Access to Master Bath
● How does the Master Bath compare to others on the market?
○ Updated or outdated
○ Shower and bath
○ Flooring
Outside Areas:
● Are there views, outdoor living areas or recreational areas?
○ Pools
○ Ponds
○ Patios
● How does the landscaping and hard-scaping compare to the market? (e.g., built elements such as walkways, patios, decks, etc.)
Overall Condition of Home
● What is the level of repair needed to compete with other homes?
● Does the home need to be staged? How does it show?
● What curb appeal projects are necessary to be consistent with others on the market?

Home Assessment Worksheet

If you want to accurately assess a home’s value, it’s crucial to know about the market activity of our local area. We can help! Give us a call to get the scoop on the local market.

Sources: 1. Investopedia http://www.investopedia.com/terms/a/assessedvalue.asp
2. New York State Department of Taxation and Finance https://www.tax.ny.gov/pubs_and_bulls/orpts/mv_estimates.htm
3. Realtor.com http://www.realtor.com/advice/sell/assessed-value-vs-market-value-difference/
4. Investopedia, http://www.investopedia.com/articles/mortgages-real-estate/08/housing-appreciation.asp?lgl=myfinance-layout

Radon Gas Testing – Should it be a Condition of Sale?

Tue, 20 Jun by Ken MacAulay

Radon- Is a gas formed by the breakdown of uranium , a natural radioactive material found in soil & rock .

Long Term exposure to radon is the second leading cause of lung cancer after after smoking and the leading cause of lung cancer for people who had never smoked , according to Health Canada  booklet titled , Radon -Reduction Guide for Canadians

I have spoke about Radon Testing in a previous blog . The more I dig into this the more we in Alberta should be doing Radon testing in our homes no matter what the age . The most recent addition to the Building Code has the rough-in for a Radon Mitigation system as mandatory.

If you are like me and spend a lot of time in the lower levels of our homes ( basement ) as this is where I spend most of my day ( in my office )  I thought  it is a good reason to get it tested , so I got as much info as I could and now have a digital Radon Detector sitting on the edge of my desk and the cost was  $250 .00 inc. postage

I  recently Sold a Home in the Inner City Calgary that had a Radon Mitigation System installed. It as quite the conversation piece with Buyers & Realtors previous to the home being sold .

The public should have  more education about Radon as well as  the numbers of their homes readily available if the are going to Sell their home , if it has not been completed you may see in the not so distant future if a test has not been completed by the Sellers   a hold back of the cost of a mitigation system may be in place until the home has been tested, to determine if a system is needed or not .

If you are looking for some more info on Radon Testing there are a few reputable companies  out there that have the  necessary certification one is Radon Controls Inc . Both Pat & Len are NRPP certified their website is  www.radoncontrols.com  or  w- 403-475-0303

Until next time … Be safe ..Get Tested !

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.