Category: Statistics (20)

sales-by-price-range-sept-2014Strong Condo sales aided by single family sales in the sub $1M range buoyed Calgary real estate market over the summer months. Buyers will appreciate that a gradual increase in inventory levels has created more selection and choice along with a less hectic pace to the process. Overall we are seeing the market calm down from the bell market we experienced over the past few years. While the forecast for jobs and in migration slows moderately over the next few years there still remains plenty of fuel for growth in the real estate market. Sectors that remain in hot demand are moderate priced homes and townhomes in walkable communities or good transit accessible areas. We also witness an increase in demand for moderate homes suitable for retirement lifestyles with amenities such as single level flats, accessibility (elevators), moderate sizes, low maintenance and security.

 

 

inventory-sept-2014We also are witnessing a greater demand for green and low energy features that are environmentally sensitive. Expect this trend to continue to grow as utilities consume a greater portion of the homeowner’s budget and concern for the environment becomes mainstream. Areas of the market we witness declining are large homes with less efficient maintenance requirements generally on acreages or not within walkable communities and usually over $1M price range. Looking forward we expect that the greater number of condo starts will begin to over supply this market over the next two year time frame. Also an increase in the cost of construction will place upward pressure on prices squeezing margins for developers. Look for a trend to more compact efficiently designed homes with a green influence along with new solutions for affordable housing including laneway housing, secondary suites and new density options for single family developers.

For detailed information of the Calgary Real estate market or a complimentary consultation call Sano Stante Real Estate at 403-289-3435

newplanThe Calgary Real Estate Board reports statistics that indicate we currently have six weeks of available single family inventory (Feb 13/19). The last time I recall our inventory of homes this low was in 2007 and everyone was discussing the critical state of the market. Of course this is a snapshot in time and we will not run out of homes to sell (while we had 447 sales, there were also 612 new listings that week), but it is an indicator of the status of our market, the relative level of inventory and an indication of a buyer or sellers market. In fact, one could assume that the actual level of inventory is even lower due to a CREB rule which does not enforce true reporting of status on their mls system (we don’t know how many homes are actually sold, as clients may instruct to retain an active status while under contract). So without over-analyzing this data, the bottom line is this: The market clearly favors sellers and if you were thinking of selling your real estate in the next while,  there may be no better time than now. We are negotiating record prices for most inner city real estate and even some suburban and acreage properties are selling that have been sitting on the shelf for many months. Where to start? Contact us to get a current state of the market assessment of the value of your home with no obligation and you will be armed with all the facts you need to make an informed decision. Who knows, you may look back in a year or so and marvel at your genius.

Home Appraisal

Home Appraisal

Selling your home is only half of the process – after the sale is conditional your home needs to pass the appraisal test. Given the importance of this step many clients ask ” How can I improve my Home Appraisal”?
It’s a common myth that “bank appraisals” are always conservatively low, but is that really true? Understanding the appraisal process can shed some light on home values and show you how you can enable your appraiser to substantiate the highest value possible.
First it’s important to understand the rules of engagement. Appraisals are based on recent sales usually limited to the past 6 months sales of comparable properties. In a rapidly rising market this explains why it is often difficult for appraisers to find evidence that proves the current values. Of course the opposite is also true and in a declining market often appraised values can tend to be overstated.

Here are a few ways ways you can help to improve your home appraisal:

  • Ensure the Appraiser is knowledgeable about your area. Especially in inner city communities where there are a myriad of factors that affect value and where values are extremely diverse.
  • Do your own homework. Appraisers rely on MLS data so if you are aware of private sales or the unique circumstances behind any MLS sales be sure to provide this information to the appraiser. You’ll be doing some of the appraisers work, but the payback could be well worth it.
  • Boast about the Calgary Neighborhood Information  If there are unique amenities or attractions that locals covet, now is not the time to keep them a secret. Be sure to inform your appraiser.
  • Document your improvements. If you’ve spent money on improvements be sure to document and show these to the appraiser. Especially important to point out are those improvements that are not readily apparent such as electrical and plumbing upgrades, insulation and other improvements hidden behind the walls. Don’t be hesitant to show receipts to prove the work you’ve done.
  • Understand which improvements add the most value. Kitchens and bathrooms provide the greatest return on your investment. Paint and flooring are next in providing the best bang for your buck, followed by curb appeal and landscaping.
  • Clean up. Ensure that the home is meticulously clean and the entryway shows well. Removing excessive furniture can make a home feel larger. Manicure the walkway to the home. Remove clutter and excess of photos and nik-naks. Remove all the magnets off your fridge and pack loose items in boxes that can be stored in the garage.
  • Understand your home size. MLS and Appraisal rules state that measured size must be area that is above grade. If adding size to your home understand how this will be measured and accounted for in the future. If you add space below grade, it will not count as added living area.
  • Give the Appraiser some space. As in showing any home to a potential client, don’t follow them around breathing over their shoulder. Provide the appraiser some space to let them make their own assessment and take their time to absorb and appreciate the beauty and value of your home.

Remember that appraisers prove value based on sales values in the past, but may not be attuned to market trends going forward. Understanding the current market and trends could enable you to extract many thousands of dollars of value from your home. This is where an expert real estate agent can help a tremendous amount. To ensure that you receive the highest value for your real estate investment before you sell contact Sano Stante Real Estate.

 

 

City of Calgary Tax Assessment
Each year the City of Calgary updates the Tax Assessment of the value of your home to ensure a fair and equitable distribution of the civic tax burden. You likely received your assessment notice in the mail for the upcoming tax year. Note that the Real Estate Assessment for the upcoming year is based on the market value of your home as of July 1 of the previous year. If you have questions about the value of your Assessment the City of Calgary now has a website that allows you to view assessments of other properties to compare your assessed value. There is a consultation period listed on your assessment within which you may discuss the stated value with your local City Assessor and understand the rationale for their valuation. If you do not agree with the City’s Assessment then you have the option of contesting the value before a Board that will listen to your evidence. You must be prepared to provide evidence of recently sold comparable properties to the board.

If you would like assistance understanding the myriad of factors that influence the value of your home or other real estate, please contact us. The team of experts at Sano Stante Real Estate have over three decades of experience evaluating unique Calgary Real Estate.

calgary-sunsetCalgary real estate resembled a more vibrant market in 2012 with a good kick start in the early months of spring and finished the year with strong, yet cautious momentum. This sales trend was most noticed in the Luxury home category which picked up dramatically in the spring and has recently coasted into a bit of a lull. The mid and lower end home market gained traction and has calmed in recent months but remains the bread winner. A drop in the number of available MLS listings in this low/mid category has kept the supply in check and prices relatively firm. Condo apartment prices crept up 3% year to date and the recent influx of new condo builds is maintaining a good supply of product and holding the prices competitive. Continue reading ..

calgary-skylineThe media has been ripe lately with stories of how the real estate market in Canada is over-valued and is now cooling. If you lived in Vancouver of Toronto, you would think that this is a pretty accurate indication of reality. However, if you reside in Alberta or Saskatchewan, you are probably wondering what kind of drug these reporters are on because their world is bustling with jobs and activity. So what is the real story in the local Calgary real estate market?

First, the real estate market is local. Like the weather, listening to a report that the Canadian real estate market is preforming poorly is like hearing that the weather in Canada is bad. Certainly Calgary is influenced by the national economy, just as we are by the global economy (now more than ever). However, real estate is a local story. Calgary is leading the nation in job growth and net in-migration, which leads to demand for residential real estate. While the rest of the nation (even the western world) is struggling to create jobs, we can’t seem to find enough people to fill the posts. So, when you hear that the real estate market is cooling down, its akin to having your head in the freezer and your feet in the fire. On average your temperature is may be moderate or dropping, but it doesn’t accurately reflect what’s happening locally.

Our research indicates that we will continue to have strong demand for residential real estate for the next two years. Price gains should be gradual and moderate, however lately we are concerned about a reduction in available listings, bringing our months of inventory to under 3 months for single family and townhouse listings. If inventory continues to decline, this could cause some pressure on prices to increase. Keep in mind that although prices have been rising, they have been stable for the past quarter.

This local/national example also applies to your local neighbourhood and what is happening in Calgary does not always reflect what is happening in your local community, or your particular street. If you zoom into this level the trends that we’ve witnessed generally are:

  • In increase in demand and firming of prices in the inner city
  • Increased demand for lifestyle properties and walkable communities
  • Increased demand in adjacent, bedroom communities like Airdrie
  • Cooling of demand and softening of prices in the outlying suburbs.
  • Slowing demand for acreage properties
  • A trend to smaller, more practical and energy efficient homes

As well there are the usual seasonal trends, and of course you could discover trends for pockets within your community. An experienced real estate expert can assess all of these variables that affect the value of your property and more. If you would like to stay current on the values in your local neighborhood, we will send you updates of the sales and listing activity monthly in a convenient email report. If you would like a current market evaluation of your property, simply call us and we will be pleased to provide this for you, so can make the best most informed decision on your real estate investment.

 

MLS-Home-Price-IndexAbout the MLS® Home Price Index

The MLS® Home Price Index (HPI) provides time-related indices on residential housing markets of participating real estate boards in Canada. The MLS® HPI is the best and purest way of determining price trends in these markets. Pioneered by the real estate boards of Calgary, Fraser Valley, Greater Montreal, Greater Vancouver, and Toronto and the Canadian Real Estate Association. In 2009, the partners contracted with Altus Group to develop the MLS® HPI, which launched the MLS® HPI in January 2012.

Why an MLS Housing Price Index?

Typically the public has relied on measures such as average or median price. These real estate boards wanted to develop an improved method to capture and analyze Canadian home prices based on both quantitative and qualitative housing features. Quantitative features captured by the index are, for example, number of rooms and bathrooms, living area above-ground and the age of the home. Qualitative features captured include finished basement, new or resale, and the home’s proximity to schools, golf courses, parks, etc. Essentially the HPI is an index that compares a particular property (say a Calgary bungalow in Mt Pleasant) and tracks it’s change in value over time – a much improved indicator of any typical homes value.

The MLS® Housing Price Index (MLS® HPI) gauges prices relative to January 2005 (an arbitrary benchmark date which happened to contain an abundance of data), and tracks price trends for these benchmark housing types: ▪ Single family homes ▫ 1-storey ▫ 2-storey ▪ Townhouse/row units ▪ Apartment units Benchmark homes are based on typical homes in each neighbourhood. The Benchmark home price is a constant quality home price measure.

Why does it matter? Average and median home prices are often misinterpreted, are affected by changes in the mix of homes sold, and can swing dramatically from month-to-month (based on the types and prices of properties that sold in a given month). The MLS® HPI overcomes these shortcomings. Compared to all other Canadian home price measures, the MLS® HPI identifies turning points sooner, is the most current, and is the most detailed and accurate gauge for Canadian home prices.

The MLS® HPI is based on homes sold by Realtors® and is provided as a service from participating real estate boards to its members and the public. For the best and most accurate market data on your property contact us at 403-289-3435 or email [email protected].

For public information visit MLS® HPI

price
First it is important to understand the various types of value that one can define for a property. These fall into several categories:

1. Replacement value

2. Investment value

3. Market value

Each of these valuations serve a purpose. For example, one would use replacement value for insurance valuations. If you were purchasing property for investment or  assessing a real estate portfolio in comparison to other investments then the investment value would be most useful. If you were looking to sell a property or determine the fair market value of your property then a market value assessment would be the most appropriate evaluation to look to.

Continue reading ..

longview3According to figures released todayby CREB® (Calgary Real Estate Board), Calgary residential sales in 2011 increased eight per cent over last year, with 18,568 sales for 2011 compared to 17,267 in 2010.

Sales activity was tepid in the first half of the year, however, early improvement in employment and migration resulted in a pickup in housing demand in the second half of the year. By the end of June 2011, year-to-date sales activity had only increased by two per cent compared to the second half of the year, where residential sales improved by 15 per cent.

“While sales activity in 2011 remained below the long run average by 17 per cent, monthly figures point towards the trend of this gap narrowing,” says Sano Stante, president of CREB®.

To view the full report see creb.com