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 .
Cell or text – 403.471.6929
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.
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.
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.
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 ”
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 email@example.com. Lets do our very best to Stop Lung Cancer !
The Big Picture – According to CREB’s Latest Stats – Sept-2017
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
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?
● 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?
● 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?
○ 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
● Are there views, outdoor living areas or recreational areas?
● 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- 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 !