----------Real Estate Experts-------------
Jesse Van Mastrigt

Local News


Home sales plunge from last year's levels

Market cools, but prices remain stable

Mario Toneguzzi, Calgary Herald

Published: Tuesday, June 03, 2008

Calgary's resale housing market again showed dramatic cooling signs in May with monthly sales and average prices dropping for both single-family homes and condominiums compared with a year ago, according to Calgary Real Estate Board data released Monday.

MLS sales during the month fell by more than 31 per cent for single-family homes and by almost 35 per cent for condos compared with May 2007.

In the single-family market, the average sale price in May was $479,564, a decline of nearly two per cent from a year ago, while the median sale price dropped by nearly four per cent to $419,000.

In the condo market, the average sale price last month was $311,816, off just over six per cent from a year ago, while the median sale price dropped by over seven per cent to $285,000.

Despite the declining sales from 2007, CREB president Ed Jensen said the real estate market in the city is steady.

"I've heard that some buyers are sitting there waiting, trying to time the marketplace . . . Why wait until the sale is over and then decide to buy? . . . We've got a good inventory out there. All the (economic) factors speak well -- interest rates. The buyer factors are there with a good underlying strong economy. Our sales statistics have normalized. They've been steady right from January 1st and they remain steady," said Jensen.

The month-end inventories of residential properties in both markets have skyrocketed compared with a year ago -- single-family homes up by 390 per cent to 7,099 listings and condos up by 182 per cent to 3,308 listings.

"Today we have selection. I can find what I want. I can negotiate. I can find the exact house almost to the paint colour," said Jensen.

"We just have a surplus of inventory and that won't last forever. I think it's a matter of months not years to turn this around."

The May MLS numbers point to a trend continuing through this year with prices "stabilizing" in both the single-family and condo markets, said Lai Sing Louie, senior market analyst in Calgary for Canada Mortgage and Housing Corp.

"For single-family homes, July last year was the highest average ever ($505,920)," said Louie. "The price is down compared to last year but it has been rising through the year."

The average price for single-family homes has risen from January when it was $455,297. Louie said average condo prices have remained stable throughout the first five months of this year.

"There's still a lot of supply in the marketplace -- a record level of supply," he said. "That will continue to stop any real large price growth, but the data appears to be indicating that prices are starting to come back up. The condos are stable. The single-family is starting to move up a bit."

He said average prices will likely remain stable until the supply comes down.

"Buyers are taking their time. They're looking around, looking for deals, and that's really forcing the sellers, who have lots of other sellers to compete with, not to be able to ask for more and get it. Usually they likely have to negotiate it with the buyer in these conditions," said Louie.

In the towns just outside Calgary, total MLS residential sales (single-family and condo combined) dropped by almost 32 per cent last month compared with May 2007 and the average sale price fell by almost five per cent to $375,831. The month-end inventory was up by 132 per cent on a yearly basis to 2,971 listings.

The country residential (acreages) market saw sales drop by almost 22 per cent compared with May 2007, but the average sale price increased by almost 12 per cent to $941,086. The month-end inventory was also up by 74 per cent to 954 listings.

Year-to-date for the first five months of 2008, sales compared with a year ago are down in all residential property categories in the Calgary area MLS market: 33.83 per cent, single-family homes Calgary metro; 37.59 per cent, condos Calgary metro; 30.64 per cent, towns outside Calgary; 20.32 per cent, country residential (acreages); and 41.76 per cent, rural land.

mtoneguzzi@theherald.canwest.com

- - -

Calgary Metro MLS Sales

(May)

Single-Family Homes - 2008 - 2007 - % Change

Month-end inventory - 7,099 - 1,450 - 389.59

New listings - 3,432 - 3,652, -6

Sales - 1,368 - 1,995, -31

Average sale price - $480,000 - $488K, -1.6

Median sale price - $419K - $435K, -3.7

Condominiums - 2008 - 2007 - % Change

Month-end inventory - 3,308 - 1,173 - 182

New listings - 1,538 - 1,332 - 15.5

Sales - 577 - 887, -34.9

Average sale price - $312K - $332K, -6.1

Median sale price - $285K - $308K, -7.5

Source: Calgary Real Estate Board



 

 

Real Estate: Tips for house-buyers and sellers

The Calgary Herald

Published: Friday, May 09, 2008

Belle of the block: Curb appeal is crucial in Calgary's changing real estate market

Yvonne Jeffery
Calgary Herald

Never mind the vernal equinox and visions of frolicking calves and budding leaves. Spring in Calgary has to be the harshest month when it comes to curb appeal, whether we're selling our homes or simply living in them.

Gone are the clean white snows of winter, and far in the future are tulips and daffodils. Instead, the grass out front is crisp and brown, and our homes are wearing a drab overcoat of a winter's worth of dust and grime. Not to mention those green front doors.

"In 2006, it didn't matter if your house had a pink door, it sold," says Neil Lauzon, a Realtor with Calgary's Remax House of Real Estate. "Now, buyers are being very picky. If it's not your home, it's the other 14 that are within $10,000 or $20,000 of your house with the same square footage."

A few short seasons ago, it wouldn't have mattered that buyers saw a green front door as tired and dated-- but it does now.

"Last year, we had limited inventory available," says Calgary Real Estate Board president Ed Jensen.

"This year, our total inventory is up. What it speaks to is more selection for buyers than there was last year. As such, it's important that the sellers understand that they're in a different marketplace than last year."

Buyers can now take the time to find their dream home, for example, instead of having to snatch up the first available place in their price range before someone else beats them to it.

"Sellers need to present their home in the best possible light . . . and they need to price their home accordingly, in keeping with local market conditions (in their community)," says Jensen.

Putting on a Fresh Face

Curb appeal, says Lauzon, isn't going to sell your property if the price, location or amenities aren't right for the buyer, but it can help you achieve both a faster selling time and a better price.

"As soon as they drive up and see grass two feet high, they assume the whole house isn't well maintained," he warns.

Shannan Martindale, of LimeLight Home Staging, works with Lauzon as both a certified Canadian staging professional and a buyer's agent. "You want to create a series of impressions for people," she says of that first look that visitors get of your home. "Image is everything, and creating a positive first impression is key to selling your home.

"By creating curb appeal, you create an emotional connection before the buyer even enters the home. Try to create a message about what you want the buyer to know about your house and your neighbourhood."

She suggests painting the trim and the door if they're in need of it; replacing mailboxes, lighting and hardware such as door handles; cleaning or shovelling your walk or deck; switching on exterior house and garage lights; ensuring keys work smoothly in locks; adding fresh mulch to the garden beds; and re-edging the beds and sidewalks.

Going Beyond Cosmetics

"I've gone into some very expensive homes that had very basic things wrong, such as doorknobs that are loose or not working properly," says Darcy McGregor, home inspection expert and owner of Calgary's Home-Alyze. "It might sound cosmetic, but the cosmetics are important. If, for example, you don't keep up with painting or staining your window trim, you'll be replacing those windows."

He adds that it's also important to ensure your steps are level, your sidewalk is in good shape and your trees or bushes are pruned.

"Those are little things that make you feel more comfortable when you're coming into a house," he says. "If I see that everything is clean and organized, it often means that people have looked after the house."

As for the green doors, Martindale cautions against taking the usual television show advice to paint your door red to create punch. "That's a common mistake," she says. "You'll see this green trim around a red door, and it just doesn't work."

So figure out a great colour that complements the hues already on your home and its trim -- but avoid green.


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