KEN DEVOE -'s Blog

Whats the Red Deer market doing?

KEN DEVOE - Century 21 (Century 21 Advantage) — Thu, 06 Aug 2009 10:30:35 -0500

One of the questions we hear is Whats the market doing? As most of you know our real estate market is like any real estate market. Its always volatile. It goes up and goes down, depending on the season and economic state. Right now we are good. Lots of sales and lots of choice. Last month in Red Deer there were 111 sales of single family homes. Thats just homes, no condos, townhouses or mobiles with an average sale price of $339,495. I was watching the news from Edmonton last night and their report had the average price in Edmonton last month at $374,000. Right now there is 319 active house listings in Red Deer, so roughly about 1 in 3 will sell. Lots of sales, lots of choice and lower prices over the past few years. Over the past two years the range in avg sales price per month has fluctuated from $297,000 to $368,000. there are always reasons why one month might be higher, such as one month we might have 10 houses over $500k sell and the next we have none, so that will always have repercussions on the avg sale price but over time we have seen prices go up. In the past 3 years we have seen the avg sale price go from $308K to $339K with 100 sales in July 2006 to 111 sales this past July. The market is healthy, houses sell that are priced in todays market and are in show condition.

Thinking of buying a house in Red Deer? Now is the time. Prices are stable, interest rates are at a great 4.19% and choice is amazing.

Anywhere in Central Alberta is a wise choice. Always something happening, always somewhere to go in a short drive time.

Thinking of moving? Relocating to Central Alberta? Call Ken Devoe at Century 21 Advantage with any questions you may have.

Cell 403-350-1192

Email - ken.devoe@century21.ca

Multiple Offers

KEN DEVOE - Century 21 (Century 21 Advantage) — Tue, 31 Mar 2009 02:13:12 -0500

As most people know there were a lot of house sales in Central Alberta over the past few years. There were ‘bidding wars' over houses because the supply did not match up to the demand. As sales are now back to a normal pace there are fewer multiple offer situations for a sale but they still occur. Houses that are priced right, at a fair market value, or priced below market value are always desirable. These homes are still being bought and are sometimes wanted by more than one family. As a buyer its not a great position to be in but you still have a shot at getting that home. My advice in this situation would be to know your top price you would be willing to pay and make a wise business decision. If you get the home great, if not we find another.

Most people do not know the proper protocol for multiple offers. As soon as the buyer has written an offer on a property the buyers realtor will call the sellers realtors to inform them of the offer. If the sellers realtor is dealing with another offer then he/she must inform all interested parties of all offers. All parties must know that they are in competing offers. This allows all buyers the opportunity to make their best efforts to be the sellers best option. When the sellers realtors receives all offers he/she will sit with his clients and talk about all offers. Price is always one of the top issues but conditions on the sale are always a big hurdle especially if one of the buyers have a home to sell before they can proceed with the purchase of their new home. When the sellers hear all the offers they have a few options.

They can:

1) Accept one offer and reject all others
2) Accept one offer and accept another offer as a back up
3) Counter one offer and set the rest aside until negotiations are final on the first offer
4) Reject everything

Rejecting all offers is never a good thing. I always recommend to my clients to work with the offer that shows the best promise.

Things to keep in mind while you are in this situation.

All parties must know of the multiple offers.

All buyers must know there is another offer on the desired home.

Only the seller knows what each offer contains. The other buyer will not know what your offer is.

Multiple offers is a tough situation to be in as a buyer. As I said go with an offer you are comfortable with and see what happens. Always look out for your best interests and never spend more on a property than what you can afford. If you have any questions about multiple offers please call Ken Devoe at 403-350-1192 or email at ken.devoe@century21.ca .

Thanks for reading.

BUY BUY BUY

KEN DEVOE - Century 21 (Century 21 Advantage) — Sun, 08 Mar 2009 01:04:51 -0600

Hello again, February 2009 was a good month for Red Deer sales, 113 compared to the 62 sales in January 2009. Compared to the 171 sales in February of 2008 we are still considerately lower but we can see consumer interest and confidence is coming back.

A great article come from the Globe and Mail, take a minute to read:
http://business.theglobeandmail.com/servlet/story/RTGAM.20090304.whousing0304/BNStory/Business/home

Spring is coming and so are buyers. Call me to be your new Red Deer Realtor.

BUY BUY BUY

KEN DEVOE - Century 21 (Century 21 Advantage) — Sat, 07 Mar 2009 02:35:43 -0600

Hello again, February 2009 was a good month for Red Deer sales, 113 compared to the 62 sales in January 2009. Compared to the 171 sales in February of 2008 we are still considerately lower but we can see consumer interest and confidence is coming back.

A great article come from the Globe and Mail, take a minute to read:
http://business.theglobeandmail.com/servlet/story/RTGAM.20090304.whousing0304/BNStory/Business/home

Spring is coming and so are buyers. Call me to be your new Red Deer Realtor

Mortgages

KEN DEVOE - Century 21 (Century 21 Advantage) — Sat, 07 Feb 2009 09:08:15 -0600

My second question for Heidi Dandurand at Invis was:

With interest rates so low right now, what is the average monthly payment on a mortgage of $100,000? If interest rates go back to 5.8% like they were last year what would your payment be there?

Heidi's response to this was very short and to the point:

$100,000 with 5% down payment over 35 years at 4.39% is $454.72
$100,000 with 5% down payment over 35 years at 5.80% is $541.16

Difference per $100,000 in savings is $7,127.28!!! in 5 years!!!

If you were to borrow $250,000 right now your mortage would about $1136.80. If you had bought last year at 5.8% your payment would be $1352.90. Thats a $216.10 saving per month. Like Heidi said that over $7,000 over your 5 year term. Lock that 4.39% in for 5 years and enjoy your home at a lower payment.

Prices are lower than last year and interest rates are at an all time low, neither will last.

If you need anymore information on your mortgage info contact Heidi at

Heidi Dandurand, AMP
Mortgage Associate,
Invis - Red Deer
#5, 3608 50 Avenue
Red Deer, AB T4N 3Y3
403 - 350-8958 (cell)
866-346-7444 (fax)

Is now a good time to buy?

KEN DEVOE - Century 21 (Century 21 Advantage) — Thu, 29 Jan 2009 07:16:29 -0600

I had a thought. Instead of just my opinion what if I asked someone else what they thought of our market. How they saw things and what they expect to happen. That person would be none other than Heidi Dandurand of Invis heidi.dandurand@invis.ca .

My question for Heidi was, followed by her response:

What is your mortgage advice for people who are considering buying a home in this uncertain market?

"If you feel comfortable with the security of your employment, then NOW IS THE TIME TO BUY!!! With the softening of house prices and the lowest rates we have seen ever, this makes it the MOST AFFORDABLE TIME TO BUY. You can really take advantage of the lower prices and the lower rates! Plus, if you lock in the rate, you know exactly what your payment amount will be for up to the next 5 years. This sure beats renting when prices are always going up!!! "

When I read that from Heidi I thought it was a very simple answer,and it was. Perfect. Rates are really low right now. You have the choice of having your mortgage for less than 5 years but you always run the risk of the interest rates going up. Housing prices historically go up. The correction we have been witnessing will not last much longer. When prices start going up so will the interest rates. Like Heidi said if you are in a secure position in life buy NOW.

Welcome to 2009

KEN DEVOE - Century 21 (Century 21 Advantage) — Thu, 22 Jan 2009 23:27:10 -0600

Welcome to a new year. 2009 is going to be a year of challenge for the world, not only Central Alberta. We are witnessing a sweeping change in world dynamics and attitudes. Your attitude and point of view depends on which day or which channel you watch your news. I believe 2009 will be a year of learning, of changing and of growing. The leaders of our countries have realized that we cannot keep pushing problems back, eventually we are responsible for our actions. In Central Alberta our housing market has undergone some changes. Sometimes I feel like a WalMart commercial with the roll backs and you are better because you are lower. Now more than ever houses have to be priced right or they will not sell. When I take buyers out we have 30-45 houses to choose from. The ones that are overpriced will still be there when we are done. Buyers are educated, they know the market and are not pushed to buy something anymore. My opinion though is not to be to picky. If you are considering buying then buy soon. There are signs the market is picking up. My listings are getting more hits on the different websites, mortgage brokers are busier and our office has a buzz to it again. I am lucky to be apart of the busiest office in Red Deer, other offices are larger but none are busier. We do more deals per realtor than anyone and when our office starts buzzing I know things are picking up. Its going to be a great year.

2008, Christmas and Houses

KEN DEVOE - Century 21 (Century 21 Advantage) — Wed, 10 Dec 2008 14:07:47 -0600

Its hard to believe 2008 is almost over. Its been a great year for real estate in Central Alberta and for me personally. I would like to thank all my clients, I hope you have the same great memories as I do. I got into this business because I wanted to help people find their dream homes in a stress free environment, to find the right home at a fair price. Personally it was a fantastic year. My wife Kelly and I are starting to work together with her hopefully joining me soon to help with the administration side, our six kids seem to be growing into adulthood and one gave us the most precious gifts a couple can have. Courtlyn was born this year and is the first of hopefully many of our grandkids. She is growing and happy and is Grampa's little doll. Nothing beats watching your own kids being born and growing up but a grandbaby is close. Professionally I had my best year in real estate for sales and most come with fond memories of good people finding their perfect home. I am most proud of the fact that I have helped people who had troubles with other realtors, good people who needed someone to care. I try to be honest and open and it seems to be working. To my past clients thank you, I miss you all and you have all changed me and made me better. To anyone reading this that might be looking for a realtor to help, my promise is to always keep your best interests in mind and help you find a home you can grow in, a house you can love in and most importantly a house that you can afford. Thank you all and have a very Merry Christmas

Buying versus Renting

KEN DEVOE - Century 21 (Century 21 Advantage) — Thu, 13 Nov 2008 21:49:28 -0600

Most young people do not realize that buying a house might actually save them money monthly. With student loans, past consolidations or car payments you seem to be stretched. The right mortgage broker should be able to bring all those payments together, at a comfortable monthly payment. Rent is high, interest rates are low so why not try. Call me directly and I will point you in the right direction. You have nothing to loose. You will get some sound advice from a mortgage broker, so if for some reason you do not get your home right now you will know what you must do in the future to make it happen.

The economy

KEN DEVOE - Century 21 (Century 21 Advantage) — Thu, 02 Oct 2008 17:15:25 -0500

People I meet through my business always ask for my opinion on the economy and whats going to happen. I am just like President Bush. I am just like Prime Minister Harper. I have no clue. I can not tell you we are going to be ok. I can not tell you that there is a rainbow around the corner. My feeling is we will be ok. Alberta is in good shape. We have the oil field first and foremost but we are very diversified that we can take a hit on exports and still be ok. As Albertans we should be worried but are in a safer spot than others. I think we should be thankful that we are not going through the stuff our friends in the US are going through. They are going through a mess that will make them stronger, eventually. Alberta is one of the few provinces/states right now that is banking money instead of losing it. I think we should be proactive in the development of new fuels and new energies. We should not allow the rest of the world to live in uncertainity while we live in prosperity but we should also realize that the world is going greener and a few new sources of energy could keep us one of the energy giants of the world. Now is not the time to sit back and hope things turn around, now is the time to be proactive and create a bigger wealth for Albertans which is going to create a better world for all mankind. Remember the immortal words of Warren Buffett "Be greedy when others are fearful and be fearful when others are greedy". Remember this is just my opinion. Have a great day.

What is a balanced market?

KEN DEVOE - Century 21 (Century 21 Advantage) — Sun, 15 Jun 2008 09:47:11 -0500

We keep hearing about a balanced housing market? Newspapers and TV say we are in more of a "balanced market" than the last few years. To me a balanced market is when our housing sales are in line with our listings. From May 15th to June 15th in Red Deer we have had 206 confirmed sales of homes (single family homes, condos, townhouses and mobiles) and are now carrying 733 active listings. To me a balanced market would mean those numbers should be closer. If we are putting 206 families into a new home in that period our active listing number should be closer to 300-400. Balance mean equal.

Don't get me wrong, I love this market. Buyers are happy, they get to look at 30-40 homes before they decide. They are not rushed. Buyers know that if they look at a house today and think about it overnight there is a high chance it will sill be available tomorrow.

Do I want a more balanced market? No, I like this. I do not mind when my clients get to look at more than 5 houses to decide because I know we have exhausted all the options and found the best possible choice for them.

June In Retrospect

KEN DEVOE - Century 21 (Century 21 Advantage) — Sun, 15 Jun 2008 06:14:51 -0500

June has traditionally been a busier time in or industry. Spring comes and families start wondering about a new home. Some people make the move right away others sleep on it for a few weeks and then move.These people who woke up in March decided they needed something, in April or May did something about it and are moving in June. Or could they be people who woke up June 1st and said we should buy a house today. Both types of home buyers make up the following numbers for one of the busiest months for real estate sales.

These numbers show the total number of sales in Red Deer for the period of Jue 1 - June 15
year - sales - avg sale price
2000   56   $141,152
2001   60   $141,768
2002   70   $144,317
2003   56   $157,194
2004   90   $174,631
2005 104   $183,501
2006   90    $258,663
2007  142 $316,983
2008   97    $289,361

So what does all this mean? To me we usually have about 90 sales in Re Deer for the start of June. This year we are on track for a normal year. Yes sales are down over the entire year of 2008. But 07 & 06 was the highpoint in a market that expolded. If someone said in June of 2005 that the avg sale price iin 3 years would jump to 289,361 not many people would believe them. Our market is fine, we are just about over the bubble and we should start seeing a more balanced market soon.

RENTING VS OWNING

KEN DEVOE - Century 21 (Century 21 Advantage) — Sat, 26 Apr 2008 22:28:12 -0500

This is for all the renters out there. Tired of paying someone else's mortgage? Yes buying a house is scary and expensive. But with the new mortgages that are being offered from Canadian lending institutions renting is no longer neccesary. 0% down payments. 40 year mortgages. These are all possible. People with shaky or no credit can get a mortgage under the right situations. The benefit of home ownership is pride. That first morning when you wake up in YOUR home is great. Nobody can tell me anything. I can paint my livingroom purple today. Whatever you want. Once you are over the emotional feeling and living in your home you will see the appreciation starting to happen. House values usually rise. After paying your payments for a few years you will start to see something amazing happen. That mortgage starts to lower and you actually paid off some of your mortgage. So your mortgage amount drops and your house value goes up! Your house is worth more and you owe less.
Plus - Noboby can tell you what to do! This is my house! Great times!!! Yes it is but with home ownership comes responsibilities. You are responsible for actions that occur on that property, there are taxes that need to be paid, grass that needs to be cut, power bills, insurances and home repairs. I recommend everybody own their own house. Renting is ok in the short term but ownership is best. Its yours.
The first step is a mortgage broker, I recommend a broker who I have been working with for the past few years. Heidi Dandurand is great at getting mortgages that are tough, when some brokers quit and give up Heidi keeps going. Heidi is simply the best I have seen. Her email is hid@shaw.ca . Heidi works for Invis which is a national Mortgage Brokerage that deals with almost every major banks and secondary lenders. Drop Heidi an email, she will be happy to work with you. Heidi will search every possible lending institution to get you the best possible mortgage for you. Mortgages are as unique as houses and Heidi is great at getting you something that works for you.
While talking to Heidi you will also need to know what that mortgage is going to get you. When Heidi tells you what you can be approved for we sit at the computer and see whats available. My recommendation - Spend less than your maximum approved amount. With home ownership there are always unforseen expenses. Spend less - longer mortgage - keep your payments lower. Buying is scary but so is not buying. Call me today to start the process.

GREAT TIME TO BUY

KEN DEVOE - Century 21 (Century 21 Advantage) — Sat, 26 Apr 2008 16:29:46 -0500

With the beautiful weather that is now here, its a great time to buy that new home. If you were to write an offer today to buy your new home you could be moving in 30-45 days. That puts you at the end of May or middle of June. Just in time to host that family BBQ to kick off summer. Just in time to invite friends over for a Friday night get together or have the kids friends over for a sprinkler day. Now is the time if you want to be in for summer vacation. Call me and we can start looking.

PHOTOS

KEN DEVOE - Century 21 (Century 21 Advantage) — Sat, 26 Apr 2008 16:25:09 -0500

Almost everytime I go on a listing presentation I hear my clients talk about poor pictures on MLS.ca. I agree. MLS.ca has been the home of some pretty bad photos. Pictures sell a house. Pictures let shoppers know whether the house is right or wrong for them. The greater amount of pictures will allow a buyer the opportunity to see the whole house. Can you tell from one picture what a whole house is like? Not a chance. Every listing I take I go and take at least 50 pictures. I can sit down then and look on the computer and pick out the best nine for MLS. Hopefully we will be able to put more than 9 pictures on soon. I believe pictures should show the main hi-lites of a home. The kitchen is probably tops, openness or flow and basement development and the big three that my clients have wanted. So if your last Realtor did not take enough photos or bad photos, call me and I am sure you will be happy.

OUR MARKET

KEN DEVOE - Century 21 (Century 21 Advantage) — Sat, 26 Apr 2008 16:24:37 -0500

Some people have a state of the union address I am having a state of the market address. My comparison is for homes solds in Red Deer from January 1st to April 4th of each of the following years plus their average price. This is single family homes only and does not include duplexes, mobiles or condos.
2005 we had 265 sales with an average sale price of $202,396.
2006 we had 309 sales with an average sale price of $252,582.
2007 we had 320 sales with an average sales price of $349,073.
2008 we just finished up with 320 sales with an average of $359,146.

So what does this all mean? To me I look at total sales. 320 this year is down from both the past two years which is not uncommon since 06 and 07 were peaks in our market. Nobody was prepared for the way the market exploded in Alberta but most of us caught up quickly and helped our clients find a home in a very difficult market. Yes difficult, home buying should be a fun relaxing experience. 2006 buyers had no fun, they were stressed and hoped they actually had a home. We are now in the down spiral of that time, lots of houses still selling but in order to sell now a home owner nust have 3 things. A desired home, a great location and the right price. Overpricing does not work and houses do not sell when they are overinflated, not anymore.
As for the prices, they are a little hard to explain. Yes the average sales price is up from the past couple of years but what we are seeing this year is bigger newer homes coming on the market where over the past few years people were selling their older existing home. So in 2006 people were selling their 1980's bungalow for $330,000, but this year we are seeing more 2006 and 2007 built homes on the market, they are bigger, newer and of course more expensive. This I believe is the cause of the price climb. So in conclusion we are in a stable market, Calgary and Edmonton prices have been stable for the last few months. Our market feeds off those two and I believe we will have a stable market and see consistent growth over the remainder of the year.

HAVE A GREAT DAY!

SPRING

KEN DEVOE - Century 21 (Century 21 Advantage) — Sat, 26 Apr 2008 16:23:28 -0500

Spring is here. FINALLY. Congratulations on surviving another Alberta winter. I wanted to remind everyone a few things to do now that the rainy season is coming. First if your home has a sump pump make sure its working. On most pumps there is a test button to make sure its working. My way of checking is dumping a bucket of water in the sump hole and seeing what happens. Hopefully the pump kicks in. Second is the eavestrough on your house. If you are like me I usually wait until the rains come and watch the water spill over, then a month later I clean the eaves out. I am trying to change, so this weekend get the ladder out and check your eaves make sure they are clean and your downspouts are in good working order. Have a great spring.