Archives for February 2021

Calgary Real Estate Market Heating up?

The Calgary Real Estate market for buyers, sellers, investors is certainly a strange place over the last couple months. Everyone thought that after all the deferrals were done there would be a flood of foreclosures. Are they still waiting in the wings? Could be, but the low inventory situation that we find Calgary in right now has created an atypical surge in sales.

Low interest rates and much higher than average savings in Canadian bank accounts due to pandemic lock downs have allowed many families to inadvertently save up a down payment! Now, not all sectors of real estate in Calgary are moving fast:

  1. Luxury homes are slow moving over 1.5M in most areas of Calgary – some areas of aspen have seen motivated sellers drop prices 100’s of thousands of dollars to get the homes sold
  2. Condo market for apartment style homes in the inner city has been a slow mover, with inventory here being far higher than demand.
  3. Older un-renovated homes under 1000sft which are normally sold to developers are slow to move because spec-home developers are being very cautious on their purchase prices for lots.

Single family and semi-detached homes are moving quick, also demand for half-duplexes with no condo fees has skyrocketed due in part for the buyer now seeing the possibility of adding a basement suite for having that extra revenue. I had a younger client recently tell me that that type of property would be great for his first home so that he could rent out the 2 suites when he decides to upgrade – what a smart young man! I wish I was thinking in those terms when I was younger, things would be very different now if that were the case.

We are seeing CS properties before I can get clients in to view them, properties going 50K over list price, and even private deals which we specialize in normally not having as much competition…we got outbid by a neighbor for a private seller of a lot I was working on selling to a builder contact of ours! Ouch – losing out on a private deal in a great location is not normal operating mechanics for Calgary real estate.

The stats won’t support this opinion, but I am seeing a balanced market at the moment in Calgary and if we don’t see a volume of inventory hit the market by spring when it gets warm and everyone wants to move….then we could have a seller’s market on our hands.

What do you do in a sellers market VS a buyers market? Good question – contact us and we are thrilled to help advise/answer questions on what could be the best strategy for your goals.

To your success,

Tim Reid

-Respect the hustle

Top 3 Reasons to flip a house in Calgary

WOW 2021 is off to a roaring start with investor inquiries! We have a list of over 12 buyers most of them cash buyers in the Calgary Market looking for houses to buy, fix and sell. Flipping houses is not generally the go-to strategy for investors in a buyers market – everyone can flip a house when you have prices going in the up trend which is certainly not the case in Calgary.

There are pockets of the city that are just flying off the shelf that need work, how I feel there are a few reasons for this: first being the low interest rates and people that just want a larger place than a rental and they can now get into home ownership due to the lower interest rates.

Secondly, I think there are a lot of investors that are looking for deals due to the economic downturn in Alberta that has gripped the larger centers for a number of years now. Lastly, investors are looking to diversify out of an over heated stock market (and some have made a killing here in 2020 but savvy investors know what goes up must come down).

The top 3 reasons to invest in a flip project in Calgary right now are:

  1. Low interest rates – helps the buyers buy as well as the investors, also you can pull equity out of existing properties at a low cost of borrowing in this lending environment which increases your margins.
  2. Deferred maintenance properties will have a hard time getting a good price on the current market, we are advising all of our listing owners to do basic repairs/updates to get a quick sale for more money – however not all owners have the budget for that work these days and will be forced to sell for less.
  3. Buyer pool has been expanded by the lowered rate of the stress test, and work from home shifts have caused many buyers to want to have a proper space for the home office, and have a larger space for their family in general than a rental closer to the core due to remote work options.

There are many analysts that predict that over 30% of workers will remain working from home after the pandemic is over, now I know the co-working space owners will not want to hear/believe that but I would tend to agree with them. Also, live work animations to properties will be a large value add for properties to create real differentiated value.

Contact us for a discovery call to learn more about animation options for animation to property to drastically increase its value as a rental/owner user buyers alike.

To your success,

Tim Reid