Real Estate activity - year to date

Despite the cold, long winter, our office records show that we are 11 transactions ahead of this time last year. The overall inventory of houses available for sale within the Town of Vulcan is lower than last year. Through the Calgary Real Estate Board, we are at less than 20 houses currently for sale. Taking into account listings from other real estate boards, as well as private sales, the number is most likely closer to 30. There are a few higher end properties for sale, but the action on those is limited, mostly due to our local economy. We just do not have many higher paying jobs around for people to afford the higher priced homes. Basically, with supply and demand the way it is, one could assume that if you have a property priced under $200,000 that is in decent shape, you are going to see a lot more action than a higher end house. We have also seen a residential lot on Centre Street sell at $45,000, while there have been other residential lots sell close to the rodeo grounds under the $30,000 mark. We are seeing "move on" houses being set up, or in the process of being set up on these properties. There is one new house being built along the golf course on Whispering Drive. There is talk about some "spec" homes being built this year, but I have yet to see any evidence of that.

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Live long and prosper: A Vulcan County experience

Live long and prosper: A Vulcan County experience

Activity on the increase

The spring has seen an increase in activity in the local real estate market. The inventory has not picked up yet, but we are getting lots of people out looking at properties. Personally, I have seen many more people from Calgary coming down and checking out what they can buy here, and it is a fraction of what they could get in the city. Plus, for some people, the city is just getting too big for them and they want a less busy, less crowded lifestyle. It is kind of funny when you think about it - those of us who grew up with small town life thought that the city was the place to go to, to get jobs, to meet new friends, to party, where all of the action is. Then, when we get older, we figure out that the small town life is really what we were looking for all along...and we gravitate back to places like Vulcan.

Lower inventory

At one point this past week, there were only 23 residential properties with houses for sale through the MLS system, according the CREB stats. That is low. Mind you, traditionally, the level of inventory will pick up once spring rolls around. There is not much to choose from today for higher end type properties. Most of what is available is under the $200,000 mark. There are some buyers out looking around, but they do not have a whole lot to choose from. I am still hesitant to call it a Seller's market, because, on average, we have not seen a price increase. However, things could change if the inventory of properties does not pick up. This could lead to a very interesting spring in the Vulcan residential market.

Sales in the Town of Vulcan for 2013

I have compiled information from the Alberta Land Titles System to create a report for residential house sales in the Town of Vulcan for the year 2013. I alone gathered the information, and, being human, I may have made a mistake with some of the numbers. I do not guarantee the results. There, disclosure out of the way...here is what I found: Total house sales was 73 with an average sale price of $177,690. Fourty-five of those houses sold under the $200,000 mark. My "2 cents" says that we cut down on a lot of the lower end properties last year, and we are still seeing plenty of interest in the under $200,000 price tag.

"Well I am not going to GIVE it away..."

Markets go up and markets go down. It is a cycle. I hear this from economists, my university professors, and many other so called experts. It happens. So what do you do when you purchased an investment, such as real estate, when it was at its peak, and now the market is down...but you don't want to "give it away". That is certainly a question to ponder. Just because your neighbour sold a couple years ago for X amount of dollars, (and of course your place is much better than the neighbours) it does not mean that yours will sell for more than what he sold for, or even for an equivalent amount. The current market value is what a buyer will pay for a property today, without any outside interference (such as a bitter divorce, foreclosure, or something like that). Consider this example - say I purchased a cottage at the lake back in 2007 for the family. I paid $300,000 for a cottage, which was a heck of a deal at the time. Over the years, I have kept it up, fixed up a few things, and it looks just as good now, if not better, than when I purchased it. Now, though, my kids are past the stage of wanting to come to the lake with mom and dad, and we hardly ever go out there. Thus, I want to sell. I have heard that the market has been soft over the past couple of years, so I am prepared to not go overboard with the list price, but "I am not going to give it away either". What exactly does that mean??? Of course, I am not going to give it to the next buyer that comes out of the woodwork. "Giving" means you transfer possession without any compensation, at least in my opinion. (I am not sure what the dictionary says, and frankly, I am on too much of a roll to care) The question should be, "How much of a loss am I willing to absorb if I get a low offer?" Perhaps I have a mortgage to pay off, so I am limited that way, as to how much I can sell for. Or, perhaps I am just too pissed off to take that much of a loss on my investment. Welcome to the real world! If I am not ready to take a loss, then I should not be trying to sell my property in a soft market. However, if I really want to sell in a soft market (sales are slow, not much competition among buyers) I need to decide what my priorities are - am I ready to take a loss? how much? How long am I ready to sit on the property and pay taxes, utilities, and whatever other fees (condo?) that come along with it? Sitting on a property costs money too, unless say you have a vacant lot. No. wait. Property taxes. And then maybe there is the stress of maintaining a second property. How much is this all worth to me? To my family? Oh, and just because cousin Joe who lives at the other end of the country, who is in a different market, and different market cycle, is experiencing a hot marketplace and can't BELIEVE your place hasn't sold yet, doesn't necessarily mean that he had better luck, a better real estate agent, or better knowledge of the market. If he knows the market, he knows it cycles, and that just because the market is hot there, much like the weather, does not mean that it is hot here. Oh, how the experts come out from nowhere and can tell you what you have done wrong, what you should do, and "Boy, it that was me, I sure would have done things differently." Just smile and nod, and walk away. When you want to sell, check out the local market. Check with a LOCAL agent, who knows the market where your property is at. You will get all sorts of advice from everyone, but LISTEN to the local agents, local business owners, and consider what they have to say. Then, look at your own scenario. If the market is not in your favour, consider whether now is a good time to sell or not, and if you still want to sell, look carefully at your options. Of course you are not going to GIVE it away, but maybe, just maybe, the best thing to do would be to take your losses, and then be done with it. Finished. And then walk away and not worry about it anymore. I had that real life scenario happen to me. I listed my own place too high, letting it sit on the market with very little action, still paying taxes and utilities, and driving a couple hours each week to take care of a house I no longer lived in. I dropped the price. When I finally got an offer, I cringed. It was lower than what I wanted. However, it was an offer and it was in writing. I accepted it. Didn't like it, but I did. When the deal went through, my wallet was not as heavy as it should have been, but I was relieved that I no longer had to worry about this property anymore. I am not saying that my decision is right for everyone, but it worked for me. Just something to think about...