Calgary Real Estate BlogRecently posted or modified blog postshttps://www.jennifersipkens.ca/blog/Copyright JenniferSipkens.ca2024-03-01T13:25:37-07:00tag:jennifersipkens.ca,2012-09-20:22256Low inventory and high demand drive price gains in FebruaryLow inventory and high demand drive price gains in February
New listings continued to rise in February, reaching 2,711 units. However, the rise in new listings supported further growth in sales, which increased by nearly 23 per cent compared to last year for a total of 2,135 units. The shift in sales and new listings kept the sales-to-new listings ratio exceptionally high at 79 per cent, ensuring inventories remained near historic lows. Low supply and higher sales caused the months of supply to fall to just over one month, nearly as tight as levels seen during the spring of last year.
“Purchasers are acting quickly when new supply comes onto the market, preventing inventory growth in the market," said Ann-Marie Lurie, Chief Economist at CREB®. “It is this strong demand and low supply that continues to drive price gains in Calgary. The biggest supply challenge is for homes priced under $500,000, which saw inventories fall by 31 per cent compared to last February. At the same time, we are starting to see supply levels rise for higher priced homes supporting more balanced conditions in the upper end.”
In February, the unadjusted detached benchmark price was $585,000, an over two per cent gain compared to last month and over 10 per cent higher than levels reported at this time last year. Our most affordable East district is experiencing the highest year-over-year price growth at 25 per cent, while the relatively better-supplied City Centre has reported the slowest price growth in the city at under five per cent.
Detached
In February, 1,195 new listings came onto the market, of which 75 per cent were priced over $600,000. While new listings did improve over last month in line with seasonal expectations, levels are still below typical levels for February. At the same time, sales in February rose to 954 units, a year-over-year gain of 20 per cent. The growth in sales was driven by where we saw listings growth, but with a sales-to-new listings ratio of nearly 80 per cent, inventory levels were near record lows for February.
Exceptionally tight market conditions drove further price growth. In February, the unadjusted detached benchmark price rose to $721,300, nearly three per cent higher than last month and over 13 per cent higher than last February. While prices rose across every district, the most significant year-over-year gains occurred in the North East and East districts.
Semi-Detached
Last month’s rise in listings compared to sales was short-lived, as the 223 new listings this month were met with 191 sales, driving up the sales-to-new-listings ratio to 86 per cent. This prevented any significant change to the low inventory situation and caused the months of supply to fall to just over one month.
In February, the unadjusted benchmark price reached $639,100, a monthly gain of over two per cent and 13 per cent higher than last year. Year-over-year price gains ranged from a low of 10 per cent in the City Centre to over 26 per cent in the East district.
Row
New listings rose to 457 units in February, contributing to the year-to-date increase in new listings of 22 per cent. The rise in new listings supported sales growth, preventing any significant change to the low inventory situation. For the second consecutive month, the months of supply were below one month.
The exceptionally tight market conditions have contributed to strong price growth for row properties. In February, the unadjusted detached price reached $436,500, over 2 per cent higher than last month and nearly 19 per cent higher than levels reported last February. Prices rose across all districts, with the highest growth occurring in the most affordable districts.
Apartment Condominium
Sales in February reached 638 units, contributing to the year-to-date sales increase of 39 per cent. Relative affordability has supported the strong demand for apartment-style homes, and sales growth has been possible thanks to the continued growth in new listings. Inventory levels trended up over the last month in line with seasonal expectations. However, inventory levels declined by 12 per cent compared to last year, ensuring the market continued to favour the seller with just over one month of supply.
Persistently tight conditions continued to place upward pressure on home prices. Prices have steadily increased since January of last year, and as of February, they reached $329,600, a 17 per cent gain over last February. Prices rose across every district in the city, with year-over-year gains surpassing 19 per cent in all districts except the City Centre, which reported a year-over-year gain of 13 per cent.2024-03-01T13:23:23-07:002024-03-01T13:25:37-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21805January sees strong sales fueled by boost in new listingsJanuary sales rose to 1,650 units, a significant gain over last year's levels and long-term trends. The growth was possible thanks to a rise in new listings totalling 2,137 units in January. New listings rose for homes priced above $300,000, but the largest gains occurred for homes priced above $700,000.
The rise in new listings relative to sales did little to change the low inventory situation in the city. With 2,150 units in inventory, levels are near the January record lows set in 2006 and are nearly 49 per cent below the long-term average for the month.
"Supply challenges have been a persistent problem since last year. This month's gain in new listings has helped provide options to potential purchasers, supporting sales growth. However, the growth in sales prevented any significant adjustments in supply, keeping conditions tight and supporting further price growth," stated Ann-Marie Lurie, Chief Economist at CREB®.
The months of supply in January was 1.3 months, falling over last month's and last year's levels. The persistent tightness in the market contributed to further upward pressure on home prices. The unadjusted benchmark price in January reached $572,300, a gain over last month and ten per cent higher than levels reported last January.
Detached
A boost in new listings helped support stronger sales this month. However, with a sales-to-new-listings ratio of 77 per cent, there was minimal change in the low inventory situation reported in the detached sector. New listings rose for all homes priced above $500,000, but the largest gains occurred in the over $700,000 market segment. Low inventory levels compared to sales prevented any improvement in the months of supply, which at 1.4 months was lower than levels reported last month and last January.
The exceptionally tight market conditions continued to drive further price growth. In January, the unadjusted detached price reached $702,200, nearly one per cent higher than last month and nearly 13 per cent higher than prices reported last year. Year-over-year price gains ranged from a low of 10 per cent in the City Centre and South East districts to a 27 per cent gain in the East district of the city.
Semi-Detached
With 223 new listings and 131 sales, the sales-to-new listings ratio fell to 59 per cent, the lowest level reported since 2020 and significantly improved over the 82 per cent average reported in 2023. The sudden shift did cause inventories to improve over the last month, but they remain well below long-term trends.
The unadjusted benchmark price in January was $625,000, slightly lower than last month but over 11 per cent higher than last January. The monthly decline was driven mainly by adjustments in the higher-priced districts of the West and City Centre.
Row
Like other property types, new listings and sales rose in January over levels reported last month and last year. However, with 322 new listings and 297 sales, the sales to new listings ratio remained exceptionally high at 92 per cent. This contributed to further reductions in inventory levels, and the months of supply once again fell below one month.
Limited supply and strong demand contributed to a rise in prices. In January, the unadjusted benchmark price reached $426,400, up over last month and nearly 20 per cent higher than levels reported in January 2023. While year-over-year prices are higher in every district, the West and City Centre districts saw unadjusted benchmark prices ease slightly over December.
Apartment Condominium
Apartment-style properties continued to see the most significant gain in sales activity, rising to 488 sales in January, a year-over-year increase of 54 per cent. This was possible thanks to the growth in new listings. However, the gain in listings did little to supply levels; with 682 units, inventories were 40 per cent below long-term trends.
Tight market conditions continued to contribute to further price gains. In January, the unadjusted benchmark price reached $324,000, nearly one per cent higher than last month and 19 per cent higher than last January. Prices rose across all districts, with the largest year-over-year gains occurring in the most affordable districts of the North East and East.2024-02-01T16:57:57-07:002024-02-01T17:21:45-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21747What is a conditional sale?A conditional sale is when a buyer is in the process of buying a home. The buyer and the seller have come to an agreement on purchase price, terms and conditions, and now the buyer must do their due diligence to make sure they can afford the home (financing condition), that the condo documents are satisfactory (condo document review condition) or that the home inspection is favourable (home inspection condition). They may have additional conditions depending on their circumstances and the type of property they are purchasing.
The length of time the property will be under contract depends on the length of time for the conditions. Generally, they are between 5 and 14 days.
If the buyer wishes to proceed with the purchase they will waive conditions making it a firm sale. If there is a concern with any one of the conditions, then they will not waive that condition, cancelling the sale and getting their deposit back, and the property goes back on the market.2024-01-26T07:41:29-07:002024-01-26T07:45:36-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21717Calgary Real Estate Forecast for 2024Moving into 2024, we anticipate that potential buyers who were previously on the sidelines due to limited supply choices may reenter the market as lending rates ease and listings improve. At the same time, with more mortgages set to renew, we could see some gains in resale listings as existing homeowners who were previously hesitant to change their housing situation may be motivated to capitalize on rising prices and favourable seller market conditions. The combination of improved listings and heightened activity in the new home sector is anticipated to foster some growth in overall supply. However, given the persistent strong demand driven by recent migration and a healthy job market, it will take time for supply levels to rise sufficiently to restore balance to the market.
Although conditions are not expected to be as tight as in 2023, a seller’s market is projected to persist throughout the spring market, resulting in further price growth. However, the rate of growth for each property type is anticipated to slow compared to 2023 levels. Supply growth is expected to be mostly driven by the upper price ranges for each property type, which will likely decelerate the pace of price growth for higher-priced properties. Meanwhile, conditions are expected to remain tight for lower-priced properties, contributing to continued price gains.
Detached<br />Sales: 2022: 15,786 2023: 12,722 (down 19.41% year over year)<br />Benchmark price: 2022: $627,792 2023: 675,783 (up 7.64% year over year)
Heading into 2024, an anticipated improvement in supply is expected to contribute to a modest upturn in sales activity. However, due to the low starting point, achieving sufficient supply growth will require time to restore balanced conditions. The majority of the supply gains are forecasted to occur in the upper price ranges, slowing the pace of price growth for higher-priced homes. Meanwhile, persistently tight conditions in the lower price ranges are likely to continue driving further price growth. Overall, prices are projected to rise by four per cent, pushing above $700,000.
Semi Detached<br />Sales: 2022: 2,502 2023: 2,250 (down 10.07% year over year)<br />Benchmark price: 2022: $563,258 2023: 604,933 (up 7.40% year over year)
New home starts have risen for semi-detached homes in 2023, which should help support some supply growth in 2024. However, it will take time for supply levels to return to levels that are more consistent with long-term trends, as demand is expected to remain relatively strong. As sales and new listings are expected to improve, we do not anticipate the market returning to more balanced conditions until later in 2024, driving further price growth.
Row<br />Sales: 2022: 5,151 2023: 4,560 (down 11.47% year over year)<br />Benchmark price: 2022: $351,358 2023: 399,008 (up 13.56% year over year)
A surge in new home starts in 2023 should help support supply growth for this property type in 2024. However, the relative affordability will continue to support strong demand, prolonging the time it takes for this market to return to more balanced conditions and supporting further price growth in 2024, albeit at a slower pace.
Apartment<br />Sales: 2022: 6,220 2023: 7,884 (up 26.75% year over year)<br />Benchmark price: 2022: $266,150 2023: 302,042 (up 13.49% year over year)
The market tightened for apartments in 2023 and is expected to continue that trend.
Source: CREB Chief Economist2024-01-24T09:28:02-07:002024-01-26T07:41:22-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21701Options for your Down PaymentSavings or Short Term Investments<br />If you've saved for your down payment, you may need to show three or more months of banking history, and explain any large deposits during this time period. Copies of statements for other investments and savings accounts may also be required.
Monetary Gift<br /> If you have been gifted your down payment, you may have to provide a letter stating that the gift given is from an immediate relative (parent or sibling) and that the gift is not repayable. You also need to confirm that the funds are in your possession at least 15 days prior to closing.<br /> <br /> Sale of your current home<br /> When your down payment comes from a property sale, you must provide a firm offer to purchase, along with a mortgage statement showing the balance owing.<br /> <br /> RRSP First Time Home Buyer's Plan<br /> You can use your RRSP savings as a down payment. The Home Buyers Plan (FTHB) is a government program that allows first-time homebuyers to borrow up to $35,000 from your registered retirement savings plans (RRSP's) to buy or build a principal home. The money you withdraw is not subject to tax but must be paid back to the RRSP account over a 15-year period. * Minimum annual repayments are required. Visit the <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/participate-home-buyers-plan.html" target="_blank">Canada Revenue Agency</a>’s website for more detailed information, including a detailed guide and the required forms.<br /><br /> Borrowing<br /> You can borrow your down payment (e.g., personal loans, lines of credit, lender cash-back incentives), although there are typically increased insurance premiums or fees and higher credit criteria and potentially higher interest rates.
Source: Sharlene Scott, Mortgage Advisor with <a href="https://www.mortgagesbysharlene.ca/" target="_blank">Mortgageline Mortgage Architects</a><br />The above information is provided as general information and is not considered legal advice. Please consult your lawyer if you have any questions or concerns about this information.2024-01-23T08:03:12-07:002024-01-23T08:10:47-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21745Why can a seller reject my offer?A seller is not required to accept your offer just because you wrote an offer, even if it is for full list price. There are other aspects of an offer which are also important, such as: possession date, amount of deposit, specific terms and conditions on the offer. They may counter the offer or reject it completely. If they reject it, you can rewrite the offer to improve it, or keep looking.
In a seller’s market, a seller may have listed their home very low, and are looking to get as much traffic as possible so they can push it into multiple offers that are well above list. Or they may list their home at about what it should sell for, and maybe they get list or hopefully above list price. Or they list above market value, and then wait to see if they get their purchase price. This is a primary reason why sellers may outright reject an offer – because they are expecting more than you offered and would rather wait until another buyer is willing to pay what they are hoping to get.
Some sellers get offended when a buyer offers to purchase at a price well below market value, in hopes of ‘getting a deal’, or that the seller is desperate and will sell for less. In those cases, they often will ignore the offer (which is basically declining the offer without communicating that to the buyer) or they sign the rejection section of the offer.2024-01-19T07:21:00-07:002024-01-26T07:23:49-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21422Strong migration and low supply drive Calgary housing prices in 2023Strong migration and low supply drive Calgary housing prices in 2023
Sales in 2023 did ease relative to last year's peak, but with 27,416 sales, levels were still far higher than long-term trends and activity reported before the pandemic. While sales stayed relatively strong, there was a notable shift in activity toward more affordable apartment condominiums style homes.
“Higher lending rates dampened housing demand this year, but thanks to strong migration levels, housing demand remained relatively strong, especially for affordable options in our market,” said CREB® Chief Economist Ann-Marie Lurie. “At the same time, supply levels were low compared to the demand throughout the year, resulting in stronger than expected price growth.”
Inventory levels were persistently below long-term trends for the city throughout most of the year, averaging a 44 per cent decline over the 10-year average. We also saw the months of supply remain well below two months throughout most of the year across homes priced below $1,000,000.
The persistently tight conditions contributed to our city's new record high price. While the average annual benchmark price growth did slow from 12 per cent in 2022 to nearly six per cent growth in 2023, the price growth was still relatively strong especially compared to some markets in the country.
Detached
With an annual decline of nearly 20 per cent, the detached market saw the most significant decline in sales activity. While sales did improve for homes priced above $700,000, limited supply choices in the lower price ranges caused consumers to turn to alternative housing styles. Despite some recent gains in higher-priced new listings, inventories have remained near record lows, and the months of supply have remained relatively low throughout 2023.
The persistently tight market conditions have supported further price growth for detached homes, albeit at a slower pace than last year. On average, the benchmark price rose by nearly eight per cent in 2023, with the most significant gains occurring in the city's most affordable districts.
Semi-Detached
Like the detached sector, year-over-year sales growth since May was not enough to offset the pullbacks at the beginning of the year, leaving 2023 sales down by 10 per cent. The decline in sales was driven by pullbacks for homes priced under $500,000, while sales improved for higher-priced properties. The decline in the lower range was primarily due to limited supply choices, preventing stronger sales.
Persistently tight market conditions this year caused prices to trend up throughout most of the year. On an annual basis, the benchmark price rose by seven per cent over last year—a slower gain than the 12 per cent reported in 2022, but still relatively strong. Price growth ranged from a low of six per cent in the city centre to over 16 per cent in the east district.
Row
Limited supply choices in the lower price ranges contributed to the pullback in sales in 2023. Annual sales declined by over 11 per cent despite rising sales for homes priced above $400,000. While new listings did show signs of improving in the second half of the year, all of the gains were reported in the higher price ranges, causing relatively more balanced conditions in the upper price ranges versus the sellers’ market conditions in the lower price ranges.
Conditions favoured the seller throughout the year, supporting an annual benchmark price gain of over 13 per cent. Prices improved across each district, ranging from a low of 11 per cent in the city centre to over 20 per cent price growth in both the North East and East districts.
Apartment Condominium
Apartment-style properties were the only property type to report a gain in sales this year, resulting in a record high of 7,884. The growth in sales was possible thanks to the higher starting point for inventory levels and gains in new listings. However, conditions tightened throughout the year, favouring the seller and driving price growth.
Apartment condominium prices finally recovered from their 2014 high earlier this year and have pushed above those levels, reaching a new record high of $321,400 by December. On an annual basis, the 2023 benchmark price rose by over 13 per cent, a faster pace than the annual growth levels reported last year. 2024-01-02T14:01:30-07:002024-01-02T14:02:59-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21105Increased listings, strong sales, and price growthNew listings in November reached 2,227 units, nearly 40 per cent higher than the exceptionally low levels reported last year at this time. Gains in new listings occurred across most price ranges, but the most significant gains occurred from homes priced over $600,000.
Despite the year-over-year jump in new listings, inventory levels remained low thanks to relatively strong sales. With 1,787 sales in November, the sales to new listings ratio remained high at 80 per cent, and the months of supply remained below two months.
“Like other large cities, new listings have been increasing,” said CREB® Chief Economist Ann-Marie Lurie. “However, in Calgary, the gains have not been enough to change the low inventory situation thanks to strong demand. Our market continues to favour the seller, driving further price growth.”
As of November, the benchmark price was $572,700, up over last month and nearly 11 per cent higher than November 2022. Year-to-date, the average benchmark price has risen by over five per cent.
Detached
Limited supply choice for homes priced below $700,000 has been the primary cause of the decline in detached home sales. While November reported a marginal gain over last year, year-to-date sales have declined by 20 per cent. November saw a rise in new listings compared to the previous year, but higher-priced homes drove most gains. This has left the detached market with exceptionally tight conditions for prices below $700,000 and more balanced conditions for higher-priced homes. Overall, the month of supply remains exceptionally low at under two months.
Persistently tight conditions continue to cause further price gains in the detached market. As of November, the unadjusted benchmark price reached $699,500, a slight increase over last month and over 13 per cent higher than last November. While detached home prices are much higher than last year's levels in every district, year-to-date gains are the highest in the most affordable districts of the North East and East.
Semi-Detached
November saw a boost in new listings compared to last year, helping to prevent a year-over-year decline in inventory levels. However, inventory levels are still over 40 per cent below typical levels seen in November. With a sales-to-new-listings ratio of 77 per cent and a month-of-supply below two months, conditions remain exceptionally tight, especially for homes priced below $700,000.
Despite tight conditions, benchmark prices remained stable compared to last month. However, at an unadjusted benchmark price of $628,700, prices are still over 12 per cent higher than last year. The year-to-date average benchmark price has risen by nearly seven per cent, with the largest gains occurring in the North East and East districts.
Row
New listings rose again this month compared to last year. The 370 new listings were met with 267 sales, and for the first time since 2021, the sales-to-new-listings ratio fell below 75 per cent. The jump in new listings was enough to support a gain in inventory levels compared to last month and last year. While inventories are still nearly half the levels we traditionally see, this did help cause the months of supply to push up to 1.6 months, a significant improvement from the less than one month of supply that has persisted over the past seven months. While conditions are much more balanced in the higher price ranges, there is less than one month of supply for homes priced below $500,000.
Despite the shift away from exceptionally tight conditions, prices still rose over the last month and last year. As of November, the unadjusted benchmark price reached $429,100, 21 per cent higher than last November and an average year-to-date gain of nearly 13 per cent.
Apartment Condominium
Thanks to the relative affordability of the apartment-style homes, sales continued to reach record highs in November, contributing to year-to-date sales of 7,487. With one month left in the year, sales have already surpassed last year’s record high. This, in part, was possible thanks to the growth in new listings. While inventory levels are similar to levels reported last year, with less than two months of supply, conditions still favour the seller, placing further upward pressure on prices.
The unadjusted November benchmark price reached $320,100 in November, a monthly gain of over one per cent and a year-over-year increase of 18 per cent. Year-to-date price gains have occurred across every district in the city, with some of the largest gains arising in the lower-priced North East and East districts.2023-12-01T11:34:52-07:002023-12-01T11:47:50-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:21017Q3 housing market report with special 2024 forecast previewThe Calgary Real Estate Board (CREB®) has released its Q3 2023 housing market report, providing a comprehensive overview of the real estate landscape in the City of Calgary and surrounding areas. The report showcases trends in sales and pricing, offering valuable insights for industry professionals and prospective homebuyers and sellers.<br /> <br /> “Sales activity in the Calgary market has followed expectations, with declines earlier in the year offsetting gains in the second half,” said CREB® Chief Economist Ann-Marie Lurie. “Thanks to persistent supply challenges, the market has favoured sellers, resulting in stronger-than-expected price growth. As we move into 2024, we expect to see better supply-demand balances, but given the strong migration levels over the past two years, supply adjustments will take time supporting further price gains.”<br /> <br /> Higher interest rates and inflation levels are expected to weigh on consumer spending and business investment, slowing economic growth in 2024. However, thanks to higher commodity prices and migration levels, economic activity in Alberta is expected to outpace national growth levels.<br /> <br /> Supply challenges impacted both sales and prices in the Calgary market last year. As we move into 2024, a rise in new listings and an improved number of starts are projected to offer more supply choices; this, along with population gains and a stable employment market, is expected to support stronger sales this year. And as we shift toward more balanced conditions, the pace of price growth is expected to slow from the high levels reported in 2023.<br /> <br /> While both sales and prices are expected to rise in 2024, there is considerable risk to the outlook. Shifts in global growth could impact commodity prices and, ultimately, our economic growth, employment, and migration. Migration and employment shifts will influence the path to housing market balance and the rate of price growth experienced in our city.
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" alt="" />2023-11-18T09:11:13-07:002023-11-18T09:24:31-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20861The Home Buying ProcessStep 1: Getting Pre-approved for a Mortgage
Once you have decided to purchase a property, you need to speak to a mortgage professional and get pre-approved for a mortgage. Preapproval is a tentative approval from a lender for a mortgage based on your qualifications (i.e. income, amount of down payment, debts) made in advance of your purchase. It does not guarantee you will qualify for a mortgage, as circumstances may change prior to finalizing a mortgage. It is crucial to know how much you qualify for before you begin shopping, so you can focus your time on the properties you can afford. Your mortgage professional will advise you of the documents you need for final approval and may be able to hold the interest rate for you for a period of time. This means if the interest rate goes up, you get the rate that is held. If it goes down, you get the lower rate.
Once you have been pre-approved, have them send a confirmation email to you and your agent.
Step 2: The House Hunt
This is the fun part! We will discuss what you are looking for – we will look at your budget, preferred location, features in the home, size, and any special requirements you may have. I will work with you to find homes that match your budget and wish list, and we will start shopping. It is important to remember that you will not likely find everything on your wish list. This is normal! If you can find a home with 80% of the items on your wish list, that is success for most home buyers.
Your home search criteria may also change during the process – this is normal! Be sure to be flexible and don’t be afraid to pivot.
Step 3: Making an Offer to Purchase
When you find the home that is right for you, it is time to draw up an offer to purchase. This is a contract that that includes:
Purchase price
Financing condition
Property inspection condition
Condo document review condition (in the event purchasing a condo)
Possession date (typically 30-60 days away)
<a href="https://www.jennifersipkens.ca/blog/the-difference-between-a-deposit-and-a-down-payment/">Amount of deposit and possibly the amount of downpayment</a>
Other relevant terms that are specific to that property
Step 4: A completed Offer to Purchase
The <a href="https://www.jennifersipkens.ca/blog/why-can-a-seller-reject-my-offer/">seller is not required to accept your offer to purchase</a>, but if you and the seller come to an agreement and sign the Offer to Purchase, you are now under contract! You then send that contract to your mortgage advisor, and they will get started on the mortgage. You will be required to pay a deposit – generally this is in the form of a bank deposit or some kind of electronic funds transfer. The amount varies, but most times it is between $5,000 and $20,000. It is held in trust by the seller’s brokerage.
Financing Condition - it is now time to go back to your mortgage professional to begin the process of finalizing your mortgage. This is another reason why it’s important to have a pre-approval done, so your mortgage professional has the documents they need to proceed efficiently.
Property inspection - you will need to book a time for a home inspector as well. A home inspection can take up to 3 hours, and the cost is paid by the buyer.
Condo document review - if you are purchasing a condo, I will get the required documentation from the seller’s REALTOR® so you can review the material, or have the material reviewed by a third party specializing in condo document reviews.
You will need to choose a lawyer to handle the closing of your property.
There may be other terms and conditions that have been written into the purchase contract that will need to be addressed during this time as well.
If everything meets your satisfaction and you wish to proceed with the purchase of the property, you will waive conditions, and the sale is firm. If something does not meet with your approval, you can choose to not waive your conditions, and the contract will be cancelled, and your deposit returned.
This is a lot – but don’t worry, I will be helping you the entire way to make sure everything goes smoothly!
Step 5: Planning the Move
With your possession date in mind, it is a good time to start planning your move. Utilities will have to be updated and you may need to book a mover. Your lender may require you to show you have purchased insurance for your new home. Planning these items in advance will reduce stress associated with moving (and make sure you get a date and time that will work for you!)
Step 6: Signing with your Lawyer
Before your possession day you will meet with the lawyer to sign the mortgage documents and review title documents.
Step 7: Possession Day
This is the day you receive keys to your new home! I will arrange to meet you to hand over your keys. Keep in mind that although the time on the purchase contract states possession at noon, sometimes there are delays. If you are arranging a mover or locksmith, you may wish to have them arrive a few hours later in the day.
Step 8: I Have my Keys: Now What?
As a new homeowner things may come up that you are uncertain about. You may always contact myself for help – if I can’t help you, I will know someone that can. Home ownership is a big step, and I am here to help you every step of the way.2023-11-06T13:01:16-07:002024-01-26T07:25:21-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20818Price gains continue in Calgary's real estate market as inventory remains lowOctober sales activity slowed over the last month in alignment with typical seasonal patterns. However, with 2,171 sales, levels were 17 per cent higher than last year and amongst the highest levels reported for October. Sales activity has been boosted mainly through gains in apartment condominium sales as consumers seek affordable housing options during this period of high-interest rates.<br /><br />New listings also improved this month compared to last year, reaching 2,684 units, reflecting the highest October levels reported since 2015. Despite the gain, relatively strong sales prevented any significant shift in inventory levels, which remain over 40 per cent lower than levels traditionally available in October.<br /><br />“Despite some recent improvements in new listings, supply levels remain challenging in our market,” said CREB® Chief Economist Ann-Marie Lurie. It will take some time to see a shift toward more balanced conditions and ultimately more price stability.”<br /><br />With a months of supply of one and a half months, we continue to experience upward pressure on home prices. The unadjusted benchmark price in October reached $571,600, a gain over last month and nearly 10 per cent higher than last October.
Detached
Both sales and new listings improved over levels reported last October. However, with 1,302 new listings this month and 976 sales, inventory levels slowed over the last month. Inventory levels remain the lowest ever reported for October. Inventory levels have declined for all homes priced below $700,000, leaving conditions exceptionally tight for lower-priced homes. The only area where conditions are not as tight as last year is for homes priced above $1,00,000, where the months-of-supply has risen to 4.3 months.<br /> <br />Persistently tight conditions continue to cause further price gains in the detached market. As of October, the unadjusted benchmark price reached $697,600, a slight increase over last month and 12 per cent higher than last October. Prices trended up over the last month across every district except the South East. Year-to-date benchmark prices have increased the most in the North East and East districts.
Semi-Detached
New listings in October improved over the low levels reported last year. However, with 235 new listings and 179 sales, the sales to new listings ratio remained relatively high at 76 per cent, preventing any significant change in the inventory levels. Inventory levels are nearly half the levels traditionally seen in October and have not been this low since October 2005.<br /> <br />Persistently tight conditions have continued to support price growth. In October, the unadjusted benchmark price increased over the last month, reaching $628,700, a year-over-year gain of 13 per cent. Prices trended up over September across most districts, with the most significant monthly gain occurring in the City Centre district. Like the detached sector year-to-date, the highest price growth has happened in the most affordable districts of the North East and East.
Row
The 420 new listings this month were met with 375 sales, keeping the sales-to-new listings ratio high at 89 per cent and preventing a significant shift in inventory levels. Row inventory levels have not been this low since October 2005. At the same time, October sales reached a record high for the month, keeping the months of supply low at one month.<br /> <br />Persistently tight market conditions have supported further gains in prices this month. In October, the unadjusted benchmark price reached $425,200, a monthly gain of over one per cent and nearly 19 per cent higher than last October. Prices have risen across most districts, but this month, the largest monthly gain occurred in the City Centre, which has also seen the lowest year-to-date price growth compared to the other districts.
Apartment Condominium
Record high sales in October were possible thanks to the steep gain in new listings. However, with 727 new listings and 641 sales, the sales to new listings ratio remained high at 88 per cent, and inventories continued to trend down. The decline in inventory levels has been driven mostly by condos priced below $300,000, which now represent only 38 per cent of all inventory, a significant decline compared to the 53 per cent reported last year.<br /> <br />Persistent seller market conditions have driven much of the recent gains in prices. The unadjusted October benchmark price reached $316,600 in October, a monthly gain of over one per cent and a year-over-year increase of 16 per cent. Year-to-date price gains have occurred across every district in the city, with some of the largest gains arising in the lower-priced North East and East districts.2023-11-01T11:21:18-07:002023-11-01T11:24:12-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20833Top 6 Things to look for in a Neighbourhood
Proximity to amenities and necessities. Depending on your lifestyle, but this could mean being close to the pathway system in Calgary, or maybe it is living near the nightlife of Calgary – think about where you go on a regular basis, and if you would like to either continue living in that area, or maybe you want to move closer to that area.
Safety. The City of Calgary produces a <a href="https://data.calgary.ca/Health-and-Safety/Community-Crime-and-Disorder-Map-2012-2019-/hhjd-wzc2">Community Crime and Disorder Map</a> you can check out, or you can ask friends or co-workers who live in that area how they feel about safety in that community.
Transportation. Consider the availability of transit and access to major roadways. If you need transit to commute to work and are unsure of how long it will take, the City of Calgary has a <a href="https://www.calgarytransit.com/content/transit/en/home/home.html">trip planner</a> that can help! And if are very serious about a particular area, it is always a good idea to pretend you are commuting to work and see how long the trip takes in real time.
Local schools. Do some research on the schools in the community and if they will meet the needs of your family (or future family!).
Age and condition of homes in the neighborhood. Drive around and see if you like the vibe of the community – this will help determine if you are wanting something brand new, or are ok with a more vintage home!
Distance from friends and family. I see this a lot with young families who want to be closer to their parents to help with child care. If being close to a loved one is important, ask yourself how long a drive/commute you are willing to do, then set that radius around their home.
2023-10-23T07:02:00-07:002023-11-03T07:07:45-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20685What is a Real Property Report?A Real Property Report (RPR) is a document that is needed when you are selling your house or bare land condos.
It is prepared by an Alberta Land Surveyor, and is a high level drawing of the property, the boundaries, fences, and the buildings and structures on it. It will contain the following:
legal description and municipal address of the property
date of land title search and date RPR was done
Certificate of Title (land title) number and names of registered owner(s)
location and description of all buildings and structures (e.g. decks, fences) with dimensions, directions and distances from the property boundaries
location and dimensions of any visible encroachments (i.e. buildings or structures that are too close or even beyond the property line)
designation of adjacent properties, roads, lanes
evidence of municipal compliance (i.e. the RPR has been reviewed by your municipality and adheres to all municipal bylaws and regulations. They usually stamp and date compliance directly on the RPR)
illustrations of any easements that affect the property (an easement is an agreement between the property owner and some other party (usually your municipal authority or utility) for them to utilize part of your property as needed)
Certified Land Surveyor’s duly signed certification and opinion on any concerns
copyright of the RPR to the land survey company
RPRs do not need to include sidewalks, driveways, landings or small sheds, and removal of an improvement does not require a new RPR.
Compliance<br />Once the RPR is completed by the surveyor, it will be taken to the local municipality for verification that the land and improvements in their current form, as represented by the RPR, comply with municipal bylaws and regulations. If everything is compliant, they will stamp the RPR with a compliance stamp. In some cases, the municipality will grant compliance but note that something, like an old, detached garage, for example, is “non-conforming”. This means that at the time it was built the garage complied, but since that time the bylaws have changed, and it no longer conforms to today's standards.
Non-Conforming RPR<br />A non-conforming element on an RPR is still acceptable with the understanding that the property owner can keep the garage, repair it, and maintain it, but never rebuild it in the same spot.
Encroachment<br />An encroachment is anything that is built or placed on the adjoining property. If this happens, you and the adjoining owner may enter into an encroachment agreement. In order to do so, the owner of the other property has to agree to allow the encroachment. The parties register the agreement on their property titles. If the adjoining owner doesn’t agree, you may have to remove the encroaching structure.
Relaxation<br />If a structure is too close to the property boundary or over an easement or utility right-of-way, your municipality may grant a relaxation to allow it to remain. This will usually require a relaxation permit, for which your municipality will have to conduct a further review and may require additional information such as photos of the structure and an extra permit fee. If the municipality does not grant the relaxation, you may have to move or remove the structure.
For Sellers<br />The seller representation agreement in Alberta requires sellers to provide a current RPR to the real estate brokerage. If you have an existing RPR and nothing has changed since it was prepared, then you can use that document. If there have been changes, you can contact the surveyor to see if they can update the existing RPR; but generally it is more cost effective to have a new one completed.
For Buyers<br />The purchase contract requires the RPR to be provided to the buyer’s lawyer with sufficient time to review prior to closing. It is a good idea to review the RPR as part of your due diligence so you know exactly what you are buying, and if there are any concerns that may come up when you go to sell.
The above information is provided as general information and is not considered legal advice. Please consult your lawyer if you have any questions or concerns about this information.2023-10-19T07:46:43-07:002023-10-19T07:50:13-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20607Condo documents required for sale or purchaseThe documents required to sell and purchase a condo in Alberta are itemized in the listing agreement between the seller and the real estate brokerage, and then again in the purchase contract between the buyer and seller.
The seller must provide the following documents:
1) An information statement provided by the condominium corporation under section 20.52(1)(a) of the Condominium Property Regulation (Alberta);<br />Section 20.52(1) Subject to subsection (2), the following information and documents are prescribed for the purposes of section 44 of the Act:
(a) an information statement that includes all of the following:<br /> (i) the particulars of<br /> (A) any action commenced against the corporation in respect of which the corporation has been served, including the amount claimed against the corporation,<br /> (B) any unsatisfied judgment or order for which the corporation is liable, and<br /> (C) any written demand made on the corporation for an amount in excess of $5000 that, if not met, may result in an action being brought against the corporation;<br /> (ii) a statement setting out the amount of the capital replacement reserve fund;<br /> (iii) a statement setting out the amount of the contributions and the basis on which that amount was determined;<br /> (iv) a statement setting out any structural deficiencies that the corporation has knowledge of at the time of the request in any of the buildings that are included on the condominium plan;<br /> (v) loan disclosure statements for current loans, including documents showing the starting balance, current balance, interest rate, monthly payment, purpose of the loan, amortization period and default information, if applicable;
An information statement, or a disclosure statement, is obtained from the property management company, and will likely take a minimum of 3 days. The cost is borne by the seller, and typically is $150 plus any handling fees if the document has to be ordered on a third party website.
2) The particulars or a copy of any subsisting:<br /> a) Management agreement; and<br /> b) Recreational agreement;
The management agreement is the contract between the property management company and the condo board, and the name on the agreement should match the name on the Condominium Additional Plan Sheet of the corporation. If a building is self-managed, they will not have this document as it means that owners who are also board members are managing the complex directly.
A recreational agreement would pertain to complexes that have a recreational facility on site, such as a swimming pool or gym, and owners from other complexes are allowed to use the facilities.
3) The particulars respecting any post tensioned cables that are located anywhere on or within the property that is included in the condominium plan (if not already addressed in the information statement);
Post tension cables are high-strength steel cables that are embedded in concrete during construction. These cables are then tensioned after the concrete has hardened, which places the concrete under compression and enhances its strength. Post tension cables are commonly used in high-rise buildings and condos. They require additional maintenance and engineering reports, so it is very important for a buyer to do their due diligence if a building has post tension cables.
Copies of the following, to the extent that they exist:
a) The most recent budget of the condominium corporation;
The budget will set out the income and expenses required to run the condo corporation for the next fiscal year. From the budget, the amount for condo fees are set.
b) The most recent annual financial statements of the condominium corporation;
Annual financial statements can either be audited (the audit conducted by a third party) or unaudited (the board or management company finalizes the year end in a set of financial statements), but every condo corp should produce a set of year end financial statements.
c) The bylaws of the condominium corporation as registered at the Land Titles Office, or if the statutory bylaws apply, a copy of the statutory bylaws;
The <a href="https://www.jennifersipkens.ca/blog/condo-boards-and-bylaws/">bylaws </a>are the rules and regulations for the condo complex. They will include rules for how meetings are run (both board and annual) but more importantly for new owners – they will include restrictions for things like pets, air conditioners, renovations, even the colour of window treatments that face the outside.
d) Approved minutes of general meetings of the condominium corporation, held within the last 12 months;<br />e) If available, draft minutes of the latest general meeting of the condominium corporation if approved minutes are not available;<br />f) Approved minutes of condominium corporation board meetings held within the last 12 months;
A condo corp must hold an annual general meeting after the fiscal year end is complete. There are rules surrounding what will be discussed at the meeting, and it is a time for owners to ask the board questions relating to the building or complex. Some condo corps will hold monthly meetings for board members, or they may review and approve owner requests by email, and not hold any meetings.
g) Any separate lease agreement or other exclusive possession agreement benefitting the seller of the property, including agreements allowing the seller to use a parking stall or a storage unit;
<a href="https://www.jennifersipkens.ca/blog/parking-options-when-buying-an-apartment-condo/">Parking stalls</a> and storage units may be titled, assigned or leased. If they are leased, there will be a separate agreement outlining the details of the lease. You can read more about the different types of parking options HERE.
h) A statement from the condominium corporation setting out the criteria used to determine unit factor allocation (if not already addressed in the information statement);
A condo corporation uses unit factors to determine the portion of ownership in the condo complex or building. They are much like shares in a company. Each condo corporation has 10,000 unit factors and each owner has a certain amount of them, generally depending on the size of their unit in relation to others (but there are exceptions to this!)
4) Any consolidation of the rules (policies/procedures) made by the condominium corporation which may be available under section 32.1 of the Act;
A condo corp can create additional rules beyond the bylaws for the condo corp. They are often more detail oriented and on things like specifications for flooring which may change over time.
5) Copies of reports prepared for the condominium corporation by professionals since thee date of the most recent reserve fund study, including professional engineers but excluding reports requested and obtained by the corporation’s legal counsel in relation to actual or contemplated litigation;
These reports will include engineering reports for buildings with post tension cables but will also include reports if ordered by the board in the event there is a major repair coming up in the complex.
6) A current insurance certificate for insurance held by the condominium corporation;
Every condo corp must have insurance for common areas and will cover things like fire or water leakage and of course general liability. It is important that you still have your own insurance to cover your unit and your personal property within that unit. If you would like to read additional tips for insurance you can read more <a href="https://www.jennifersipkens.ca/blog/a-little-bird-told-me-about-insurance/">HERE</a>.
7) The current standard insurable unit description for the residential units or classes of residential units;
The Standard insurable unit description (SIUD) outlines the finishes of the condo from when it was built, so in the event of an insurance claim, the responsibility of the condo corp is limited to the items on the SIUD. Anything that has been updated since then is covered by your own personal insurance. So if the condo came with carpet and you upgrade to very expensive hardwood, the condo corp covers the cost of the carpet, then your insurance would have to kick in to cover the rest.
8) The current reserve fund plan, the current reserve fund report, and annuyal reports prepared since the date of the current reserve fund plan; and
The <a href="https://www.jennifersipkens.ca/blog/what-is-a-reserve-fund-study/">Reserve fund report and study</a> are a forecast of capital expenditures the condo corp can expect for the next 25 years. It will look at the roof, heating systems, windows, parkade costs – anything that is owned by the condo corp. It is a very important document to review, because if a board has not been budgeting for future costs adequately, or there is an unexpected significant cost coming up, it will be in this report.
9) Other.
This is where you may want to add in most recent month’s financials, or if there is something you want to see that pertains to a specific building.
A buyer will get a significant amount of documents that they must review prior to proceeding with a purchase. The onus is on the buyer to do their own due diligence when making the purchase. That said there is help available! There are Condo Document Review Specialists who can be hired by the buyer to review the documents and provide an opinion.
The above information is provided as general information and is not considered legal advice. Please consult your lawyer if you have any questions or concerns about this information.2023-10-09T17:17:22-07:002023-10-12T07:01:57-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20557Calgary home sales at record highs in September, yet supply remains a challengeSales reached another record high in September with 2,441 sales. Despite the year-over-year gains reported over the past four months, year-to-date sales are still nearly 12 per cent lower than last year's levels.
New listings also improved this month compared to last year and relative to sales. This caused the sales-to-new listings ratio to fall to 76 per cent, preventing further monthly declines in inventory levels.
Nonetheless, inventory levels in September remained over 24 per cent lower than levels seen last year and, when measured relative to sales activity, has not changed enough to cause any significant shift in supply and demand balances. As of September, the months of supply has remained relatively low at less than two months.
“Supply has been a challenge in our market as strong inter-provincial migration has elevated housing demand despite higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “While new listings are improving, it has not been enough to take us out of sellers’ market conditions.”
In September, the unadjusted residential benchmark price was $570,300, similar to last month and nearly nine per cent higher than last year.
Detached<br />Inventory levels remained at record lows for the month as the sales-to-new listings ratio remained relatively high at 76 per cent. The decline in inventory levels has been driven by homes priced below $700,000, as supply levels show some improvement for homes priced above this level. While detached sales improved over levels reported last year, much of the gains were driven by the higher-priced properties with some supply options. Overall, homes priced below $700,000 continue to struggle with less than one month of supply.
Despite persistently tight market conditions, the unadjusted benchmark price remained relatively stable this month compared to last month, as a monthly price adjustment in the West end of the city offset monthly gains in all other districts. Overall, at a benchmark price of $696,100, prices are still over 11 per cent higher than levels reported last year at this time, with year-over-year gains ranging from a high of 20 per cent in the East district to a low of nine per cent in the City Centre.
Semi-Detached<br />September reported a boost in new listings compared to sales activity as the sales-to-new listings ratio dropped below 70 per cent, the first time it has done that since September of last year. The one-month shift supported a monthly increase in inventory levels, but with 295 units available, inventories have not been this low since September 2005.
Following ten consecutive monthly price gains, benchmark prices in September did ease slightly over the last month. However, at a benchmark price of $621,300, prices are still 11 per cent higher than last year’s levels. The monthly pause in price was primarily driven by adjustments in the West and North West districts, which saw the months of supply rise above levels reported last year and last month.
Row<br />The pullback in monthly sales outpaced the pullback in new listings, causing the sales-to-new listings ratio to fall to 84 per cent. While conditions are still exceptionally tight, it is an improvement over the 90 per cent average reported since April. The shift also prevented any further monthly declines in inventory levels. However, with less than one month of supply, the persistently tight conditions continue to place upward pressure on prices.
The benchmark price in September reached $419,400, a 1.5 per cent monthly gain and 17 per cent higher than levels reported last year. Price gains have occurred across all districts, with the most significant gains occurring in the most affordable districts in the city.
Apartment Condominium<br />New listings in September were at the highest levels reported for September, contributing to the record-high sales this month. Year-to-date apartment condominium sales reached 6,286 sales, a 25 per cent gain over last year and a record high for the city. Higher lending rates and tight rental market conditions have kept demand for apartment-style products strong. While inventory levels did see a modest gain compared to last month, thanks to a lower sales-to-new-listings ratio, conditions remain exceptionally tight with 1.5 months of supply.
The persistently tight market conditions have continued to drive further price gains. In September, the unadjusted benchmark price reached $312,800, a 1.2 per cent increase over last month and nearly 15 per cent higher than last year.2023-10-03T10:52:11-07:002023-10-16T06:20:10-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20633The difference between a deposit and a down paymentWhen purchasing a property, you will need to know how much of a deposit you wish to put down on a home, and how much down payment you will be making. These terms can be confusing – but hopefully this information will help!
Deposit<br />A deposit is paid when your offer to purchase a home is accepted, and becomes a part of the overall down payment. It is considered ‘good faith’ money and must be provided (usually) within the first 3 business days of signing the contract (although in hot markets the seller may expect it the next business day). The funds are usually provided in a bank draft or electronic transfer/wire transfer to the seller’s brokerage. They are held ‘in trust’ while the buyer starts working on conditions like financing, home inspection or condo document review.
Waiving, or not waiving, conditions
If the buyer waives the conditions, the purchase is final, and the deposit stays with the seller’s brokerage and becomes part of the down payment. At this point the property is sold!
If the buyer does not waive conditions, the buyer gets the deposit back. This can happen if the buyer does not get financing, or if something is too concerning with the home inspection or condo document review for the buyer to comfortably move forward with the purchase.
How to lose the deposit
The buyer will lose their deposit if they walk away from the purchase after waiving conditions but before possession. In Alberta, the deposit is then split between the seller and their REALTOR®, and the seller can sue the buyer for damages the seller may incur, such as if the property sells for less later, or if they incur costs because they cannot complete the sale of a home they are purchasing.
Down payment<br />A down payment is money the lender requires you to invest in the purchase of your home. The purchase price of the home, minus the deposit and a down payment, make up the amount of the mortgage you will secure. In Canada, in order to obtain a mortgage from certain lenders and to be eligible for mortgage default insurance, you must have a minimum down payment of 5%. If you put over 20% down on a home, you may not be required to pay mortgage default insurance.
How much deposit and down payment should I make?
How much deposit you put down often depends on the purchase price of the home, but it also depends on whether you are in competition for the home. If you are in competition – it may help to put down a larger deposit, to demonstrate to the seller that you are a serious buyer! Have a discussion with your mortgage broker, as you may want to factor in any repairs or improvements you want to make with the house. You can read more about sources of down payments <a href="https://www.jennifersipkens.ca/blog/options-for-your-down-payment/">HERE</a>.
The above information is provided as general information and is not considered legal advice. Please consult your lawyer if you have any questions or concerns about this information.2023-09-14T06:41:00-07:002024-01-23T08:08:48-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20290August sees record-high sales amidst historic low inventory, pushing prices higherAugust sees record-high sales amidst historic low inventory, pushing prices higher
Thanks to a surge in the condominium market, August sales reached a record high with 2,729 sales. Despite the record levels reported over the past several months, year-to-date sales are still down by 15 per cent compared to last year.
While new listings did improve compared to levels seen this time last year, the sales-to-new-listings ratio remained elevated at 87 per cent, preventing any significant shift from the low inventory situation. Inventory levels in August dropped to 3,254 units, not only a record low for the month but well below the 6,000 units that are typically available. Low inventory combined with high sales this month ensured the months of supply remained low at just over one month.
“Higher lending rates have caused many buyers to either hold off on purchase decisions or shift toward more affordable products on the market,” said CREB® Chief Economist Ann-Marie Lurie. “The challenge has been the availability of supply, especially in the detached market. Inventory levels hit record lows in August, and while new listings are higher than last year, conditions continue to favour the seller, driving further price gains.”
The unadjusted benchmark price reached $570,700 in August, representing the eighth consecutive monthly gain. Prices have trended up across all property types, with row-style properties reporting the largest increase.
Detached<br />Record low inventory levels this month were primarily driven by pullbacks for homes priced under $700,000. While new listings did improve compared to last year, most of the growth was driven by homes priced over $700,000. August sales did improve over last year’s levels. However, limited supply in the lower price ranges has likely prevented stronger detached home sales.
Persistently tight conditions drove further price gains this month. As of August, the unadjusted benchmark price reached $696,700. Nearly one per cent higher than last month and over 10 per cent higher than last year's levels. The highest year-over-year price gains occurred in the most affordable regions of the city's North East and East districts.
Semi-Detached<br />The 236 new listings and 197 sales did little to change the low inventory situation. While inventory levels did remain comparable to last month, they are still 35 per cent below last year’s levels and at record lows for the month. Relatively strong sales combined with low inventory levels have given sellers the advantage.
With months of supply remaining exceptionally low throughout 2023, we continue to see upward pressure on home prices. As of August, the semi-detached unadjusted benchmark price reached $623,200, a monthly gain of one per cent and 10 per cent higher than last year. Price growth did range across each of the Calgary districts, but the strongest year-over-year gains were reported in the most affordable districts of the North East and East.
Row<br />The gain in new listings did little to offset the strong sales activity as the sales-to-new-listings ratio remained high at 94 per cent. This prevented any additions to the inventory and left the months of supply below one month for the fifth consecutive month.
The persistently tight conditions placed further upward pressure on home prices. In August, the unadjusted benchmark price reached $413,200, a monthly gain of over one per cent and nearly 16 per cent higher than levels reported last year. Year-over-year gains have occurred across all districts, ranging from 12 per cent in the North West to 29 per cent in the East district.
Apartment Condominium<br />August sales continue to rise over last month and last year’s levels. Recent gains have caused year-to-date sales to reach 5,582 units, nearly 22 per cent higher than last year’s levels and a new record high for the city. Tight rental markets and relative affordability have driven many purchasers to the apartment condominium sector. At the same time, new listings have struggled to keep pace as the sales-to-new-listings ratio bumped up to 98 per cent in August, causing inventories to ease and the months of supply to drop to one month.
The tight market conditions have been placing upward pressure on home prices, and as of August, the unadjusted benchmark price reached $309,100, a monthly gain of over one per cent and a year-over-year gain of over 13 per cent. The City Centre is the only district that did not report a monthly price gain, and prices are still below their previous highs in 2014. This is partly due to better supply/demand balances in the City Centre compared to other parts of the city.2023-09-01T18:47:57-07:002023-09-01T18:50:11-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20263Home inspection preparation guideThe home inspection stage of the selling process can be a stressful one for sellers. Strangers will be in your home for a significant amount of time, looking at all your stuff, and you have no idea what they will find. A cynic would say a home inspector has to find something to justify their fees; but in reality, a home inspector is there to inform the buyer as to the condition of the property so they are aware of what they are buying. They will point out any defects in the home, but also things that can be changed to make the home safer or more efficient.
Here is what you can do to make the process a little smoother.
The home inspector may arrive early to get started on the roof, so you may want to leave the house at least 15 minutes early. Keep in mind the buyers may also be in the house for the entire time, so be sure to clean the home and hide any valuables in dresser drawers.
Leave key to the garage on a table so it is easy to find
Make sure utilities, including water, are on
Make sure pilot light is on for gas fireplace
Empty dishwasher and washing machine
They are going to test all appliances so make sure they are in working order
Replace furnace and humidifier filters if needed
Clear area around water heater, furnace and all appliances so inspector can easily access them
Leave out remotes for lights, fans and garage doors – replace batteries if not in working order
Check and repair leaks around faucets, under sinks, base of toilet and showers
Make sure the attic is easily accessible
Clear the gutters, make sure downspouts are pointed away from the house
If you have recently replaced or repaired something, feel free to leave the receipt (with private information hidden) on a table
If there are repairs you know you can handle but have been putting off, such as a leaky faucet or replacing light bulbs, it is a good idea to complete them, as they will be found in the home inspection and the buyer may come to you requesting that the items be repaired or replaced. It is much easier to deal with these issues ahead of time!
The home inspection may take anywhere from 2 to 4 hours, depending on the size of the home, and if the buyers have owned a home before or if this is their first one and they need to learn how to maintain the home!
The buyers will generally get the home inspection report within 24 hours of the inspection. They may accept it as is and waive the home inspection condition, or they may come back asking for items to be repaired or replaced. Patience is key during this phase of the selling process!2023-08-28T07:24:00-07:002023-08-30T07:41:03-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20186CREB®'s Q2 2023 Housing Market ReportThe Calgary Real Estate Board (CREB®) has released its Q2 2023 Housing Market Report. The report highlights a dynamic real estate landscape in the City of Calgary, showcasing strong trends in sales, demand and pricing.
As expected, sales activity has slowed from last year’s record-breaking pace while staying stronger than long-term trends. What was not expected was the robust demand in the higher price segments of the market despite higher lending rates.
“An influx of migrants coming from Ontario and British Columbia are likely contributing to some of the strength for higher priced properties, as the relative affordability could make migrants less sensitive to the recent gains in lending rates, said CREB® Chief Economist Ann-Marie Lurie. At the same time, continued strength in our labour market is supporting demand across all property types.”
However, the robust demand is met with a shortage in supply. Housing inventory levels have remained notably low across various segments, encompassing the resale, new home, and rental markets. Despite relatively strong new home starts, these have not been sufficient to alleviate inventory constraints, primarily due to the influx of migrants. Resale supply has also encountered unexpected challenges, as higher lending rates and limited choices in supply have deterred existing homeowners from making changes.
The prevailing shortage in supply has contributed to the continuation of tight market conditions, which has led to stronger-than-expected price growth across all property types in the city. This steady appreciation in prices throughout the year has effectively offset declines observed in the latter half of 2022, ultimately resulting in new record-high prices.
“Home prices have exceeded our expectations as supply challenges have persisted throughout the spring market, added Lurie. “While the pace of monthly gains is expected to slow in the second half of the year, limited supply choice is expected to keep prices elevated throughout the second half of the year.”2023-08-17T09:18:48-07:002023-08-17T09:30:05-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20091What is a Reserve Fund Study?Essentially a Reserve Fund Study (RFS) is a 25-year plan to repair or replace capital assets of the corporation, so items like the roof, heating system, exterior doors, etc. A portion of the condo fee goes into a Reserve Fund to help pay for these items.
Reserve Fund Study: the physical inspection of the condominium’s depreciating property – this is a site visit that is conducted by the reserve fund planner and often the board will walk the property to discuss any issues since the last study was completed.
Reserve Fund Report: the written document outlining all the findings from the reserve fund study. The report must identify what may need to be repaired or replaced, assess the present condition of the property and estimate when it will need to be repaired or replaced, and estimate the costs of repair or replacement (at a cost no less than current costs).
Reserve Fund Plan: this is a large spreadsheet that demonstrates how much money is needed to maintain the reserve fund based on the report. The Plan will start with the current level of funds in the reserve fund, then show the items slated for repair or replacement each year, the amount of money required to pay for the items, and an ending balance for that year. This is where you will see if they plan to have a <a href="https://www.jennifersipkens.ca/blog/what-is-a-special-levy/">special levy or assessment</a> or increase condo fees to cover any shortfalls in the Plan.
Reserve Fund: A separate bank account to help pay for the items listed in the Reserve Fund Plan. Many condo corps will invest some of this money into higher interest savings accounts.
The funds in the Reserve Fund can only be used for items in the Plan, unless a special resolution has been called and at least 75% of owners agree to use the funds for a specific purpose.
When a condo plan is first registered (so a new build) the corporation has 2 years following registration to complete a reserve fund study and report, and then must complete a study every 5 years afterwards. Corporations also have the option to do them more often than 5 years.
If a condo has fewer than 12 units, the owners can choose how to conduct a RFS. They may hire a planner, or by special resolution, let the corporation be its own reserve fund study provider (must still meet all criteria and guidelines for the reserve fund study and report).
Annual report: the corporation must prepare an annual report on the reserve fund. It must include:
Amount of reserve fund on the last day of the preceding fiscal year
All payments made into and out of the refund that year
A list of the property that was repaired or replaced and the costs incurred
Total payments by ordinary or special resolutions
List of any property projected to be repaired or replaced during the current fiscal year, including the projected costs of the repairs and replacements.
2023-08-13T07:50:24-07:002023-08-13T07:53:36-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:20070Renting out your CondoHere are some things to know if you are thinking about renting out your condo!
There are no restrictions on your ability to rent out your condo. Alberta’s Condominium Property Act (the Act) does not allow corporations to create bylaws that prevent owners from renting out their condo. However, they can make restrictions and requirements that owners must follow.
Restrictions in renting out your condo. You must give notice to the condo corporation of your intent to rent out the unit. The notice must include the address where the owner can be served with any notices and must include the amount of rent being charged. The owner must also provide the corporation with the name of the tenant(s) within 20 days from the start of the tenancy. If the tenancy ends, the owner must notify the corporation within 20 days.
Short term rentals. The condo corporation may have a bylaw restricting short term rentals in the complex. An example of what this would look like: An owner shall not use their Unit, or any part thereof: for hotel or guest house type purposes; any Airbnb, VRBO, Homeway for FlipKey or similar type accommodation unless such use constitutes an authorized, permittd or discretionary use or approved "class 1 home occupation" as defined in the relevant Municipal bylaw.
Your tenants must follow the rules! Your tenants are required to comply with the bylaws of the corporation. It is best to provide your tenants with a copy of the bylaws and any rules documents your condo corporation have produced.
Deposit from owner. You may be required to pay a deposit to the corporation if you rent out your unit. The Condominium Property Regulation sets the maximum rental deposit that may be charged to an owner for a unit rented to a tenant at $1,000 or one month’s rent, whichever is greater. The deposit is to be returned within 20 days after the owner gives the corporation notice the unit is no longer a rental.
Recovery of costs if unit is damaged. If a tenant causes damage, the corporation can seek payment from the owner, including putting a caveat on title for recovery of costs.
This information is intended to provide general information only, and is not a substitute for legal advice. <br />Information supplied by the Government of Alberta via Service Alberta.2023-08-07T06:34:26-07:002023-08-07T06:48:36-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:194198 Tips to get you Downsizing It can be daunting at the best of times to go from a larger space to a smaller one. Pile on the memories and the treasured items, and it can be downright overwhelming! Here are some tips to get you started.
Start early: Many of my clients started downsizing their belongings up to a year before they actually listed their house. This gave them time to go through the process, find new homes for their stuff, and not be pressured into having to do it in a short amount of time.
Plan your new space: If you know where you are going, or the size of space you will be moving to, plan out what will fit in that space, and more importantly – what will not. It will be much easier to dispose of items if you know you cannot take it to your new home.
Start small: Doing a little bit at a time, or a room at a time, can make the process less daunting. If you have a lot of stuff, it might mean starting with a closet! And that is ok!
Discard duplicates: This is an easy one, but important. When you have lived somewhere for a long time, you sort of forget what you have in your house, and may end up with many similar items! This is especially true with kitchen gadgets. Think about what you can’t live without, and if you haven’t used something in a long time, it may be time to part with it.
Have a “donate” pile. Gather items that you will donate so you only have to make one trip. Research charities in advance, sometimes thinking about who will benefit from your item can help making parting with it easier.
Get help from family. It can be easier to go through your stuff with a family member, making time to reminisce and tell stories. If your are going through items with your kid(s), you can share those memories with the next generation. And if it is their stuff – great – they can take it home with them!
Digitize memories. A lot of times, getting rid of something is hard because it brings up memories for you. Take a photo of it, so you can still enjoy those memories without needing to move it to your new space.
Do not stress. This process is very likely going to be hard and emotional, but be kind to yourself and don’t overdo it if you start to feel overwhelmed or emotional. Tomorrow is another day!
2023-08-04T18:30:00-07:002023-08-06T18:34:34-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:19259Calgary home prices reach new heights: July sees seventh consecutive monthly gainRising rates had little impact on sales this month as the 2,647 sales represented a year-over-year gain of 18 per cent, reflecting the strongest July levels reported on record. The record-setting pace has been driven mainly by significant gains in the relatively affordable apartment condominium sector. Despite recent gains, year-to-date sales have declined by 19 per cent over last year.
In line with seasonal expectations, sales and new listings trended down compared to last month. However, this had minimal impact on inventory levels, which remained near the July record low set in 2006. With a sales-to-new-listings ratio of 82 per cent and a months of supply of 1.3 months, conditions continue to favour the seller.
“Continued migration to the province, along with our relative affordability, has supported the stronger demand for housing despite higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “At the same time, we continue to struggle with supply in the resale, new home and rental markets resulting in further upward pressure on home prices.”
In July, the unadjusted total residential benchmark price reached $567,700, marking the seventh consecutive monthly gain. Prices are now over four per cent higher than the previous peak in May of 2022.
Detached
With 1,197 sales and 1,587 new listings in July, inventory levels trended up over last month. However, with 1,720 units available, inventory levels are at the lowest ever reported for July. Inventory levels have declined across all properties priced below $1,000,000.
Shifts in sales and inventory have caused the months of supply to trend up over the one month reported over the past several months. However, conditions remain relatively tight, and prices continued to rise this month. In July, the unadjusted benchmark price rose to $690,500, a monthly gain of nearly one per cent and over seven per cent higher than last July. Both year-over-year and monthly price growth was strongest in the city's most affordable North East and East districts.
Semi-Detached
With only 248 new listings in July and 211 sales, the sales-to-new-listings ratio once again pushed above 85 per cent. The pullback in new listings relative to sales ensured that inventory levels remained low, and the months of supply remained just over one month.
With no shift in the sellers’ market conditions, the unadjusted benchmark price continued to trend up in July, reaching $616,800. Monthly gains were strongest in the North East and East district as both rose by over two per cent compared to June. The only district that experienced stability in monthly prices was the City Centre.
Row
July reported 488 new listings and 467 sales, resulting in a sales-to-new listings ratio of 96 per cent. This prevented any additions to the inventory and left the months of supply below one month for the fourth consecutive month.
The persistent sellers’ market conditions caused further price gains for row properties. As of July, the benchmark price reached $407,500, nearly two per cent higher than last month and 14 per cent higher than prices reported last July. Prices trended up across all districts, with the highest monthly gain occurring in the west district at nearly four per cent. The slowest monthly gains happened in the City Centre.
Apartment Condominium
July sales continued to rise over last year's levels, leaving year-to-date sales 16 per cent higher than levels reported last year. This is the only property type that has reported a year-to-date gain in sales activity. This has been possible thanks to recent gains in new listings. However, conditions remain tight for apartment condominiums with a sales-new-listings ratio of 84 per cent and a months of supply of 1.4 months.
The strong demand relative to supply for this property type has driven further price gains this month. As of July, the unadjusted benchmark price reached $305,900, nearly one per cent higher than last month and over 12 per cent higher than last July. While prices are higher than last year in every district, the city center has yet to see the same level of pressure on prices and has reported the lowest year-over-year growth at nearly nine per cent.2023-08-01T09:52:52-07:002023-08-07T19:24:21-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:19035Another record-high month for CalgaryThe housing market in Calgary witnessed a surge in apartment condominium sales, setting a new total residential record with 3,146 sales achieved in June. Although year-to-date sales are currently 23 percent lower than last year, they remain significantly higher than pre-pandemic levels.
Notably, there has been a positive trend in new listings, providing relief and a monthly increase in inventory levels. However, despite these improvements, the inventory for June stood at 3,458 units, marking a decline of over 36 percent from last year and reaching the lowest levels for June in nearly two decades.
“The demand for housing remains robust, bolstered by a healthy labour market and increased migration levels, which helps offset the impact of higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “Although we have seen some recent improvements in new listings, particularly for apartment condominiums, it is not enough to cause any substantial change from the low inventory situation in our city. While new home starts are on the rise, it will take time to observe their impact on supply.”
With a supply of just over one month, the current market conditions continue to favour sellers, placing upward pressure on home prices. In June, the total residential benchmark price reached $564,700, representing a monthly unadjusted gain of one percent and four percent higher than last year's levels.
Detached<br />A monthly gain in new listings supported a monthly increase in inventory levels. However, with only 1,651 units available in June, levels hit a new record low for the month. Inventories declined across most price ranges, but the steepest declines occurred in homes priced below $600,000. Of all the inventory in June, only 24 per cent was priced below $600,000, a significant drop from last year, where that market segment represented 45 per cent of the supply.
Limited inventory, especially in the lower price ranges, ensured that the market continued to favour the seller, driving further gains in home prices. As of June, the benchmark price reached $685,100, an unadjusted monthly gain of nearly two per cent and a year-over-year increase of six per cent. Year-over-year gains were the highest in the most affordable North East and East districts.
Semi-Detached<br />New listings in June improved, helping support modest monthly gains in inventory levels. However, with 268 units in inventory and 240 sales, the months of supply remained exceptionally tight at just over one month. The persistently tight market conditions have contributed to further price gains for this property type. As of June, the benchmark price reached $613,100, over two per cent higher than last month and nearly six per cent higher than levels reported in the previous year at this time.
Persistently tight conditions across all districts supported price growth. Year-over-year price growth ranged from a low of 4.5 per cent in the city centre to a high of 17 per cent in the East district.
Row<br />Both sales and new listings trended up over the levels reported last month. Still, with a sales-to-new-listings ratio of 86 per cent and months of inventory below one month, conditions continued to favour the seller placing upward pressure on home prices.
In June, the benchmark price reached $400,000, over two per cent higher than last month and over 11 per cent higher than last year. Prices improved across all districts in the city, with the most significant monthly gains occurring in the East, North East and South districts. These districts have also reported year-over-year price gains of nearly 20 per cent.
Apartment Condominium<br />Sales in June reached 857 units, 48 per cent higher than last year. Over the past three months, sales growth was enough to cause year-to-date sales to rise by 11 per cent over last year. The gain in sales was possible thanks to improving new listings. However, persistently strong demand for affordable product has prevented inventories from improving. In June, inventory levels reached 1,116 units, the lowest level for the month reported since June 2013.
Persistently tight conditions contributed to the sixth consecutive month where prices rose. As of June, the benchmark price reached $303,200, nearly two per cent higher than last month and 12 per cent higher than last year’s levels. While unadjusted prices have hit a new record high, prices remain below the peak in the City Centre, North East and East districts.2023-07-04T12:30:10-07:002023-07-04T12:36:12-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:184518 New Communities to watch for in 2023Hotchkiss
Location: East of Stoney Trail and North of 22X<br /> Developer: Hopewell Communities<br /> Description: “Make yourself at home in Hotchkiss. Live the life you’ve only dreamed of and thrive in a home you love, with wide open spaces to explore, and a warm and welcoming community where you and your loved ones will truly belong. From affordable Paired homes to spacious Laned homes and Front-Garage homes with all the bells and whistles, Hotchkiss has a home for you. Created by Calgary’s most popular home builders, each floorplan is tailored to your tastes, budget and lifestyle. Inside and out, every home is thoughtfully designed to enhance the lives of Hotchkiss’ homeowners”.
Huxley
Location: East of Stoney Trail and North of 17 Ave SE<br /> Developer: Truman<br /> Description: Introducing Huxley, a new Calgary community in the East District located within the Belvedere area structure plan. Adjacent to the East Hill Shopping Centre and only 15 minutes from downtown. Enjoy quick and easy access to green space, entertainment, dining, retail and more.
Huxley in West Belvedere provides homebuyers with a chance to live in a unique and all-encompassing amenity-rich neighbourhood. Huxley is located on the future 17th Avenue C-Train line, providing even more transit options to make your way around town. Huxley offers a wide variety of homes and floorplans to suit your family and lifestyle.
Lewiston
Location: East of Livingston, north of Stoney Trail NW<br /> Developer: Genesis Land Development<br /> Description: “Connected by ample pathways, lush with greenspaces and refreshed with a naturalized stream corridor in the community, Lewiston is an ideal place to settle into. Lewiston will be home to 1,000 families creating a quaint, close-knit community feeling. You’ll find the perfect blend of town homes, duplexes and single family homes to provide a range of housing opportunities and choices to fit your lifestyle. Build the home you’ve been dreaming about, establish your roots and begin creating life-long memories in Lewiston.”
Logan Landing
Location: South of Seton in SE Calgary<br /> Developer: Genesis Land Development<br /> Description: “A unique location, one of the last new communities along the Bow River, is where Genesis Land’s vision integrates in perfect harmony, the landscape with quality living and community design.”
Silverton
Location: West of Macleod Trail South, north of 194 Ave SW<br /> Developer: Cardel Homes<br /> Description: “Draped in modern-vintage character and surrounded by a variety of established amenities, including shops, playgrounds, schools, parks, and natural areas, Silverton residents can enjoy a walkable, tree-lined community conveniently located near all the essentials. And, with the future LRT station, this progressive new neighbourhood will connect residents to city-wide possibilities.” They will offer a wide range of affordable housing, from townhomes to paired, laned and single family homes.
Vermillion Hill
Location: Southwest Calgary on the doorstep of Fish Creek Park<br /> Developer: Qualico<br /> Description: “On the doorstep of Fish Creek Park and Kananaskis, Vermilion Hill makes exploring the great outdoors both accessible and effortless. Because your lifestyle is about feeling connected”. They will offer front garage, laned and duplex homes.
Seton Ridge
Location: SE <br /> Developer: Brookfield Residential<br /> Description: Brookfield is now looking to expand the success of Seton to Seton Ridge. Buyers will likely be able to pick from a diverse range of housing styles.
Nostalgia
Location: South of Rangeview and Seton<br /> Developer: Jayman and Telsec<br /> Description: “This new neighbourhood will merge innovative building practices with a dedication to sustainability, a focus on wellness and a commitment to creating authentic social connections”. It will feature a 100,000 sq ft HOA Amenity Centre and boutique retailers, and a variety of home styles including Estate, Single Family Detached, Seniors Living, Townhomes and Condos.
Check out <a href="https://www.jennifersipkens.ca/blog/seven-new-communities-to-watch-in-calgary-in-2022/">7 New Communities to watch in 2022</a>2023-06-20T11:00:35-07:002023-06-20T11:07:44-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:18357Age restricted condos in AlbertaThe Alberta Human Rights Act protects Albertans from discrimination in certain areas based on specific personal characteristics. Goods, services, accommodation or facilities are areas where people are protected from discrimination regardless of race, religious beliefs, colour, gender, gender identity, gender expression, physical disability, mental disability, age, ancestry, place of origin, marital status, source of income, family status or sexual orientation. Everyone has a right to treatment free of discrimination when obtaining goods, services, accommodation or facilities customarily available to the public in Alberta. (Source: <a href="https://albertahumanrights.ab.ca/Documents/HRCondominiums.pdf" target="_blank">Alberta Human Rights Commission</a>).
There are a host of age restricted apartment condo and townhouse complexes in Alberta. They can be 18+, 29+, 40+, 50+, 55+ and 60+. On January 1, 2018, age became a protected ground in the area of goods, services, accommodation or facilities. The only age restricted condos that will be allowed are seniors complexes, and the minimum age will be 55. Age restricted condos where the restriction was in place prior to January 1, 2018 are allowed, but they must either remove the age restriction, or convert to seniors only housing by December 31, 2032.
Purchase considerations
It is important to remember that by December 31, 2032, the age restriction in the building you may be interested in will be removed unless it is 55+ now. So, if you would prefer not living in a building or complex with young families, you need to do additional due diligence to see which way the board is leaning (remove age restriction, or make it 55+).
If you require a mortgage and are putting less than 20% down on the property, CMHC does not typically insure 55+ condos. The other two high ratio insurers will consider age restricted units on a case by case basis. If you require a mortgage and are considering an age restricted building, have a discussion with your lender or mortgage broker at the start of your home search so you are properly advised.
Read the bylaws and any rules the complex may have regarding overnight guests who are younger than the age restriction. Many times they are allowed to stay, but there may be limitations on the number of nights in a year they can stay.2023-06-05T18:37:57-07:002023-11-13T07:53:53-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:18326May sales reach a record highThanks to a significant gain in apartment condominium sales, May sales rose to 3,120, a new record high for the month. While the monthly gains have not outweighed earlier declines, this does reflect a shift from the declines reported at the start of the year.
At the same time, we continue to see fewer new listings on the market than last year, causing inventory levels to fall. With a sales-to-new-listings ratio of 85 per cent and months of supply of one month, conditions continue to favour the seller placing further upward pressure on home prices.
“Calgary’s housing market continues to exceed expectations with the recent gain in sales activity this month,” said CREB® Chief Economist Ann-Marie Lurie. “The higher interest rate environment and recent rental rate gains have driven more consumers to seek apartment condominium units. In addition, the recent rise in new apartment listings has provided enough options to support the sales gain. Calgary continues to benefit from the relatively healthy job market and recent population growth keeping housing demand strong across all property types.”
Persistently tight market conditions drove further price growth this month. In May, the unadjusted benchmark price reached $557,000, over one per cent higher than last month and nearly three per cent higher than last year’s monthly peak price of $543,000.
Detached<br /> Rising sales for homes priced above $600,000 was not enough to offset declines in the lower price ranges as May sales reached 1,486, a year-over-year decline of eight per cent. New listings continue to fall for homes priced below $700,000, providing limited choice for consumers seeking out lower-priced detached homes. While new listings did improve for higher-priced properties, the relatively strong demand kept conditions tight across all price ranges, driving further price gains.
In May, the detached benchmark price reached $674,000, nearly two per cent higher than last month and over four per cent higher than last year’s peak price of $647,000. While each district reported a new record high price this month, the year-over-year gains ranged from a high of 12 per cent in the East District to a low of two per cent in the City Centre.
Semi-Detached<br /> Sales also rose to near-record highs for the month for semi-detached homes. However, with 279 sales and 269 new listings this month, inventories fell, and the months of supply dropped below one month.
The exceptionally tight conditions caused further price gains, which for the first time, pushed above $600,000. This is the seventh consecutive month where prices have trended up, and as of May, levels are over three per cent higher than last year’s monthly peak. Like the detached sector, each district reported new record high prices in May. However, the strongest year-over-year gains occurred in the most affordable East district at nearly 12 per cent.
Row<br />New listings in May improved over levels seen earlier in the year, but thanks to monthly gains in sales, the sales-to-new listings ratio remained exceptionally high at 89 per cent, preventing any significant shift in the low inventory situation. While sales activity is still lower than last year’s levels, this is likely related to the lack of supply in this segment of the market. Inventory levels are down 50 per cent compared to last year.
With less than one month of supply, it is not a surprise that prices continue to rise. In May, the benchmark price reached $390,500, a two per cent gain over last month and nearly nine per cent higher than last year's peak price of $359,600. Row prices rose across all districts, with year-over-year gains exceeding 15 per cent in the city's North East, South and East districts. The slowest price gains occurred in The City Centre, North West and South East at rates of over seven per cent.
Apartment Condominium<br /> Sales in May reached 858 units, a year-over-year gain of 36 per cent and high enough to cause year-to-date sales to rise by four per cent for a new record high. Stronger sales were possible thanks to the recent gains in new listings. There were 1,025 new listings in May, a year-over-year gain of eight per cent. Despite the gain in new listings, the sales-to-new listings ratio remained high at 84 per cent, preventing any significant shift in inventory levels. As a result, inventory levels remained 23 per cent lower than what was available in the market in May 2022. The rising sales and low inventories kept the months of supply low at just over one month.
Persistently tight conditions drove further price gains in May. The unadjusted benchmark price reached $298,600, a monthly gain of over one per cent and a year-over-year gain of nearly 11 per cent. The recent growth has finally caused unadjusted apartment condominium prices to return to 2014 levels. Unlike other areas, not all districts reported a new record high price. The only areas to report a full recovery were the North, North West, West and South East districts. Overall year-over-year price growth ranged from a high of 16 per cent in the North District to a low of 10 per cent growth in the City Centre.2023-06-01T12:23:34-07:002023-06-01T12:25:07-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:18313Parking options when buying an apartment condoThere are four parking options available for apartment condos.
No parking – this is probably the most important, because if you have a car and you want to park it close to where you live, you need to confirm the unit you are purchasing comes with parking! Most apartment condos come with parking, but be sure to tell your REALTOR® that you need parking so they can filter out any condos that do not come with it.
Titled parking – this is where you would own the parking stall. You will have a separate title to the parking stall, a separate tax bill for it, and the condo survey plan registered at land titles swill show the stalls on the parking plan outlined with solid lines.
Assigned parking – this is where the condo corp owns the entire parking space and assigns stalls to units. How they manage this will be outlined in the corporations bylaws or additional rules/regulations they establish as a condo board.
It is not guaranteed that the stall you have when you purchase will not change, and the board may reassign a parking stall upon sale of a unit. If the location of a stall is a deal breaker for you, then a condition can be added in the contract that the buyer will seek and obtain written confirmation from the board that they will be assigned a particular stall. If you can’t secure that stall, you can choose not to waive the condition, and not purchase the property.
Leased parking – this is where the board enters into a lease agreement with the living unit owner to secure a certain stall for a fixed time. The lease’s cost, length and ability t to renew, cancel or sell the lease may all be important to the buyer. Although rare, leased parking can sneak up on a buyer when assumptions about the parking situation are not made and confirmed.
It is important to confirm the parking type when purchasing a condo. The parking type can be found on the land title, survey plan, Additional plan sheet, and bylaws. Although reviewing restrictions in the bylaws is important, a REALTOR® is not qualified to review condo documents for any client, so you can have the condo documents reviewed by a professional. 2023-05-29T07:00:00-07:002023-06-01T06:28:08-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:18086Buying and Selling with PetsSellers
First impressions matter! I understand it can be hard for sellers to sell their homes when they have a pet. And sometimes, showings don’t go so well when pets are involved! I have taken buyers to a home where there was a very angry sounding dog behind the front door. They opted not to see the house. I have shown a beautiful home where there was an odour coming from the basement, where the dog had clearly been using the space as their bathroom. I have had to be on the lookout for a cat who liked to escape (this usually turns into a group effort). I have had buyers grab the cat who escaped (I am mildly allergic!). All this results in very unpleasant showings, and unless you are in a hot market, it can hurt your chance of selling your home.
Do a deep clean of the entire house, be sure to clear out unnecessary pet toys, and make sure any litter boxes are maintained and tucked away. Also be sure the yard is free of dog gifts, so buyers are free to walk around without worrying about stepping in anything.
If you can remove your pets for showings, or can put them in a portable kennel, that is best. A note on a door of the room containing the kennel is a nice heads up, as is a note warning of snakes in aquariums. I can tell you from personal experience some buyers will avoid that room all together!
Buyers
When buying a detached home, or anything non-condo, you want to make sure the property will be sufficient for your pet, be it a fenced in yard or close proximity to walking trails.
If you are thinking of buying a condo, and you have a cat or dog, then you need to take extra precautions. Condo bylaws allow condo corporations to set rules around the number, type and even size of the pets permitted in the unit, as well as noise controls and penalties. It is best practice to get your pet approved prior to waiving conditions. Also be objective if your pet is suitable for condo life! I have seen it where an owner was given the choice to remove the pet or themself because of numerous complaints of the dog barking all day long when the owner was at work. And if you want to change out the carpet, be sure to review the condo bylaws and policies – some buildings require carpet in bedrooms.
Finally – moving can be very stressful for pets, and some animals can take a while to adjust to their new home. You can try scent training (start near your pet’s things and hide treats around the home so they can explore and de-stress). Playing fetch or other games with your pet can also help them adjust to their new surroundings.
Browse <a href="https://www.jennifersipkens.ca/condos/pet-friendly-condos/">pet friendly condos</a> for sale in Calgary.
2023-05-18T07:54:15-07:002023-05-18T08:00:18-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:17930Prices reach new record highPersistent sellers’ market conditions placed further upward pressure on home prices in April. After four months of persistent gains, the total unadjusted benchmark price reached $550,800, nearly two per cent higher than last month and a new monthly record high for the city.
“While sales activity is performing as expected, the steeper pullback in new listings has ensured that supply levels remain low,” said CREB® Chief Economist Ann-Marie Lurie. “The limited supply choice is causing more buyers to place offers above the list price, contributing to the stronger than expected gains in home prices.”
In April, sales reached 2,690 units compared to the 3,133 new listings. With a sales-to-new-listings ratio of 86 per cent, inventories declined by 34 per cent compared to last year and are over 45 per cent below long-term averages for April.
While sales have eased by 21 per cent compared to last year, the steep decline in supply has caused the months of supply to ease to just over one month. This reflects tighter market conditions than earlier in the year and compared to conditions reported last April.
Detached<br />New listings have eased across all price ranges in the detached market, with the most significant declines occurring for homes priced below $700,000. The decline in new listings far outpaced the pullback in sales, causing the sale-to-new listings ratio to rise to 88 per cent and the months of supply to fall to just over one month, tighter than both last year and last month.
The persistently tight market conditions have contributed to further price growth. In April, the detached benchmark price reached a new record high at $661,900. Every district except the City Centre reported a new record high price in April. The City Centre is also the only district that reported over two months of supply. With a year-over-year gain of 6 per cent, the most affordable East district reported the largest price gain.
Semi-Detached<br />With 234 sales and 264 new listings in April, the sales to new listings ratio jumped to 89 per cent. This caused further declines in inventory levels, which are at the lowest April level seen since 2007. As conditions are tighter than last year, it is not a surprise to see further price growth.
The unadjusted benchmark price in April reached and new record high at $593,200, reflecting a two per cent gain over last month’s and last year’s prices. While all districts posted a new record high price this month, the strongest gains occurred in the most affordable North East and East districts.
Row<br />Row properties faced the tightest market conditions in April, with a sales-to-new-listings ratio of 95 per cent and months of supply under one month. Row sales have eased over last April’s record high, but with 416 sales, activity is still far stronger than long-term trends. Relative affordability has supported the strong demand in this sector. However, the persistently tight market conditions have placed significant pressure on home prices.
After four consecutive monthly gains, the benchmark price reached a new record high of $387,400, over seven per cent higher than last year. Like other areas, the steepest price growth occurred in the most affordable districts of the North East, East and South.
Apartment Condominium<br />Thanks to a boost in new listings in April, the apartment condominium sector was the only sector to see sales activity rise over last year’s levels. With 953 new listings and 734 sales, inventories did trend up over the previous month but remained below the levels reported last year at this time. With a sales-to-new-listings ratio of 77 per cent and a months of supply of 1.5, conditions are not as tight as other property types in the city. However, this still reflects sellers’ market conditions and has been driving up prices.
As of April, the unadjusted benchmark price reached $299,400, a significant gain over the $277,600 reported at the start of the year and over 10 per cent higher than last April. Following four months of consecutive gains, prices are now just shy of the previous high reported in 2014. While price gains across all districts have not resulted in a new city-wide record, the North, North West and South East reported new highs in April.2023-05-01T12:58:57-07:002023-06-23T06:01:20-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:17901CREB®'s Q1 2023 Housing Market ReportSales activity has behaved as expected through the start of 2023 and slowed by 43 per cent over last year’s all-time record-high performance in the first quarter. The steeper decline in the first quarter was expected, given the surge in sales last year, as purchasers were eager to enter the market ahead of expected rate gains.<br /> <br /> “While no further rate gains have occurred so far this year, the higher lending rates and limited supply options are contributing to some of the pullbacks in sales,” said CREB® Chief Economist Ann-Marie Lurie. “Nevertheless, despite the decline, sales activity has remained well above pre-pandemic levels thanks to recent gains in migration coupled with a stronger employment market.”<br /> <br /> The most notable challenge in the market has been related to supply levels. New listings were expected to ease as higher lending rates would make it more difficult for the move-up buyer. However, the pace of decline in new listings has exceeded expectations. New listings in the first quarter declined by 40 per cent, preventing any significant shift in the supply levels given the relatively strong sales.<br /> <br /> Inventory levels in the city averaged 2,814 units in the first quarter, 21 per cent lower than last year’s levels and over 42 per cent below long-term trends for the first quarter. With a sales-to-new-listings ratio of 71 per cent and a months of supply of under two months in the first quarter, conditions continue to favour the seller.<br /> <br /> Exceptionally tight market conditions early last year drove significant price gains throughout the 2022 spring market, peaking at $544,733 in the second quarter. While supply-demand balances remained tight throughout 2022, prices did trend down over the third and fourth quarters, somewhat adjusting for the rapid rise earlier in the year.<br /> <br /> Further tightening in the supply-demand balance in the first quarter was enough to stop the downward price trend as the quarterly benchmark price rose by nearly two per cent over the fourth quarter to $531,200 but remained below the Q2 high.<br /> <br /> “Some of the fluctuations in price were expected this year, given what happened last year,” said Lurie. “However, price growth to date has been stronger than expected. Given the limited supply currently on the market, we could expect to see some stronger price growth through spring, potentially supporting a modest annual gain in 2023.”2023-04-28T13:30:15-07:002023-04-28T13:31:25-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:17872Condo boards and bylawsLiving in a condo is a very different from living in a home and owning the land underneath you. You own shares in a condo corporation, and a Board of Directors (BoD) makes most of the decisions on behalf of all owners. They do have a set of bylaws that were created at the time the complex/building was completed, and often a set of rules to further define the bylaws.
The board is the one who approves the budget, although members approve the auditor. Weird, but true. The board can also declare a special levy, (aka special assessment) when needed. Read more about special levies <a href="https://www.jennifersipkens.ca/blog/what-is-a-special-levy/" target="_blank">HERE</a>.
Meetings can be held virtually, and there are some condo boards who don’t have meetings, they vote on requests by email. That is quite rare, but it can happen. There will be a requirement to have an annual general meeting once per year, and that is the time owners can ask their BoD questions and get an update on what is happening in their complex/building.
Another fun fact: boards can also levy fines for those in breach of bylaws. That will be outlined in the bylaws.
The bylaws will also let you know if short term rentals are allowed in the complex/building. They cannot restrict renting or leasing your unit – but they can restrict short term, AirBnB, and tenants that do not meet any age restrictions in the building. Your tenant must follow the bylaws, so it is best to give them a copy of the bylaws, or at minimum, highlight the bylaws that could impact them.
Living in a condo is great, because you don’t have to worry about the exterior of the building, or dealing with things like roof repairs or replacement, you are only responsible for what is in your unit. That said, it is important to know and understand your responsibilities as an owner, and the bylaws is a great place to start!
If you are thinking about buying a condo – call me, let’s chat! I own an apartment and townhouse style condo, have been on the boards of each property, so have a very good understanding of the pros and cons of condo living!2023-04-25T08:19:37-07:002023-04-25T08:22:48-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:17871What is a special levy?A special levy (previously known as “special assessment”) is a type of financial contribution that the condominium board can impose (by resolution) on condominium unit owners. It may be levied as a one-time lump sum or as an extra payment, in addition to condominium contributions (fees).
When can a condo board impose a special levy?
A condo board can impose a special levy in certain situations, for example to:
Pay for unexpected and urgent maintenance, repair or replacement of the corporation’s real and personal property, common property or managed property
Cover unexpected shortfalls in the operating account
Increase the balance of the reserve fund to meet the requirements in a <a href="https://www.jennifersipkens.ca/blog/what-is-a-reserve-fund-study/">reserve fund plan</a>
Pay for capital improvements (a special resolution is needed)
Satisfy a judgment against the corporation or
For any other purpose under the Condominium Property Regulation
What is the process of approving a special levy?
To approve a special levy, the condominium board passes a resolution, which must set out the following information:
the purpose of the levy
the total amount to be levied
the method for calculating the special levy
the date by which the levy or installments are to be paid
As soon as possible after passing the resolution, the board must inform owners of the following information:
the purpose of the levy
the total amount of the levy
the method for calculating each unit’s share of the levy
the amount of the owner’s unit’s share of the levy
the date by which the levy or installments are to be paid
If the amount collected exceeds the amount required or is not fully used for the purpose in the resolution, then the corporation must pay the money into the reserve fund.
How is a special levy calculated?
Each owner’s portion of a special levy is calculated based on unit factor unless the Condominium Property Regulation or bylaws say otherwise. The unit factor is also used to assign condominium contributions (fees). If you’re unsure of how unit factors are assigned in your condominium, check the schedule attached to your condominium plan.
Before You Buy: What you need to know
Sellers must disclose if there is a pending special levy that is not included in the condominium documentation. The requirement to pay the special levy remains with the unit and becomes the responsibility of the new owner. Carefully consider whether you want to purchase a condominium unit with a pending special levy, as it will increase your costs significantly.
You should also consider why a special levy was levied. For example, was it levied to repair a leaky roof? Are there ongoing issues with the structural integrity of the building? Review the condo’s reserve fund documents and ask questions of the condo board, property manager, and other unit owners.
It is also important to consider if the condominium has a history of imposing special levies. Ask your lawyer and document review company to help you review the condo corporation’s documents to determine if there will be ongoing issues due to financial mismanagement.
Why did I get a special levy notice when the reserve fund seems adequate?
A condominium corporation’s operating budget and reserve fund are separate and distinct accounts with their own rules. For example, money from a reserve fund can only be used to cover the cost of repairing and replacing the corporation’s real/personal property, common property and managed property; it cannot be used to cover operating expenses. However, a special levy may be levied against condo owners to cover operating expenses.
Do I have to pay a special levy? What if I disagree with the special levy?
As an owner, it is your responsibility to pay your portion of the special levy when it is due, even if you disagree with it. If you don’t pay the special levy, the condo board could take any of the following actions:
charge interest on the unpaid amount (up to 18% per year)
sue you for the unpaid amount, plus any interest and legal costs
if you have a mortgage, ask your mortgage company to pay the outstanding amount
if you have a tenant in your unit, require the rent to be paid to the condominium corporation to cover the unpaid amount
file a caveat against your property title
foreclose on the title to your unit
If you want more information about why the special levy was imposed, talk to your condo board and ask questions. It is your responsibility as an owner to keep yourself informed about the finances of the corporation. Consider becoming a member of the condo board if you want to have greater input on the financial direction of the condominium corporation.
Information from Condo Law for Albertans, downloaded April 25, 2023. This does not constitute legal advice, and is applicable to Alberta only. Read full artcile <a href="https://www.condolawalberta.ca/finances/special-levy/#:~:text=A%20special%20levy%20(previously%20known,to%20condominium%20contributions%20(fees)." target="_blank">HERE</a>.2023-04-14T08:15:00-07:002023-08-13T07:55:03-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:17643Prices rise as conditions favour the sellerSales and new listings have improved over the levels reported at the beginning of the year. As a result, the spread between sales and new listings supported some expected monthly inventory level gains. However, the 3,233 available units reflected the lowest March inventory levels since 2006 and left the months of supply just above one month, firmly in the seller’s territory. While conditions are not as tight as last March, low inventory levels leave purchasers with limited choice, once again driving up home prices.
Total unadjusted residential home prices reached $541,800 in March, a two per cent gain over last month and nearly one per cent higher than prices reported last year. While prices remain below the May 2022 high of $546,000, the pace of price growth over the first quarter has been stronger than expected due to the persistent seller’s market conditions.
“As expected, sales have eased from record levels while remaining stronger than they were before the pandemic thanks to recent gains in migration supporting demand,” said CREB® Chief Economist Ann-Marie Lurie. “The challenge has been centered around supply. As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”
March recorded 3,318 new listings compared to the 2,432 sales, leaving the sales-to-new listings ratio relatively high at 73 per cent. However, both sales and new listings have eased by 40 per cent compared to levels reported last March.
Detached<br />Lower listings and higher lending rates have contributed to the steep pullback in detached sales. With 1,145 sales, this is the only property type where activity has fallen below long-term trends for the month. However, despite the drop in sales, inventory levels remain comparable to the lowest March levels recorded in 2006.
The persistently tight market conditions have contributed to further price growth. In March, the detached benchmark price reached a new record high at $649,800. Conditions are much tighter at the lower end of the market as supply levels have shifted. Nearly 63 per cent of the new listings that have come onto the market so far this year are priced over $600,000, much higher than the 48 per cent reported last year.
Semi-Detached<br />Like other property types, sales and new listings reported a significant drop over last year’s levels, leaving the market exceptionally tight with a sales-to-new listings ratio of 78 per cent in March. In addition, higher lending rates have driven many purchasers to seek semi-detached properties. However, conditions remained exceptionally tight for properties priced below $600,000.
Low inventory levels relative to the sales in the market drove further price gains this month. As a result, the unadjusted benchmark price reached $581,300 in March, over two per cent higher than last month and nearly two per cent higher than last year’s levels. However, despite the strong gains over the past several months, prices remain shy of the May 2022 monthly high of $584,700.
Row<br />While row sales, new listings and inventory levels have all trended up compared to levels seen at the start of the year, like other property types, levels are much lower than last year. With one month of supply available, conditions continue to favour the seller. The tight market conditions also placed further upward pressure on prices.
In March, the benchmark price rose to $378,100, reflecting a year-over-year gain of nearly eight per cent and representing a new monthly record high. Price growth was strongest in the city’s North East and South districts, with the lowest year-over-year gains occurring in the West district.
Apartment Condominium<br />March reported 682 apartment condominium sales, a decline of 11 per cent over last year’s record high. New listings also eased by eight per cent compared to last year, keeping inventory levels relatively low at 1,000 units. The low inventory levels compared to sales kept the months of supply well below two months, ensuring the market continued to favour the seller.
The benchmark price in Calgary reached $293,500, a year-over-year gain of nearly 11 per cent. The recent increase in price is shifting this market closer to full price recovery. For example, apartment condominium prices reached a monthly high back in November 2014 at $306,600.2023-04-04T08:48:44-07:002023-04-04T09:06:35-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:17293Lowest February inventory since 2006Consistent with typical seasonal behavior sales, new listings and inventory levels all trended up compared to last month. However, with 1,740 sales and 2,389 new listings, inventory levels improved only slightly over the last month and remained amongst the lowest February levels seen since 2006.
“While higher lending rates are impacting sales activity as expected, we are seeing a stronger pullback in new listings, keeping supply levels low and supporting some stronger-than-expected monthly price gains,” said CREB® Chief Economist Ann-Marie Lurie. “Prices are still below the May 2022 peak and it is still early in the year. However, if we do not see a shift in supply, we could see further upward pressure on prices over the near term.”
Both sales and new listings declined over last year’s record high for the month. While sales activity remained stronger than long-term trends and levels reported throughout the 2015 to 2020 period, new listings fell below long-term trends.
With a sales-to-new-listings ratio of 73 per cent and a months of supply of under two months, the market has struggled to move into balanced territory causing further upward pressure on home prices. The unadjusted benchmark price increased by nearly two per cent over January levels and last year’s prices.
Detached<br />Both sales and new listings reported significant year-over-year declines over last year’s record high. While the seasonal monthly gain did see inventories move up over the last two months, levels are still amongst the lowest seen in February, and the months of supply fell below two months.
Further tightening conditions did cause the unadjusted benchmark prices to rise over last month’s levels, but at a price of $635,900, it is still below the peak reported in May 2022. While supply continues to remain a challenge relative to demand for lower-priced homes, we are seeing conditions shift into balanced territory for homes priced above $700,000.
Semi-Detached<br />Like the detached sector despite the seasonal monthly gain, both sales and new listings fell from last year’s record high. While inventories are starting to rise over the levels seen in the past few months, they remain amongst the lowest levels reported for February. The relatively low inventory levels caused the months of supply to fall below two months in February, while it is still higher than last year’s ultra-low levels, conditions continue to favour the seller.
The unadjusted benchmark price reached $568,100 in February, nearly two per cent higher than last month and a three per cent gain over last February. Persistently tight market conditions contributed to the monthly unadjusted gain in the benchmark price. However, like detached properties prices remain below the May 2022 peak.
Row<br />Conditions remained exceptionally tight in February with only one month of supply and a sales-to-new listings ratio of 87 percent. While row sales have eased over record levels, they have remained relatively strong for February as demand shifts toward the affordable product in the market.
The persistently tight conditions caused further upward pressure on prices. In February, the unadjusted benchmark price reached $369,700, a monthly gain of over two per cent and a year-over-year gain of nine per cent. Unlike the other sectors, prices have reached a new high this month.
Apartment Condominium<br />Sales for apartment condominiums did not see the same pace of decline as other property types in February partly due to the level of new listings coming onto the market. Persistently strong sales compared to listings have caused February inventory levels to remain relatively low compared to levels seen over the past eight years and the months of supply once again dropped below two months.
The tight market condition contributed to the upward pressure on prices. In February, the unadjusted apartment benchmark price reached $286,000, nearly three per cent higher than last month and over 11 per cent higher than last February. While prices are still higher than the levels reported last year, they remain nearly seven per cent below the peak levels reported back in 2014.2023-03-01T13:51:35-07:002023-03-01T13:53:36-07:00Sabrina Stevensontag:jennifersipkens.ca,2012-09-20:16905Supply of lower-priced homes remains low for JanuaryThe level of new listings in January fell to the lowest levels seen since the late 90s. While new listings fell in nearly every price range, the pace of decline was higher for lower-priced properties.
At the same time, sales activity did slow compared to the high levels reported last year but remained consistent with long-term trends. However, there has been a shift in the composition of sales as detached homes only comprised 47 per cent of all sales.
“Higher lending rates are causing many buyers to seek out lower-priced products in our market,” said CREB® Chief Economist Ann-Marie Lurie. “However, the higher rates are likely also preventing some move-up activity in the market impacting supply growth for lower-priced homes. This is causing differing conditions in the housing market based on price range.”
With 2,451 units available in inventory, levels remain 43 per cent lower than long-term trends for the month. While overall inventory levels are slightly lower than last January, there is significant variation by price range. Homes priced under $500,000 reported year-over-year inventory declines of nearly 30 per cent while inventory levels improved for homes prices above that level.
Although conditions are not as tight as last year, lower supply levels are preventing a significant shift toward balanced conditions and prices did trend up slightly over last month breaking the seven consecutive month slide. As of January, the benchmark price reached $520,900, 5 per cent higher than last January, but still well below the May 2022 high of $546,000.
Detached<br />Detached home sales saw the largest pullback despite the year-over-year rise in inventory levels. Higher lending rates are cooling demand for higher-priced homes which is supporting inventory gains. Meanwhile, a limited supply of lower-priced products is preventing stronger sales in the lower price ranges.
The variation within the market is likely causing divergent trends in pricing as prices have trended down in the higher-priced City Centre, while still reporting some modest gains in other districts of the city. Overall, the benchmark price reached $622,800 in January, slightly higher than levels reported in December, but still below the monthly high achieved in May 2022.
Semi-Detached<br />Sales in January slowed relative to last year’s levels but remained above levels achieved before the pandemic. At the same time, a pullback in new listings has left inventory levels below the already low levels reported last January. Like the detached sector, semi-detached homes have seen shifts where the demand remains strong for lower-priced product relative to the supply likely causing divergent trends in pricing.
In January, most districts reported a monthly benchmark price growth. However, prices did trend down in the higher-priced City Centre district causing Calgary’s semi-detached benchmark prices to ease slightly over levels seen in December 2022. Despite the monthly adjustment overall, prices remained nearly six per cent higher than levels reported in January 2022.
Row<br />Row homes sales slowed over last year’s record high but remained well above long-term trends for the month. Sales would have likely been stronger if more listings came onto the market. In January, new listings dropped over the previous year and were over 20 per cent below long-term trends. The adjustments in both sales and new listings did little to change the low inventory scenario and the months of supply remained below two months in January.
The persistently tight conditions did also prevent any downward pressure on prices which posted a nearly one per cent gain over December levels. With a benchmark price of $361,400, levels are still over 12 per cent higher than last January, and only slightly lower than the $363,700 monthly high achieved in June 2022.
Apartment Condominium<br />Sales for apartment condominiums did not see the same pace of decline as other property types in January partly due to the level of new listings coming onto the market. Nonetheless, inventory levels remained well below long-term trends for the month and have not been this low in January since 2014.
The adjustments to both sales and inventory have left this sector with a months of supply that is lower than levels seen at the start of 2022. The shift to affordable options is also impacting prices within the apartment condominium sector. In January, prices trended up from December levels driven by strong gains in the lower priced district of the North East and East. Overall, apartment condominium prices in the city reached $277,600, one per cent higher than last month and a year-over-year gain of nearly 10 per cent, narrowing the spread from the record high prices set in 2014.2023-02-01T12:33:08-07:002023-02-01T12:46:57-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:16848CREB forecast for Calgary real estate in 2023Calgary housing market expected to stabilize in 2023
The Calgary Real Estate Board (CREB®) has released its 2023 Forecast Calgary and Region Yearly Outlook Report. The report, which is prepared by CREB® Chief Economist Ann-Marie Lurie, provides a detailed analysis of the economic and housing market trends in Calgary and surrounding areas for the upcoming year.<br /> <br /> According to the report, elevated lending rates are expected to weigh on sales in 2023, bringing levels down from the record high in 2022. However, with forecasted sales of 25,921 in 2023, levels are still expected to be higher than the activity reported before the pandemic.<br /> <br /> “Higher commodity prices, recent job growth, record high migration and relative affordability are expected to help offset some of the impacts higher lending rates are having on housing demand. At the same time, we are entering the year with low supply levels which are expected to prevent significant price declines in our market,” said Lurie.<br /> <br /> Supply levels declined to the lowest levels seen in over a decade as gains in higher price properties did not offset the supply declines occurring in lower-priced homes. This has left our market in a situation where lower-priced properties still face sellers’ market conditions while higher-priced homes are seeing more balanced to buyers' market conditions.<br /> <br /> The shift between supply and sales by price ranges is expected to create divergent trends in prices depending on property type and price range. Overall, price declines in the upper end of the market are expected to offset gains reported in the lower ranges, causing an annual decline of less than one per cent.<br /> <br /> “With much of the pandemic behind us, 2023 reflects more of an adjustment into more typical conditions and a pause on price gains following 12 per cent growth in 2022. While other markets in the country are forecasted to see more significant price and sale declines in 2023, Calgary did not face the same gains as those markets, as prices only recovered from the 2014 highs in 2021,” added Lurie.2023-01-27T16:05:00-07:002023-08-07T19:54:06-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:16899Types of Insurance involved in Real EstateHaving the right type of insurance is imperative when you are purchasing a house or a condo. I wrote a blog post about this in April after a webinar with Elyshia Cheung from CRS Merrill Insurance – you can read some <a href="https://www.jennifersipkens.ca/blog/a-little-bird-told-me-about-insurance/">tips about home insurance coverage</a> you may not have thought about!
There are other types of insurance you need to know about as well!
Mortgage Insurance – if you are putting less than 20% down on your home, the mortgage will need to be insured by either Canada Mortgage and Housing Corp., Sagen (formerly Genworth) or Canada Guaranty. It is a one time fee that is added to the mortgage, and will stay with the mortgage until it is paid out in full. The fee is a set percentage rate of the mortgage amount and is determined by the down payment. Ask your mortgage broker for details!
Title Insurance – this is generally organized by your lawyer at closing, and lenders may require that a Lender Policy be ordered and in place prior to funding the mortgage. There are two types of Title Insurance: Owner's Policy and Lender’s Policy. Owner’s Policy insures the property owner against loss to the owner for as long as they own the property; Lender’s Policy insures the mortgage holder that the mortgage is a valid and an enforceable charge against the property. (Source: Sharlene Scott, <a href="https://www.mortgagesbysharlene.ca/">Mortgage Advisor</a>).
Life/Disability Insurance – this is for your mortgage, and you will be asked about this by your mortgage broker. It is to cover you in the event of disability, critical illness, or loss of life. You can also discuss options with a financial adviser, as there are alternatives to mortgage insurance coverage.
House/Condo Insurance – you need insurance on your new home! It will cover damages in and outside your home, your stuff inside your home, personal liability (slip and fall), fire, hail, and can cover expenses during and after an emergency. If you are buying a condo, the condo corporation will have insurance in place for the exterior of the property (you will get a copy of the certificate of insurance with your condo documents). You need to have contents insurance and liability insurance that will cover the items you are responsible for (the interior of your unit). It is important you speak with an insurance broker about your options for insurance – there are riders that can be added to the policy to cover your specific needs. 2023-01-27T08:22:00-07:002023-02-01T08:27:11-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:16857Should you list your home before repairs are done?Well, it depends! You want to make sure anything you can easily and inexpensively can fix before you list is done, especially for anything that will be discovered on a home inspection. If you know that faucet is leaking?? Probably a good idea to fix it, especially if you are a handy person. If you wait for a home inspection to uncover these issues, it can go a couple of ways. The buyer wants that leaky faucet fixed, by a certified plumber, and they want a receipt. Or, the buyer says nothing and will fix it when they move in. But waiting until the home inspection – when emotions are generally at their highest, is not the time to test which type of buyer is trying to buy your property!
If you need to list right away and there is a bunch of work you know needs to be done (especially incomplete renovation jobs), you could either schedule the repairs and let buyers know these things will be completed. Or leave them to see if the buyer will bring it up after the home inspection. But understand leaving unfinished work can make the buyer question what else is not finished that they can’t see.
If an appliance or attached goods is not working, like a humidifier, then it is best to list the item ‘as is’ so the buyer is aware ahead of time that the item is not working, and they know not to request it be fixed prior to purchasing the property.
There are so many variables involved in determining if you should do the repairs before you list. If you are thinking of selling and would like to discuss your options, give me a call! Let’s chat. No pressure. No obligation. Just information.2023-01-18T11:30:00-07:002023-01-29T19:55:07-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:165362022 saw record-high sales and double-digit price growthDecember sales eased, however, slowing sales over the second half of 2022 were not enough to offset earlier gains as sales reached a record high of 29,672 units in 2022.<br /> <br /> Over the past several months, the pullback in sales was also met with a significant pullback in new listings, causing further declines in inventory levels. As of December, there were 2,214 units available in Inventory, making it the lowest level of inventory reported for December in over a decade.<br /> <br /> “Housing market conditions have changed significantly throughout the year, as sales activity slowed following steep rate gains throughout the later part of the year,” said CREB® Chief Economist Ann-Marie Lurie. “However, Calgary continues to report activity that is better than levels seen before the pandemic and higher than long-term trends for the city. At the same time, we have faced persistently low inventory levels, which have prevented a more significant adjustment in home prices this year.”<br /> <br /> Benchmark prices eased to $518,800 in December, down nearly five percent from the peak price in May but almost eight percent higher than last December. While prices have trended down annually, they remain over 12 percent higher than last year’s levels.<br /> <br /> The housing market in 2022 generally outperformed expectations both in terms of sales and price growth.
Detached
The detached market has felt most of the impact of higher rates as a pullback in sales in the year’s second half contributed to the year-to-date decline of over seven percent. While there have been some gains in new listings over the last quarter, much of the growth has occurred in the market's upper-end, supporting more balanced conditions. However, supply levels for lower-priced homes remain low relative to the sales activity, causing that market segment to continue favouring the seller. Overall, the detached market has seen activity shift away from the strong sellers’ conditions reported earlier in the year.<br /> <br /> Prices in the detached market have trended down in the second half of the year, as the December benchmark price of $619,600 has eased by just over four percent from the June high. The recent adjustments have not erased all the earlier gains, as benchmark prices reported an annual gain of over 14 percent. Annual price growth has ranged from a high of 19 percent in the South East, North and North East districts to a low of nearly eight percent in the City Centre.
Semi-Detached
Further declines in sales this month contributed to the year-to-date sales decline of nearly three percent. While sales have eased relative to last year’s record levels, activity is still far stronger than long-term trends and levels reported prior to the pandemic. At the same time, new listings have been trending down for this property type, keeping the inventory and months of supply relatively low compared to historical levels. <br /> <br /> While conditions are not as tight as earlier in the year, there has been some downward pressure on prices. The monthly benchmark price peaked in May of this year and has eased by nearly four percent since then. However, on an annual basis, benchmark prices remain nearly 12 percent higher than in 2021. The North district reported a higher annual price gain of over 18 percent.
Row
Significant reductions in new listings weighed on sales over the last few months of the year. Despite recent shifts, annual sales in the city reached a new record high, with 5,153 sales in 2022. Not only was it a record year, but sales were nearly double long-term trends. Higher lending rates are driving more purchasers toward the more affordable row options. While new listings were still higher than last year’s levels on an annual basis, the recent pullback combined with relatively strong sales has caused inventory levels to fall.<br /> <br /> As of December, inventory levels were at the lowest since 2013. This has ensured that this segment of the market continues to favour the seller. While prices have eased by just over one percent from the June peak, overall year-to-date prices are nearly 15 percent higher than last year.
Apartment Condominium
Unlike other property types, apartment condominium sales continue to rise above the previous year’s levels throughout the year. This caused year-to-date sales to rise by 50 percent to 6,221 units, a new record high. Demand for affordable product, along with renewed investor interest thanks to rental rate growth, helped support sales growth. Gains in this sector were also possible thanks to the growth in annual new listings. However, like other sectors, the increase in new listings was not enough to outweigh the sales growth, and inventory levels trended down to levels not seen since 2013.<br /> <br /> After several years of being oversupplied, the shift to tighter conditions supported annual price gains of nearly nine percent. While price gains occurred across every district, city-wide prices remain well below the previous highs reached back in 2014.2023-01-03T16:01:54-07:002023-01-03T16:05:55-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:16374Things to know about: Aluminum WiringWhen shoping for a home, it is important for buyers to know about, and understand, aluminum wiring. This article looks at the situation from a real estate perspective; it is important to contact a licensed electrician for assistance.
History<br />Copper is widely known as one of the best electrical conductors readily available to the marketplace and has been used in wiring applications since the discovery of electricity. During the 60s, the demand for copper as well as its price was skyrocketing, making the use of copper wiring cost prohibitive. There was an alternative already approved for use in wiring applications, and that was aluminum, a much cheaper alternative with ample supply at the time. Although aluminum is not as conductive as copper, this could be compensated for by using larger gauge wire to move the same current safely and that is what was done. Between the early 60s and the late 70s, aluminum became widely used as wiring material for homes throughout North America.
The Problem<br />Aluminum had some differences in installation which were not always followed strictly by the installers. Aluminum required more care to prevent nicking or breaking of the wire itself or the sheathing, and special plugs and switches were designed to use aluminum wire. Especially in the early and late years of use, when the industry was transitioning into and out of aluminum wire use, the specialized plugs and switches weren’t readily available, or more expensive and anti-oxidization compounds were not widely used.
So, what is the deal with these extra requirements that copper didn’t need? Aluminum is not as good of a conductor and the resistance in the alloy produces more heat than copper naturally, which is why the larger gauge wire was used to compensate. When copper oxidizes its oxidation is also a good conductor of electricity, but unfortunately when aluminum oxidizes, its oxidation is not a good conductor leading to increased resistance and more heat. To add to the problem, aluminum oxidizes not only in the air but mainly in contact with other metals so as basements were developed in the 80s and 90s and wired with copper, those junction connections between aluminum upstairs and copper downstairs also caused this oxidation heat issue. If that wasn’t enough, aluminum also expands and contracts at a different rate than copper and brass, so when twisted with copper in a junction box, or screwed down on a brass terminal for a plug or switch, the expansion and contraction of the aluminum with its heat resistance issues cause the aluminum to work its way out of these connections over time. This condition is called “Cold Flow” and will eventually cause arcing as the electricity tries to jump from the loosened wire to the connection with can cause heat, sparking and fire to surrounding flammable building materials.
The Solution <br />So does that mean the entire house must be re-wired? Not at all, aluminum wire in the walls and ceiling is not the issue. The issue is primarily in the connection to other metals such as incorrect receptacles or joined to copper connections, so the simple solution is to correct those connections. The most common form of this remedy is a practice called “pig-tailing” which should be done by a licensed electrician. Basically, all the plugs and switches in the home are removed from the wall and a short piece of copper wire is connected between the aluminum service in the wall and the plug or switch itself. The connection between the aluminum and copper wire is made using a specialized wire nut and an anti-oxidizing compound. Then the new copper-rated receptacles can be placed back in the wall and are safe. A licensed electrician will also determine if junction boxes contain copper and aluminum connections which also require correct wire nuts and anti-oxidation compound.
How to tell if you have aluminum wires<br />Well, vintage should be your first hint. If the home is built between 1960 and 1980, or close to that, you should take a quick peek at the electrical panel. The wires coming out of the electrical panel will typically have printing on them every 12 inches and if they are aluminum will often have the abbreviation AL or ALUM or some variation of that. If you can’t tell that way, an electrician or licensed inspector can determine for you by opening the panel or checking certain receptacles.
Insurance<br />At the time of writing this article, I have yet to hear of an insurance company that requires a house to be rewired from aluminum to copper. The main reason is that there is nothing wrong with aluminum wiring when installed properly and using the correct receptacles. In fact, the current electrical codes still recognize both copper and aluminum wiring as acceptable, although aluminum wire in household gauge is not manufactured anymore because of the stigma attached to it. It is normal however for an insurance company to require pig-tailing to be done within a certain number of days of the possession of a property to protect against the possibility of poor installation or bad connections.
Aluminum wiring has been largely unmarketable since the 70s and therefore not profitable for manufacturers to make it, or its specialized receptacles. The existence of aluminum wiring in a home is not a deal killer, but buyers need to understand there will be some additional due diligence required on their part, and sellers need to understand that some buyers may be nervous about the wiring in their home.
Article sourced by AREA blog 2022-12-11T19:49:57-07:002022-12-11T20:26:41-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:162892022 on track to be a record year for salesResidential sales in the city slowed to 1,648 units, a year-over-year decline of 22 per cent, but 12 per cent above the 10-year average.
The pullback in sales over the past six months was not enough to erase gains from earlier in the year as year-to-date sales remain nearly 10 per cent above last year’s record high. The year-to-date sales growth has been driven by a surge in both apartment condominium and row sales.
“Easing sales have been driven mostly by declines in the detached sector of the market,” said CREB® Chief Economist Ann-Marie Lurie. “Higher lending rates are impacting purchasers buying power and limited supply choice in the lower price ranges of the detached market is likely causing many purchasers to place buying decisions on hold.”
A decline in sales was met with a pullback in new listings and inventories fell to the lowest level reported in November since 2005. The pullback in both sales and new listings kept the months of supply relatively tight at below two months. The tightest conditions are occurring in the lower-price ranges as supply growth has mostly been driven by gains in the upper-end of the market.
Despite the lower supply levels, prices have trended down from the peak reached in May of this year. Even with the adjustments that have occurred, November benchmark prices continue to remain nearly nine per cent higher than levels reported last year.
Detached<br />Detached sales slowed across every price range this month, contributing to the year-over-year decline of nearly 34 per cent and the year-to-date decline of five per cent. On a year-to-date basis, sales have eased for homes priced under $500,000 as the level of new listings in this price range has dropped by over 36 per cent limiting the options for purchasers looking for affordable product.
Meanwhile, new listings and supply selection did improve for higher-priced properties creating more balanced conditions in the upper-end of the market. This has different implications on price pressure in the market.
The benchmark price in November slowed to $619,700, down from the high in May of $648,500. While prices have eased over the past several months, they continue to remain nearly 11 per cent higher than levels reported last year.
Semi-Detached<br />The pullback in sales this month was enough to cause the year-to-date sales to ease by nearly one per cent compared to last year. Despite the recent declines, year-to-date sales remain 37 per cent above long-term averages for the city.
Easing sales this month were also met with a pullback in new listings, causing further declines in inventory levels and ensuring market conditions remained relatively tight with a month of supply of two months and a sales-to-new-listings ratio of 100 per cent.
Unlike the detached sector, the tight conditions prevented any further retraction in prices this month. In November, the benchmark price reached $562,800, slightly higher than last month and nearly 10 per cent higher than last year’s levels.
Row<br />Further declines in new listings likely contributed to the slower sales activity this month as the sales-to-new-listings ratio remained high at 99 per cent. Inventory levels fell to 383 units, making it the lowest level of November inventory recorded since the 2013. This low level of inventory ensured that the months of supply remained below two months.
Despite the persistently tight market conditions, prices trended down this month reaching $358,700. While prices have eased from the June high, they are nearly 14 per cent higher than prices reported last November. The strongest price growth was reported in the North East, North and South East districts where prices have risen by over 18 per cent.
Apartment Condominium<br />Despite a pullback in new listings this month, apartment condominium sales continued to rise, and inventories fell to the lowest November levels seen since 2013. This caused further tightening in market conditions as the sales-to-new-listings ratio pushed above 100 per cent and a months of supply dropped to two months.
Recent tightening in the market has put a pause on price adjustments for apartment condominiums. In November, prices remained relatively stable at $277,000 compared to last month. While prices have reported a year-over-year gain of nearly 10 per cent, prices are still below their previous highs set back in 2014.2022-12-02T09:24:25-07:002022-12-02T09:32:14-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:16154Buying a property: expenses to expectWhether you are buying a condo or a detached home, it is important that you do your due diligence to ensure you know exactly what you are purchasing. The following is a list of some costs you may encounter when buying a property.
Home inspection by a certified professional – they inspect condos, townhouses and detached homes, and will give you a written report on the condition of every major system and component of your home
Review of condo documents– There is long list of condo documents that you need to review when purchasing a condo. You can also hire a specialist who will review the condo documents with you and answer any questions you may have. You can learn more about condo documents on my blog post: <a href="https://www.jennifersipkens.ca/blog/condo-documents/" target="_blank">Condo Documents Explained</a>
Additional inspections – some homeowners will also have the main sewer line scoped, or an electrician inspect the wiring, or a basement specialist to look at cracks in the foundation – depending on the property you purchase and what comes up on the home inspection, you may want a more in-depth opinion prior to waiving conditions and making the purchase final
Legal fees - you will need a lawyer to finalize the transaction
Appraisal fee - Your lending institution may request an appraisal of the property – talk to your mortgage broker to see if you will need one
Homeowner’s insurance: it is imperative you speak with an insurance broker to ensure you have the best protection for your home, even if it is an apartment condo. Your lender may also require you to have insurance in place prior to funding the mortgage. You can read some tips about insurance <a href="https://www.jennifersipkens.ca/blog/a-little-bird-told-me-about-insurance/" target="_blank">HERE</a>.
5% GST: this fee applies to newly built homes or existing homes that have recently undergone extensive renovations (like, they are practically brand new!). If the property is listed on the MLS, it is required to have GST in the listed price.
2022-11-08T09:35:11-07:002022-11-08T09:38:47-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:16100Sales remain stronger than pre-covid levelsOctober sales eased compared to last year’s levels, mostly due to slower activity in the detached sector.
However, with 1,857 sales this month, levels are still stronger than long-term trends and activity reported prior to the pandemic. Year-to-date sales have reached 26,823 and with only two months to go, 2022 will likely post a record year in terms of sales.
“Calgary hasn’t seen the same degree of pullback in housing sales like other parts of Canada, thanks to persistently strong demand for our higher density product,” said CREB® Chief Economist Ann-Marie Lurie. “While our city is not immune to the impact that inflation and higher rates are having, strong employment growth, positive migration flows and a stronger commodity market are helping offset some of that impact.”
New listings also trended down this month causing the sales-to-new-listings ratio to rise to 85 per cent and inventories to trend down. Much of the inventory decline has been driven by product priced below $500,000.
While conditions are not a tight as what was seen earlier in the year, with only two months of supply, conditions remain tighter than historical levels. We are also seeing divergent trends in the market with conditions continuing to favour the seller in the lower-price ranges and shifting to more balanced conditions in the upper-price ranges.
As of October, prices have eased by four per cent relative to the highs reached in May. This is considered a relatively small adjustment when considering price movements in other large cities. It is also important to note that the October benchmark price is still nearly 10 per cent higher than levels reported last year.
Detached<br />Sales growth in the over $700,000 price range this month were not enough to offset the declines in the lower-price ranges, causing detached sales to ease by over 29 per cent compared to last year. Limited supply growth in the lower-price ranges continue to keep conditions exceptionally tight for lower-priced detached homes.
In October, inventory levels for detached homes were under 2,000 units, nearly 35 per cent lower than typical levels reported for the month. Moreover, over 42 per cent of the inventory falls in the upper-price ranges of the market. This is likely creating a situation where pricing trends will vary depending on price range.
Overall, detached prices did trend down relative to last month and peak levels in May but remain nearly 12 per cent higher than levels reported last October. The strongest year-over-year price gains have occurred in the North and South East districts.
Semi-Detached<br />While sales remain lower than last year’s levels in October, recent pullbacks have not offset gains from earlier in the year and year-to-date sales improved by nearly three per cent. A pullback in new listings relative to sales caused the sales-to-new-listings ratio to push above 80 per cent this month and inventories to ease, leaving the months of supply just over two months.
The benchmark price, while easing slightly compared to last month, remained over nine per cent higher than last year’s levels. Year-over-year price gains have varied from a low of nearly eight per cent in the City Centre to a high of 16 per cent in the North district.
Row<br />Row sales continue to rise relative to last year supporting a year-to-date gain of nearly 42 per cent. At the same time, new listings this month eased ensuring that the sales-to-new-listings ratio remain exceptionally tight at 106 per cent. Falling inventories and improving sales have ensured this market continues to favour the seller with less than two months of supply. This has also prevented the same adjustment in price.
As of October, the benchmark price was $361,200, less than one per cent lower than the peak achieved in June of this year. Overall, prices remained nearly 15 per cent higher than last year’s levels. The strongest price gains occurred in the South East, North East and North districts.
Apartment Condominium<br />Apartment sales continue to rise over levels reported last year contributing to the year-to-date increase of over 56 per cent. Improving sales were also met with gains in new listings, but as the growth in sales outpaced the new listings activity, inventory levels continue to trend down. As of October, the months of supply remained just below three months, the lowest level recorded in October since 2013.
In October, the benchmark price was $277,800, similar to last month and nearly 11 per cent higher than last year’s levels. Some of the strongest price gains have occurred in areas outside of the City Centre. Despite persistent price growth, overall prices remain nine per cent below previous highs set back in 2014.2022-11-02T07:43:07-07:002023-07-16T07:06:46-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:15857Condo documents explainedCondominium properties represent a large number of sales in all Alberta markets every year, and the issues that surround the purchase and sale of condominium properties are specific and intrinsically linked to the condominium documents. It is widely understood that condominium ownership provides a carefree lifestyle option, but confusion over condominiums can be expensive.
Legislative landscape<br />As you would expect, the Real Estate Act of Alberta as well as the Real Estate Act Rules, govern the transaction of condominium properties, because condominium is a form of owning real property. As an additional complexity, condominiums are also governed by the Condominium Properties Act of Alberta which relates to the running of the condominium corporation itself, as well as specifics about how condominiums are bought and sold.
Condominium clarity<br />One of the biggest misconceptions about condominiums is what exactly a condominium is. Many consumers believe a condominium is an apartment-style property in a complex which offers amenities for its owners. Although this may be accurate, it is not the whole story, as a condominium can be almost anything from an apartment or townhouse to the lot under a single-family home or a 20-acre parcel of rural land. The reason for this is that a Condominium is a type of corporate ownership of a project, rather than simply owning a piece of individual real estate.
Condominium Docs importance<br />When a buyer considers buying a condominium property, it's important to frame thoughts around that purchase so the buyer clearly understands what condominium ownership means. Financial health, assets, liabilities, renovation funds, debts, and restrictions, are only a few of the things a buyer needs to consider when deciding to invest their money into a condominium corporation. The condominium documents serve the purpose of satisfying the informational needs of the purchaser to evaluate that investment profile.
What documents are required?<br />Thankfully consumers are not left alone to figure out what documents are critical when considering a Condominium purchase, as the Condominium Properties act specifies which documents should be prepared by all condominium corporations in Alberta, and the Alberta Real Estate Association has undertaken to include this list and other important documents in the standard purchase contract for condominiums used by REALTORS®. By ensuring consumers make their purchase conditional to the review of condominium documents, REALTORS® help buyers gain the transparency they need when making the purchasing decision.
Who should review the documents?<br />The REALTOR® responsibilities end with helping the buyer understand their need for these documents and where to get them. A REALTOR® is not qualified to review condo documents or provide advice on their contents. A REALTOR® may help a buyer check the list of documents provided by the condo board or management company against the list in the purchase contract, however, it is the buyer's responsibility to review the content themselves. If a buyer does not feel confident in reviewing the documents themselves, there are several qualified condominium document review services available at an additional fee which can help a buyer identify points of concern in the documents and give advice on the contents of the documents themselves.
Potential Pitfalls<br />Condominium ownership is different from traditional non-condominium ownership in that your ownership is a share of the whole project. This means if the project requires upgrades it is the responsibility of all owners to pay for those upgrades. If the financial management of the corporation has not been diligent in planning for upgrades or maintenance, the result is usually a special assessment, or “cash call”, which is a bill due and payable by the individual owners. Special assessments can run [from a couple thousand] to the tens of thousands per unit and can not be avoided as an owner, but can often be avoided through competent examination of the condominium documents before the purchase (note: this is only if the issues have been discussed at board meetings so a buyer can see a potential issue). Other things that can be caught at the time of purchasing through the documents are pet restrictions, parking issues, age restrictions, and financial health of the corporation all of which may be concerns the purchaser should know about before they own the property.
Condo Fee confusion<br />Condo fees in their most pure form are simply the amount of money required to run the corporation, maintain the total project in good repair, and save a portion for future repairs and replacements. Oftentimes buyers look for the property with the lowest fee, however, if that low fee is not covering the expenses and required savings for future repair and replacement, then a special assessment is inevitable. Good financial stewardship is vitally important to the health of a condominium corporation, and the condo docs can help determine if the condo has been well run and the condo fees are representative of the current and future needs of the complex for the benefit of all owners, present, and future.
I am a Certified Condo Specialist - which means I took extra courses in buying and selling condos, and I happen to own an apartment style, and a townhouse style condo. I have also been on the boards of both - so I know and understand the ins and outs of condos. Don't hesitate to reach out to me if you have any questions!
Published by AREA November 20222022-09-24T20:00:00-07:002023-08-13T07:57:07-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:15744Supply levels ease with fewer new listings in AugustCity of Calgary, September 1, 2022 – August sales activity was comparable to the strong levels recorded last year and well above long-term trends for the month.
While sales have remained relatively strong, there continues to be a shift towards more affordable options as the year-over-year pullback in detached sales was nearly matched by gains for multi-family product types.
“While higher lending rates have slowed activity in the detached market, we are still seeing homebuyers shift to more affordable options which is keeping sales activity relatively strong,” said CREB® Chief Economist Ann-Marie Lurie. “This makes Calgary different than some of the larger cities in the country which have recorded significant pullbacks in sales.”
At the same time, new listings continue to trend down, preventing any supply gains or a substantial shift in the months of supply.
Despite year-over-year gains in new listings, the spread between new listings and sales this month narrowed compared to the past three months. This caused total inventory to trend down and prevented any significant shift in the months of supply. The months of supply in August remained at just above two months, not at tight as earlier in the year, but still below levels traditionally seen this time of year.
For the third month in a row, benchmark prices eased declining to $531,800. While the reduction reflects shifting market conditions, it is important to note that previous gains are not lost, and prices remain over 11 per cent higher than last year.
Detached<br />Sales continued to trend down compared to levels seen earlier in the year and August of last year. While the recent declines have not offset the strong gains reported earlier in the year, conditions are changing in this segment of the market. At the same time, we have seen listings continue to ease in for lower-priced homes. This is causing persistently tight conditions for homes priced below $500,000. Meanwhile, supply gains in the higher price range of the market are supporting more balanced conditions.
Easing demand has had an impact on prices which have trended down relative to the high levels achieved in May. However, with a benchmark price of $633,000, levels are still over 13 per cent higher than last year.
Semi-Detached<br />There was a significant pullback in new listings relative to a slight easing of sales for semi-detached properties this month. This caused the sales-to-new-listings ratio to push above 80 per cent for the first time since April while total inventory dropped relative to levels seen over the past several months and last year. Like the detached sector, conditions do vary depending on price ranges with the lower-price ranges continuing to see relatively tight market conditions.
Despite the adjustment this month, prices still trended down compared to May levels. However, like other property types, price levels are over 10 per cent higher than last year with a benchmark price of $569,300.
Row<br />Despite sales trending down relative to levels seen earlier in the year, the row-home market remains strong and year-to-date levels are nearly 50 per cent higher than last year. At the same time, there was a notable decline in new listings this month causing a decline in inventory levels. This prevented any significant adjustments to the months of supply which remained below two months.
While market conditions remain relatively tight, home prices have remained fairly stable over the past few months. Overall, the benchmark price for row properties in August was over 14 per cent higher than levels reported last year.
Apartment Condominium<br />Sales activity improved in August, contributing to year-to-date record sales of 4,576 units, which is an increase of 65 per cent compared to last year. Some of this growth was possible thanks to this segment of the market having more supply. However, the recent growth in sales relative to new listings has caused the supply gap to narrow.
Though conditions have shifted over the past month, prices remain relatively stable compared to July but are over 10 per cent higher than last year’s prices. Despite the recent gains in prices, apartment condominium sales remain below peak prices set back in 2014.2022-09-02T08:55:00-07:002022-09-02T09:49:07-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:13952Detached home sales decline as apartment condominium sales riseCity of Calgary, Aug. 2, 2022 – Significant slowdowns in the detached and semi-detached market were nearly offset by sales growth in the apartment and row sectors. This left July sales three per cent lower than levels recorded last year. While this is the second month where sales activity has slowed, total residential sales this month are still amongst the strongest levels recorded in our market.
“Rising lending rates are causing shifts within the market and, as a result, new listings for higher-priced product are on the rise relative to sales activity,” said CREB® Chief Economist Ann-Marie Lurie.
“Meanwhile, there continues to be a lack of supply for lower-priced detached and semi-detached product. This is driving consumers who are looking for affordable homes to purchase apartment- and row-style properties.”
Residential new listings in the city declined compared to what was seen in 2021, but when considering the dynamics between price ranges, we are seeing a different trend play out. Listings for homes priced below $500,000 fell by 18 per cent, while levels rose by 20 per cent for homes priced above $500,000. This has left conditions to remain relatively tight in the lower-end of the market while conditions are shifting toward more balanced levels in the upper-end of the market.
When considering the relationship between the supply and demand, the months of supply has continued to trend up from the exceptionally tight conditions seen earlier in the year. However, with just over two months of supply, the market remains far tighter than anything experienced throughout the recessionary period experienced prior to the pandemic.
As expected, the benchmark price did see some slippage relative to levels seen earlier in the year and rising lending rates have cooled much of the bidding war activity that was driving significant gains earlier in the year. However, prices currently remain over 12 per cent higher than last year’s levels, still outpacing forecasted price growth for the year.
“As we move forward, we do anticipate further rate gains will weigh on housing activity and prices, but not enough to completely offset the exceptionally strong gains recorded over the first half of the year,” said CREB® Chief Economist Ann-Marie Lurie.
Detached<br />In July, detached sales reached 1,136, which is 19 per cent lower than last year’s levels. Higher lending rates are driving more consumers to look for affordable product, however, the detached sector has struggled with supply levels for lower-priced homes. While we are seeing balanced conditions in the upper-end of the market, conditions remain exceptionally tight in the lower-end of the market.
The decline in sales was mostly driven by pullbacks in the lower-price ranges due to lack of availability. Nearly 80 per cent of the inventory available is priced over $500,000 and new listings for homes priced under $500,000 are half of the levels seen last year.
With a benchmark price of $643,600 in July, levels are still nearly 15 per cent higher than last year. However, we are seeing some monthly adjustments as prices trended down across all districts in July compared to last month.
Semi-Detached<br />For the third month in a row, semi-detached sales saw less sales than levels reported a year ago. While year-to-date sales remain over 11 per cent higher than last year’s levels, this is a significant shift from the 40 per cent growth recorded after the first quarter of the year. This pullback in sales was met with lower listings levels, but not enough to prevent some upward trend growth in inventory levels and the months of supply. The months of supply pushed up to 2.5 months in July, the first time it has pushed above two months since October of last year.
While conditions remain relatively tight in the lower-price ranges, the benchmark price did trend down relative to levels seen earlier in the year. However, like the detached market, prices remained significantly higher than levels reported last year.
Row<br />While levels cooled relative to the spring, row sales reached a new record high for July contributing to year-to-date sales growth of 54 per cent. Most of the gains were driven by product priced between $300,000 to $500,000, which also saw the biggest boost in new listings so far this year.
Both new listings and sales have trended down from levels seen earlier the year. However, the gap between sales and new listings narrowed over the past few months causing inventories to trend down compared to earlier in the year. This has ensured that the months of supply remained below two months. The persistently tight conditions prevented any significant adjustment in monthly prices in July.
Apartment Condominium<br />Like row properties, apartment condominium sales trended down from earlier in the year but maintained a record high level for July, contributing to a year-to-date gain of 66 per cent. Rising lending rates and available supply in the condominium sector helped support the year-over-year sales growth seen so far this year.
While trending down from earlier in the year, new listings in July remain 24 per cent higher than last year’s levels supporting a sales-to-new-listings ratio and a months of supply that reflect relatively balanced conditions. With conditions not as tight as earlier in the year, the pace of price growth has also slowed. In July, the benchmark price reached $278,800, slightly higher than last month and nearly 10 per cent higher than last year’s levels.2022-08-03T09:34:00-07:002022-08-03T09:38:14-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:13831Market starts to shift as sales slowSales activity in June eased relative to the past several months and with 2,842 sales, levels declined by two per cent over last year’s record high. While sales activity has remained relatively strong for June levels, the decline was driven by a pullback in detached and semi-detached home sales.<br /> <br /> “As expected, higher interest rates are starting to have an impact on home sales. This is helping shift the market toward more balanced conditions and taking some of the pressure off prices,” said CREB® Chief Economist Ann-Marie Lurie.<br /> <br /> “While we are starting to see some transition, it is important to note that in Calgary year-to-date sales are still at record levels and prices are still far above expectations for the year.”<br /> <br /> This pullback in sales was not met with the same level of pullback in new listings. This caused inventories to trend up over previous months. These shifts are supporting some easing from the exceptionally tight conditions as the months of supply remained just shy of two months. While two months is still considered low for our market, it is a significant change over the one month of supply recorded earlier in the year.<br /> <br /> After three months of gradual gains in the months of supply, prices eased slightly relative to last month. However, with a city-wide benchmark price of $543,900, levels are still over 13 per cent higher than last year.<br /> <br /> With further rate gains expected, we could continue to see slower sales activity and some monthly price growth slippage in the Calgary market in the coming months. However, thanks to renewed migration and job growth in a wide range of sectors, it is unlikely that we will see a full reversal of the price gains made so far this year.
Detached
For the third month in a row, sales levels in the detached market have eased. Much of the pullback has occurred from homes priced under $600,000. While some of this is likely related to the continued lack of supply choice, the pullback in this sector is also related to the rise in lending rates that are impacting qualifications levels and creating some hesitancy among consumers.<br /> <br /> The pullback in sales relative to new listings did cause some modest gains in inventory levels compared to earlier in the year. This helped push up the months of supply to just under two months. The shift to more balanced conditions has been limiting the upward pressure on prices. As of June, the benchmark price was $647,500. This is comparable to last month, but still 16 per cent higher than last year.
Semi-Detached
Like the detached sector, sales activity slowed in June. While the pullback in sales was not enough to offset earlier gains, it was enough to push the months of supply up to nearly two months. While this gain in months of supply is likely welcome news for some buyers, conditions still remain tight compared to what we traditionally see in this segment of the market.<br /> <br /> Prices also saw some adjustment this month easing slightly relative to May’s levels. This was mostly due to adjustments in the North East, East, North West, North and South East districts of the city. However, with a benchmark price of $581,600, prices in Calgary remain nearly 13 per cent higher than levels reported last year.
Row
Unlike the detached and semi-detached sector, row sales activity improved and reached a new record high for the month of June. The row market tends to offer a more affordable option for consumers compared to both semi-detached and detached homes. While new listings did improve relative to levels recorded last year, it was not enough to offset the gains in sales. As a result, inventories trended down and the months of supply remained relatively tight at one and a half months.<br /> <br /> The benchmark price still recorded some modest gains this month, but the pace of growth slowed down significantly compared to earlier in the year. Overall, the benchmark price reached $363,700, nearly 16 per cent higher than last year.
<br /> Apartment Condominium
While apartment condominium sales continued to slow from record levels reported earlier in the year, sales were still over 31 per cent higher than levels reported last year. This in part was possible due to the recent boost in new listings. At the same time, the boost in new listings did help take some of the supply pressure off this market as the sales-to-new-listings ratio eased to 62 per cent and the months of supply pushed up to nearly three months. <br /> <br /> The shift to more balanced conditions is also helping slow the pace of price growth in this market, but not completely disrupt it. The benchmark price in June reached $277,400, nearly one per cent higher than last month and 10 per cent higher than last year’s levels. Despite these gains, prices continued to remain below 2014 highs2022-07-04T08:24:00-07:002023-07-16T07:05:53-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:13569Market continues to favour the seller despite slowing salesFor the second month in a row, sales activity trended down after all-time record high sales in March. While activity in the market slowed down in May with 3,071 sales, levels are still slightly higher than last year’s record high and are far stronger than typical levels of activity recorded in May. “It’s not a surprise to see sales ease from the exceptionally strong levels seen earlier in the year. Many buyers were eager to get into the market ahead of the rate gains that we are now seeing,” said CREB® Chief Economist Ann-Marie Lurie.
“While higher lending rates are weighing on sales activity, the market is still struggling with supply levels and rising prices which could also be contributing to slower sales, especially in the detached market. Nonetheless, if this shift continues, we could begin to see more balanced conditions in the market over the next several months, slowing the pace of price growth in the market.”
Slower sales were met with a decline in new listings, but a strong pullback in sales was enough to cause inventories to trend up relative to levels seen over the past few months. While inventory remains well below historical norms, the monthly gains did take off some of the pressure in the market. However, with just under two months of supply, the market continues to favour the seller.
Tight market conditions continue to contribute to further price gains in the market, but the pace of growth has eased relative to what occurred over the previous four months. Overall, the benchmark price reached $546,000 in May, over 14 per cent higher than last year’s levels.
Detached<br />Higher lending rates, steep price gains and exceptionally tight conditions in the market are starting to weigh on consumers and contributing to the pullback in detached sales this month. Sales trended down in all locations except the most affordable North East and East markets in the city, which continue to record sales growth. Slower sales were met with a pullback in new listings which prevented any steep gains in inventory levels. With 2,552 units in inventory and 1,620 sales, the months of supply edged up over last month but continues to favour the seller.
Persistently tight conditions did contribute to further price gains this month, but the pace of growth has eased compared to earlier in the year. Detached benchmark prices reached $648,500 in May, nearly 17 per cent higher than last year. Year-over-year gains have occurred across all districts with the gains ranging from a low of 10 per cent in the City Centre to over 22 per cent in the South East and North East.
Semi-Detached<br />Like the detached sector, sales slowed this month for semi-detached properties. However, sales still remain relatively strong and on a year-to-date basis are still higher than levels recorded last year. New listings also slowed, but at a slower pace than sales causing some modest monthly gains in inventory levels and some monthly gains in the months of supply. However, with less than two months of supply, this segment continues to favour the seller.
While prices continued to rise for semi-detached properties, the pace of growth has eased from earlier in the year. In May, the semi-detached benchmark price reached $584,700, nearly 15 per cent higher than the same time last year. Price gains have occurred across all districts with the strongest year-over-year gain occurring in the North district of the city.
Row<br />Like other property types, sales activity trended down from the March high. However, sales in May were still higher than last year’s levels and reflect a new record high for May. Row properties in the city are generally more affordable than both detached and semi-detached properties. Higher prices in other sectors and rate gains are likely driving more consumers toward row style properties.
While some monthly gains in inventories did help push up the months of supply, with 1.5 months of supply conditions continue to favour the seller. The persistently tight conditions placed further upward pressure on prices, however, the pace of growth is easing. As of May, the benchmark price reached $363,300, nearly 17 per cent higher than last year’s levels.
Apartment Condominium<br />Recent gains in sales and prices likely encouraged the boost in new listings this month for apartment condominiums. While sales did improve significantly compared to last year, the sales-to-new-listings ratio eased to 67 per cent and inventories edged up over relative to levels seen over the past five months. This rise was enough to push up the months of supply to over two months. While this segment of the market has been more sensitive to supply shifts, conditions still remain relatively tight supporting further price gains.
The benchmark price in May reached $275,300, over one per cent higher than last month and nearly nine per cent higher than last year. Prices trended up in every district helping support price recovery. Despite the growth, prices are still over 10 per cent below the highs set back in 2014.2022-06-02T07:22:00-07:002023-07-16T07:06:12-07:00Jennifer Sipkenstag:jennifersipkens.ca,2012-09-20:13357Sellers' market conditions continue in April Following an all-time record high month of sales in March, activity slowed down in April. However, with 3,401 sales, it was still a gain of six per cent over last year and a record high for the month of April. “Despite some of the monthly pullback, it is important to note that sales remain exceptionally strong and are likely being limited due to supply choice in the market,” said CREB® Chief Economist Ann-Marie Lurie. “While further rate increases will likely start to dampen demand later this year, more pullbacks in new listings this month are ensuring the market continues to favour the seller, resulting in further price gains."
<br /> New listings trended down relative to last month and levels recorded last year. With the sales-to-new listings ratio remaining above 74 per cent, there was not much of a shift in overall inventory levels.<br /> <br /> With 4,850 units in inventory, we are nowhere near record low inventory levels, however, levels are far lower than what was recorded in April since 2014. What has changed in the market is the composition of the inventory levels. When comparing inventories today to what was available in 2014, we can see that detached homes comprise of a smaller share of the inventory levels especially for properties priced below $500,000.<br /> <br /> Overall, the Calgary market has seen the months of supply remain below two months since November of last year, placing significant upward pressure on prices. The benchmark price in April reached $526,700, which is nearly two per cent higher than last month and 17 per cent higher than last year.
Detached<br />For the first time since spring of 2020, year-over-year sales slowed down. While sales have dropped, it is important to note that with 1,815 sales, this is still far stronger than long term trends. A decline in sales occurred for homes priced under $600,000. This pullback in sales for lower priced homes was likely related to further supply declines driven from reductions in new listings in those price ranges. Inventories in the detached sector have not been this low for the month of April in nearly 15 years. <br /> <br /> While the slightly slower sales compared to inventory levels did help push the months of supply back above one month, conditions continue to remain exceptionally tight with 1.3 months of supply. This continues to place upward pressure on prices, but at a slower pace than the last three months. The detached benchmark price rose to $628,900 in April, which is 19 per cent higher than last year. <br /> <br /> Semi-Detached<br />A decline in new listings in April likely contributed to slower sales compared to last month. However, sales are still relatively strong and on a year-to-date basis and remain nearly 30 per cent higher than last year and nearly double the long-term average. As the slower pace of sales was met with a decline in new listings, there was little change in the inventory situation and this segment continues to favour the seller.<br /> <br /> Tight market conditions caused further price gains in the semi-detached sector. In April, the benchmark price reached $487,900, nearly two per cent higher than last month and over 16 per cent higher than last April.<br /> <br /> Row<br />While levels trended down from the previous month, new listings reached 781 units this month. This is a year-over-year gain of 24 per cent and the highest level ever seen in April. The improvements in new listings helped support stronger sales activity which rose over last year’s levels and set a new April high. This boost in new listings did cause inventories to trend up compared to earlier in the year, but it was not enough to pull the market out of the sellers’ market conditions.<br /> <br /> With just over one months of supply, persistently tight market conditions continue to place upward pressure on prices. Thanks to gains across every district, row prices rose by over two per cent compared to last month and are nearly 17 per cent higher than last year.<br /> <br /> Apartment Condominium<br />Like other property types, apartment condominium sales did ease relative to last month’s record highs. But with 642 sales this month, activity still improved by over 46 per cent compared to last year reaching a record high for April. This in part was possible thanks to the 893 new listings that came onto the market. While it was not enough to dramatically change the supply levels in the market, the months of supply did edge up to nearly two months. <br /> <br /> Tighter market conditions continued to cause prices to trend up in April. The apartment benchmark price rose across all districts and currently sits eight per cent higher than levels recorded at this time last year. The strong price gains over the past three months have helped narrow the spread from the 2014 record high price.2022-05-03T19:49:00-07:002023-07-16T07:07:09-07:00Jennifer Sipkens