Listing Shortage May Be At Hand
– May 2009 sales exceed sales set in May 2008 –
Message from : Ted Zaharko . B Comm., F.R.I., C.M.R. Owner/Broker . Royal LePage Foothills
CALGARY – As we approach the mid-point of this economically challenging year, we are seeing some significant trend lines that many were not forecasting. I always believed the huge inventory of residential listings we had at the end of 2008 would continually go down, whereas many thought the numbers following the Christmas season would rebound. Perhaps the reason inventory decreased is that sellers began to realize there truly was a price adjustment in our marketplace and decided to wait out the economic downturn.
It would seem at this point we could be approaching a critical listing shortage in price ranges across the board. There has been less activity in the price point above $600,000 but even homes about $1 million have seen multiple offers this spring. There are still great properties sitting on the market and not getting showings as we would expect, but I believe that if this inventory situation continues, most sellers will see increased activity in all price ranges. Have we hit the bottom? Most likely. Are we in the recovery stage of the market? Perhaps not, but most certainly after almost two years of slide, the slide appears to have ended.
Feedback from our Foothills Realtors: The month of May showed some real signs of recovery – or at least we are seeing what appears to be the end of a prolonged downturn in our single family residential market in the Calgary and district area. For the first time in a long time there was a cross-over of sales where sales in the month of May 2009 exceeded sales in the month of May 2008. We anticipate this trend line to continue as it appears that monthly sales for the balance of the year should exceed 2008 figures.
About Royal LePage Foothills
Royal LePage Foothills is the largest independent Royal LePage Brokerage firm on the Prairies with 9 offices in Calgary and surrounding areas. Over the last two years Royal LePage Foothills has helped our clients buy and sell over 12,000 times – making ours one of Canada’s largest independent real estate companies in Western Canada.
Affordability, Job Security most important factors for 1st time buyers
-New government incentives help but market fundamentals more important, Canadians say –
Message from: Phil Soper . President & CEO . Royal LePage Real Estate Services Ltd.
TORONTO – Canadians who are considering purchasing their first home are primarily motivated by lower home prices and very low interest rates, but some require confidence in the economy and their employment prospects before they will enter the market, according to a report released today by Royal LePage Real Estate Services. Eighty-six per cent of potential first-time buyers say low interest rates make them more likely to purchase a home; 81 per cent cite lower housing prices as a motivating factor; while 76 per cent cite job security and 64 per cent say a stable economy is an important factor in their decision to buy.
Potential buyers were asked to rank their top incentives for purchasing a first property. While home prices and interest rates took the number one and two rankings, respectively, the third most popular incentive was the First-Time Home Buyers’ Tax Credit. The recently introduced Home Renovation Tax Credit for 2009 was cited by 42 per cent of potential first-time buyers as either ‘very likely’ or ‘somewhat likely’ to impact their purchasing decision.
“When first time buyers stepped out of the market in the fourth quarter of 2008, at the height of the global recession, their absence was profoundly felt. Without significant volumes of entry-level homes trading hands, the entire market limped through the winter months. First time buyers are back in force this spring, and with them the beginnings of a market recovery. While these consumers appreciate government incentives such as tax credits, greater RSP deduction limits and rebates on home renovations, it is markedly improved affordability that is proving to be the powerful drawing card,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.
” Across the country, potential first-time homebuyers agreed that affordability was their top consideration, however the survey also revealed differences amongst buyers in various regions of Canada. In provinces such as British Columbia where high housing prices have kept some buyers out of the market in recent years, 92 per cent of potential first-time buyers are now motivated by low interest rates and 96 per cent say lower home prices are likely to prompt them to buy.
In Atlantic Canada, where local economies have been resilient in the face of a worldwide recession and housing markets remain stable, 43 per cent of first-time buyers say they that job security is a factor in their decision to buy, while 84 per cent of buyers in British Columbia and Alberta said job security will influence them.
Atlantic Canadians were less motivated than other Canadians by declining interest rates, with only 72 per cent saying it will likely prompt a buying decision, compared to 86 per cent of Canadians overall. Buyers in Ontario and Quebec rated the Home Renovation Tax Credit as a bigger factor in their buying decision, compared to the Canadian average.
Mr. Soper continued, “The significant response differences from region to region show how closely the residential real estate market is tied to broader economic trends and consumer confidence. Buying your first home is a major life decision, and people are more likely to purchase a home if they feel comfortable about the state of the economy and confident that they will have a job to support their new mortgage obligation.”
About Royal LePage
Royal LePage is Canada’s leading provider of franchise services to residential real estate brokerages, with a network of over 14,000 agents and sales representatives in 600 locations across Canada. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, Realty World and La Capitale. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol “BRE.UN.”
Nevin Van Nest . Realtor . Royal LePage Foothills
Find Out More About The Calgary Real Estate Market On My Website: Calgary Real Estate Resource Centre