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        <title>Calgary Realtor® Blog - News and Notes From The Market</title>
        <link>http://www.calgarycityproperty.com/blog/</link>
        <description>Get an inside look at market factors by reading my Calgary Realtor® blog.  It offers new and notes from the market with a Realtors® perspective.</description>
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            <guid>http://www.calgarycityproperty.com/blog/calgary-continues-to-lead-the-way.html</guid>
            <link>http://www.calgarycityproperty.com/blog/calgary-continues-to-lead-the-way.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Calgary Continues To Lead The Way</title>
            <description> <![CDATA[ 
The residential real estate market in the local area continues to be the most active and lucrative in the country, according to the latest statistics released. Annual sales continue to rise, as does the price of the average Calgary home. There were over 3000 real estate transactions during the month of April, a substantial increase from this time last year (over 10%). When compared to the entire country as a whole, Calgary is bucking the trend as overall sales in Canada actually went down last month (about 3%).


A lot of it boils down to the same factors that are being experienced throughout Alberta - employment and immigration. No matter what way you break it down, these are the primary contributers to the growth of the market. There aren't many places in the world that can offer residents so many vibrants opportunities for employment, let alone in Canada. The primary sector that is contributing to this surge in employment opportunities is of course oil and gas.


    


When you have so many great chances for full time employment, the influx of immigration can be quite rapid as Alberta has experienced many times in the past. High demand starts to put pressure on rent prices, which then inevitably leads to an increase in demand for home ownership. How many times have we heard you shouldn't waste money on rent? Well this is a common value amongst all people, so when the combination of gainful employment &amp; higher rent prices come to fruition it's only a matter of time before this has a driving influence on real estate demand. More demand from the public for a great homes and condos means that sellers start to receive multiple offers or, better yet for the seller, the seller realizes the demand is high and sets the asking price high from the start.


While Calgary is experiencing a consistent upward trend in property values, it's still relatively affordable when compared to markets like Toronto or Vancouver. Unless humanity stops using oil and gas as their primary resource, Calgary could very well see a continuing increase in real estate prices over the next 5-10 years. My prediction would be about a 5% increase per year, so if you buy a home that costs $400,000 today it will be worth $600,000 in ten years. There aren't many stocks that will provide that sort of return!
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            <pubDate>Tue, 21 May 2013 16:55:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/first-time-alberta-homebuyers-facing-challenges-in-home-pricing-and-saving.html</guid>
            <link>http://www.calgarycityproperty.com/blog/first-time-alberta-homebuyers-facing-challenges-in-home-pricing-and-saving.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>First Time Alberta Homebuyers Facing Challenges in Home Pricing and Saving</title>
            <description> <![CDATA[ 
Young homebuyers in Alberta are finding the process a bit tougher than they imagined. TD Canada Trust just released a new study this past Tuesday. It shows that potential homebuyers in this group were more likely to note that saving for that down payment is challenging and that property prices are uncomfortably high. The study looked at several age groups, including the Millennials, otherwise known as Generation Y. They found that housing prices, saving for that down payment and lower salaries were more of an issue for that generation than the Boomers.But TD Canada Trust’s Sales Manager and Mobile Mortgage Specialist Cheryl Tackalberry noted that home ownership is possible. The initial impression is that it is a daunting proposition but if young homebuyers practice good financial discipline buying that home can become a reality. The Millennials have a tougher time because they are first time buyers. The Boomers already went through that challenge for the most part, and most of them don’t think it was as tough. That may be true since the Bank of Canada has tightened mortgage rules four times in as many years, with the toughest being in July of 2012. The latest required a bigger down and decreased the loan amortization length. Up until April 22 of this year, per the Calgary Real Estate Board, the city saw 1,721 sales through the MLS system. That is a 9.9 percent increase over the same period in 2012.  An overall increase in sales price by 4.34 percent has a home going for roughly $443,383 on average. The median price has also gone up by 5.03 percent, bringing that average to $397,000. When surveyed, 64 percent of Gen Y first time homebuyers were having a hard time saving for the down payment, compared with 41 percent of Boomers. Some 65 percent of Gen Y homebuyers thought property prices were much too high, while 14 percent of Boomers were of that opinion. And, 46 percent of Gen Yers noted they did not make enough money to make mortgage payments, while 10 percent of Boomers felt that way. Millennials living in Alberta were also the most likely to think that the prices of homes will keep increasing over the next year, currently numbering roughly 57 percent.


Original Source
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            <pubDate>Tue, 07 May 2013 13:17:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/bidding-wars-still-a-fact-of-life-in-real-estate-market.html</guid>
            <link>http://www.calgarycityproperty.com/blog/bidding-wars-still-a-fact-of-life-in-real-estate-market.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Bidding Wars Still A Fact Of Life In Real Estate Market</title>
            <description> <![CDATA[ It seems that in some markets across Canada, bidding wars are still going strong in investment real estate. During the real estate boom sellers were using an under pricing gambit that is still working, despite the slow down in that market. Toronto is seeing the burnt of this competitive pricing strategy, all to stir up competition, with 25 percent of their properties being underpriced. Vancouver came in second at 17 percent while Calgary took third place with its 12 percent. Nationwide, BMO’s Home Buying Report noted that some 15 percent of property owners would lowball prices just to generate a bidding war. BMO does concede that those estimates are lower than the same time period in 2012. During that boom year sellers were employing that strategy in record numbers. It is risky because you’re never guaranteed a bidding war. But if a seller can get two buyers to go against each other it is possible to get a much higher price for a property. You would think in a softer market that strategy would disappear, but that is not the case. In the multi-family market, where there is less available inventory, under pricing is alive and well. As long as vacancy rates remain low, as they are now, this will most likely be the case. As far as Toronto goes, there are a number of sellers that have tri-plexes and four-plexes that are using under pricing quite effectively. This makes life a little more interesting, and usually more expensive, for the buyers. ]]> </description>
            <pubDate>Thu, 25 Apr 2013 13:46:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/calgary-doing-well-in-real-estate-resale-market-tops-teranet-bank-list.html</guid>
            <link>http://www.calgarycityproperty.com/blog/calgary-doing-well-in-real-estate-resale-market-tops-teranet-bank-list.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Calgary Doing Well In Real Estate Resale Market, Tops Teranet Bank List</title>
            <description> <![CDATA[ March was a good month for Calgary’s real estate market, particularly in the resale end of things. The city took the top spot in Canada as far as the best price growth when comparing one month to the next, according to a just released survey by the Teranet National Bank. Its composite House Price Index noted that prices in Calgary went up by 1.3 percent after seeing them decline for the prior three months. That decline added up to a 2.2 percent deficit. Comparing this March to March of 2012, prices in Calgary increased by 5.7 percent. Canada Mortgage and Housing Corporation’s Calgary senior market analyst, Richard Cho, noted that availability in the resale market has dropped. More buyers along with fewer properties do help bring real estate prices up. Employment is still gaining and more people are moving into the city to take advantage of that job market. Calgary, it seems, is bustling. Of the 11 markets in the survey, combined they showed that prices increased by 0.4 percent nationwide between March of 2013 and the prior February. Looking at March 2013 compared to the same month in 2012, the increase was 2.6 percent. Surveyors tracked prices of homes via public land registries, including all properties that have changed hands at least two times. The increase in March broke a streak of declines, six months long that together saw prices decrease by 1.8 percent. Nine of the surveyed markets saw price increases. Edmonton saw an increase of 1 percent after a four month stretch of decline, combined creating a 2 percent drop. Montreal saw an increase of 0.7 percent. That city also saw decreasing prices for the last six months, totaling a 2.1 percent decrease. Toronto, coming off a five month long price decline with a total of 1.8 percent, saw a 0.2 percent gain in March. Other cities to see increases included Vancouver at 0.8 percent, Quebec City at 0.4 percent, Winnipeg and Halifax both at 0.3 percent and Ottawa-Gatineau with a 0.1 percent gain. Hamilton saw a 0.9 percent decrease and Victoria home prices were down 3.2 percent. The latter city saw the greatest decline, month over month, in nearly 23 years. Real estate prices tend to come down in the spring, so all eyes will be watching and waiting. Capital Economics’ Amna Asaf, an economist, noted that Edmonton and Calgary have most likely seen the worst of the housing price corrections in their respective markets. How prices play out across the rest of Canada is anyone’s guess. There appears to be more homes available on a nationwide basis, currently a 6.5 month supply, compared to what was available last March. A year ago that supply figure was 5.8 months. The ten year average comes in at 5.2 percent. Sales are also trending downward. All of this is leading some to predict home prices will reduce by roughly 25 percent, at least in some parts of Canada, within the next few years. ]]> </description>
            <pubDate>Fri, 19 Apr 2013 20:24:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/finding-your-perfect-homes-means-doing-a-bit-of-neighbourhood-sleuthing.html</guid>
            <link>http://www.calgarycityproperty.com/blog/finding-your-perfect-homes-means-doing-a-bit-of-neighbourhood-sleuthing.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Finding Your Perfect Home Means Doing A Bit Of Neighbourhood Sleuthing</title>
            <description> <![CDATA[ Thinking about buying a home? Research is the key to assuring that you find the home of your dreams. In addition to considering location, cost and mortgage issues you might want to look at the following before making your decision. If you are looking for a home in an area that you are familiar with you already have some idea of neighbourhood quirks such as busy traffic times and noise levels. But it’s always nice to view a potential home at different times of the day. The real estate showing may have been held during the quiet of the morning when kids are in school and most of the neighbours have gone to work. Wander back to the neighbourhood in the late afternoon or early evening to see what the traffic and noise levels are like. Home inspections are a must. No matter how pretty and new that house looks, it’s necessary to get a look at the inner workings. The National Association of Exclusive Buyers notes that all properties have defects, even if they are small. Some of the things these experts look for are evidence of termites and lead paint. A home inspection will identify these defects and others, which could affect the asking price. Then again if the home has too many problems you may decide to pass on the property, period. If the homeowner and/or their real estate agent are claiming recent improvements to the property, ask for details on those improvements. Even if the improvements are obvious, like an updated kitchen, it’s nice to get a look at the paperwork to see exactly what was done. This will help you in the timing and planning of your own updates.Check out the neighbourhood, more than once. Where are the stores, the schools, parks and playgrounds? Is there an airport runway two blocks away? Are you under the flight path? Is a railway line nearby? What about a fire or police station? While it’s comforting to have the latter two venues nearby, remember that the lights and sirens go on with every call response and that’s 24/7. ]]> </description>
            <pubDate>Sat, 13 Apr 2013 13:37:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/tsx-growth-now-bolstered-by-reits-rather-than-traditional-mining-sector.html</guid>
            <link>http://www.calgarycityproperty.com/blog/tsx-growth-now-bolstered-by-reits-rather-than-traditional-mining-sector.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>TSX Growth Now Bolstered By REITs Rather Than Traditional Mining Sector</title>
            <description> <![CDATA[ Rather than Canada’s mining sector, which typically produces a number of public offerings on the TSX or the TSX Venture exchanges, it is the REITs that are showing to be the super stars of 2013’s third quarter. That mining sector had no public offerings at all. The real estate sector, on the other hand, brought three IPOs to the table, making its investors some $422 million according to a survey by PwC. Experts believe that this trend will continue. The real estate world now extends beyond the typical home purchases and that fact is showing up in the market numbers. Investors are becoming more interested in REITs because of the positive yield possibilities. People are simply more interested in real estate at the moment than they are in mining, and that’s been the case for a few months now. Mining did offer two issues per quarter since back in 2003, putting them on at least one of Canada’s leading exchanges, but that streak has ended. The mines have seen a decrease in activity that before now hasn’t been experienced in Canada. There is also a question of whether there will be available funds to open new mines. The construction phase is costly and the results are not always guaranteed. ]]> </description>
            <pubDate>Wed, 10 Apr 2013 14:40:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/respecting-and-caring-for-tenants-helps-keep-them-happy-in-your-rentals.html</guid>
            <link>http://www.calgarycityproperty.com/blog/respecting-and-caring-for-tenants-helps-keep-them-happy-in-your-rentals.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Respecting And Caring For Tenants Helps Keep Them Happy – In Your Rentals</title>
            <description> <![CDATA[ You’ve taken the plunge and invested in some rental real estate. You have good tenants that don’t drive you nuts and provide a decent cash flow. So how do you hang on to these sometimes hard to find people, the ones that are making your job a whole lot easier?  Help reduce your tenant turnover with these suggestions. Make Rent Paying EasierIn this busy world it’s easy to forget to put that rent check in the mail or drop by the rental office. Perhaps your tenant has to travel for his employment and isn’t always around at the first of the month. Making rent paying easier can ease the stress levels for you and your tenant. One way is to take post-dated cheques, then just deposit them when due. Another popular option is to use direct debit or e-transfer for rent payments. Even if your tenant is out of the country, chances are he’ll be able to log on and take care of business.Don’t Stay in the ShadowsMost tenants like to know that you’re around if needed, and are unlikely to renew leases if the landlord is of the absentee variety. You don’t want to invade privacy of course, but neither do you want to ignore your tenants. A cheerful “good morning” once in a while can do wonders. If your tenants have issues, respond to them ASAP. The rule of thumb is to at least give a response within an hour. Taking care of leaks and other problems can help your bottom line as well since small problems can develop into bigger ones. Also, if you are unresponsive, the next time that “little leak” happens you tenant may decide not to tell you, figuring you don’t really care. The Power of Positive Curb AppealGive your property great curb appeal and keep the grounds and buildings well maintained. Coming home to a nicely landscaped condo or apartment building is a pleasant experience that tenants appreciate. As long as they feel welcome, tenants are more likely to stay. The Little Things CountWe already discussed that friendly “good morning.” Other kind gestures you could offer include discounts for tenants that give you post-dated cheques or remembering their birthday or holidays with a card or even a gift card. Check in with your tenants once in a while to see how things are going. Some people need a bit of coaxing to bring minor problems to your attention and this may bring them out. Like any other business, communication and the personal touch are important keys for success. ]]> </description>
            <pubDate>Sat, 06 Apr 2013 15:50:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/spring-springs-early-for-calgary-real-estate-market-sales-blossoming.html</guid>
            <link>http://www.calgarycityproperty.com/blog/spring-springs-early-for-calgary-real-estate-market-sales-blossoming.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Spring Springs Early For Calgary Real Estate Market – Sales Blossoming</title>
            <description> <![CDATA[ Calgary’s real estate year is getting off to a prolific start. Unlike years past, the first quarter of 2013 has seen brisk sales, with some properties selling within days of being put on the market. The Calgary Real Estate Board attributes this activity to a reduced inventory and increased demand. This year so far, the number of homes on the MLS system is down by 20 percent compared to what they were in 2012. That agency’s Ann Marie Laurie noted that properties are not staying listed like they used to. Days on market averages are starting to go down, which causes average prices to go up. So far a single family home’s average price is nine percent higher than it was during the first quarter of 2012. The price increase is also being helped by the number of high end homes being sold. In March alone 63 homes in the million-dollar plus range have changed hands, bringing this month into record territory. Realtors are advising home sellers, perhaps emboldened by the recent sales activity, to not price their listings too aggressively. A strong market also means condos are doing well and buyers may opt for that type of property if single family prices are deemed to be too extreme. Sales for the Calgary area, according to the CREB, are expected to be roughly the same in 2013 as they were in 2012. ]]> </description>
            <pubDate>Thu, 04 Apr 2013 14:11:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/real-estate-investors-should-up-their-research-on-out-performing-markets.html</guid>
            <link>http://www.calgarycityproperty.com/blog/real-estate-investors-should-up-their-research-on-out-performing-markets.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Real Estate Investors Should Up Their Research On Out Performing Markets</title>
            <description> <![CDATA[ A big part of successful real estate investing is knowing where and how to buy that profitable property. It does take a bit of research and work to find something in what’s called the “out-performing” market. Calgary is on the top of that market list, with a robust economy and enough real estate and money to give back high ROI. TD Economics’ deputy chief economist and vice-president Derek Burleton noted that all these factors, along with price gains that are showing to be above average, have given this Alberta city a front row pass. Then there are others like Tony Zucaro from Right At Home Realty, Inc. who thinks that investors in the know won’t necessarily let price alone be the deciding factor. His definition of an out performing market is a tad different. It includes neighbourhoods that are being renewed or that haven’t quite peaked. Other factors should be the availability of good schools, churches and synagogues, cultural landmarks, shops and entertainment venues. Walkability is becoming a factor. People want to be in walking distance to all, or at least most, of these amenities. Zucaro agrees that Calgary is a good, key market, but studying these other factors, as well as particular neighbourhoods is also important.  Zucaro noted that just because a city is doing well on the whole, individual micro markets may vary in performance. Investors should get out and look at the neighbourhoods along with the properties and get the lay of the land. Then, go back and crunch the numbers. A smart move for investors is to treat their portfolio purchases in the same way as buying their own home. Think of the things you thought were important and compare your intended investment with that list. The more items you can check off, the more likely of investment success. ]]> </description>
            <pubDate>Sat, 30 Mar 2013 13:16:00 -0500</pubDate>
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            <guid>http://www.calgarycityproperty.com/blog/real-estate-prices-in-calgarys-inner-city-on-the-rise-due-to-the-walkability-factor.html</guid>
            <link>http://www.calgarycityproperty.com/blog/real-estate-prices-in-calgarys-inner-city-on-the-rise-due-to-the-walkability-factor.html</link>
            <author>alan.zunec@gmail.com (Alan Zunec)</author>
            <title>Real Estate Prices in Calgary’s Inner City On The Rise Due To The Walkability Factor</title>
            <description> <![CDATA[ In Calgary, today’s home buyers are looking for convenience and workability. The more pedestrian friendly the area, the more property values are increasing. The Real Estate Investment Network’s latest research shows that the Walk Score of a neighbourhood influences property value. Looking at real estate in Calgary, that could not be more true. Properties in the inner city are highly sought after by those wanting to do away with long commutes. The suburbs are just not as attractive as they once were. Starting in 2000 and through 2012, the ten neighbourhoods that saw the largest increase in average home values were in Calgary’s inner core and surrounding areas. Collectively they saw home prices increase by some 205 to 260 percent. The Calgary Real Estate Bard is attributing this to access to better transportation and amenities being within walking distance. Despite all this, Calgary did not have a great Walk Score. It actually is considered the least walk-able city in Canada’s list of the country’s largest metro areas. An American firm, Walk Score looks at how easy it is for residents to live a more pedestrian friendly lifestyle. In Canada, Vancouver took the top spot, with its score of 78. Calgary’s score was 48. Allyssa Epp, analyst from Walk Score, noted that investors should not only be looking at auto-friendly neighbourhoods. Those areas with easy access to shops, entertainment and jobs are becoming more in demand. As far as Calgary goes, Epp noted that the demand is there, but more work must be done on the accessibility end. RE/MAX Real Estate Central’s Sano Stante has also noticed the trend, referring to it as gentrification. This is taking mature, city core communities with easy access to amenities and lavishing them with attention, which is exactly what’s happening. Some buyers are buying older properties, knocking them down and then rebuilding, especially on key lots. Calgary senior analyst Richard Cho, with Canada Mortgage and Housing Corporation is of the same mindset. He notes that more people are relishing the idea of just being able to walk to a restaurant or a store, without the hassle of finding parking. Some are willing to pay premium prices for the convenience. Epp noted that younger people are more apt to do away with cars, or at least cut down on their usage. That is a switch from the mid 1990s when owning property in a suburb with easy access to commute freeways and such was a sign of success. Today those same successful people are putting their money into properties where they can walk or take public transit to work. Calgary’s new planning manager, Rollin Stanley, noted that Calgary is already working on improving transportation, which will improve the Walk Score. He also noted that Calgary is pretty much a young city, with a youthful population, so it’s not surprising that the increased demand for car-free inner city housing is there. Stanley notes that meeting that demand will be challenging, but doable. ]]> </description>
            <pubDate>Wed, 27 Mar 2013 14:02:00 -0500</pubDate>
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