Well, once again it seems that we have dipped into the realm of the 'Seller's Market.' What does this mean exactly? Well, it means that the sellers are enjoying shorter waiting times to sell their properties, as well as very healthy sale price to list price ratios.
The month of January, 2014 is shaping up to be a highly active month in the market, and the numbers really do tell the real story. Between January 1st and 27th this year we have seen total sales of 1066 units across Calgary and area. Last year during the same time period, the number of units sold was lower at 936. Although these numbers are fairly close to each other as inventory indicators, the important relative factor here is the number of houses that were available on the market. As of right now (Jan. 27th, 2014 at 4 o'clock pm) there are approximately 2474 available units for sale. Compare this to last year's 3193 and we can quickly understand why the market has tipped in favour of the sellers.
With a smaller inventory of homes and a bustling batch of buyers it's easy to see why not everyone is finding exactly what they are looking for. Those who are finding their ideal homes are likely having to pay a bit more to secure their purchase. Although the climate has not yet turned into the feeding frenzy that happened in 2006, the market is certainly experiencing a lot of excitement and even a little disappointment now and then.
How does one approach the market in this situation? Firstly, with a highly skilled and knowledgeable REALTOR®. Things happen very quickly in this market, and it's really important that the quick decisions are made highly sensibly. This climate often creates multiple offer situations as well as offers that will top the list price. Although this means that sellers are often going to get top dollar for their sale, it also means that buyers are going to have to be well informed about where they are placing their investment dollars.
As we move into Spring (it is coming eventually), there is a distinct possibility that the market will remain heated and as such you have to be ready to jump double dutch if you're going to get the most bang for your bucks.
The moral of the story ... don't be afraid to get out there and look for that house that you've readied yourself to buy. Bring a sharp real estate agent and make sure that you are taking all of the important details into consideration. This way, when you're offer is accepted, you'll know that you've made the right decision.
Monday 27 January 2014
Thursday 16 January 2014
Trading in Immovables?
People have been buying and selling real estate for many many years. Although it wasn't always referred to as, 'real estate,' the process has remained basically the same. The term, 'immovables' was used prior to 'real estate' to describe land and the structures on the land. Back then, buying and selling real estate would have been more familiar as 'trading in immovables.'
Although the fundamentals are the same, the trading of property for an agreed upon payment, today's world is far more complex..
With this blog I'll talk about today's world of real estate. I'll talk about my experiences working in the industry, as well as the challenges that we face. So often unique, unforeseen issues can pop up and throw a deal sideways. The intent is to inform; whether buyers, sellers or real estate agents are reading, the topics that I discuss will be pertinent to anyone dealing with real estate.
And now, a little history about real estate in Canada ...
The History of Real Estate
Organized real estate in Canada is almost as old as the country itself. The very first real estate board was set up in 1888 in the growing community of Vancouver. The first couple of decades of the 20th Century saw the creation of real estate boards in several cities across Canada.
Origins in Political Advocacy
In the midst of the Second World War, leaders of Canada’s real estate industry worried that certain government wartime measures might become permanent policy after the war. This included rent control and other rules relating to property. The industry decided to form a national organization that could influence the federal government's post-war planning.
In 1943, a number of real estate boards drew up the first constitution of the Canadian Association of Real Estate Boards (CAREB). At its first conference in April, 1944, CAREB adopted the term "REALTOR®" for use by all of its member real estate professionals.
Growth Through Technology
In 1951, CAREB created the “Photo Co-Op System” – the forerunner to Board MLS® Systems. The Photo Co-op System not only required organizations at the local level to establish rules and promote co-operation among agents, but also a means to fund the operation of the system. In 1955, CAREB actively promoted the Photo Co-op System, which led to the expansion of real estate boards across Canada. This is why most boards in Canada today date from 1955 or later.
Governmental Affairs
CAREB eventually evolved into The Canadian Real Estate Association (CREA). In 1986 the offices were moved from Toronto to Ottawa to facilitate CREA's increasingly important government lobbying activities.
Over the years, CREA has worked with government to improve legislation and regulations that benefit property owners. CREA has successfully advocated on mortgage financing rules, anti-spam legislation, Employment Insurance for the self-employed and the Home Buyers Plan.
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