Calgary Housing Market Report , March 1, 2017 – After the first two months of the year, Calgary’s detached sector continues to drive a slow transition in the housing market. February sales totaled 1,342 units, which is still 19 per cent below long-term averages, but an improvement over the past two years. As sales kept trending upward, detached inventory levels continued to ease in February. These conditions caused months of supply to fall to 2.4 months, putting less downward pressure on pricing. Unadjusted detached benchmark prices totaled $501,900 in February, which is one per cent lower than prices recorded last year, but slightly higher than January figures. “There seems to be a new sense of optimism these days,” said CREB® president David P. Brown. “Some sellers are feeling upbeat about the changing landscape and the improved chances of selling their home. Other people are looking at the spring market with caution and wondering if we’re going to see a higher than expected surge of listings. While there’s less product on the market right now, sellers still need to be realistic with their pricing.” The amount of excess inventory eased in the overall market in February, setting the stage for a transition to a more stable market this year. Months of supply totaled 3.4 months, down from five months over last February. At the same time, the sales-to-new-listings ratio trended from a near record February low of 39 per cent last year to 55 per cent this February. With sales improving and new listings and inventories contracting—two key measures of market balance, there’s good evidence to show that the housing market has started a trend toward more balanced conditions. “The transition in the housing market appears to be underway,” said CREB® chief economist Ann-Marie Lure. “However, it is important to note that this change is primarily being driven by improvements in the detached market and stability in the labour market.” “It will take some time for these conditions to translate into all housing segments and achieve price recovery,” said Lurie. “But all indicators continue to point toward a slow transition from a contracting market toward one that is stabilizing at lower levels.”
Real Estate Blog
Thinking of Selling Your Calgary Home?
Do I Buy first then sell? Or Sell then Buy?
There are three options to look at and choose.
Sellers need to think very carefull about the option they choose.
Option 1: Low Risk: Sell Your Home First then Buy Your Next Home
This option is the safe financial approach for most clients. Put your property on the market and wait for a firm sale, i.e. when all conditions have been removed. Ensure you have a 2 to 3 month possession date so you have time to find a new property.
This ensures you know what funds are coming from the sale of your home.
The sold price is fixed and you can make an offer on a home with confidence.
You only need to have two basic conditions when buying with Option 1:
1) Homes Inspection
2) Finance Condition
Sellers do not like a Sale of Buyers Home Condition and Option 1 does not require this condition.
Option 1 allows you to make an Offer that is more aggressive and the seller will more likely negotiate with you.
Option 2: High Risk: Buy Your Next Home and List your Home
If you have funds beyond your present home this option works.
However if the funds for the home you are buying come from your present home then this is high risk.
Option 3: High Risk: Make an Offer on your next home that is conditional upon sale of your home. Can cost you money and frustration! No Deal!
This can be costly since the seller will not generally drop price of home a significant amount. The deal does not usually go through due to sale of your home not completing on time. The seller may not even look at your offer due to this condition, especially in competing bids.
Need a Home Evaluation please click on this link:
Calgary Housing Forecast: A slow transition for 2017
After a long period of economic downturn, Calgary’s housing market is expected to see some price stability in 2017, but not across all market segments and property types. Both detached and attached prices remain unchanged over 2016 levels, while apartment is forecasted to contract by another two per cent.
“The transition in the housing market will be a slow process,” said CREB®chief economist Ann-Marie Lurie. “We are entering the year with high unemployment rates and the possibility that job growth will not occur until the latter portion of 2017. These conditions will continue to weigh on housing demand, but supply is adjusting to weaker sales activity, which will eventually translate into price stability.”
City-wide sales are forecasted to total 18,335 units in 2017, a three per cent gain over 2016, but 12 per cent below long-term averages. This modest demand change will merge with declining listings and easing inventory in the new home market to support more balanced conditions and prevent further downward pressure on prices.
“This year is about moving away from extremely challenging conditions,” said 2017 CREB® president David P. Brown. “The transition is going to take some time, which means sellers need to stick with the fundamentals of pricing their homes correctly against other comparable product in the market. There’s still lots of choice out there for buyers, but major price declines are unlikely in most segments.”
What Are The New Mortgage Rules? As of 17th October 2016.
- The government will restrict insurance on mortgages to loans on owner-occupied dwellings with amortization periods less than or equal to 25 years, purchase prices (not loan amounts) of less than $1 million, and for borrowers who meet a minimum credit score standard of 600.
- All insured mortgages in Canada (i.e. any mortgage where the borrower puts less than 20% down OR portfolio insured mortgages – i.e bulk insured loans with MORE than 20% down) will be underwritten using posted rates to qualify borrowers based on their income. For perspective, based on today’s rates, that means a borrower that could qualify for a mortgage at a 5-year fixed rate of 2.29% now will have to qualify – as of the 17th of October – at the qualifying rate of 4.64%.
- Foreign buyers will need to prove that a home they sell is their primary residence to avoid capital gains tax exemption abuse.
For example, if you have an annual household income of $60,000 and all other variables remain the same, the difference between the old rules and the new rules are a $338,000 home vs. a $272,000 home. Your purchasing power just went down by $66,000.
Another example, a home buyer currently qualified to purchase with 10% down for a mortgage of $527,000. After October 17th, this home buyer would qualify for a $420,000 mortgage. This equates to a 20% drop in buying power. (All things being equal in terms of property taxes, income, debts, etc).
Useful Tip: If you’re a homebuyer and you have a pre-approval, then talk to your mortgage broker because the numbers you qualify for probably just changed. It maybe more difficult for Sellers to find a quailifed Buyer, and it may affect property prices in Alberta, we will have to wait and see.
Some of this information was provided by First Foundation, please check out this link for more information.
Looking for a Calgary Infill Home? Calgary Infill homes come in many shapes and sizes and are generally in the inner city communities, such as Altadore, West Hillurst, & Killarney. Infill homes can be new builds or homes that are built in the last 30 years. The advantage of the Infill over the suburbs is the closeness to down town, restaurants, shops, bike paths, walking to work, less commute time, etc. Infill homes range in price from $400k to $2,000,000 plus. This website has all the Infill Homes For Sale in Calgary on MLS®. Please check out this link:http://www.searchcalgaryhomes.ca/search/1406
The term “infill” describes a form of development where a new home is built on an older lot and the old structure is removed. Hence, the existing lot is “filled in” with something new.
Why is having the Rocky Mountain View important? Having a spectacular view of the Rocky Mountains out your window not only increases the value of your property, it can bring a feeling of peace, serve as a reminder of the great outdoors and also be very pleasing to the eye.
Will the view in each neighborhood be made equal? No. Calgary being part of the rolling foothills has many communities built on hillsides giving the opportunity for some homes within a community to have impressive mountain views, while offering other residents perched lower on a hill to have walking pathways to view the mountains if they venture out for a stroll. Neighborhoods on the north sides of Calgary such as Tuscany, Rocky Ridge, Royal Oak, Arbour Lake, Edgemont, Hawkwood, Scenic Acres and Silver Springs will all have a certain amount of homes with splendid views. Neighborhoods along the west side of Calgary such as Valley Ridge, Cougar Ridge, West Springs, Aspen Woods and SpringBank Hill will also have many homes offering sprawling Rocky Mountain views.
Houses in these luxury neighborhoods in and around Calgary are almost all guaranteed a panoramic Rocky Mountain view: Watermark, Bearspaw, SpringBank, and Elbow Valley – as these executive type homes are usually designed with the Rocky Mountain view in mind.
In downtown Calgary, you have a great chance of finding a Rocky Mountain view if you are on the west side of a condo building and at least 20 floors up.
Certain neighborhoods in Calgary are known for having a double whammy – Rocky Mountain views as well as a Calgary Downtown city skyline. Just north of the downtown core, and centrally located you’ll find: Crescent Heights, Briar Hills, St. Andrew Heights and Rosedale with houses perched on the ridge and containing homes with gorgeous Calgary city skyline views with the Rocky Mountains behind it almost covering the entire horizon, a photographers dream. More unique is Edgemont, in NW Calgary, where the Rocky Mountain sights are off to the right while the City Skyline view is to the left.
Also, for a sweeping, uninterrupted Rocky Mountain View you can expect the price tag of a house to go up from 100K$ – 200K$ to a comparable house with no mountain view. This number can vary greatly depending on community. Contact your Realtor for more price specific information!
Living in Calgary and don’t have a Rocky Mountain view at home? Try going for a stroll or bike ride along the Glenmore Reservoir, or drive out to walk through Glenbow Ranch Provincial Park, in these areas and you are sure to have a beautiful back drop of spectacular, rolling mountain peaks!
Mortgage Approval Pitfalls. We work with Jencor Mortgage (Brooke Bartlett) for new and existing Buyers for mortgage approval. We recommend that buyers read this article about mortgages and approval. There is a big difference between “pre-qualification” for a mortgage and a “pre-approval” for a mortgage.
Pre-approval is a lot more detailed process, and includes you taking the time to complete a full mortgage application, providing documentation and allowing your lender to pull a full credit rating (or three). While you are unlikely to have a property in mind at this stage, you should have a general idea of how much you will need to include in your loan. During the pre-approval process, you might even be able to lock in your interest rate. This pre-approval is considered a conditional commitment that allows you to search for a home below the approved loan amount. This can provide a huge advantage to a home buyer, as some loan companies consider your pre-approval as “cash in hand” that you can provide to a potential seller to show your interest in the property and your ability to pay. Having your financing arranged upfront can offer you a tremendous advantage if you get into a competitive bidding situation with another buyer, as you’re one step closer to a mortgage.
Secondary Suites in Calgary. Do Calgary citizens want secondary suites? It depends on who you talk to. Many families in the suburbs don’t want the home next to them full of tenants and cars parking everywhere. However there are certain areas in Calgary close to down town that may be ideal for suited homes.
The City needs to look at this carefully. In areas where the lots are very narrow (could be fire hazard) in the newer areas it does not lend it sell to multiple family dwellings. however the areas where there are older bungalows on larger lots then suited basements will work.
Please check out this link for the Calgary Herald update on suites in Calgary.
Here are seven facts about activity in the quadrant last month, writes Josh Skapin, at the Calgary Herald.
1. Selection in the quick possession segment cooled off. There were 67 single-family homes that completed construction but were left unabsorbed in the quadrant last month, says Canada Mortgage and Housing Corp. This typically reflects spec and show homes. A year earlier, there were 126 of these homes.
2. Prices on spec homes stepped up. The average price on completed but unabsorbed single-family homes in southeast Calgary last month was $726,373, which was the highest in Calgary. In April 2015, the average was $672,954.
3. A stretch of new communities in southeast Calgary had a wide lead on single-family homes under construction. CMHC tracks housing activity by community clusters and one comprised of New Brighton, Copperfield, Cranston, Auburn Bay, and Mahogany had 344 single-family homes underway last month. That was more than 100 clear of the next most active group, including Sherwood and Nolan Hill, which had 230.
Click on link for more information…….
*PRICE REDUCTION!* This FULLY FINISHED home features 4 bedrooms/4 baths on a quiet street in the popular community of Rocky Ridge . This 2 Storey DETACHED bare land condo offers low condo fees set up for maintenance for lawn & snow removal. Ideal arrangement for the busy life style or anyone who requires these services. Main floor boasts new hardwood flooring, ceramic tile, UPGRADED stainless steel appliances, granite sink, ample counter space, half bath and the convenience of main floor laundry. Upstairs you will find a large master bedroom equipped with a newly updated ENSUITE, 2 additional bedrooms and another FULL bathroom. Beautifully landscaped, fenced backyard comes with a new deck, mature trees, RV Parking, and a double detached garage. Basement is fully developed with a 4th bedroom, 3pc bath, rec room and NEW hot water tank. Close to schools, shopping, the community center and public transportation. No work to be done with this home, just move in and enjoy!
Call Matt Antrum at 403 608 5684.