Big John Peterson's Home Marketing Team

2012 Holds Promise for Calgary and Alberta Real Estate Market
The 2011 numbers are in for the Calgary and area Real Estate market. There was strong improvement with the total number of sales increasing by 8 percent and the total number of listings brought to the market decreasing by 6 percent. Both numbers moved in the right direction! The total number of sales in 2012 is projected to increase by approximately 5 percent. This still leaves the market below the 10 year average for total sales, but indicates a strong trend towards a much stronger market. Prices were stable in 2011 and with the increases in the total number of sales, prices look like they will remain relatively stable for 2012 with some minor increases projected towards the end of this year.

2012 looks like it will be a strong, stable Real Estate market for a couple of reasons:

Strong Economy and Job Growth: Oil and gas, the economic drivers in Alberta, continue to show signs of improvement and increased investment. Unemployment in Calgary and Alberta remain low with the Alberta unemployment numbers decreasing another 0.1% in December. The simple fact is; people go to where the jobs are. When people move into our province, it increases the demand on housing. Increased demand strengthens our market.

Good Affordability: The affordability of owning a home is always a big concern, it is the largest asset many people have. The cost of owning a home versus the income levels in Calgary are balanced with less than 40% of the average household’s income needed to service their housing needs. Compare this to the absolutely crazy numbers in Vancouver where over 90% of the average household’s income is needed to service their housing needs, and Calgary looks really good!

Our absorption rates are still a little on the high side, but single family homes and condos in Calgary are right around the 4 month mark. If we see continued investment and job growth in our province, the absorption rates will continue to come down and create a more competitive market.

If you are thinking of making a move in 2012, or just want to discuss your Real Estate options, please send me an email or call me at the office. We would love to hear from you.

The more you plan your next move, the better the results will be. I am happy to come and discuss your options and provide you a NO OBLIGATION, ABSOLUTELY FREE REAL ESTATE CONSULTATION. Knowledge is power when making your next move! Call or email me today.

The Temperature May Be Cooling Off, But The Real Estate Market Holds Steady

As we look towards winter with cooler temperatures, and with Christmas right around the corner, many people expect the Real Estate market to cool off as well.

The truth is, the market is actually better than it has been in the last couple of months. The absorption rates are down and the likelihood of your home selling has INCREASED as compared to the last 60 days.

A quick snapshot of where we are year-to-date in 2011 versus 2010 shows a significant improvement in total sales and that pricing has changed very little. Overall MLS sales are up 8 percent, led by increases in Calgary single family homes of 10 percent versus the year-to-date totals last year. Please keep in mind, last year was one of the worst years for Real Estate sales in the last 15 years. These numbers show the market is continuing to recover.

With continued strong economic growth in the energy sector, Alberta is positioned to outpace the rest of the country when it comes to the economy. As the job growth continues in our province, the demand for housing will continue to recover. As the demand increases, it is a matter of time before we start to see some pricing increases as well.

If you are considering buying your first home, investing in Real Estate, or moving to a larger home – what are you waiting for? DO IT NOW!

With mortgage rates predicted to increase, it looks like prices will slowly start to increase as the inventory of homes decreases.

Give us a call. We would be happy to discuss your Real Estate options – no cost and no obligation to you. Your next Real Estate move could be your best one yet, let us help you plan your success!

The October 2011 market statistics are out and it looks like the Calgary and Area Market is holding its own.

The total number of residential sales is up 8% year to date versus last year. When broken down, that translates into a 10% increase for single family homes and 3% increase for condominium sales.

When looking at the October monthly numbers, we see the total current inventory is actually down by about 1% for single family homes and almost 5% for condominiums. The monthly sales are up 2% for single family homes and up almost 20% for condominiums! The combination of decreases in total inventory and increases in sales volume is helping to keep our pricing steady.

The towns around Calgary are experiencing an increase in both inventory and sales, 18% in inventory and 29.5% in sales for the month of October.

The average sales price for the MLS system has increased by just over 1% in October 2011 versus October 2010.

The good news is – inventory numbers are down and sales numbers are up. This has allowed the pricing to stabilize. With strong job creation in our Province, it looks like the prospects for continued demand are good. All indications are we will continue to experience a stable market.

The Keys to Success in Today’s Market:
Clearly define what you want to accomplish. For example, if you have been thinking of moving to a larger home or buying your first home – now is the time to do it. Inventory numbers are high and interest rates are low. Your cost to purchase is very reasonable in this market. Remember - don’t focus just on 1 aspect of your move. Take into account both your sale and purchase numbers to maximize your upside for the future. If you currently live in a $400,000 home and want to move to a $600,000 – you are far better to do it now before prices start to increase and while the cost of borrowing remains at historic lows.

Absorption Rates (months worth of inventory currently in the market)
Calgary Single Family: 4.5 months
Calgary Condominium: 5.3 months
Towns outside Calgary: 9.6 months
Total MLS: 6.4 months

These numbers are very similar to the absorption rates from September 2011.

If you are thinking of buying or selling a property before the end of 2011 – please call us today for your ABSOLUTELY FREE, NO OBLIGATION consultation. We want to show you how to make your next Real Estate move your best one yet!

As We Head Into Fall - What Lies Ahead?

2011 is still looking much stronger than 2010:
1. Residential sales are up 7% over last year, year to date
2. Single family home sales are up 10% over last year, year to date
3. Condominium sales are up 2% over last year, year to date
4. Sales prices have remained relatively stabile versus one year ago

What does this mean?
In 2010, the time period from October to December saw a softening of prices due to high inventory numbers and a decrease in demand. 2011 is showing stronger sales numbers, indicating more stability in pricing for the remainder of the year.

There is a lot of economic uncertainty in the world. Alberta continues to see stable economic growth and relatively low unemployment when compared to the rest of Canada and the United States. Alberta unemployment is about 5.9% with the national average over 7% and the United States approaching 10% . People will go where the jobs are. When people are drawn to an area, they need housing. As long as Alberta can continue with stronger job prospects than other areas in the country, demand will continue for housing.

The absorption rates for the beginning of October:
* Single Family (Calgary) – 4.6 months - moderate buyer’s market.
* Condominium (Calgary) – 4.7 months – moderate buyer’s market
* Towns (Outside Calgary) – 9.6 months – buyer’s market
* Country Residential (Acreages) – 16 months – buyer’s market
* Total MLS – 6.3 months – moderate buyer’s market

Anything above 4 months worth of supply is considered the transition from a balanced market to a buyer’s market.

Remember, in the spring these numbers were about 1 month shorter. If there is any surge in buyer demand we will see these numbers decrease.

If you are thinking of buying or selling a property before the end of 2011 – please call us today for your ABSOLUTELY FREE, NO OBLIGATION consultation. We want to show you how to make your next Real Estate move your best one yet!

What Will the Fall Real Estate Market Look Like?
As the July Calgary and Area Housing Market numbers are released, many people are asking us what the fall real estate market is going to look like.

When looking at the July 2011 numbers, they are definitely better than a year ago. Calgary single family home sales are up by 8% year to date, and the condominium sales are up 5% year to date. Combine the increased sales with a 7% decrease in inventory and you have a much better market than in 2010.

The absorption rates are much stronger for 2011:
* Calgary single family absorption rates are 4 months in 2011 versus 6 months in 2010
* Calgary condominiums are 4.4 months in 2011 versus 6.2 months in 2010
* Towns outside of Calgary 8.7 months in 2011 versus 10.6 in 2010
* Acreages 20.4 months in 2011 versus 23 months in 2010
* Overall MLS absorption is 5.8 months in 2011 versus 7.6 months in 2010

Remember – a balanced market is 2-4 months of absorption. Higher than 4 months signals a buyer’s market and lower than 2 months signals a seller’s market.

Overall, the market is much better than a year ago and this sets us up for a promising fall real estate market. The market is likely to remain relatively balanced and we should see some increased buyer demand in the fall. This increased demand should lower the absorption rates comfortably into the “Balanced Market” range.

Calgary Real Estate Market Remains Balanced

Understanding the absorption rate in the Real Estate Market is key to understanding if we are in a buyer’s, seller’s, or balanced market. Absorption rate is defined as the amount of time it would take to sell the existing inventory, if no new properties were brought onto the market.

A quick reference point for us to keep in mind is as follows:
1. Sellers Market: is when the absorption rate at 2 months or LESS.
2. Buyers Market: is when the absorption rate at 4 months or MORE
3. Balanced Market: is when the absorption rate is 2-4 months.

Currently, the Calgary market remains a Balanced Market:
1. Single Family Homes in Calgary: absorption rate of 3.5 months
2. Condos in Calgary: absorption rate is 4.1 months
3. Towns Surrounding Calgary: absorption is 7.7 months
4. Acreages: absorption is 16 months.

Typically, the absorption rate in towns around Calgary and Acreages will be higher than for properties in Calgary.

The balance we are seeing in Calgary is very positive news and indicates continued confidence in the local economy.

Sales in May were just slightly better than in May of 2010 and the prospects for job growth in the province indicates there will be continued economic growth and increased demand for housing.

If you are looking to buy a property, now is the time to do it. When demand picks up that will trigger higher interest rates, increased prices, and decreased selection. Why wait?

Our Team has developed customized plans for both buyers and sellers to achieve their Real Estate goals! If you have questions about the market or are considering a move, please call us and we would be happy to meet with you to discuss your options no cost or obligation to you!

Stability Returns to the Calgary Market Surrounding Communities Still Have Excess Supply

The sales statistics for March 2011 have some very positive and encouraging news for the Calgary market. The market is returning to a balanced market.

How and why do we determine this?

The key factor we look at is the absorption rate. This is determined by calculating how long it would take to sell off the existing inventory if no new listing were taken. The absorption rate is used to determine if we are in a buyer’s market, seller’s market, or a balanced market.

The benchmarks used can vary a little depending on who you receive your information from but we use the following:

Buyer’s Market: This is when the absorption rate is quite high. There is a lot of supply compared to the demand. The absorption rate number we use, approximately 4 months of supply, indicates we are in a buyer’s market. The higher the number, the more the market shifts to being a buyer’s market.

Seller’s Market: This is when the absorption rate is low.There is more demand than available homes for sale. When the absorption number is below 2 months, this indicates a seller’s market.

Balanced Market: This is when the absorption rate creates a balance with a “normal” marketing time for properties. This type of market creates a stable environment where neither the buyer nor the seller has an advantage in terms of the fundamental market conditions. An absorption rate of between 2 months and 3.5 months would indicate a balanced market.

Where Are We today?

As of the end of March 2011, the following are the absorption rates for the different market segments in and around Calgary:

Calgary Single Family Homes: 3.0 months
Calgary Condominiums: 3.3 months
Towns (Outside of Calgary): 7.8 months
Acreages: 14.7 months
Rural Land: 43.0 months
Total MLS:4.3 months

The recovery of the Real Estate market in the area will be lead by single family homes in Calgary and we now see that both condominiums and single family homes are in the “Balanced Market” range.

As job growth continues, more people will continue to come to Alberta and the absorption rates should continue to decrease.We are not expecting any dramatic shifts in the market, but we are seeing more buyers and lower absorption rates in the Calgary area.

What does this mean for you?
Please contact our office for an absolutely free, no obligation consultation to determine the best plan to achieve your Real Estate Goals! It doesn’t matter if you are buying, selling, or investing – having a customized plan to achieve your goals will ensure a positive Real Estate experience!

2011 Brings With It Some Cautious Optimism To the Calgary Marketplace

January 2011 showed an increase in single family sales when compared with January 2010 and when compared to December 2010. This is great news for the market.

For the first time in at least 12 months we are hearing positive news about the Alberta economy and job growth in our province. Many finanical instituations and economists are predicting that Alberta will lead all provinces in economic growth in 2011. There are reports of 35,000 - 40,000 new jobs being created this year in Alberta as well. The combination of job growth and strong economic news are both very positive for the real estate market. Let’s fact it - Alberta is still an oil and gas province. With gas prices inching upwards and oil at close to $90 per barrel, it is a matter of when, not if, the market will start to recover.

The current market has a combination of great buying factors:

1. Prices have declined over the past few years. Buyers today are paying less for homes than in previous years.

2. There is great selection. Buyers have a tremendous amount of choice when looking for the perfect home or investment property.

3. Interest rates are at record lows and will go up. It is a great time to take advantage of the low interest rates and keep your interest payments to the bank as small as possible.

These 3 factors make now the time to invest in real estate, buy your first home, or look at moving into your dream prperty. If the demand continues to increase, these 3 factors will change very quickly! Please don’t be one of those buyers who looks back and says “I should have bought when prices and interest rates were low”. Believe me - the market can turn around very quickly!

We offer 3 No Obligation, No Cost Programs so our clients can make the best decision possible when it comes to real estate:

Selling Consultation: If you are thinking about selling your home in the next 12 months, please give us a call. We can meet with you to discuss your options, help you to prepare your home for sale, what to do to maximize your sale price, talk to you about timing, and keep you informed on your local market. Many people wait until the last minute to discuss their situation with us. The more you can plan in advance for a move, the easier and more profitable it will be for you!

Buying Consultation: No matter if are looking to buy your first home or your 20th property.A strong team are key elements to your success! We can show you how to get the best mortgage deal, get the best price on a home, and how to work your way though the maze of paperwork involved. We even have a program dedicted to finding properties for you that other no other agents are aware of! We have over 10 methods to identify proprties for sale, in addition to the MLS system!

Investor Consultation: Many people have made strong returns from their real estate investing. Why not you? We have personally invested a lot of money in real estate and can walk you through the dos and don’ts. And yes, we have made some mistakes. The benefit to you is we won’t let you repeat them. Learn from our experience. We want to help you develop a strong financial future.

My team and I look forward to answering your questions and providing you with the information you need to make your real estate experience the best it can be!

September 1, 2009

Calgary metro home prices made the first year-over-year increase on a monthly basis since February 2008 according to figures released by the Calgary Real Estate Board (CREB®). Prices received an added boost from the sale of a $10.3 million home earlier this month.

“Calgary’s housing prices are edging upwards as consumer confidence improves and demand continues to grow,” says Bonnie Wegerich, President of the Calgary Real Estate Board. “The recent $10.3 million-sale has undoubtedly boosted the average price this month, but even without this sale the average price is higher than a year ago.”

The average price of a single family Calgary metro home in August 2009 was $454,130, showing an increase of 4 per cent from July 2009, when the average price was $436,782, and showing an increase of 3 per cent from August 2008, when the average price was $440,625. The average price of a Calgary metro condominium was $283,330 showing a 1 per cent decrease from July 2009, when the average price was $285,032 and a decrease of 2 per cent over last year, when the average price was $287,832. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The last time prices showed a year-over-year increase was February 2008 when single-family homes rose by 5.2 per cent from February 2007 to $471,696 and condos increased by 3.3 per cent from February 2007 to $311,812. The average price of a single family Calgary metro home in August 2009 without the $10.3 million-sale would be $446,413—coming in just above the average price one year ago.

“We might see a gradual edging up in average prices come this fall, but on the whole, prices will most likely remain relatively stable. With our inventory at just under a four-month supply, the market continues to be in balance,” added Wegerich.

The number of single family homes and condos sold in August in Calgary metro are also both up from the same time a year ago. Typically a slower month for sales, August saw 1,277 single family homes sold in Calgary metro. This is an increase of 9 per cent from August 2008, when single family home sales were 1,170. This is a decrease of 19 per cent from 1,585 sales in July of this year. The number of condominium sales for the month of August 2009 was 632, an increase of 28 per cent from August 2008 when 495 condominiums changed hands. This was a decrease of 10 per cent from the 702 condominium transactions recorded last month.

“We are seeing an upward revision of our housing market forecasts at the national level,” says Wegerich. “I think it is fair to say the recovery in the market has been a little brisker then first expected—and all signs indicate the rebound, all be it gradual, will have some longevity.”

Single family Calgary metro new listings added for the month of August totaled 1,910, a decrease of 9 per cent from July 2009 when 2,089 new listings were added, and showing a decrease of 16 per cent from August 2008, when 2,270 new listings came to the market. Calgary metro condominium new listings added in August 2009 were 832, down 9 per cent from July 2009, when the MLS® saw 918 condo listings coming to the market. This is a decrease of 21 per cent from August 2008, when condominium listings were 1,054.

The median price of a single family Calgary metro home in August 2009 was $400,000, showing an increase of 3 per cent from July 2009, when the median price was $390,000, and up 1 per cent from August 2008, when the median price was $398,000. The median price of a condominium in August 2009 was $260,000, down 1 per cent from July 2009, when the median was $263,000, and down 3 per cent from August 2008, when the median price was $268,500. All Calgary metro MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“All in all we are optimistic about the fall market.

Low mortgage rates, government incentives and realistic pricing on the part of sellers are contributing to healthy sales numbers—as is the recent boost in consumer confidence on news that the worst of the economic slowdown is over,” says Wegerich.

CREB® is a professional body of 5,445 licensed brokers and registered associates, representing 252 member offices. The Board does not generate statistics or analysis of any individual member or company’s market share. All MLS® active listings for Calgary and area may be found on the Board’s website at www.creb.com.

For more information, please visit creb.com.