April 2018 Newsletter
Where Oh Where is Spring??
Have you noticed Spring coming yet? The last few weeks, all I have seen is snow and more snow. Then we have the weather forecasters telling us there is more snow coming and lower temperatures? Normally at this time of year we should be enjoying 8°C when we are actually at -11°C most mornings.
Weather and real estate have a lot in common - they are both hard to predict. When government interferes in Real Estate markets by artificially adding rules to the purchase of a home, it causes a disruption that affects our local market rather than the area it is supposed to slow down. Vancouver and Toronto real estate should have their own local rules for buyers and then the rest of the country can operate on a normal level. Sadly as usual, this is not the case.
Detached benchmark prices eased by 0.25% over the previous quarter however, the decline was not consistent in all areas. Prices were stable in both the south and south east districts while prices in the city centre improved over the previous quarter. Despite the recent easing of new listings, the apartment condominium sector continues to struggle with excess supply in the resale, new home and rental market and this is impacting prices. They averaged $256,567 in the first quarter and 3% below this time last year. Overall, monthly apartment prices are over 14% below the highs recorded in 2014.
This may seem the wrong time to buy real estate, but as Warren Buffett says when prices are low and they have the potential to rise in the future (the new Alberta economy), you want to get in while it is still affordable (watch Vancouver and Toronto). You may remember in a previous newsletter that I stated the average price when I became a realtor was $89,000 and today it is $482,000. In fact, what is happening now is prices are flat. Sales are down a lot because people are waiting to see what will happen. The best time to get in is NOW. Sales on MLS are down 24% - that is a lot!
I would like to thank you for all the referrals you have sent me over the past 12 months. It has really been of great benefit for my business. As I say to some of my friends, “someone has to keep the country going, it may as well be me”. Ron Southern, the past head of ATCO, said in a sales meeting I attended years ago, “without sales people selling something to people, there would be no economy”. Maybe we are helping to push the economy along or maybe we could just go along with Snow White and the Seven Dwarfs, “off to work I go”.
If you know of anyone who is thinking of buying or selling, I would appreciate you passing my name onto them. Also my webpage at www.docwatson.ca has daily updates on house prices in the Calgary market. There is also a directory of services and professionals to help you in all your home needs.
“Doc” Watson, Realtor
Sutton Group Canwest
Text: (403) 804-8007
Office: (403) 208-7788
Celebrating over 30 years of Real Estate Service in the Calgary area