Making your own decisions

		Single Family Homes				Condominium
		2010	2009			2010	2009
Sales		12,095	14,440	-16.24%		5,181	6,328	-18.13%
Days on Market		43	45	-4.44%		48	50	-4.00%
Average Sale Price		$461,144	$442,327	4.25%		$289,697	$283,734	2.10%
Median Price		$406,000	$392,000	3.57%		$266,500	$260,000	2.50%

December 2010 - Any professional that worked within the Real Estate industry will likely not mourn the passing of 2010.  Although all signs were positive in terms of Canada’s economic recovery this wasn’t reflected in the Real Estate Market.  Usually the 2^nd day after month end real estate statistics hit the news and the speculation begins.   Average sales prices, comparisons to the previous year and so on are released in every detail. Last year, month after month nothing seemed to improve.  I recall right around August I stopped listening and made a pact not to read anymore statistics.

One conflicting statistic occurred early summer.  While overall sales for the period were down 42% compared to 2009, luxury buyers in the million dollar plus category actually bucked the trend.  Sales in this segment were actually 42% above 2009.   No explanation seemed apparent.   Was this segment of the market more confident in the economic recovery?   Did they see the opportunities in the Calgary market?

In August the Real Estate Investment Network (REIN) ranked Calgary as the “number 1” city for Real Estate Investment in Canada.  

“The REIN report credits the downturn to a much-needed correction, and that it was “economically impossible for the (Calgary) market to continue at the pace at which it was heading.”  But now that it is coming out of the recession, along with economies elsewhere, Calgary’s strengths in producing food, fuel and fertilizer will boost its growth.”

“Calgary is in a unique economic and geographic position to take advantage of the direct and indirect jobs this increase in demand will create,” says Mr. Campbell (Don Campbell president of REIN), who adds that with strong in-migration and renewed affordability, the city provides a good buying window for long-term investors. 

With the stability of low interest rates, the Calgary Market is again attractive both to first time and upgrade buyers.   The Condo market, traditionally the market entry stage is well positioned for the savvy buyer and investor.   Price declines since 2008 have been more pronounced in this segment.   With the high volume of listings, this is truly a buyers market.  With today’s rates a renter can carry a mortgage, condo fees and taxes at the same cost as monthly rent.   As in previous years, a condo purchase today provides an opportunity for a foot hold in the market and allows the buyer to take advantage of building equity and appreciation in the next few years.   Calgary has become more of an urban center like Toronto and Vancouver, and like those cities the condominium is a desired life style choice.

Calgary has always been a market place where buyers routinely upgrade.   As buyers needs, tastes and resources change Calgarians’ list their homes and move up to better homes.   As Calgary continues to sprawl……more and more see the desirability and status of inner city areas.    People have a tendency to concentrate too much on what their present home was worth in the peak of the market, with the price adjustments over the last 2 years, the net cost to upgrade is considerably less.    The sale of your current home is not an obstacle; accurately priced homes marketed through a strong Real Estate Agent are selling!

Greg Gullekson, Mortgage Broker
Dominion Lending Centres Westcor
403.244.9133
www.greggullekson.com

Time is the coin of your life, spend it wisely

December 2010 - I like time.  I’m a regular at a watch shop just down the street from where I live. Here I regularly peruse the latest watch I simply must have and usually do.  I am drawn to pictures and paintings with time pieces placed in the scene.  I like hour glasses and clocks.  Not surprising, I am rarely late for anything.  I often reflect on why I have such an affeciando with time and I think I’ve come to the conclusion that it represents motion.  Motion to me is built into my active personality, I just never really like to slow down.  Which is why I tend not to reflect much on what has passed but more so what is to yet to come. 

Last year, while the prognasticators and trendsetters were proclaiming all sorts of wonderful things for Calgary and its real estate market, I was doing what I always do.  I was selling houses.  I’ve always told my clients to sell when they are ready to sell and buy when they are ready to buy.  Although it is agreed there are better times in the years to do so, there are people that let the time pass and just hope that things will improve.   Sometimes this is clear calculation on their part but other times it is just a fear of the unknown and a waste of time.

One of my clients, a first time home buyer told me that her condo purchase was the biggest decision she has ever made in her life.   The reason I feel that to be the case is that from our homes all other things happen and begin.  Our home is our base.  I bought my condo 5 years ago after a divorce and it wasn’t just a structure that I wandered in and out of, it housed my dreams, my happinesses and my timeline of stories.    Now, as I sell it I am confident that the next person that will own will create their memories here too.  This is the essence of life, changing what we once had  and creating new and positive beginnings. 

I continue to be amazed at how affordable housing is in Calgary.  We live in a thriving and bountiful city and if we stop to consider it, an economically strong city.  One of my clients who just bought her second property after renting for a period of time, is about to enjoy the fact that her mortgage is $400 less than her rent.  That’s with condo fees and taxes in!  She knew what she could afford, she knew the moment she walked into her condo that it was ‘the one’ and she simply moved forward with an offer.  It was a sensible decision and likely her life there will be one of great enjoyment. 

Diane Scott, president of the Calgary Real Estate Board stated, “Overall we did see significant improvements in affordability in the Calgary market in 2010 – and I think the message to prospective buyers is that this is a great time to buy if you’re looking for good selection, specific locations and price points.”   However last year, overall MLS sales saw a decrease of 15% over the previous year. “Employment and net-migration have been slower to pick up here in Calgary—and these are key drivers of our housing market. The good news is we are now seeing marked improvements in investment and employment in the energy sector. We believe these green shoots in our economy, supported by improved affordability and low interest rates, will eventually translate into a gradual recovery of our housing market as we move into 2011,” adds Scott.    

We shall see what 2011 will bring.  Whatever anyone is saying or predicting will never affect me, as I will continue to be of the opinion that my clients will do what they want and I will be there to support them and provide a positive influence on the biggest decision they will make in their life.  Time moves incessantly forward and it’s always good to reflect on what we’re doing with it.   A famous poet once said, “Time is the coin of your life.  It is the only coin you have, and only you can determine how it will be spent.  Be careful lest you let other people spend it for you.”  

Jacqui Williamson, REALTOR, Certified Condo Specialist
Century 21 Bamber Realty Ltd.
403.245.0773
www.jacquiwilliamson.com