We have more supply than demand

According the the Calgary Real Estate Board stats, the Vulcan region had seven sales report in July, while there were sixteen new listings. We have over 13 months of supply on the market for residential properties. Average days on market is 100. What does this mean? As a buyer, you have little pressure to purchase right away. You can take your time in making a decision to purchase. As a seller, you have lots of competition. What is going to make a buyer choose your place over the others? Price and curb appeal are two big factors. Taking a quote from the August 1, 2018 article from CREB link, "the Bank of Canada raised rates again in July. Rising costs, combined with a slow recovery, are weighing on the demand for resale homes in the city. At the same time supply remains high and is resulting in an oversupplied market.” That is based on what is happening in the Calgary market. We can apply some of this to our local market. This spring we had a lower than average inventory of properties on the market, and now we have above average. Good for buyers, while a challenge for sellers.

Coffee Shop Talk Pricing

I had a person catch me at the post offer the other day, letting me know his thoughts on the local real estate market. He explained to me how properties in Vulcan are being priced like properties in Calgary and that this is hurting our local real estate market. In particular, there is a lot that he would like to purchase, but it is priced like a lot in Calgary. I asked him what he is basing his information on, what is he comparing his pricing to. He could not give me details but insisted that the lot was based on Calgary prices and not Vulcan prices. I told him that the lot across the street from the one he was referencing sold for $38,000, and it is half the size of the lot that he wanted. We based that on the price that we listed at. Plus, the lot this "over priced" lot has a garage on it. He let me know that because of pricing to the Calgary market, house sales in Vulcan are suffering because of it, and that is why houses in Vulcan are not selling. We left it at that, and wished each other a good day. This is not unfamiliar territory for a real estate agent. Many of life's problems, including the local real estate market, as discussed and many of these are "resolved" if only people would listen to those who speak the loudest at the table. "Prices are too high." "What is that stupid, greedy, money hungry, real estate agent thinking?" Oh, except when those people are trying to sell their property. It can make a whole lot of difference if you are on the selling side of the fence, or the buying side. Then you can have a stupid, lazy real estate agent who has not shown your "exceptional" property that is priced higher than the others because you have done so much work to it, and it is way better than the one down the street that just sold for much less than what you have yours listed for. If you really want to know what is going on in your local market, check with your local real estate professional and discuss it. Check with your local mortgage broker. Check with your local real estate board. Get the facts, and you will have the tools to make a more informed decision for whatever you are doing. Period.

Inventory is Picking Up

Remember not that long ago when I said that I thought the warm weather would bring an increase in activity? Well, not to brag, but I may actually be right this time. Our overall residential market inventory has increased. We have seen some places that were taken off the market last fall, come back on. There are some potential sellers who have been patiently waiting for the right time to sell, and they seem to be ready to make a move. We have also seen a couple of places that had offers on them last fall, finally sell this spring, for a price which was close to the same as they were offered last fall. I guess hind site is 20/20. I guess sometimes sellers have to figure out whether it is worth it to sit on a property for a while, paying the utilities and taxes, putting your life on hold, in exchange for the hope of a few more thousand dollars.

State of Emergency for Vulcan County

There is a state of emergency in place for Vulcan County. For more information, please visit the Vulcan County website at: www.vulcancounty.ab.ca. There has been overland flooding due to high amounts of snow melt and some roads have washout areas.

Another Slow Start for the Market This Year

According to the Alberta Land Titles Registry, there was one single-family residential sale in January, and one in February. March saw things pick up a little bit. The longer than average "winter", with above average snowfall and colder temperatures, has had a negative effect on the real estate market throughout much of Alberta, a market which already was experiencing a weakening trend. However, with the blips of warmer weather we saw an increase in activity. So, I am hoping that once this crazy weather smartens up we will see a busier marketplace. People are wanting to get outside, make some changes, stretch their legs and do something! The weather has set many projects back a bit, including farming, so when it does dry up enough to move, you can bet that people will be hitting the ground running.

Compliance Certificate - What is it?

The following is from the Vulcan Newsletter, Volume 83, February 2018: What is a Compliance Certificate? A compliance certificate is ofter required by lending agencies and/or lawyers in the sale of property and/or mortgage approval in order to protect their clients' investments. Standard real estate purchase contracts often require the vendor to obtain a Compliance Certificate. A Compliance Certificate is a document from the Town issued by the Development Officer that confirms the buildings as provided on a RPR (Real Property Report) are in compliance with the Town's Land Use Bylaw. When review RPR's for compliance, the Development Officer looks for such things as: Required setbacks from property lines; Encroachments that require agreements; If required development permits/building permits are in place. Follow-up may be required to obtain permits or approvals for buildings or structures identified as non-compliant.

2017 Summary of Real Estate Market for Vulcan and Vulcan County

The following information was gathered by the writer. Used sales information from both the Calgary Real Estate Board statistics, as well as from the Alberta Land Titles Registry. This way, sales information also includes properties that were sold through real estate boards other than the Calgary Real Estate Board, as well as private sales. In 2017, there were a total of 52 residential sales (this includes attached and semi-detached homes, and does not include vacant lot sales), resulting in an average sales price of $215,904. Compare those number to the previous year, 2016, where there were 34 residential sales, with an average price of $200,014. Average days on the market for a property to sell in 2017 was 155, according the the Calgary Real Estate Board, while in 2016, the average days on market for a property to sell was 131. The months of July and September saw the largest amount of inventory of properties listed for sale. August and October were the months with the highest number of sales for the 2017 year. In 2017, the price range that had the most residential sales was in the $150,000 to $250,000 mark. Inventory numbers dropped off in December, as several sellers took their properties off the market for the holiday season, and one would guess that these properties will be coming back on the market in the spring.