Archive for the ‘Calgary’ Category

Okay, the market kind of sucks, but how about some spin!

Tuesday, June 24th, 2008

Alberta Bubble If you enjoy the headlines at the realtor sites, you'll probably not like the one I've used.But I guess when your bread and butter depends on making an earnings by selling homes, you've got to master the art of seeing the positive in the sea of negative news.So what ...

Back to Fundamentals

Tuesday, June 24th, 2008

Alberta Bubble I've been silently watching the "blog drama" that has been going on for the last few days. I really have nothing to say on it, except that everyone should be polite and when not in agreement, respectfully disagreeable.Also, there were some false 'spam flags' on this blog causing it ...

Inflationary Scenario

Tuesday, June 24th, 2008

Alberta Bubble Quite a lot has happened in macro economic world since I wrote the ‘deflationary scenario’. While there are still quite a number of deflationary proponents holding there ground, the mainstream economists and pretty much all the central banks are getting perturbed over rising commodity prices. And for once, their ...

City Vacancy Rates Jump to 4%

Tuesday, June 24th, 2008

CALGARY REAL ESTATE BUBBLE BLOG The once white-hot Calgary real estate market boasted a vacancy rate of 0.5% back in 2006. According to this article, alot has changed in the past 2 years. Inventory has slowly built up to uncontrollable levels and property sales have dissipated. This has resulted in rising ...

Final thoughts for 2007

Tuesday, June 24th, 2008

Alberta Bubble 2007 is coming to an end and before starting the New Year, let’s do a quick assessment of the Alberta Real Estate situation. Let’s start from ground realities. It’s still a lot cheaper to rent than to buy. Our ‘flipper’ friends make it abundantly easy to rent a brand ...

Edmonton numbers for December 2007

Tuesday, June 24th, 2008

Alberta Bubble are out...and as mentioned earlier, don't look too bad.But, when combined with over 20 per cent decline in sales volume (and a change in the product mix), the price increases are not unexpected.Since we don't have the 'representative property' available for Edmonton, we have to rely on the less ...

Where are the buyers?

Tuesday, June 24th, 2008

Alberta Bubble Real Estate buyers in Alberta sure seem to be taking longer than expected vacations. While close to a hundred properties are being listed every day since the beginning of the year, the buyers are simply not showing up. The sales to new listings ratio is sitting at a ...

10 Reasons why It’s a bad time to Buy in Alberta

Tuesday, June 24th, 2008

Alberta Bubble A lot is happening around us at this time in the financial markets that will probably impact consumer psychology. But here are some 'micro' level reasons why it’s a bad time to buy in Alberta right now: 1. ...

Toxic Alberta

Tuesday, June 24th, 2008

Alberta Bubble There was a very interesting link left on Sheldon's blog - The 14 part documentary (it's not too long though, each part is 2 to 5 minutes long) on Alberta oil sands and the social and environmental impact it is causing in the Fort McMurray region. Although a lot ...

On Realtors

Tuesday, June 24th, 2008

Alberta Bubble Realtors are commissioned sales people who make their living by selling their services and ‘advice’ to home buyers and sellers. The higher the price of the goods they sell and the higher the volume, the higher their commission. Is there anything complicated in this that people do not understand? ...

REALTOR Association of Edmonton Radio Spin

Tuesday, June 24th, 2008

Alberta Real Estate Watch The REALTORS Association of Edmonton put out a Radio Ad discussing market conditions from the first quarter. I found it interesting enough to duplicate most of it below:With three months of data to back it up I think we can safely say the market ...

On sales mix and tinfoil hats

Tuesday, June 24th, 2008

Alberta Real Estate Watch When prices decrease a larger percentage of lower-priced homes sell. Low-priced may not mean the same thing as low-end in a environment of decreasing prices. I don't know whether to interpret this as useful information or a sophisticated way of implying that the sales ...

Quote of the day

Tuesday, June 24th, 2008

Alberta Real Estate Watch From 15 real estate myths and realities:Generally though, British Columbians, and Lower Mainlanders in particular, are pretty savvy about their property, the experts believe, with so much information out there about real estate, between Real Estate Weekly, the real-estate sections in newspapers, the realtors' Multiple Listing ...

An Old What’s New

Tuesday, June 24th, 2008

Alberta Real Estate Watch 'Bear' with this cheap post while I wait for Realtor board press releases. They will be juicy.From Bob Truman's What's New:Apr 13Last year, sales of SFH dropped from March to April. This year, April sales are 7% ahead of March sales. Condo sales are 24% ...

CREB Buyer’s Market Update

Tuesday, June 24th, 2008

Alberta Real Estate Watch The CREB has cooled down somewhat and acknowledged the buyer's marker in their most recent update. Let's look back at one indicator they have been using to track the market, and how it has been changed over time.Below are some charts showing absorption rates from ...

Edmonton April Report

Tuesday, June 24th, 2008

Alberta Real Estate Watch From the Realtors Association of Edmonton April report:April sales of all types of residential property through the Multiple Listing Service® were lower than the two previous years at 1,823 units but higher than the more typical years of 2004 and 2005.It's technically correct by ignoring a ...

Edmonton price weakness limited to Q2?

Tuesday, June 24th, 2008

Alberta Real Estate Watch Mr. Perras was one of the experts quoted in the article How real estate went from boom to buyer's market in the blink of an eyeQ: Should I buy now or wait?Perras: "I think it's a great time to buy now. If we're going to see ...

Relaxing housing prices

Tuesday, June 24th, 2008

Alberta Real Estate Watch Below are some interesting ways to describe falling real estate values in Alberta:"Relaxing House Prices"Edmonton Journal, May 07, 2008"Softening In Prices"Edmonton Journal quoting Marc Perras, May 06 2008"The market is no longer bearing the prices that it did a year ago"Ed Jensen, CREB, May 1, 2008MLS® ...

Calgary Stampede

Tuesday, June 24th, 2008

Alberta Real Estate Watch "Those are the people that went out and bought four, five, six, seven condos in a building that wasn't going to be built for two years. All of those buildings are now being completed. Those people did not want to be landlords. They were going to ...

Calgary: High-end homes

Tuesday, June 24th, 2008

Alberta Real Estate Watch There was higher percentage of high-end homes sold this April. Here are the numbers compared to 2007: $1million +April 2008: 3.08%April 2007: 1.50%These sales skewed the average price ...

Dare to Compare

Tuesday, June 24th, 2008

Alberta Real Estate Watch Below is a table comparing American median detached home prices from Q1 2008 to Edmonton, Calgary and Vancouver. Canadian prices are median from April 2008, Vancouver is benchmark instead. Edmonton includes the region, Spruce Grove, leduc, Morinville etc. Calgary is for Calgary ...

Bob Truman is #1

Tuesday, June 24th, 2008

Alberta Real Estate Watch By critizing Bob Truman I let him know that he and his website are #1. It is my way of showing appreciation of a Calgary REALTOR for performing structured queries on a database I do not have access to and posting the numbers on his ...

Attention Comfree Sellers

Tuesday, June 24th, 2008

Alberta Real Estate Watch If you want to sell you need to lower your price. Follow the steps below to arrive at a more reasonable asking price.1. Find a similar property listed on the MLS. By similar I mean the same number of bedrooms/bathrooms in the same location.2. WRONG. That ...

Paid obfuscators

Tuesday, June 24th, 2008

Alberta Real Estate Watch Obfuscated definition:Darkened or cast in the shadow or background; obscured by withholding proper light or emphasis; hence, confused, bewildered or lost sight of. Obfuscation refers to the concept of concealing the meaning of communication by making it more confusing and harder to interpret.Lets look at the ...

Unobfuscating May Stats

Tuesday, June 24th, 2008

Alberta Real Estate Watch The monthly numbers are out for Edmonton and Calgary and there is a lot to cover.From Edmonton's report: Never been a better time to buy a home, says REALTORS® AssociationMay sales exceeded same month sales in 2003 and 2004 but were below May sales for 2005-2007 ...

What the ads don’t say

Tuesday, June 24th, 2008

Alberta Real Estate Watch Here is a builder ad for new condos in Edmonton I got in the mail:Wow! $824/monthThe fine print:4.15% with a $9875 down payment & combined income of $51,364.On the back:*Based on a variable rate of 4.15%, OAC, clients to qualify at a 3 yr posted rate ...

CMHC freedom day

Tuesday, June 24th, 2008

Alberta Real Estate Watch Notice how when offering as an incentive they disclose how little money you are putting towards principal."Remember 95% of your payments in your first year could be interest"Marketers are creative with numbers! This inspired me to look at the 40 year mortgage more creatively myself.With ...

Comfree Success Rate

Tuesday, June 24th, 2008

Alberta Real Estate Watch The new Comfree is here as described in the monthly report:Further assisting sellers with pricing, ComFree launched the “New ComFree” with a bang. Thursday June 5th ComFree played host to a day of fun-filled activities including special appearances from the Edmonton Esks cheerleaders, Edmonton Rush, Joe ...

Millwoods condo follow-up

Tuesday, June 24th, 2008

Alberta Real Estate Watch Anyone remember these condos? The ridiculous discounts? The 1 bedrooms normally range in price from $179,900 to $190,900. The 2 bedrooms range from $204,900 to $227,900....The developer, for these first 10 units only, is selling them at $150,000 for a 1 bedroom and $160,000 for ...

More on ridiculous discounts

Tuesday, June 24th, 2008

Alberta Real Estate Watch Some more on the ridiculous discounts offered back in February:The second building is located in Aldergrove, not far from West Edmonton Mall. It’s a terrific location, with walking trails on 2 sides of the building and with easy access to everything. Prices int his building normally ...