Patrick's Real Estate Blog

Century 21 Advantage and the Men of MOvember

Patrick Galesloot (Century 21 Advantage) — Fri, 20 Nov 2009 19:13:29 -0600

The Men of MOvember here at Century 21 Advantage are doing their part to change the face of men's health.

If you haven't heard of "MOvember", it is a global initiate to raise funds and awareness for Prostate Cancer. You can learn more at www.Movember.com.

However rather than just go to the Movember web site I encourage you to visit the Century 21 Advantage Team fundraising page for MOvember at: http://ca.movember.com/mospace/102207

The Movember Men are:

Left to right Eric Walper, Tim McRae, Kirk Walper, Dan Wind, and Patrick Galesloot. Absent doing real estate activities but a MOvember supporter: Gavin Heintz

We have a few guys already sporting Mo's, Eric Walper (pictured on far left), Dale Devereaux, and Larry Kemshead. A couple of the younger guys around the office stick with the goatee. The man that grows the MO, stays true to the MO. The Red Deer Kinsmen Club has agreed to match the donations that their members raise. Fortunately I am a member of the Red Deer Kinsmen and your donations then become double courtesy of the Red Deer Kinsmen.

Please take a moment and donate if you can.

Your Friend in Real Estate,

Patrick Galesloot

Red Deer Real Estate in October, A Month to be Thankful or Spooked?

Patrick Galesloot (Century 21 Advantage) — Fri, 20 Nov 2009 19:10:19 -0600

October in Red Deer is a weather roller coaster and a busy time for many. We get snow, rain, and sometimes both. We have family gatherings surrounding Thanksgiving, and parties at the end of the month surrounding Halloween. October is a fun month and diverse month.

In Red Deer real estate, October 2009 was stronger than October 2008!

The number of sales reported to the Central Alberta REALTORS® Association for the Red Deer MLS® was 151 properties sold up from 2008's sales number 128.


.	2008	100& Under	100-150	150-200	200-250	250-300	300-350	350-400	400-450	450-500	500-550	550-600	600-700	700 +	Total	Avg. Pr.
.	OCT	6	2	4	27	40	20	15	5	3	1	1	2	2	128	$297,451
.	Information based on Red Deer Real Estate Board MLS Stats 2008 only.
.	2009	100& Under	100-150	150-200	200-250	250-300	300-350	350-400	400-450	450-500	500-550	550-600	600-700	700+	Total	Avg. Pr.
.	OCT	2	4	17	32	34	24	18	12	2	1	1	2	2	151	$293,268
.	Information based on Red Deer Real Estate Board MLS Stats 2009 only.

Where were sales up? As noted in the table above sales were most notably higher in the $150,000-$200,000 price range (which contributed to a lower average price '08 vs '09) and the $400,000 - $450,000 price range.

A pretty solid month of sales for October 2009 real estate. On a week by week basis we also see consistent results.


.	Weekly Stats	# Listings	# Sales	# Pending Sales	Active Single Family Listings	Active Apartment Condo Listings	Total Active
.	Sept.28-Oct.4	66	30	28	354	82	588
.	Oct.5-Oct.11	79	30	32	356	94	604
.	Oct.12-Oct.18	40	37	20	351	89	588
.	Oct.19-Oct.25	49	31	34	343	89	585
.	Oct. 26-Nov. 1	52	38	18	344	72	542

On a weekly basis we ended the month with a sharp decrease in inventory. This is not unusual to have many listings come off. We may see that number return this week and next as some sellers contracts expired or were cancelled. The number of new lists as noted above have been consistent for the most part during October.

The bottom line:

For buyers, there continues to be ample selection and affordable rates. The average price remains strong and stable. You can buy today with confidence that the market is stable and the largest risk buyers face today is in the potential increase of interest rates in the future.

For sellers, homes are selling at a good solid pace. If you are priced competively demonstrating value to buyers a sale is in your future. The same solid price and absorption rate that demonstrate confidence to buyers also tells sellers that the equity built up over time ion their home is more secure today than the past. The sales rate of homes selling however means that you must be market price savvy and in top showing condition.

October was a month to be thankful for in Red Deer real estate terms.

Sales up 17.9% over 2008
October Absorption Rate is 14 - 18 weeks
The Sales to New Listings Ratio is between 60% and 70%

Your Friend in Real Estate,

Patrick Galesloot

Follow Patrick on Twitter: @pgalesloot

4th highest February for Red Deer sales volume

Patrick Galesloot (Century 21 Advantage) — Tue, 17 Mar 2009 06:45:15 -0500

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

Red Deer Real Estate, Average Price increases 25.29% in 2009

Patrick Galesloot (Century 21 Advantage) — Mon, 09 Mar 2009 14:32:53 -0500

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

Rise up, Rise Up, Real estate is rising?

Patrick Galesloot (Century 21 Advantage) — Fri, 13 Feb 2009 05:50:15 -0600

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.

From Stats

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

Look at last week in Red Deer real estate

Patrick Galesloot (Century 21 Advantage) — Fri, 06 Feb 2009 21:30:33 -0600

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.

From Stats

We'll keep you informed. Your Friend in Real Estate, Patrick Galesloot

Real Estate Now?

Patrick Galesloot (Century 21 Advantage) — Mon, 02 Feb 2009 05:39:05 -0600

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

Real Estate Decline Predicted

Patrick Galesloot (Century 21 Advantage) — Thu, 29 Jan 2009 04:31:54 -0600

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.

Your Friend in Real estate,

Patrick Galesloot.

Real Estate, budgets and drop in prime, what does that mean to you?

Patrick Galesloot (Century 21 Advantage) — Tue, 27 Jan 2009 22:48:03 -0600

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.

Your Friend in Real Estate,

Patrick Galesloot

Budget source and highlights www.cbc.ca

Century 21 launches High Resolution Photos for properties

Patrick Galesloot (Century 21 Advantage) — Sun, 25 Jan 2009 11:14:10 -0600

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.

Click here to see the new full sized photos available on listings! Ask your Century 21 Advantage Associate about having 21 photos and the The showcasw 21 for your home.

Is your company brand being left behind online? What is your company doing to help you stay current online?

Patrick Galesloot,

Century 21 Advantage

2009 Real Estate Market... is 2009 the year to buy real estate?

Patrick Galesloot (Century 21 Advantage) — Sat, 24 Jan 2009 12:07:59 -0600

My earlier blog post I asked you 4 questions and to email me your thoughts. http://www.century21.ca/patrick.galesloot/Blog/2008_Red_Deer_Real_Estate_Market

Where do you see house prices going long term?
How long do you plane to live in that house?
Should you wait?
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.

For the full article visit my Blog at www.patrickgalesloot.com or click here.

What i wish the weather was like today

Patrick Galesloot (Century 21 Advantage) — Fri, 23 Jan 2009 22:54:38 -0600

Wishful thinking today as it is cold, very cold -27C plus windchill. Brrrr From Red Deer, Alberta

From Red Deer

2008 Red Deer Real Estate Market

Patrick Galesloot (Century 21 Advantage) — Thu, 22 Jan 2009 12:13:50 -0600

The numbers are in and we've been reviewing the 2008 Red Deer real estate market quite a bit here at Century 21 Advantage.

Quite a journey it has been with highs and lows in financial markets, and changes to price frequently. There were a lot of sales in the City of Red Deer. The graphs below are compiled form MLS data provided by the Central Alberta Realtors Association.

The average price for 2008 when combing sales for all product types (mobiles, apartment condos, townhouses, duplexes, and single family homes) was $301,363. That is certainly where the spike of the graph is.

On a month by month basis the sales volume rises and falls depending on the season, yet the grouping stayed mostly the same. The average for the year bumped up and fell in certain months but overall you can see that the most purchases are in the same grouping.

I think the monthly or seasonal sales of real estate is best demonstrated by plotting the sales numbers and comparing to previous years, such as this graph:

2008 is the line in green. We started the year off with exceptional sales volumes. For most of the year 2008 recorded the 2nd highest sales volume on record. By the summer we were equal to and greater than 2007 which had the highest sales volume. Then September came. I know it wasn't that long ago, but if you recall the fall of 2008 was the biggest economic free-fall we have seen in decades. Oil has come crashing down from $140/barrel to $37/barrel. As Oil plummeted in price so did sales volume. Yes Red Deer is in the thick of Oil and Gas country and when Oil takes a nose dive so do pay cheques and buying power. This also pushed prices down, and more value is to be found today at $350,000 than a $350,000 home in 2007.

I point out that the sales volumes rise and fall with seasons. This year we added political turbulence, financial market meltdowns, and dropping commodities to the mix. Financials powers also responded by increasing credit requirements and eliminating buying options such as "zero down". Short term wise we are felling them as are many people and industries across the country. This should not deter you from buying. Unlike previous declines in real estate markets, the interest rates or borrowing costs have remained low.

Buy today as you have lots of choices and the cost of borrowing is low. We may be at the bottom today. The only way to know for sure where the bottom of the market occurred is by looking back. SO that moment in time has based. No different than buying at the peak. If you knew you were buying at the peak would you? The answer is NO. However this is what many of us did. In a sellers market we can't stop the buyers from buying. Buyers are lining up as fast as sellers are available. Then in a buyers market the buyers are actually sitting on the fence while the best buying conditions pass them by.

This is not a sit on the fence market. It is a buying market.

Did you know that in 1956 house prices in Red Deer were $5,000 - $9,000, then in 1972 they were $25,000 - $30,000. in 1989 the average house price was now (1989) $86,387. The 80's had interest rates of 18%, the country was in a recession, and the national energy program brought economic activity to a virtual standstill in Alberta. Jump forward to recent years and the picture looks like this:

I ask you 4 questions email me your thoughts.

Where do you see house prices going long term?
How long do you plane to live in that house?
Should you wait?
Can You afford to wait to buy based on past price trends?

Unfortunately I do not have a lot of data prior to 1989, but does this change your answer?

I don't know what the market will look like at the end of 2009, but based on the above data I'd feel confidant in buying a home today.

Your Friend in Real Estate,

Patrick Galesloot

More web presence

Patrick Galesloot (Century 21 Advantage) — Wed, 23 Jul 2008 13:19:30 -0500

If you use the web as much as I do you're looking at new content daily and implementing what you see, read, and hear into your life on a daily basis.

Being committed to internet as a tool for marketing propeties and informing buyers and sellers is a priority for me.

Feel free to look at the following endeavors and see some examples of the services availabel to all my clients.

My Century Web, there you can search all my listings and Century 21 Listings with emphasis on photos.
You Tube Channel
Blogging and more Blogging, providing real estate information and community information for buyers and selelrs.
Virtual Tours
Full MLS Search
Facebook

Thanks for your feedback and support, and I look forward to providing more and learning more.

Your Friend in Real Estate,

Patrick Galesloot

Strong sales or listings?

Patrick Galesloot (Century 21 Advantage) — Wed, 23 Jul 2008 13:05:19 -0500

MLS Stats: More listings available for buyers to look at. A common question we hear today is can I write an offer subject to the sale of my home? More often the answer is yes. While this may not be an acceptable term in an offer for every seller it is quite common. The Red Deer market place is such that buyers can find the house that they really want and trade up. A contrast to 2006 and part of 2007 where buyers "dream homes" were scarce and they had to settle for a home that may not have met all their needs. Today you can find a better fit if so needed.

January 1, to July 1, 2008. Red Deer New Listings: 2174

January 1, to July 1, 2007. New Listings: 1786 a 21.72% Increase.

While it is considered to be a buyers market, sales do happen and are quite strong. Below the record levels of 2007 but above or on par with those seen in 2006. 2008 is a still a good year for selling in Red Deer.

Red Deer MLS Sales January 1 - July 1

2008, 1092 listings Sold

2007, 1342 listings sold, a decrease of 18.63%

Shopping around for a Realtor? A busy office is often the better choice. A busy office has agents working with buyers and sellers and despite a slow down they remain focused and attentive. Century 21 Advantage has been focused on ensuring their agents are knowledgeable and informed to help you through the selling process. Century 21 Advantage MLS residential (all areas): Listings YTD 2007: 312 listings Listings YTD 2008: 440 listings a 41% Increase Sales (Listings Sold) YTD 2007: 348 Sales (Listings Sold) YTD 2008: 362 a 4% increase.

For a real estate consultation feel free to schedule an appointment at your convenience through our office at 403-346-0021.

Your Friend in Real Estate,

Patrick Galesloot

Penhold and Springbrook Real Estate Update:

Patrick Galesloot (Century 21 Advantage) — Mon, 02 Jun 2008 15:38:53 -0500

Saturday May 31 I had the pleasure of speaking to the attendees at the community breakfast. There were approximately 60 residents in attendance. The topic of discussion was that of an economic update with myself being asked to give a Real Estate update.

I'm always happy to discuss real estate and changes in the market place with home ownes so I enjoyed the opportunity to do so.

The house prices in the area have risen substantially over the years. Our data from the MLS board goes back to 1989. Back in 1989 the average house sale price in Penhold was $57,071. Springbrook was still operating as CFB Penhold. Penhold was and still is an affordable alternative to the larger City of Red Deer. Red Deer's average sale price in 1989 was $95,459.

Jumping to the first recorded MLS sales data for Springbrook in 1997, the average home sold for $61,425 in Springbrook. At that time the sales consisted of townhouses and half duplexes. Penhold's average sale price of houses was considerably higher at $86,432. Still more affordable than bigger brother Red Deer. Red Deer's average sale price for single family homes in 1997 was $131,499.

In 2000, sales and new development were occurring in Springbrook, as we entered into a prosperous new Millennium. Springbrook's single family homes sold for an average of $112,777 in 2000. Very close to the level of the more established Town of Penhold's average house selling price of $115,257. Again Red Deer maintained that $40,000 difference with sales average in 200 reported at $157,993.

So from 1989 to 2000 or the 90's, house prices in Red Deer climbed 65%. This is pretty substantial growth during a time when we were not in experiencing a "boom". Penhold's prices doubled over that same decade (101.95%).

For the whole story please visit my blog located here. You can subscribe to updates to my blog by clinking here:

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Patrick Galesloot

I have a Sump Pump

Patrick Galesloot (Century 21 Advantage) — Sun, 25 May 2008 22:56:26 -0500

This house has a sump pump, is that a good thing or bad? What is a sump pump and what is it doing in my house?

Common questions that I have heard from buyers. Depending on the age and location of your home you may have a sump pump.

A sump pump is, a pump that moves water from a basement sump pit.

Ok a sump pit is...?

A sump pit, commonly found in the home basement, is simply a hole to collect water. The water may enter via the perimeter drains of a basement waterproofing system, funneling into the pit, or may arrive because of rain or because of natural ground water, if the basement is below the water table level.

Below the water table??? What the??

Ok don't panic. The water table in central Alberta is High. Higher than in other areas, and if you have lived in a house in Central Alberta I would venture a guess that you had or have a sump pump. You will find homes with sump pumps in just about every neighborhood of Red Deer, Sylvan Lake, Blackfalds, Springbrook, Penhold, and Innisfail. I could name more but I might as well say "Central Alberta". They are common and no cause for alarm.

For more on the Sump Pump situation see my Real Estate Blog.

Your Friend in Real Estate,

Patrick Galesloot

And yes I have a sump pump :-)

Selling in May have you calling out May Day??

Patrick Galesloot (Century 21 Advantage) — Sun, 25 May 2008 22:01:25 -0500

Frustrated selling in a buyers market? Understandable emotion. Perhaps a more closer look at the weekly stats, and market place numbers and comparing them from 2006 to now will help.

In Red Deer, May was/is , and not your typical movie fare, but when it comes to new listings 2008, is a block buster of a year.

It wasn't that long ago we were in a heated seller's market, we only have to look as far back as 2006. Then we started transitioning out of that frenzy in 2007 to today's buyer's market. Each market has it's good points and bad depending on the side of the transactional fence you are sitting. For those sitting on the selling transactional fence it can be tough pill to swallow. many are scratching there heads wondering what should I do, or what can I do to sell my house.

Sales are still strong this year there is no doubt about it. Interest rates are quite low and despite the sub prime crisis south of the border many Canadian buyers are still able to take advantage of buying zero down. I you are buying today you have much to be thankful for. I think it's important to look at how we got to where we are with this increase in inventory otherwise known as excess supply in the supply an demand world of economics.

In 2006 the weekly market of new listings and those being sold had a very narrow gap. Often the number of homes sold surpassed new listing coming onto market. In the height of things at least two buyers were available for every home. The average home owner (looking to own a home to live in) and the speculator (buying for an opportunity to sell for a quick profit).

To read more complete with statistical graphs visit my real estate blog, click here,

Your Friend in Real Estate,

Patrick Galesloot

April open for business and business was...

Patrick Galesloot (Century 21 Advantage) — Thu, 08 May 2008 12:30:15 -0500

Good. Sales were down from record 2007 sales volume, but well above 2006 numbers.

Here at Century 21 Advantage, we led the way with listings sold in Red Deer. Out of the 220 properties sold in April Century 21 Advantage sold 56 which is a little over 25%.

How does this compare to what the market is like or what is every one else doing? Well today we see a total of 785 properties available in the City of Red Deer with 70 of those with conditional offers. That is great selection for buyers, and increased competition for the sellers who are striving to be part of the 220 sold. The number of sales is down from the 242 in April 2007 (-9.09%).

We expect the story of increased selection for buyers to dominate the real estate landscape here in Central Alberta for some time. We are still in a buyers market, and what a buyers market it is. Now is a great time for people to buy. Interest rates have decreased a full point since early March. Oil prices and crop prices are high creating economic conditions favourable to those industries. The products available for buyers 25, 30 and 40 year mortgages are readily available as well as there still are zero down mortgages available through CMHC. The vacancy rate is less than 2.5% in Red Deer which is great for investors.

So if you are buying you can buy with confidence in my opinion. You have the luxury of selection, low borrowing costs, and negotiating power. The sellers should not be in a panic however patience and grounded expectations should be the norm. 2007 sales volume was a record, we may be down but we're far from out.

April Sales volume comparison:

2006: 176 properties

2007: 242 properties

2008: 220 properties

More on the Red Deer Real Estate market please visit www.patrickgalesloot.com or my Red Deer Real Estate Blog

Tax Increase on the horizon for City of Red Deer

Patrick Galesloot (Century 21 Advantage) — Mon, 28 Apr 2008 15:47:07 -0500

Tax Increase on the horizon for City of Red Deer

The City of Red Deer is in the midst of a growth spurt. Through the 90's they like many communities the city held the line on taxes. Now with increases in population and further pressure on infrastructure and City services, Red Deer is facing a tax increase of up-to 7%. Quite a hike compared to other increases we face, but a needed one for long term prosperity. I don't think anyone likes to see increases in taxes, and especially not a 7% increases. I'm surprised cities are not embracing municipal legislation that limits the annual increases to a function of cost of living or other rates. It's popular to decrease or not increase the taxes, but at what price. A ceiling on increases such as the cost of living plus 1 maybe an option or simply not to exceed 5%. Puts added pressure on councils to be more creative or manage not just for today or their term but for the future.

Red Deer getting Greener

Patrick Galesloot (Century 21 Advantage) — Sun, 27 Apr 2008 00:51:47 -0500

Red Deer is divided by the Red Deer River which creates are lush attractive parkland community. Not to sit by and let this precious resource by squandered. The City of Red Deer recently approved measures to conserve water.

Council moved the following bylaws this week.

"That Bylaw 3215/B-2008 be read a first time. (Proposed amendment to the Utility Bylaw. Requirement for Low Flow Plumbing Fixtures for new construction or renovation projects that require a plumbing permit for a residential, commercial, industrial, or institutional structure)."

The Council also set up a rebate program for residences to switch form older higher water user toilets to more efficient models.

"Resolved that the Council of the City of Red Deer after considering the report from the Environmental Initiatives Coordinator, dated April 11, 2008 Re: 1) Utility Bylaw 3215/98 - Amendment 3215/B-2008 - Requirement for Low Flow Plumbing Fixtures / 2) Toilet Rebate Program, hereby establishes the residential toilet rebate program, to commence July 1, 2008 with rebates of $50 for a 6 litre toilet and $100 for a dual flush toilet."

You can find all the council minutes at the city's website www.reddeer.ca.

What affect does this have on you and I in our home?

The number of people asking about energy efficiency has been increasing every year particularly in new homes. The average home buyer and owner has been focused on heating and improving or lowering their respective energy bills. If you have been considering a renovation of your bathroom I would encourage you to not only update the look and style of your bathroom but also include efficient fixtures such as the low flow toilets mentioned above. The new toilets not only will reduce water bills for the home owner but also provide home owners with a new fixture which is both attractive and low maintenance compared to that big 1977 tank. Updating your home attracts more buyers in the future and makes your home more likely to sell. Low bills, increased resale potential, is great for all.

Your Friend in Real Estate,

Patrick Galesloot

.50% drop in Interest rates...means to you

Patrick Galesloot (Century 21 Advantage) — Tue, 22 Apr 2008 12:48:17 -0500

Today's announcement was a big one when it comes to decreases in the lending rate. The Bank of Canada reduced its benchmark lending rate by a half-percentage point to 3.0 percent. This is the second time in a row, the Bank of Canada has cut the overnight rate by 50bps, bringing the target rate to 3.00%. This is the first time since 2001 that the Bank has seen fit to cut rates by a full percentage point in just six weeks time.

While interest have been low for a long time the additional decrease means that the average home owner and purchaser will save considerably. If your mortgage is coming up for renewal you have an opportunity to reduce your mortgage payment or the amortization with the decrease in interest rates.

It also means that more buyers can qualify. It's no secret that housing costs have risen dramatically while lending rates have slowly crept up. This significant drop in interest rates allows more people to qualify than before. See the example below:

Mortgage principal of $300,000 at 5.75% interest rates your payment would be approx. $1875. With a .50% reduction the same $300,000 at 5.25%, your payment would be approx $1787. That same $1875 at 5.25% interest rate would actually increase your borrowing ability form $300,000 to $312,892. That's a 4% increase in buying power!

A brief look at the market for February saw an increase in listings, listings sold, as well as the average house price. With the average price of a home being $368,172, for the month of February, and there was 115 Single Family Homes sold. The average list price was $374,862. More in depth analysis of the market to follow. However it appears that we have all gotten used to higher house prices and they are not dropping drastically and in many cases not at all. With more affordable borrowing costs the average buyer has more buying power, and that is a good thing. Combine this with the increased spring selection and now is a great time to find the home you've been looking for.

If you were pre-approved in February and have slowly been searching for your next home, it's probably a great time to revisit your bank and talk about interest rates. For more on the bank of Canada visit: http://www.bankofcanada.ca/en/index.html

Your Friend in Real Estate,

Patrick Galesloot

Credit Cards, the free gift effect

Patrick Galesloot (Century 21 Advantage) — Mon, 21 Apr 2008 14:51:23 -0500

We walk by those "Enroll now and get a free gift" credit card tables all the time. If I have all those department store cards, how does that affect me? Does this "potential" debt capacity matter? What if I never use them? I just signed up to get the free Hockey Jersey or other "Free Gift".

The question back to you or I is, are you using them? Are you carrying a balance? At the end of the day it all adds up. If you are carrying multiple balances and multiple minimum payments this can affect your mortgage application.

My advice would be get rid of all the little cards and just keep the necessity ones.

How many credit cards are too many?

This is a tough question to answer, because there is no magic number of cards one should have or use. A good rule of thumb is to keep it between two and six cards. Having multiple cards can help you keep your credit score at a higher number. For example if you are looking a purchasing new furniture, and the cost for the furniture is $2000. If you have 2 credit cards with a credit limit of $2000, you are better off splitting the cost onto the 2 cards to keep the balance from getting close to the limit. Having the balance below 60% of your credit limit will help keep your score strong.

If I have a Sears, Bay, Wal-Mart, Home Depot, Peoples, Esso, and Petro Canada Cards am I a higher credit risk because I have these cards?

Having multiple department store cards does not necessarily put you in a higher credit risk category. If all of these are cards that were applied for at one time and it was in the last year, chances are You credit score took a bit of a hit. Having new credit cards reporting on your credit bureau can lower your score, as your score is calculated based on payments made over time. If you have a new department store card that has only been open for 2 months you will not have a repayment history with that credit company yet.

One thing to watch with department store cards is make sure your payments have been made on time, every time. I have seen so many instances where a company will put a late payment on your credit report for paying 1 day late. This could be the payment was made with internet banking on the due date but the payment took a couple days to get to the credit company. Obviously, late payments are not what you want on your credit report.

What If I filled out the application for the "Free Gift" but never used them?

Free gifts are nice but be careful when you do this. Applying for department store cards can take up to 20 points off your credit score. If you have credit cards on your report that are not being used, you are not showing a repayment history, which could hold back your credit score a bit.

So, is that free Calgary Flames T-shirt worth it?

Thanks again to Scott Bourke at Regional Mortgage for assisting in answering. You can reach Scott at Regional Mortgage in Red Deer 1- 866-343-1125 or online at www.regionalmortgage.ca

Your Friend In Real Estate,

Patrick Galesloot

Your Credit Score and You

Patrick Galesloot (Century 21 Advantage) — Mon, 21 Apr 2008 11:12:20 -0500

When working with buyers the question will come up have you spoken with your bank about whether or not you are qualified for the price level you are shopping in? This can be a conversation that happens at one of our first meetings and really it should. The challenge can be the buyer may be reluctant to part with this information until they get to know us, or simply they just don't know.

The first step in your buying process should involve a consultation with a mortgage specialist. I recently had an opportunity to speak with Scott Bourke a Mortgage Specialist with a local Mortgage Broker here in Red Deer, Regional Mortgage. The interview is below. I was specifically interested in credit for this interview.

Scott, I'd like to ask you about credit scores. Often we here terminology or phrases such as "good credit" or "bad credit". Can you give me examples of what a good score is and a bad score and what makes that up?

First, Your credit is based on a point system that is calculated based on your repayment history, and usage on your current credit (loans, Credit Cards, and Line of Credits). A "good credit score" is usually around the 600 point mark, and above. Usually, if you are under that 600 mark you have some blemishes on your credit, for example, Maybe you have some late payments on some loans or credit cards. It could mean you have a collection outstanding on your credit, or your credit balances are close to or over your credit limit.

Over time I can improve my score by?

The best way to improve your credit score is to make your payments on time, and try and keep your amounts owing on revolving credit (credit cards) at about 60% of the limit. For example if you have a credit card with a $1000 credit limit try and keep the balance around the $600 mark if you need to carry a balance. The closer you are to your credit limits will result in lowering your credit score. Also try and stay away from applying for too much credit, too many enquiries could also lower your score.

What are the benefits to having a good, better or best credit rating for me when I apply for a mortgage?

Your difference in score will really help you when you are applying for a mortgage because the better your score, the more banks that will want to have you as a customer. If you are under the 600 mark, that takes away a lot of the banks that are looking to lend you money. It also makes it a little more difficult to get insurance on the mortgage (required if you have less than a 20% down payment). If you are at the 680 mark, every bank wants you and that will give you a lot more options. Also if you are under the 600 mark, you could be looking at higher interest rates or insurance premiums.

What happens if I want to buy a house with my spouse and I have "bad" credit and she falls under the "good" credit category?

This is a really tough question to answer. The lenders will usually look at the higher income earner and most of the weight will fall on that person. If the higher income earner is the one with the good credit, they should be able to still qualify for a mortgage with discounted rates and fall within the insurers guidelines. If the higher income earner is the one with the poor credit, we could be looking at higher interest rates, or have to work on getting the credit fixed before proceeding with a mortgage.

What is the benefit for me in monitoring my credit score an how do I do that?

The benefit to monitoring your own credit score would be, to understand what is going on with your credit and payments. It is also good for you to check your credit once or twice a year just to make sure that there has not been any credit fraud against you. Check for credit cards that you did not apply for or loans that are not yours. You can check those by visiting Equifax's web site at www.equifax.ca. Enquiries that you pull yourself do not effect your credit score.

What is the most common credit score or rating that you come across and can you describe what type of person that would be?

The credit score that most people have is in the 650 to 750 mark. These are people that have made their payments on time have a couple credit cards maybe one of the cards is getting close to the limit, or a new loan that they just received. If you can get, or keep your score at a 680 mark, that is where you would like to try and keep it.

Thank You
Scott Bourke
Mortgage Consultant
Regional Mortgage Corporation
403-343-1125 Office
403-598-1055 Cell
403-343-1126 Fax
866-343-1125 Toll Free

www.regionalmortgage.ca

If you would like to see more Q&A on real estate I'd be happy to look into them for you. I trust this helps answer some of the questions you may have regarding credit and what it means to you. Thank You Scott for your help.

Your Friend in Real Estate,

Patrick Galesloot

Does owning a "Green Home" matter??

Patrick Galesloot (Century 21 Advantage) — Fri, 18 Apr 2008 17:00:07 -0500

I been thinking more about this "Green" housing. I started wondering does owning a "Green Home" matter?

Actually, yes it does. Not strictly as an environmental good thing but for day to day living and increased equity I think yes putting green initiatives in your home make a difference.

From a selling stand point should you change the furnace out?
Yes. In today's competitive market having infrastructure such as a new furnace can help make the difference in your property selling. It's one less thing for the buyer to do. If your home is likely to fall in a price range that is filled with first time buyers do those first time buyers really have more money to set aside for a new furnace??

Looking at it from a buyer stand point, most would not pay more for a home with a newer furnace (mid efficient), however they would want to pay less for a home with an old furnace. That is to say a buyer would use the old furnace as a reason for them to pay less. Justify their low offer so to speak. In a sense a buyer would want the seller to have done the work and invested their money in a new furnace, and upgraded insulation etc... rather than see it as an opportunity for themselves to increase their long term equity position.

Other "Green" aspects that buyer wants in a home?

On demand hot water or tank less hot water system. Nice to have unless it is an older home with conventional plumbing. (ie no dedicated lines and pressure balance manifold)
R 40 insulation or higher in attic
Added insulation in walls and siding
New windows (no more aluminum sliders and wood panes)
Direct vent dryer hose
finished basement (insulated)

Perhaps the more accurate question is will owning a "Green home" increase my bottom line when I sell?

What green initiatives would you like to see on your home or your next home?

Your Friend in Real Estate
Patrick Galesloot

Some Green Resources:

www.treehugger.com
www.cagbc.org Canada Green Building Council
www.abcagbc.org the Alberta Chapter of the Green Building Council
www.cmhc-schl.gc.ca Canada Mortgage and Housing Corporation