Stay informed, in charge

Stay informed, sell your home

May 2011 (SPRING!) – When I buy anything I want to be absolutely sure that I’m getting a good deal.  I usually do this by comparing what I’m buying to what other suppliers or providers are offering.  In view of the fact that everything seems to be going up in price with most incomes not keeping up, a person is foolish not to check the competition out. 

In comparison to a few years ago buyers are in a very good position to purchase now.  The market has stabilized, inventory levels are healthy and prices have decreased.  Interestingly, the sales of homes in the higher price point ($700,000 and up) are selling on average faster than homes priced lower.  This primarily is due to the fact that Calgary’s economy is showing strength with higher income earners upgrading their homes.   It appears that there are many positive signs that we are in a vibrant real estate market. 

My experience as a REALTOR® has taught me some valuable lessons.  The most important being, my clients need to be and stay informed.  They need as much knowledge and education as possible in order to make a wise choice when it comes to the purchase of their home. When selling they need to be realistic and prepared.  One of the ways to do this is by providing them with a detailed report called a ‘Comparative Market Analysis’ (CMA).  This document, also referred to as a Market Evaluation compares their property with other homes that are in the same neighborhood, close to the same age and size, and with similar features.  The purpose is to show whether what they are selling is simply a good deal.  The CMA may use Active listings which aren’t always realistic as the listed homes could be overpriced.  It does however, show the competition and this is most important. It uses Pending sales (conditional sales) which aren’t yet true comparables until the house has sold. The most important comparable is what has Sold currently.  These are realistic prices that have met the test of time, successfully.  The CMA then breaks down average, low, high and median prices as well as price per square foot.  If a house is listed for $500 a square foot and the sold price for all other past listings is $400, I’d suggest that this is delusional pricing by an unrealistic seller.   

Pricing a home correctly is essential in selling it.  I always tell my clients that it reduces their stress, inconvenience and anxiety.  It attracts buyers and it eventually leads to a sale.  A CMA or Market Evaluation is free, and when done properly it will give a seller a realistic viewpoint of the current value of their home.  Buying or selling a home is a big deal.  Stay informed, stay in charge and create your own future. 

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

 

2011 Showing Promise 

May 2011 - After my “whining” over 2010, I have very little negative to report so far this year and seem to be enjoying a steady pace of business in 2011.   It seems the wait is over, Calgarians are no longer looking for further price declines and are confident in the stable market prices.  No longer sitting on the fence Calgarians are confident to make that first purchase, buy that rental property or upgrade to more suitable/desireable homes.    After our correction in 2008, analysts view the Calgary market as very affordable in comparison to other major Canadian cities.  At our peak in 2007 the average selling price of a single family home was $505,920 and condo $332,237, today the average single family home is at $460,315 and condo $285,799.

Calgary survived the recession with only minor cuts and bruises.   The economic outlook is more than just positive.   Indicators such as “office space vacancy” seem to indicate business expansion both in existing and new companies relocating to Calgary.  Oil and gas predict hiring an additional 13,000 workers in the next 3 years.   Alberta is well situated in the next few years as all our resources sectors are in demand not just oil and gas.  The global market place is looking to Alberta’s agricultural, fertilizer and forestry sectors.

We have witnessed these cycles before and they trigger both immigration and in-migration from the rest of Canada.   And what happens is housing demand begins to outstrip supply.   Pressure begins to be felt in the rental market, people shift to purchases of residential real estate.   Hopefully this will not result in the frenzy of activity experienced in 2007.

Today interest rates are still in favor for the buyer, with only minor rate hikes from 2010.   But how long with these low rates exist?   We are experiencing inflation for the first time since 2008.   Will we soon see increases in prime to curb inflation?   With 5 year terms as low as 3.89%, more and more of my clients are doing debt consolidations.   Credit card debt is not the only concern.   So many of my clients have at least a 1/3 or more of their mortgage debt floating through lines of credit at any where from prime plus 0.5 -2.00%.   The safety of today’s fixed rates should not be ignored.   We all have short term memories forgetting prime hovered between 6 to 7 percent in 2007.   In the last 12 months I have done only one variable rate mortgage.  

Greg Gullekson, Mortgage Broker
Dominon Lending Centres Westcor
403.244.9133
www.greggullekson.ca