Economic challenges to affect Calgary’s housing market in 2019

The challenging economic climate in Calgary is expected to persist into 2019.

Easing global oil prices, concerns regarding market access and easing investment activity are weighing on the energy sector and are expected to slow growth prospects in the province this year.

"Slowing growth, weak job prospects and lack of confidence are all factors that are contributing to the expected easing in sales activity this year," said Ann-Marie Lurie, CREB^® Chief Economist.

"At the same time, our market continues to struggle with high inventory levels and further potential rate hikes, all of which is expected to cause additional price declines this year."

There are signs that supply in the market is starting to adjust to slower sales, but the pace of adjustment is expected to be slow. Overall, it will help reduce some oversupply in the market and put the industry in a more stable position by 2020.

Buyers' market conditions are expected to persist throughout most of the year, impacting prices across all property types. However, the pace of decline is expected to ease by the end of the year, as concerns over the economy ease. 

While further easing in the housing market is expected, this will not likely be the case for all price ranges, as demand for affordable product is expected to continue to improve, given shifts in lending requirements and adjustments in expectations.

"In this market, buyers have the advantage of choice. A REALTOR^® can help buyers find a home that best fits their lifestyle," said Alan Tennant, CREB® CEO.

"For home sellers, knowing all the data and facts surrounding their home is critical to maximize their selling price. Working with a real estate professional can take the guess work out of the process."

Buyers and sellers often have questions come to mind as they are looking at homes online. To help provide a quick response to your questions we have installed a LIVE CHAT tool directly on our website!

This means you will be connected with our of our experienced Magnussen Real Estate Team members - professional Remax Realtors - who can provide information on homes currently listed for sale, answer your questions about buying or selling a home, Okotoks or Calgary & other areas' market info and more! 

Check it out today... click on the icon in the lower right-hand corner of your screen and say HELLO!!! 

Always putting you first ;-)

TAX-FREE... who doesn't love hearing those 2 words?! 

If you haven’t purchased a home within the last four years (or lived in a spouse’s home in the same timeframe), you may qualify for the government’s RRSP Home Buyer’s Plan. With this plan, you may borrow up to $25,000 tax-free from your RRSP to fund your down payment. Just keep in mind that the money must be in your RRSP at least 90 days before the purchase of your house - so plan ahead! 

The First Time Home Buyer’s Plan is advantageous for Canadians because generally speaking, early withdrawals from RRSPs are considered taxable income. In this case, they’re exempt but you must start repaying the amount borrowed from the RRSP two years after you buy over a 15-year period.

CLICK HERE FOR MORE INFO

After all, it is currently a buyer market in Calgary and Okotoks! If you're thinking about buying a home in Calgary, Okotoks or the surrounding areas reach out and find out how we can help you through the process of finding your first home! 

The best time to buy a home was 10 years ago.

The second best time is now!

Negotiating your deal is one of the most critical aspects of your real estate journey. It’s also one of the parts of the process where your agent’s experience can make the most dramatic difference. Your home purchase or sale, probably one of the biggest financial transactions you’ll make in your life, is not the time to test rookie negotiation skills.

Here are just a few things agents, as professional negotiators, know that help them reach the best closing agreement for you.

1. That knowledge is power

In addition to their in-depth knowledge of the market and valuing a home, your agent will have dug into public records about the property and the neighborhood. Your agent will also look into the seller’s motivation. Knowing things like whether the seller is under pressure to move quickly can help shape negotiating strategy.

2. How to time it

Sometimes a quick response to an offer is critical. Other times, it’s best to keep the other party on the hook. Knowing which strategy to employ is crucial in negotiations.

3. Objectivity is a must

As a professional negotiator, your agent is able to control the process without being affected by the emotions that swirl around real estate transactions for buyers and sellers. Among other potentially expensive missteps, inexperienced negotiators can reveal too much info to the other party, especially during intense, fast-moving negotiations.

4. What to ask for

If you don’t ask for something, you won’t get it. As your advocate, your agent will know how to ask for things like concessions and repairs in a manner that’s most appealing to the other party.

Selling your bike online? Go forth and make a killer deal on that two-wheeler. But when it comes to buying or selling your home, stick with a professional. Real estate negotiation is no place for training wheels.

Contact us to find out how Magnussen Real Estate Team can be YOUR negotiator in your next real estate deal! 

Source: Remax.com/blog

Oversupplied market weighs on prices

Elevated inventory levels compared to sales, are causing prices to ease further in Calgary’s housing market.

Citywide benchmark prices totaled $426,300 in October, trending down for the fifth consecutive month and resulting in a year-over-year decline of 2.9 per cent.

“Job growth in this city remains a concern, as unemployment levels remain well above levels expected for this year. Rising costs of ownership also continue to weigh on housing demand,” said CREB® chief economist Ann-Marie Lurie.

“At the same time, housing supply levels are not adjusting fast enough to current conditions, resulting in price adjustments.”

Inventories and sales totaled 7,345 and 1,322 in October. This has resulted in months of supply of 5.6, above levels typical for this month. While some easing in new listing growth will help prevent further inventory gains, inventory levels remain near record highs for the month of October.

“With these types of market conditions, many potential buyers should be able to find the home that they are looking for with well priced listings appearing in certain price ranges,” said CREB® president Tom Westcott. “Sellers need to manage expectations and have accurate data in order to be aware of what is selling in their community.”

For each of the property types, sales activity has improved in the lower price ranges, leaving most of those segments relatively balanced. However, the upper end of the ranges has seen significant gains in supply compared to demand, which is likely having more of an impact on prices in those ranges.

HOUSING MARKET FACTS

Detached

• Detached sales in October totaled 829 units, for an 8.6-per-cent decline, resulting in a year-to-date decline of 15 per cent. This is the slowest level of detached sales since the late ’90s. 
• Year-to-date, the largest decline in sales occurred in the $600,000 – $999,999 price range, reflecting slow demand coming from move-up buyers.
• For the second month in a row, new-listing growth eased, helping prevent further inventory gains. However, as this segment remains oversupplied, prices continue to trend down. 
• Detached benchmark prices totaled $490,200 in October. This is below last month and three per cent below last year. On a year-to-date basis, prices remain one per cent below last year’s levels.
• As of October, year-over-year prices have eased across all districts, with the largest declines occurring in the North East, North West, South and South East districts. This is likely a result of added competition from the new-home sector. 

Apartment

• Year-to-date apartment sales have totaled 2,316 units, nearly seven per cent below last year. New listings have also eased by six per cent, helping reduce the amount of inventory in the market.
• Despite the easing inventories, the months of supply remains elevated at 7 months. 
• Year-to-date apartment condominium prices have eased by 2.8 per cent and remain 14 per cent below 2014 highs. Declines occurred across all districts, with the steepest declines occurring in the North East, East and South districts.

Attached

• The attached sector has recorded year-to-date sales of 3,098. This is 15 per cent below last year and 14 per cent below long-term averages. 
• Meanwhile, despite recent easing in new listings, October inventories are the highest level on record.
• The oversupply is affecting both the semi-detached and row sectors, which have seen prices trend down over the past 5 months.
• Year-to-date, row benchmark prices have averaged $298,140 this year, nearly two per cent below last year and nine per cent below previous highs. However, prices have remained relatively flat in both the City Centre and North West districts.
• As of October, semi-detached prices were $403,400, one per cent lower than last month and nearly three per cent lower than last year. Despite recent declines, year-to-date citywide prices remain relatively flat compared to last year. This was most due to gains in the City Centre, North East and East districts offsetting declines in the North West, South and South East.

REGIONAL MARKET FACTS

Okotoks

• Year-to-date residential sales have declined to 428 units in 2018, comparable to levels from 2011 and well below long-term averages. 
• New listings are elevated at 936 units, which is eight per cent higher than last year’s levels and close to long-term averages. Inventory levels in October remain elevated with 232 units.   
• Despite gains in the amount of supply compared to sales, Okotoks detached prices have seen some modest gains.  Year-to-date benchmark prices for detached properties totaled $436,660, 1.25 per cent higher than last year. 

Airdrie

• Airdrie’s housing market continues to experience declining sales and increasing inventory compared to last year. Elevated supply levels have led to downward pressures on the benchmark prices for detached homes. 
• Total year-to-date residential sales have reached 1,032 units, 11 percent below levels last year. Year-to-date, new listings have remained relatively stable, but remain well above long-term averages. 
• Year-to-date average inventory levels are 19 per cent higher than. As a result, months of supply have been elevated, and presently stand at six months. This has translated to sustained pressure on benchmark price, with the year-to-date value of detached homes now sitting at $370,880, which is a year-over-year decline of nearly two percent. 

Cochrane

• Year-to-date, residential sales have declined by 10 per cent, with 530 sales so far in 2018. These levels are comparable to similar periods in the past few years and higher than long-term averages. 
• At 1,164 units, new listings have reached a historical peak for this period and well above long-term averages. Inventory levels in Cochrane for 2018 have been persistently elevated and are almost 17 per cent higher than the same period last year.
• This has started to place some downward pressure on prices. However, year-to-date detached benchmark prices have remained relatively stable compared to last year with a benchmark price of $424,900. 

Source: CREB.com

Join us on Friday, November 16 from 5:30 - 9:00 pm on Elizabeth Street (aka Main Street) in Okotoks for FREE Starbucks hot chocolate and coffee. Yes, we said FREE!!!! LOL. 

Yes, we will have whipped cream and candy cane sprinkles to top your yummy hot drinks! 

Light Up Okotoks is a wonderful, long-standing tradition in the Town of Okotoks, kicking off the Holiday Season with the lighting of the big Christmas Tree is Olde Towne Okotoks plaza! The event has grown to include many exhibitors, vendors lining the streets offering townspeople food and drinks - not to mention the wonderful array of shops open for your browsing!

Despite cold weather, you will find CROWDS of people packing the street as it is such a lovely, fun, cheerful event that really displays the spirit of this wonderful town! Luckily we are sponsoring a FIRE PIT - so stand close and stay warm.