Normal Market may be an applicable descriptor for the month of February.
February 2009 recorded the 4th highest sales volume for single family homes when comparing to previous February sales volumes.
Recent years February Sales Volume:
Single Family Sales
February
2009
87
2008
115
2007
96
2006
122
2005
82
2004
84
2003
49
2002
64
2001
63
2000
57
Looking back at the last19 years of sales volume for February Single Family Homes.
February 2009 was a pretty darn good month.
Your Friend in Real Estate
Patrick Galesloot
February is over and March is coming in like a Lion today allowing time to catch up on stats and planning.
Sales increased as did the volume of listings from the previous week as indicated above. Sales activity increased by 28% from the week before. Expectations are that March will have more positive sales growth with the reduction in interest rates. Now lets hope mother nature cooperates to provide conditions favorable to viewing homes.
February ended in Red Deer, and it ended on a positive note. After experiencing a few months of sluggish sales we experienced an increase over January.
The bulk of the activity is occurring in the $250 - $350,000 range. The activity that occurred in January in that range probably pushed the wave up into higher ranges for February. People moving up from that starter to the larger home.
I believe now is a great time to be buying real estate. Buyers have selection, negotiating power, and the lowest interest rates in decades. If you have secure employment and are in the market to buy, then why wait?
The average sale price in February increased by 25.29% over January from $239,821 to $300,465.
Total sales Volume increased from 62 sales in Red Deer to 113. An increase of 82.26%.
The question is for those of that were waiting for the "bottom", has that passed or was February an anomaly? Just like knowing when the peak is, we don't know where the bottom is (was) until it has passed us.
Real Estate is LOCAL. The numbers are different in Blackfalds than Red Deer, Red Deer is different than Calgary and Alberta is different than a national average. Before you make a real estate decision talk to your Realtor, they should have these numbers for you. Not all do however, this tends to separate the great Realtors from average or even the "part timers".
Do you remember 2005? It may surprise you but 2005 was a record year before 2006, 2007, 2008 for sales. The first three months looked like this:
The headlines and interest rates announcements looked like:
18 October 2005
Bank of Canada raises overnight rate target by 1/4 percentage point to 3 per cent
While the Oil and Gas market today is in decline rather than incline, mortgage money is plentiful and at more affordable rates than 4 years ago. Should we be hiding from the economy and the economic outlook or doing what we can to change it?
Your Friend in Real Estate,
Patrick Galesloot
Real Estate Activity is on the rise!
Talk to a few Realtors and you and the response will be that there is in fact more action in the market place.
The numbers also reflect that as noted above. There was an increase in listings as well as sales.
The weather on the weekend was fantastic. That may have something to do with the amount of traffic I witnessed at 38 Overand Place. I made arrangements to stop in at 1:30 prior to the open house to shoot some video. Well Ken Devoe was there and ready and had his signs up promoting traffic. The open house did not officially start until 2:00 but at 1:30 there were people coming through. Must have been at least 6 couples or groups that came thru in that first 45 minutes. We managed to create some videos in between traffic.
Did you hear this week that rates dropped yet again? Prime rate is now at 3% down 50 points. The over night rate is at 1%!! How low can they go?
Your Friend in Real Estate,
Patrick Galesloot
Here are the weekly numbers:
The blue shaded areas represent homes that did not sell and are still available. We like to see that gap closer if you are selling. The bigger the gap the stronger the "buyers" market. You can see that sales were sluggish to start January 2009. Not to surprising given the doom and gloom in the air. Afterwards we had President Obama inauguration followed by the great Canadian Budget Coalition stand off that has now been resolved.
Sales are down from last year January '08 versus January '09.
It's easy for me to say you should buy now, and that the market conditions are positioned in favour of buying.
I'd like your input on the real estate market. What do you thinik, should I buy a house today? What advice would you give a young couple starting out today? What about you, have you thought about if now is the right time to buy?
Take a few seconds and answer the brief survey I created, I promise it is short. I'll post the results next Monday.
Click Here to take survey
Your Friend in Real Estate
Patrick Galesloot
AREA predicts decrease in prices and sales for real estate 2009.
I'm in Banff today, at the Banff Western Connection Conference. A conference geared towards Realtors and Real Estate Associations from Western Canada. It is also open to Realtors from all over not just the western provinces. While it is not surprising that we are hearing a prediction regarding a decline in real estate as that has already been happening for a while now. If you've been reading my posts you already know this. Each week I've been posting "Weekly Real Estate Updates", and many of those updates in the last 4 months have illustrated the direction Real Estate Transactions and price have been taking.
Being from Red Deer and somewhat of a stats guy (I love looking at the numbers), I was perked up at the point of the presentation regarding sales etc... The forecast for BC and Alberta were/are for declines, and these declines are predicted to be larger in BC and AB than the rest of Canada (2 - 5% decreases in price). No real basis for that other than because real estate shot up so dramatically in 2006, and 2007. A natural correction to supply and demand I suppose. I was disappointed in the lack of regional content. The data centred on MLS data from Calgary and Edmonton and an Alberta average or index. Real Estate is Local, show me local stuff or regional stuff. Alas nothing was produced. It was all at national and provincial levels. Really nothing new that you haven't already been ready or getting from watching news.
I repeat, Real Estate is Local.
Red Deer has always been insulated from the dramatic swings that the two larger cities experience. Calgary is usually the first city to experience rapid increases and decreases when they occur. The wave follows the QE2 north to Red Deer losing momentum along the way. Edmonton has Calgary envy or something because a few months after Calgary it's like they all say "oh yeah we can do better than that". Increases in Edmonton shoot up and the capital city is booming and at a rate higher than Calgary. Unfortunately when that happens they see a bigger drop too. The folks here in Red Deer just bob up and down a little bit and let the two bigger brothers (or sisters) create the drama.
You don't have to take my word for it you can ask the Realtors in Red Deer that are still around after 25 years and they will tell you the same thing. My mom, has told me that as she has seen these shifts occurring for 30 years. From the national energy crisis, and the recession of the 80's. I happen to think we're a tad more conservative and laid back in Red Deer. We watch the trends happening, and enjoy the upside, but we're also more prudent and cautious as we rise so when we back off the drop is a gentler one. Leave the thrill ride to the big city slickers i guess.
Local Real Estate predictions for 2009?
What's your predictions?
The beauty of predictions are they are educated guesses. Much like your educated guesses in school on the multiple guess exams, one answer is right, one less right, one more wrong, and one really wrong. I'll ponder my 2009 prediction this week and let you know soon. Until then email me yours.
I’ll tell you, it’s a good thing. A rate drop means that borrowing money to buy a house or that line of credit is cheaper. Those home equity lines of credit with variable rates are looking pretty darn good these days. Now this budget delivered today would have us getting credits and reductions. Putting more money into our pockets to buy the things we need. This combined with some of the best buyer selection for real estate in many years equates to now being a good time to buy.
The rates:
A 50 point drop means to you or me a savings. Right now 5 year rates can be had at 4.39%. Look at the 7 year rates and they are 5.87%. At first glance that tells me that long term rates are expected to rise. 1 year rates are at 3.5% so short term money is cheap, long term the cost of borrowing is going up. (visit www.regionalmortgage.ca) for Current rates and calculators.
A $300,000 mortgage amortized over 25 years on the three different terms clearly shows the monthly payment savings to be had.
1 year term, at 3.5%
5 year term at 4.39%
7 year term at 5.87%
$1497.81
$1642.12
$1896.30
I know an extra hundred or two hundred dollars would help my family, how about yours?
Question is, can you afford to have prices go up and interest rates?
The budget highlights and what they mean to you and I?
For individual taxpayers, the government promises to boost the basic personal amount – which would allow people to earn more before they have to pay federal tax. The basic amount would go from $9,600 to $10,320, retroactive to Jan. 1.
The government also plans to raise the upper limits on the two lowest income tax brackets. The upper limit for the 15 per cent bracket would go to $40,726, while the upper income limit for the 22 per cent bracket would rise to $81,452.
A new home renovation tax credit would give up to $1,350 in tax relief on home improvement projects. The eligible expenses must be at least $1,000, but not more than $10,000, and the work would have to be done between Jan. 27, 2009, and Feb. 1, 2010.
So at the end of the day we should have more money on our pay cheque to deposit into our accounts, and to fix up properties and increase fuel efficiencies we can do so with less financial pressure. Visit CBC.ca for more detalis on the budget.
Showcase 21, the ultimate photo showcase for looking at real estate online!
CENTURY 21 Canada has released a new enhancement to its real estate website that allows visitors to view full-screen photos of listed homes.
The feature, called Showcase21, provides fast and easy access to large, clear photos of properties. Property listings with 21 photos are identified with a "21 Photos" starburst, and when available in high resolution format, the Showcase21 logo will be displayed as well.
Can you afford to wait to buy based on past price trends?
In follow up I received comments that got me thinking some more about the questions and the responses. The response was a definitive "YES" real estate values will go up long term, but overall people are apprehensive about doing so in a "down" market.
There are different factors influencing your decision to buy and sell.
If you are a first time home buyer the numbers speak for themselves in my opinion. Long-term, home ownership is the way to go. Look at Grandma's house. Grandma paid less for her house than you pay for a car these days in many areas. Grandma is probably mortgage free by now and accumulated hundreds of thousands of dollars along the way. If grandma were to sell today and have a handful of cash that cash, from her personal residence, is tax free. The single largest tax break for most Canadians is that we do not get taxed on capital gains on our personal residence.
So should you be trading up today? Absolutely! Increasing the size of your home and its value should be part of your retirement strategy. When you are 65 and ready to downsize into a 1 bedroom condo and a motor home, you could benefit from the same equity gains as grandma has. Can you afford to do so? It is best to consult your Realtor and your mortgage specialist.
Do you have enough equity built up to leverage to trade up?
How much equity do you have today?
You Need a Current Market Evaluation of your home. A great Realtor will help you analyze your situation and advise you of your options.
Patrick Galesloot is a Realtor® with Century 21 Advantage. Century 21 Advantage is a full-service real estate office. We specialize in serving Red Deer and surrounding area. Our associates live in the communities we serve and know the cities you call home such as Ponoka, Lacombe, Sylvan Lake, Blackfalds, Penhold and Red Deer. We can help make your move to your new home comfortable and easy. Learn more about Patrick at http://www.PatrickGalesloot.com or Century 21 Advantage at http://www.Century21Advantage.ca
Real Estate information specific to Central Alberta, Red Deer area, and resources for buyers and sellers.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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