Calgary Real Estate Today...
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The Daily Realist A blog for people who love Real Estate and fine food, good music and excellent reads and dogs and cats and horses and....little boys on dog sleds.
Volunteering for you. Yes in more ways than one I am working for the public. I recently went to Edmonton to represent my association AREA, Alberta Real Estate Association, to meet, mix and mingle with MLAs at our Government Liaison days event. What a great opportunity we had to meet so many of them and voice our concerns about what is happening in Ottawa and what we can do to make positive changes for Albertans. Wouldn't a "Made in Alberta" mortgage guide line program be great? No one understands why we are taking it on the chin for over heated markets like Vancouver and Toronto. What if we had lending rules that were specific to the prairies? I had wonderful conversations with our MLAs about that subject and I am very hopeful there will be changes soon.
So, what really is a Buyer's Market?
Well it is still a buyer's market but only for real estate that falls within the norm. If you are looking for a property that is out of the mainstream for size, location, design you may be in competition with others and even in this market you may find yourself in a bidding war. However if you intend to stay where you buy for a long time, what does it matter? I am reminded of clients who bought a house way back in the mid '80s who wanted an unusual property. Unusual only in the finishing, they loved oak and we found one that was decorated in oak paneling and flooring and cabinets in every room and even had oak coffered ceilings. The price was about $30,000 more than the comparable listings in the neighbourhood that had sold. They wanted that house and were willing to pay for it. Now 34 years later no one remembers or cares about the difference and the clients had 34 years of enjoying the house they wanted.
Waiting...With the election on Monday it seems that everyone is holding their breath before they make a real estate decision. I see right now is a very good opportunity to act. Nothing lasts forever bad times or good times, and 5 years from now we can look back and say, "Gee I sure wish I had sold, or bought property in 2019" I had that thought in 1985 (today's 2019 economic equivalent year), but I was young and had little money had I acted then, I would have made considerable profit in a short 10 years. Just sayin'
BE KIND ACT LIKE A DUCK I overheard a family argument and I couldn't help but notice that not one of the arguing parties stopped to consider the little kids who stood there looking from one yelling adult to the other with eyes wide and frightened looks on their faces. The children deserve the peace of mind that comes from knowing that their family is unified and intact. A basic right for anyone. The adults didn't stop to take a breath and never realized that it isn't always about them, sometimes it about everyone. Walk away, I wanted to say, just walk away and flap your arms like you would if you were a duck. Have you noticed that after a squabble in the pond about who is who in the swamp, the ducks finish beaking at one another, they just turn and float in the other direction, flapping their wings and letting all the negativity fly away.
"Doing Good in the Hood"I stole that saying from a tee shirt I saw on James Boettcher CEO of Fiasco Gelato. I didn't ask him. But I will thank him. I love promoting people who are doing good in the hood and he is one of them. I heard him speak yesterday and I wish everyone could hear his message of perseverance and purpose.
I was invited to attend "The Annual" which is an afternoon of learning and meeting and speaking created by Joe Jacobs of Mortgage Connections. Thank you guys for the uplifting afternoon.
I am a magician, I work with other magicians. Well magic is everywhere when you look for it isn't it?
Now, I am not speaking about the kind of magic that involves card tricks and bunnies in top hats but the kind of magic I practice is the sort that brings tears to your eyes and smiles on little kid's faces.
The magicians I work with are all ladies and are all members of CHAS. CHAS stands for the Children's Hospital Aid Society. http://chascalgary/history/. There are 75 women members out of which 40 are active members who not only raise funds for the Children's Hospital and community through 2 huge fundraising events such our CHAS Golf tournament and our CHAS Holiday Luncheon at Christmas but we also roll up our sleeves and pitch in to help at Ronald McDonald House, Inn from the Cold, I Can for Kids, Made by Momma, Annual Easter Party at the CH,and anywhere we are needed for the kids.
And MAGIC? That happens when a happy disadvantaged child smiles at me and my eyes leak.
RECREATION in CALGARY
Calgary never ceases to amaze me, when times are tough for employment and the weather has us socked in for months, Calgary Parks Department has a program for everyone, exciting classes for kids like skate boarding, and cerebral activities for old folks like nature studies. Rehabing our infrastructure has been on the hot list for a few years now and our new ring road is well under construction as is the new green line. We have the finest and fastest transportation system in the continent. Or we soon will have. What does this mean for you? Calgary is a desireable place to live and with our infrastructure we are a desireable place to set up or expand your business. So? So, that means that people will be moving here, whether we get a pipeline expansion or not. However, if we do get a pipeline expansion green light without the threat of more delays then optimism will return and this city will flourish. That means, that the prices you see today will seem like a bargain tomorrow. I have seen enough booms and busts to know that nothing remains stagnant for ever. Even the rust belt of the US is undergoing change and technology is replacing the coal mine. Hang on to your hats, this is going to be a ride.
Wendy has a CIPS designation (Certified International Property Specialist). She is able to help you find connections around the world whether you are buying or selling Real Estate.
It's not just Canadians searching for real estate on REALTOR.ca. anymore. Buyers and investors from the US, China, India and Germany are regularly browsing our listings on REALTOR.ca Top 10 Cities searched by International Buyers Toronto Vancouver Ottawa Calgary...yay! Montreal Mississauga Oakville Edmonton Winnipeg London This information is from CREA (r). We can make sure your property information is truly accessible around the world. Real Estate marketing is not just local anymore.
What to do when you are stressed. Tidy up! My mother in law taught me this one. When you have an issue or a problem that you cannot solve by worrying about it try this. Pick your messiest closet and take everything out of it. Wash the shelves and the floor and the door and the knob or handle. Tighten the screws on the hinges and then oil them. Once that is done, carefully put everything that you cannot live without back in. If this closet is a linen closet or a coat cupboard you will probably discover a lost item or something that is no longer useful and which is taking up space. You can be proud of a tidy closet and now you are ready for a change of seasons with a matching pair of gloves and scarf that you thought you had lost. Have a look at Realtor.ca. Now, that is a reorganized closet! You will appreciate the new format, information and listings and the search format makes it easier for you to find a property that you are looking for.
Look Carefully to discover some REAL Real Estate Hidden Treasures. It doesn't take a genius to discover a really good deal in Calgary these days. No, you don't have to do calisthenics on the keyboard to find homes that offer a lot and ask a little. Just ask your REALTOR or better still ask us to help you find a bargain. For example we have two listings right now that suffer from housekeeping neglect and could be cleaned up with little money and effort. The public can't be bothered to view houses that aren't perfect in this market. I don't blame them. Sellers are bending over backwards to get their homes in sparkling, twinkling and priced right shape. The listings that leave themselves open to bargain hunters are generally foreclosures. Because the properties become commodities in asset recovery for the banks and the courts once there is no one left who cares what they look like. Therefore these properties are generally, not always but often, priced to reflect that. Take for instance our listing at 54 Legacy Lane. Over 2300 square feet with 4 bedrooms and a bonus room and all for $475,,000. Its a nearly new home and the builder can't even build an identical new one anywhere near that price. Somebody is going to get a deal. Then look at Queensland. Markets go up and markets go down and in Calgary it is a fact that they generally fall slowly and recover almost overnight. So don't be caught waiting. Now is the time to get in the market.
If no Surprises Happen Good or Bad
Well folks we are down 15% in price since 2014 in single family homes and we are looking at a slow decline to reach maybe -25% in price by this time a year from now. Condos will be worse. This presumes that nothing horrible happens to the economy, or at least more horrible that what we have become immune to or if something wonderful happens and Calgary becomes an economic boom town again. So what's a body to do? Should we stay or should we go now? It is a question that only you can answer. Don't forget that if you sell in a soft market and your choice is to stay in our beautiful city, you are also buying into a soft market. BUT some things remain true. Buyers want homes in good or excellent locations, in impeccable condition and at compelling prices. Now, that doesn't mean that you need to give your home away, priced well means priced competitively and easy to show. When the buyer walks into your home they (unless they are renovators) don't want to do anything but just move in. You will get a good offer from a serious buyer if you present a good home to the market with a serious price. Simple. The differential between what you sell for and what you buy for can work to your advantage in a slow market. If you are downsizing you can put some money in your pocket and if you are moving up the choices you will discover will be dizzying. Calgary is suffering from a PDST (not to lessen the serousness of this for those people who suffer from the medical condtion), but lets call it an financial PDST. We are tired of the ups and downs and the tenderhooks on which we rest with jobs and careers. That is one reason we find it hard to make decisions about such things as the Olympic bid and huge infrasturcture programs, like LRT extensions to the deep south. This is the situation we find ourselves as Calgarians in right now, with the exceptions of those who either must sell, or must buy, we are all taking a breather. This is your chance, while no one is looking, for you to swoop in and to make a good investment no matter what side of the ledger you are on.
How to Invest in Real Estate in Strange TimesBob Dylan said it...The Times they are a'changin'.
Who knew that just a short time ago if you were a criminal oil country or an International Oil company you could buy 'protestors' to further your own profit and set a whole country (Canada) adrift from global market competetiveness.? How did that happen?
Who knew that you can pay uneducated, easily manipulated twits who call themselves protestors to chain themselves to gates and dangle off of bridges. Yes there are people that stupid and that gullible to be manipulated by Big American Oil.
Who knew that you ( if you are a US, international Saudi oil company) can pay off our own Canadian provincial governments to manipulate our country's laws to prevent our own Alberta pipelines from getting product to tidewater.
Who knew that a cheap criminal sex offender gangster would be president in charge of running the US off of a cliff?
Who knew that the Federal Reserve has not learned its lesson and is still printing fake money and pretending that the party is still going on and our own Conference board and Bank of Canada are buying into that fairy tale and encouraging low interest rates.
The crash will come and probably sooner than you think.... So, where do I invest my money you ask?
Answer; CALGARY. Buy residential real estate in or around the city for yourself or for revenue.
Why? Calgary Real Estate is undervalued and the city is experiencing a resurgence of creative entrepreneurs and new business opportunities. Hiring is a thing again.
What you do for fun may influence where you live and vice versa.
Our city is clearly divided by a river which, along with the mountains, also divides our city's climate. Often storms come from the northwest and once they have released their fury in the form of hail and heavy rain in the north they gently meander down the river until they dissipate. However snow storms generally come from the south where they begin over Washington and Oregon and bring moisture in the form of snow in winter and torrential rain in the summer. The higher elevations in the city seem to get the worst of it. Both in the north and south. But nature also brings a gift with the chinooks. A chinook wind can blow a warm gentle temperature change that can melt the ice from the roads and snow from your lawn and convince you to wear shorts in January. Beware however, the runners on your dog sled can be sliding in snow on the front end and kicking up dust in the back. Johnny Chinook can reverse the change as well and your legs may turn blue and your fingers drop off if you get too optimistic and too far from home in your shorts and tank top when the north wind comes out and slashes right through you. - If you like to ski and you get jittery with anticipation and you can't stand being on the road more than 60 minutes to the mountains you should live in the north. There you are only seconds from the #1 TransCanada.
- If you like to run or bike unimpeded by traffic then you should live in the south and use the miles of pathways along the rivers and through the Provincial Park. WARNIMG speed limits apply. Although there are a lot of dog walkers and baby strollers who also enjoy the 'country feel' of paved, divided walking paths.
- If you are more of a pub quiz type then downtown close-in is for you. A pub on every corner and a patio on every street. A short walk will get you home.
- Maybe you prefer indoor swimming, two brand new Y's in opposite corners of the city. The Y in the NW is the largest in North America, or is it the largest in the world, No matter, its really really big. There are pools in every corner of the city however.
- If you ride horses then Spruce Meadows equestrian centre and myriad stables are all in the south.
But wait, none if these really matters because we have a ring road nearly completed and your destination is only minutes away from any corner of the city. Plus a new Green line train to the SE will get you sports events without the parking headaches.
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Winter is here to stay and the smart real estate investors who didn't leave town for warmer climes are here and they are buying. However they only offer on properties that offer one of two conditions. - Impeccable condition
- Priced at a compelling number
Does your property meet one or both of those criteria? Buyers are particular and so they should be. If your home suffers from deferred maintenance or miscalulated size, buyers will ignore you or punish you with a low offer. Make you home the most desireable in the neighbourhood. We used to say that only coming in second only matters in a horse race. In Real Estate winning is everything.
More listings are coming onto the market and for the first time in a long time there are more reductions (by 50%) than new listings on a weekly basis. How do you interpret this information?But the world is still turning despite what our political leaders are doing to us and the sun is still shining and leaves are turning and weather is warm and sometimes its best to just sit outside and soak it up. Not suck it up as the goose does in this quote; "The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing. -Jean_Baptiste Colbert, French finance minister (1665- 1683)
Foreclosures are selling as some folks think that we may have bottomed in prices and it is time to buy before the B of C raises rates.
Sept 5th, 2017 Wow, things can change in an instant. Globally lots of things are going on, not the least of which is threatening war and impending hurricanes and the fallout from devasting hurricanes, both in Houston and Bangladesh, then there are huge fires in our own country. The only event that affects our current market is still oil prices and although nothing has come along to take them higher we are becoming jaundiced to change.
We have a civic (yawn) election coming up.
Housing prices are not falling as rapidly as in the past. But housing prices across the country still act like hormonal teenagers and can go tearing off into their rooms and slam the door at the slightest sideways look.
Our federal government wants to hammer Alberta's economy into the ground and then stomp on it with new lending guidelines and small business tax. Harebrained budgets from our provincial legislature. Imagine that you plan your own budget on fairy tales and throwing chicken bones and then take that to the bank (the taxpayer) and expect them to say "good job Joe".
Yet Albertans are resilient to bullies. Albertans have seen all this before and just carry on, afterall we live in the best place on the planet and we know it. Others are beginning to catch on to that truth.
I hope dear readers that you had an enjoyable summer and are relaxed enough to brace yourself for the coming fall.
August 16th,2017 Outside of your own employment there is no real appreciative way to make money for your retirement these days. The most you can achieve in stocks and bond in a broad market is just over 3% and the difference between a conservative investment portfolio and an extremely risky portfolio is only 1 %. That is not a bonanza. I know of another way. If you are young and at all handy in anyway you can still flip real estate. But when I say flip I mean you will be doing some hard smart renos and when you are finished you can either rent the property out or resell it. The key priniciples are; you must buy right. Right location, right price and right time. We have a listing coming up that is vacant, priced right, in a pretty cul de sac with a park, in a popular community. Watch this space...
August 15, 2017 This summer has been busy for us. We have listed and sold homes not only in Calgary but also in Stavely, Airdrie, Cochrane, Okotoks and Acme. The ' overheated conditions of the "national real estate market' seems to have no effect on the buying and residence habits of long time Albertans. Oh and by the way, contrary to what the Conference Board of Canada thinks there is no national Real Estate Market. Real estate markets are LOCAL. We are familiar with the ups and downs of the oil market and have seen rigs going both ways, north and south up and down our highways. We have heard promises from governments, seen foolish political decisions and the rise and fall of our provincial fortunes. What we are seeing now is the tenacity of the Calgary and area residents who are in no hurry to leave the ship. Why? We have a vibrant scientific research community. Oh you didn't know? Engineers and bio chemists and pharma and medical research is being done right here in our city. These endeavours employ thousands of people who love to live here. Who wouldn't? We have 4 seasons. Yes, as one season ends it makes you appreciate the next one even more. We have affordable housing. Our average price is $511,000 and that buys you a beautiful condo in the core or a single family home in a stable residential neighbourhood. We have crime yes and in these times what city doesn't but the rate is very low per capita. We have a hardworking, tenacious and creative arts, entertainment and food service industry, thriving in our core. We are diverse by choice and welcome refugees in our city, and no, it was not the federal government who did the welcoming, it was Calgarians.
We have some of the best chefs, artists, musicians, writers, business people in the world and we want to keep them. And they want to stay here. If you have thought of moving to or investing in our beautiful verdant, vibrant community call me.
June 2 Volunteering in Your community This is kind of a side note article to blatant advertising of myself and Bryan and our listings. Business usually takes up most of our time but I do set aside time to volunteer in the community. Volunteering is an enriching experience for me and I do hope that I bring value to those I serve. As I left the Director chair of the Calgary Real Estate Board I spread my view to volunteering in another governance capacity and have made several application to serve elsewhere. Some chairs have been filled and others have made me offers. I will see what evolves over the summer and let you know.
April 9th Its just about impossible to make any money for your retirement in the stock market or the bank. When I was inputing our new listing in Cochrane the thought occurred to me that it would be a perfect next egg retirement vehicle for you. Think about it, the revenue from both of the units in 86 Glenpatrick Cres would set you up nicely with what you have saved or have coming in on a pension (if you are so lucky). Keep in mind that the lower suite is not legal. Interest rates are ridiculously low and a small mortage would be more than taken care of by the rents. Now you could travel on the income or make the property your little project and tidy up the gardens and make this a show place.....just sayin' Think about it.
April 6, 2017 One of my favorite views of our city is the one I see from Sarcee Trail over Edworthy off leash park just north of Bow Trail. I always think of how cosmopolitan and impressive our beautiful skyline is. Every building seems to be highlighted by the beautiful Bow river valley and our always blue sky above. Now, for shameless promotion, but I do have a point.This gorgeous view can been seen from our new listing on Spruce Place. We can offer this gorgeous condo with this jaw dropping view for the astonishingly low price of $379,000. (check out the listing to the left). In either Toronto or Vancouver in a lesser quality building with a similar view you would pay over $2,000,000.00. One thing I know for sure. The pendulum swings back and forth and one day soon we will say, "Gee Calgary was so cheap in 2017."
March, 22, 2017There still a lot of choice in the market and homes are definitely selling. HOWEVER and I can't emphasize this enough. Buyers are cautious, sellers are worried and lenders are careful and for a listing to sell it must be listed accurately. This might even be a number just under the most comparable and last sale in the neighbourhood. Buyers like a bargain, who doesn't? If you are brave you can list at a compelling price and get a few offers competing. Quite possibly you will end up selling for more than you expected. ![]()
March 3rd, 2017
It appears that the market is approaching a more balanced position but is this just a spring seasonal event or is it a change over the longer term? With our volatile political landscape it is impossible to make predictions and more fool the person who does. However it has been said (I don't remember by who) that if you are going to make predictions then make them often. The two driving factors in the Calgary market are the number of listings on the market and job opportunities. I think that the job opportunities are bogus. Sure there are jobs but it seems that by far the vast majority are with in government and those that aren't are part time. Oh, wait there are jobs cleaning up old abandoned wells, and jobs replacing curb and gutters in the city... but really? Are these keeping the wolf from the door? On the other hand life goes on at least until EI runs out and one thing I know for sure is that people must live somewhere and whether you own where you live or rent where you live, somebody is paying the mortgage and taxes. It matters not what the market is doing if you have 3 kids in a 2 bedroom apartment, you have to move. It doesn't matter to statisticians if your parents have left their real estate to their children and the estate has to be disposed of. Real Estate goes on, sometimes we make a profit and other times we get a bargain, but since the dawn of civilization moving from one cave, tent, hut or house to another for reasons sometimes only known to the family dog is a ritual that we all perform.
Average price of single family home in Calgary February 2017 $551,000 . Change in Inventory over last year is -30% and the months supply is -40%. No surprise. If the supply of homes to buy is down then it will take a lot less time to sell what we have. So, why are there fewer listings? I speculate that if folks don't have to sell, why would they incur the cost? If they don't have to sell and their income is down could they get another mortgage? If they don't have to sell where would they go if they did sell? Into a multiple offer situation on the few homes there are on the market? Or would the aging population move into an expensive market in a milder climate? Why are renters not buying like before?. Well, sure everyone likes autonomy but there is a price tag for that freedom. There is not an economic benefit apparent right now to buy a home from a renter's point of view. But as everyone knows from past experience a Real Estate market can turn on a dime and quickly a buyer can be shut out of the market. So? Buy now!
Feb 22, 2017 Did you survive Valentine's Day without getting yourself in the dog house?
I am going to divert your attention from the doom and gloom of south of the border and our current RE market condition in Calgary and give you some house and life hacks for getting yourself organized. Whether you are putting your house on the market or getting ready to buy one the following may help.
1) Clean out 1 closet per week. top to bottom and toss or donate things you a) don't recognize or b) don't ever want to wear again.
2) Organize two kitchen/dresser drawers per week.
3) Take your car to the car wash and clean it inside as well as outside. When you get home DON'T put it back in the garage just yet. Take this opportunity to sweep out your garage and organize the contents. when it is clean and ready for your car(s) park them inside and kiss them good night. NEVER leave your car outside on the street. That leaves a message, "My garage is so full of junk that there is not room for my vehicles and I haven't cleaned it out in 6 years" Buyer "Euewww!"
(4) Clean out your garbage and recycling wheelie bins and either put them INSIDE your garage or build a screen for them to hide behind outside. Leaving them outside on the driveway says. " This is a junky low brow neighbourhood and I can't be bothered to be respectful". Now go tell all your neighbours to do the same. Call me from the hospital. Kidding aside, people always try to live up to the neighbour's higher standards. (Keeping up with the Jones's don't your know?) You should lead the way.
Next week I have the best ideas for preparing home cooked nutritous family meals with minimal effort. AND another market graph.
a blog written for the smart and the savvy
in Calgary, Alberta CanadaFebruary 14th Valentines day! Spend it with your loved one...your Realtor. ![]() Check our newest listing in Airdrie. This one is sure to make your heart sing. And speaking of making your heart sing look at these stats. Now I am not saying we have a recovery just yet. Could it be that we are looking at the bottom and a year from now we may wish we had invested in Calgary real estate.
February 6th 2017
Discussions for today:
*Is new business coming to Calgary or are the commercial space developers offering such good rates just to get occupancy that major name brand corporations are calling the moving companies and leaving their old low tech buildings?
*The oil field service satellite communities are seeing some interest in buyers getting into low end price properties.
* Will we see this blizzard (1 meter of snow in the Crowsnest Pass and 8 inches of snow on the top of my bird feeder) as a blip on the radar when we look back at the charts? Or are we 'damn the torpedoes' people and soldier on? I had to cancel a showing today...slippery roads.
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Post POTUS election blues. No this isn't a song, well maybe a swan song but a good blues tune about this has yet to be written.
Pictures can tell a story and this story is one of uncertainty. Once deals are agreed upon for pipe lines and saner minds than that of the current US president prevail there will be an air of confidence in Calgary...until then people are sitting on the fence. But don't forget, that fence usual surrounds a piece of real estate and somebody has to own it. Why not you? In a few years you will congratulate yourself for being so timely.
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What we do on a rainy weekend in Stampede week...we interview each other!
Wendy: What would you say about the market today Bryan?
Bryan; I don't know, its confusing, but what I do know is that there is NOTHING for sale.
Wendy: So when there is nothing for sale and we are in the summer doldrums and oil patch downturn, what happens?
Bryan: Normally prices would go up, now however, it could well be that there is a cap on prices due to uncertainties in the job market.
Wendy; So what we are seeing then is that interest rates are so compellingly low that unless need becomes dire, people have no incentive to sell?
Bryan; Exactly and on the other side of the coin, some people think that 2.5% interest rate is compelling, but buyers are also cautious, they can fix a rate and wait. They are prepared to stay where they are unless they think they have seen the bottom.
Wendy; We are seeing multiple offers on the low end listings and little or no activity in the mid to higher end properties, other than low ball offers. Do you think the investor bargain seekers are driving the REAL ESTATE bus now.
Bryan; Certainly there is a preponderance of handyman investor class buyers. Not necessarily from China or India, most of them are local residents. However the high end is getting thinned out too.
Wendy; Yes, I guess we have to remember that not everyone is in the oil patch but its misery is affecting other sectors like retail and restaurants, builders and anyone who was going to spend money but now isn't.
Bryan; What I do know is that Real Estate is cyclical and nothing remains inert.
Wendy; Yes, and now we have all those Millenials who are ready to buy, with their PHD's tucked under their arms, they want a piece of the pie now.
Bryan: Do you think they will let their parents live in their basements Facebooking and playing Pong?
Busy Busy busy in the bottom end Lots of folks buying almost any single family home under $400,000. The upper ranges remain difficult to move but if a house is in the right location and at the right price, buyers are willing to jump in...why who wouldn't with interest rates as low as they are today. We have a number of handy man specials right now. One in Dover on a nice street but the house has been horribly abused. This one is a gem so roll up your sleeves and prepare to make yourself some sweat equity. The other one is in Marlborough and it will come on tomorrow at a compelling price. These properties are either owned by the bank or are judicial sales. This means that everyone perceives them to be a great value and last night we had a listing sell with 13 offers in competition with each other. Another one went to court and after coming back with sealed bids the townhouse sold for way more than its list price. Please call your REALTOR(r) to have a look, but if you don't have one we have some very talented and smart, sharp negotiator Buyer's Agents that we can refer to you.
Foreclosures. Everyone asks me, are the numbers up? I bet there are a lot of empty houses. There must a a whole lot of foreclosures in Calgary now eh? Answer; Well, no. Sure the numbers are up today, the count of foreclosures either directly from the lenders or from the Court of Queen's bench is 107. Yes, that is double from last year but no where near what people expect to hear. Foreclosures with a direct link to the energy sector have not materialized. Some marked differences between previous housing price crashes...the great depression of 1982 and the self made mortgage crash of 2007 to today's situation is the information and the speed of it and the interest rates. In the early eighties the interest rates were in the stratosphere, rates as high as 17% were common. We didn't have computers to gather and sort information. In the 2000's we were all blindsided by a mortgage derivative scheme that no one saw coming.
This situation, the sinking of the energy sector has been long awaited and feared, we are not stupid, we know that the world has been convinced that the petrochemical industry is the worst of all evils. Brighter minds than mine see the bigger picture involving manipulation of world money markets and flagrant persuasive use of the true American heart of patriotism to sway loyalties and march into war...oh dear I am way off track here.
Back to this blog....I also believe that some large lenders with savvy asset managers are clearing the decks of the usual clog of foreclosures to make way for foreclosed product coming into the market when
severance packages run out and when the possibility of new employment dissipates.
Colouring outside of the lines
In these uncertain times in Alberta selling one's Real Estate demands a strategic plan and, a creative approach to marketing. Sometimes the creative approach is simply the ability to price your property at a compelling level. I say simply but simple does not equate with easy. A lot of research will go into pegging a price on a moving target and that is what the Real Estate market in Calgary and area is right now, a moving target. Each day new global events affect our backbone industry and it is definitely our weakness to be a one trick pony. However smart minds are seeking diversifiction to replace, enhance and begin an evolution to different employment. I hope it isn't a hideous wind farm idea...here's a thought, someone should come up with a wind powered energy creating device that everyone will want in their back yard and that won't kill wildlife. I have seen the huge horrific looking wind farms that turn north of Palm Springs. I do not want that in my backyard. We have solar options I am sure but to be real, these options need to be unseen. I digress. Unemployment is getting worse by the day as layoffs occur in the oil industry and its service satellite employers. We have no back up plan.
So things aren't looking up for Real Estate. There are a few ways this could all work in your favor. How? You say, as you take your head out of the oven. 1) Firstly Real Estate dollars aren't real unless you are cashing out and moving away to another market, If you are staying here but changing lifestyles wouldn't it make sense to analyze your current value, reduce that by 10% say, know how low you can sell, then buy first; flaying open the seller until they bleed and get your best possible price, oh and add a condition or two. Then put your house on the market at a compelling price. Don't worry about what your neighbours are asking for theirs. Remember there is often a huge difference between asking and getting. Someone will come along and try to beat you up for price but you have already beaten yourself up and a line up of buyers is beginning to form. 2) If you are disposing of an estate and it is to be split 4 ways... do the math, your equity loss is lessened by the others and your loss is only 25% of the total 'loss' and that is not as painful as taking the hit alone. 3) You are retiring to Victoria to begin growing palm trees. That sucks, your timing is off but you do have the luxury of time...wait a few years, or suffer the loss now. Remember though the loss from value at the top of the market was only a loss of expectation.
4) You are just buying into the house market, wow, you won the lottery of choice, no hurry, work the sellers to your price.
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