Market SummaryThe market did not respond to the interest rate increases, and the end of summer as expected in September. The expectation for September was that there would be an uptick in sales after the holiday months were over. This was not the case as sales dropped across CREB by just over 7%. The sales to new listing ratios across CREB are 45.74% which is resulting in rising inventory. The pricing has continued to remain stable in most sectors but prices are expected to soften with rising inventory.
What does this mean for sellers? For the sellers that need to sell, it would be wise to get ahead of the market and price aggressively to sell. It will be competitive getting the attention of the buyers that are in the market. For the sellers that have the flexibility to sell, it may make the most sense to wait until Spring when the market typically picks up. The tire kickers testing the market will only help drive values down by contributing to the high inventory levels. As always it is important to determine what is happening in the community prior to creating a price strategyWhat does this mean for buyers? The potential for a "better deal" is just around the corner with softening markets. The challenge is that should interest rates continue to rise,teh affordability may become less. The higher cost of lending could off set any drops in pricing that we see over the winter months. As always, real estate is a long term investment and all we can do is time a move that works for our current lifestyles and requirements. with lots of options available on the market it is a great time to buy.With recovering oil prices and the economy further stabilizing, there is great confidence building which should translate to the real estate market.CIR Realty
As we settle into 2017, we are seeing significant improvements to the pace of sales, overall market conditions, and most importantly, consumer confidence. The energy market is the biggest driver of stability as oil prices have now increased by 75% year-over-year to the mid $50 range. This price range offers job security and many positions to be restored. While it is still not pre-2015 conditions, consumers are opening their wallets and starting to make the home purchases they have been putting off.
Calgary is a tale of two markets. Overall, 30-day sales volumes are up almost 30% from a year ago and we are sitting solidly in a balanced market with 3.24 months of inventory (balanced is 2.5mths–4.0mths). The busiest side of the market is in single family detached homes, which are up 32% in last 30 days of sales compared to this time last year. With only 2.34 months of inventory, we are in sellers’ market conditions and some buyers are facing multiple offers in lower prices ranges.
The condo market is still facing a surplus of inventory but is moving in the right direction with a 30%+ increase in sales. At 4.96 months of inventory, buyers still have the advantage but this is trending towards a balanced market with each passing day. A wild card affecting price growth on the condo side will be the number of new buildings expected to be completed, which could increase inventories in the next 12 months.
Overall, the conditions are right for price growth this year. The Calgary Real Estate Board is forecasting 2% increases across the market. For sellers, we expect a great year when priced with the market (overpricing will not work). For buyers, you have lots of great options on the condo side of the market but you may find yourself facing more competition for listings when looking at the single family detached segment.
Many people want to know what the secret is to getting the most out of their real estate and to appeal to most consumers looking for real estate today. This report will guide you through doing many of those things to help get the most dollars when selling your property.
Edited with Source from John D. Mayfield ABR, ABRM, GRI, e-PRO, CRB
Looking at the price of homes currently listed for sale in your neighborhood only tells part of the story. You must research how much homes are actually selling for, and price your home accordingly.
More and more, people are using the internet as their primary source of research. Be sure your home is easy to find in the most common places that people look.
A great question to ask is... Why should someone buy my home, versus any other home in the neighborhood or city? If you don’t believe that you have a compelling reason, then the buyer won’t either.
If you can, don’t be around for showings, keep the house clean, and do some research on staging your home for sale. A small investment can make or save you thousands.
Gather all the information that you need and get the advice of experts when you can. At the end of the day, hiring a professional to ensure your sale is done properly may be one of the best investments you can make.
Author: CIR Realty
Whether buying as a primary residence or investment, it can be one of the biggest finanical decisions you ever make, so where is the smart place to start?
1. Budget planning
If you have ever planned to make a big purchase you know that budgeting and saving are two key factors. When buying a house, it is no different. Home ownership comes with a lot of costs that first time home buyers don't think of and may be caught off gaurd by.
To start, take a look at your monthly, quarterly and annual income and expenses to get a better idea of what you can afford and any saving you may have to apply to the purchase.
This will help you discover if you are really ready for home ownership.
2. Pay down your debt
Do you carry outstanding debt, like a student or car loan or even a balance on a credit card? Before you consider buying you first home, consider paying down your deb first. Lenders will consider how you manage your debt. You don't have to be completely debt-free to buy a home, but your debt level will be considered. For most mortgage lenders, this equation is determined by debt ratios. These ratios compare your minimum monthly debt payments to your gross monthly income. If these payments are over a specific threshold—between 32% and 40% in Canada—you won’t qualify for a standard mortgage.
Almost every lender wants a buyer to have skin in the game—this translates into the equity you have in the home, which is determined by how much money you put down when you buy the home.
To put money down, you must save up money, but this doesn’t mean cramming cash under your mattress. Use money you’ve already saved in your RRSP through the federal Home Buyers’ Plan. Family can also give you a loan or a cash gift. You could also review your budget cutting out some expenses and then using the money as part of your home-buying savings plan, or take on extra work to earn a bit more money.
When it comes to borrowing money, credit is king. Your creditworthiness is measured using your credit score—the historical tally of how responsible you’ve been as a credit consumer.
The key to good credit, or favourable credit is to be consistent about paying your bills. Paying at least the minimum monthly payment for each credit card and personal loan where you have a balance is important. Every late payment as a mark against your credit rating. A low score can actually prevent you from buying a home as you may not qualify for a mortgage, place you into a higher mortgage rate.
Take a look at your credit score through Equifax or Transunion, many of the lenders look at these when determining if you qualify for a real estate purchase.
5. Talk to a mortgage professional
Talk to a mortgage professional, this is also called the “pre-approval” processit will give you a better idea of how much mortgage you can qualify for, based on the information you provide (income and debt).
If you need some help finding a lender or mortgage professional, I am happy to help.
Once you have a better idea of how much you will qualify for, it is important to consider all of the additional expenses that you will encounter during your home ownership, this may include property taxes, insurance, utilities, maintenance and incidentals.
You don't want to become 'house poor' so its important to review all costs asssociated with ownership before embarking on the purchase.
7. Give me a call
Once you have gone through the steps, or if you need help determining costs or advice, a qualified Realtor can help you go through the details of some additional costs of home ownership.
Once you are comfortable with an amount that you qualify for and can afford, the house hunting begins!