Rain and other scheduled events...

Well this rain that we are getting is a nice breath of fresh air! I know it may not be what the campers wanted, but for the farmers and those who are battling fires across the province, this is heaven sent. Plus, it is supposed to be nice for the weekend. Just in time for the Show n' Shine tomorrow in Vulcan. Plus, there will be the tractor pull and demolition derby! And, next weekend, is the Vul-Con Convention!

Crawling into the summer months

As I review the sales for last month within the Town of Vulcan, I have noted that there were two sales priced over the $200,000 mark. Everything else sold below $180,000. We are still behind last year's numbers for sales, and I know that July has been a slower month too. I am working with a few buyers now, but there is no urgency to make a purchase. There is not much for competition among the buyers in the area. I have some good listings that I am disappointed that they are still on the market, but these are properties priced over $200,000. There is nothing wrong with these properties. We just do not have the demand for them at this point in time. It is frustrating for me, and many times more frustrating for my clients and other sellers, I am sure. I have two open houses this weekend. Hopefully, we will generate some good quality interest from these!

To Panic or Not to Panic? I guess that depends...

There is do doubt that the residential resale market in Vulcan is slow compared to last year. I have pointed this out to a few people - in January 2014 there were 6 residential sales within the Town of Vulcan. From January 1st to April 30th of this year, we have had 10. Once we have the stats for May, I think the stats will be a bit more on the positive side. However, for those people looking to sell their homes, it can be frustrating. I lost a listing this past week to a client that I have been dealing with for a few years now. I do not blame this client, as I have had the property listed off and on for a couple of years, but the interest is just not there. So, that client listed with another brokerage, reduced the list price by $100, and is hoping for the best. I hope for the best for that client too. Nice property, just not the interest right now for that type of buyer. One the other hand, however, over the past six months or so, the commercial market in Vulcan has seen some very positive changes. One business bought a building, has renovated it, and moved it. When they left their location, another business renovated and moved it. The local furniture store who built at a new location, now has a tenant in their old location, and that business seems to be doing quite well. A couple of other businesses have moved around, and those that have, are improving their new locations. Commercially, there is plenty of activity in town. There are still some vacant buildings in town, but there does not seem to be as many as in the past. Plus, businesses are spending the money to improve their properties. This means more money being spent locally. Does this mean more local jobs? One would assume so, but I do not have those statistics. I think that it is going to be an interesting next year or two. Not listening to the doom and gloom on the TV, or reading it in the big city newspapers, we seem to be doing quite well. I am not ready to panic yet. In fact, I am feeling a bit optimistic....but don't tell anyone yet.

Sales numbers are down so far in 2015

Residential sales in the Town of Vulcan are down in 2015 compared to this time last year. For example, in January 2014, there were 6 sales recorded on the Alberta Land Titles Registry. This year there were 2 sales recorded. There were no residential sales recorded for February 2015. March, however, has already had a couple of sales close, and will have a few more closing at the end of the month.

Vulcan Real Estate Market for 2015

The price of oil has dropped significantly, as we have all heard about on the news. Some experts say that the Calgary real estate market is going to take a huge hit, people are panicking, and there is a flood of listings on the market now. Other "experts" say that there will be a drop in the average price, but the market has been doing so well for so long, it is due - so really the doom and gloom is exaggerated. Well, we have seen an increase in listings in the Calgary market, but, really, that is there. What about here in Vulcan? I was at a real estate conference in Banff at the end of January, and I spoke with many real estate agents from across the province, and across the country. I could go on and on about the different markets, but for this blog, I will stick close to the two major markets that surround Vulcan - Calgary and Lethbridge. Speaking with a commercial real estate agent from Calgary, I told him that I always see his signs, whether I am coming into Calgary from the east or the south. So, I said, things must be going okay for you? He told me that during the past month, he has had more deals collapse due to the price of oil. He said that it was a good thing that he saved his money through the good times because he is expecting tough times ahead. Meanwhile, I sat down and chatted with agents from Lethbridge. Lethbridge is more agricultural based so the drop in the price of a barrel of oil has not really hurt them. In fact, their market is doing quite well. So what does this mean for Vulcan? Does it mean that if you live on the north side of town that you may be hurting, but if you live on the south side of town, you will be fine? I don't really think so. Here is what has been going on so far in 2015 - I started off the year writing listings for residential properties, and I have been showing properties to potential buyers properties that are listed under the $125,000 mark. Yes, I have had some potential buyers who are no longer looking because they are from the city and they are going to just sit tight for now. I have some people from the city who own recreational property and are dropping their list price because they are worried about a recession. What do I think is going to happen? Well, all I know is that I am busy helping clients buy and sell properties and until things slow down, I am going to enjoy being busy.

Why purchase during the cold winter months?

We have hit the first official day of winter. Some forecasters say that it is going to be a warm winter, while others say that it is going to be a long cold winter. I guess one of them will be right, or at least pretty close. So why would ANYONE consider purchasing a property during the winter? Or purchase while the market is so soft, period. Only crazy people with more money than brains, right? Well, let's look at what history shows us. More millionaires were created during the great depression than in any other period in history. I am not saying that you have to be millionaire to buy now. What I am saying is, those people bought while everyone else was holding back, or had no money at all. The people that came out on top bucked the trends and went ahead with investing, in such things as real estate, while there prices were low and there was very little competition, if any. Then, when the markets eventually turned around, these people who had made investments at such a low cost, saw their stock rise! Buy low, sell high - is that now what we have all heard about? Something to ponder. I have experienced this during a couple of cycles in the local market. Once, I timed it right and did very well. The second time, well, I got cocky and missed out. So why would anyone buy a property this time of year? Wide range of selection. Very little competition. Low prices. Or, you can wait until everyone else is looking and compete with them...and maybe kick yourself later for procrastinating!

Things to Avoid Before You Buy A Home

Okay, so you have been to the bank or mortgage lender and you have been pre-approved for a mortgage. Here is an excerpt from realtor.com about what NOT TO DO when looking for your next home: While most of your hard work of building a good credit profile and amassing savings for a down payment and closing costs is behind you, it’s important to remember that your lender will recheck your credit just prior to your settlement date and will also verify a few details such as your place of employment to make sure nothing has changed. That’s the key phrase—“nothing has changed.” You must take care to maintain the same credit profile that led to your loan approval until your mortgage paperwork is completely signed. Avoid the following actions to ensure a smooth settlement: 1. Don’t apply for new credit: It may seem natural to apply for a credit card at a home improvement store or a furniture store when you are about to become a homeowner, but applying for credit can lower your credit score. Not only will you lose a few points because of a credit inquiry, but if you are approved for new credit, a lender may worry that you will spend up to your new credit limit and then default on your loan. 2. Don’t close any credit accounts: You may be feeling that this is a good time to get your financial house in order by closing unused credit accounts or transferring your debt to a new credit card with a zero-interest balance transfer offer. While that’s a smart move financially, it’s a bad one for your credit score because you lose points when you have a higher usage of debt compared to your limit on one credit card and to your overall credit availability. Wait until your closing is complete before you make these changes. 3. Don’t move your money around without a paper trail: Your lender will need the most recent bank statements before you go to settlement, so if you have any unusual deposits you will need to provide complete documentation of where the money came from. If possible, it’s best to move the cash you will need for your home purchase into one account before you apply for a mortgage. If not, make sure you have complete and accurate records readily available. 4. Don’t increase your debts: In addition to your credit score, your debt-to-income ratio is extremely important to a loan approval. If you take on more debt you could be in danger of going above the maximum acceptable debt-to-income ratio. 5. Don’t skip a payment or make a late payment: One of the most important elements of your credit score is your history of on-time, in-full payments, so don’t get so caught up in your move that you forget to keep up with paying basic bills. 6. Don’t buy a car: You may be feeling that a new car would be a nice addition to the driveway of your new home. Resist that feeling. Even if you can easily afford a new car, the depletion of your savings or the addition of a new car loan could derail your mortgage application. Wait until after you have moved to switch to a new car. 7. Don’t change jobs if you can help it: While a job change could mean a raise or a path to a better future, it could also delay your settlement. Your lender needs to verify employment and will need paystubs to prove your new income before your loan can go to settlement. 8. Don’t spend your savings: You’ll need cash on hand at the settlement for your down payment and closing costs and your lender may even verify your cash reserves one more time, so make sure the funds stay in place. In other words, no matter how hard it is at this exciting time, it’s better to do nothing than to do anything.