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I have sold a property at 120 Tuscany Ravine TERRACE NW in Calgary

I have sold a property at 120 Tuscany Ravine TERRACE NW in Calgary on Oct 24, 2023. See details here

PRIME LOCATION AND EXPANSIVE GREEN SPACE BACKDROP | WALKOUT ILLEGAL SUITE | MAIN FLOOR DEN - Welcome to the heart of Tuscany, where beauty meets serenity. Nestled in the coveted Northwest Community of Tuscany, a gem of a home awaits your discovery. This home not only offers 4 bedrooms, 3.5 bathrooms, and a walkout basement, it is truly set apart with its backdrop – an expansive green space with no neighbours to the rear. As you enter the home you are welcome to an exceptional amount of sunlight and function. With a great-sized den, half bath, and garage access off the main entrance, the rest of the main floor is completely open to make your own with truly open-concept space. Upstairs offers 2 exceptionally sized bedrooms, a main bath, and a massive primary bedroom and ensuite to the backdrop of the green space to over exceptional views and privacy. The basement is complete with a full bedroom, kitchen, bathroom and open living area. The walkout offers another floor of welcoming sunlight. Perfectly situated in a prime location in one of the premier communities in NW Calgary, this home is something you will have to see. Book your private viewing today!

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New property listed in Tuscany, Calgary

I have listed a new property at 120 Tuscany Ravine TERRACE NW in Calgary. See details here

PRIME LOCATION AND EXPANSIVE GREEN SPACE BACKDROP | WALKOUT ILLEGAL SUITE | MAIN FLOOR DEN - Welcome to the heart of Tuscany, where beauty meets serenity. Nestled in the coveted Northwest Community of Tuscany, a gem of a home awaits your discovery. This home not only offers 4 bedrooms, 3.5 bathrooms, and a walkout basement, it is truly set apart with its backdrop – an expansive green space with no neighbours to the rear. As you enter the home you are welcome to an exceptional amount of sunlight and function. With a great-sized den, half bath, and garage access off the main entrance, the rest of the main floor is completely open to make your own with truly open-concept space. Upstairs offers 2 exceptionally sized bedrooms, a main bath, and a massive primary bedroom and ensuite to the backdrop of the green space to over exceptional views and privacy. The basement is complete with a full bedroom, kitchen, bathroom and open living area. The walkout offers another floor of welcoming sunlight. Perfectly situated in a prime location in one of the premier communities in NW Calgary, this home is something you will have to see. Book your private viewing today!

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New property listed in Tuscany, Calgary

I have listed a new property at 120 Tuscany Ravine TERRACE NW in Calgary. See details here

BEAUTIFUL WALKOUT TO THE RAVINE - Welcome to Tuscany, one of the premier communities in northwest Calgary, where serenity meets luxury. We're thrilled to introduce you to a stunning two-story home that's truly a hidden gem. With 4 bedrooms, 3.5 bathrooms, an illegal suite, and a walkout into the ravine, this home is the epitome of comfort and elegance. Step inside, and you'll discover a thoughtfully designed floorplan that perfectly balances your home and work life. The main floor boasts a spacious den, ideal for your home office needs, and an open-concept living area adorned with large windows framing the mesmerizing ravine views.But the magic doesn't end there! The basement is a sunlit haven, complete with another bedroom, a bathroom, a full kitchen, and a walkout to a lush green space. It's perfect for extended family stays. This home is ready and waiting for a family like yours to make cherished memories. Tuscany is renowned for its fantastic amenities, parks, and schools, making it the ideal place to call home. Don't miss this opportunity to own a piece of Tuscany's tranquility. Contact us today to schedule your private viewing and explore the beauty of this remarkable property.

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Record Sales! But Is That The True Story Of The Calgary Market?

My update is a bit late, and I’m truly sorry for the delay. 

But after all the market headlines like the one above from our Calgary Real Estate Board and all the media outlets celebrating the record of sales in our city, I think it is a bit out there to completely gloss over what is really happening in our market amidst the higher rates, inventory levels, and overall sentiment we as realtors are seeing our market currently.

It’s one thing to see the numbers, it’s completely another thing to see what is happening with buyers and sellers in our market currently. 

So even though this update is late, I hope you still find some great value and possibly a different insight into what is happening in our market.

THE STATS

Those of you who have been using this update as a resource know that I have been tracking the absorption rates since 2019. The graph above will show you the true picture of how our real estate market has been doing comparing the market last year to this year as well as previous years.

And there are a few takeaways I’d like to point out before we start going through the numbers.

  1. Seasonality is real and has been evident in each year since I have been keeping track of the market

  2. In 2023, we are seeing elevated numbers, but this is the second drop in activity we have seen in the market this year.

In the month of September, we generally see a drop in activity. Although not as significant in previous years as 2023, we see a slight adjustment for people who are settling into their routines, back to work and school, and their focus is not on buying and selling a home.

This year, this adjustment was exaggerated with the significant increase in the 5-year bond market which leads the 2-year fixed mortgage interest rate.

In September, we saw the absorption rate drop by 9% to 69%. A balanced market in real estate is usually between 40 and 60%.

This decline is attributed to a drop, yes a drop in sales, of 10% from the previous month. While this drop in sales had occurred, we had an increase in inventory of listings increase by 1%.

Year over year, our inventory has declined by 355 while our sales have increased by 22%.

When we look at the median prices, we see an interesting trend over the last quarter.

Month over month, pricing across the segments had an average change of an increase of 1%. Townhomes showed a decline in prices while duplexes showed the highest gain of 2%.

We are higher from this same month last year by an average of 18% and for the year higher by an average across all segments of 11%

In the next section, we will break down these numbers and look at what the real sentiment has been in our market over the last month.

THE BREAKDOWN

If we revisit the absorption rate analysis we have a decrease in demand and an increase in supply. My Intro to Economics class at the UofC two decades ago tells me that that will drive prices to be suppressed.

Which is what we have been seeing in our median prices above.

When the articles that have been released blast the headline of record sales for the month, it’s a bit misleading because it gives the impression that our market is pushing forward without any issues.

Higher rates lately have caused a lot of slowdowns in the market.

Personally, I have had buyers lose their purchasing power to a point where they cannot buy anymore because their qualifying rate is way too high for them to purchase a home that they want.  

I’ve also had sellers second guess their sales in today’s market because they are worried about the carrying cost of the next home with the higher rates they are now exposed to.

Not to mention, there are those who are worried about the renewal cost of their home down the road who have added to the inventory levels just out of fear of not making their mortgage payments at renewal because they are in variable-rate mortgages.

The prices in Calgary have stayed somewhat consistent over the last quarter of the year across almost all segments. Which, if the headlines were true, would not be the case and prices should be skyrocketing.

Our market is also now seeing many listings have price adjustments down to adjust for the higher cost of rates that buyers are subjected to.

If a buyer can only afford so much in a market, they are forced to wait until that property becomes available. A seller, not wanting to sell, but in need to sell, will have to adjust their pricing to allow for that buyer to have the ability to buy.

If drastic changes like a lower BOC announcement or an increase in federal programs to allow for significantly more development occur, our market could see a shift. But until then, we are very close to our new balance of market.

The current prices, amount of inventory and number of buyers are close to our new balance of a market.

THANK YOU

I hope you found this update useful. I try and value where I can and hopefully this slightly different perspective can give you another lens to see our market.

If you are in the market to buy, or even just have questions about the process or mortgages, I’d love to connect. Please feel free to give me a call or send me an email at aly@calgaryareahomes.ca

And if you are considering to sell, let me work to give you a market report about your home to start. Its quick and no trouble for me at all. I actually tell clients I enjoy doing the evaluations because it helps me get better with my pricing. Please feel free to shoot me a note or fill in the form with your property details by clicking here.

Thanks again and I hope you have a wonderful Thanksgiving with your families. Take care,

Aly

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I have sold a property at 205 1408 17 STREET SE in Calgary

I have sold a property at 205 1408 17 STREET SE in Calgary on Oct 3, 2023. See details here

Price Adjusted Sept 16.... Make the move to Inglewood ! Welcome to Pearce Gardens at 1408-17th Street SE. Unit 205 is a large 1 Bedroom + Den floor plan with a SOUTH facing patio overlooking the courtyard. No trains coming by your patio on this side!! Condo has newer laminate flooring, Black appliances, insuite Laundry, and front Den with Storage Cabinet for extra storage. Have a car ? Titled Parking Stall is included, along with a massive private storage locker in front of your stall ( even has a light inside ). Pearce Gardens, has gym and party room for your use. Great location in Inglewood, walk into the shoppes on 9th Ave, or easy access to get onto Deerfoot or Blackfoot trail. Get started today!

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New property listed in Varsity, Calgary

I have listed a new property at 1301 4001A 49 STREET NW in Calgary. See details here

PRIME LOCATION NEAR MARKET MALL AND THE UNIVERSITY | 2 BEDROOMS | OVER 800 SQFT - Welcome to Varsity Villas and this well-kept 2-bedroom unit. On the top floor of this already quiet building, you will enjoy peace of mind with very quiet neighbours. With in-unit laundry, exceptional in-unit storage, and an assigned parking stall, this unit is perfect for a first-time owner or investor. Minutes away from Market Mall and Professional Centre, the University of Calgary, and just one 13-minute bus ride to Brentwood Station, the area alone is a great reason to check out this unit. Book your private viewing today!

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😴 Don’t Sleep Through These Price Declines!

When we look at the Calgary market lately, the last thing anyone would expect are price declines. But, funny enough, we have had a few segments start to show some cracks in their pricing due to the higher interest rates and the summer months. 

In this breakdown we look at these particular segments and how price declines can occur in a market that saw sales increase 3% while new listings drop 6%. 

Let’s get to the details!

The Stats

The Absorption Rate - All Calgary Residential Segments

In the month of August, we saw new listings drop by 6% to 3,454 while the number of sales increase by 3% to 2,736. This activity drove our absorption rate back up to 79%. 

This means that nearly 8 of 10 homes that are listing on the market today across all segments are selling. 

Compared to this same month last year, the number of active listings has dropped 48% while the number sales has increased by 22%

This 5% increase in the absorption rate month over month is not uncommon as we have seen in previous years where a tiny increase usually happens around August. If this trend continues, we should see another drop in activity in September before an increase in the later months of the year. 

This is not new information. Our market has been hot. But where the interesting story lies is how this hot market has been sustaining and how the different segments are reacting to the changes in our market conditions and seasonality. 

The Median Price By Segment - Calgary

These segments present a picture of the market still increasing as the months progress, but as you can see in the chart above, two big segments of our market have seen price declines month over month. 

The single-family detached and attached (semi-detached) segments both saw decreases in their prices to bring them to levels closer to March of this year. 

While these two segments have shown a little crack in their prices, townhomes and apartments continue to keep the market as a whole strong. 

While the market has shown some mixed signals so far, we will breakdown the rationale behind the drop in some segments as well as the slight increase in market in our breakdown below. 

The Breakdown

As we have seen this past month, detached and semi-detached homes have seen drops in their pricing while townhomes and apartments have seen a increase. This is understandable once we start to look at a few different factors contributing to these increases.

Rent Increases

In Calgary, rents for 2-bedroom units have ballooned to over 2,300/month, which is only $200 less than owning a 2-bedroom condo apartment with 5% down and a condo fee of $600/month. 

As more people to move to Calgary, rental vacancies are low leaving more and more people to purchasing an apartment (or a townhome if they have a family). This increase in demand has activated our condo market to become more in demand.

Interest Rates and Affordability

Lest we forget the overarching reason for our real estate market being in such a crazy phase. Higher interest rates continue to eat into the purchasing power of potential home owners leading them to afford less and continue to look at more affordable housing options for their home. 

As the rates continue to stay high, we will continue to see this demand of more affordable housing continue until which time that even these segments will be priced too higher for a buyer. 

But we cannot forget that the BOC cannot keep rates high for long. And when a small decline in the rate occurs, this will also lead to more demand as buyer’s purchasing power increases and their appetite to take advantage of the lower rate market will increase. 

This might change the way the pricing increases go. A lower interest rate will increase affordability for a buyer leading them to start looking the other way on the spectrum towards detached and semi-detached homes. 

The market will continue to run at this pace until something significant comes along to change it. This can either come, and most probably from, the BOC next rate announcement in September or a significant change in policy or production speeds for new housing development (which is not likely). 

Forecast

September will be a little bit of drop in the market if seasonality gives us any clue. People are getting back into their routines, school has started, and the focus is no longer into getting the home, but starting to live it in with the family. This might be a great time for a buyer to take advantage of the lack of competition. 

Once that is complete, we should continue to see increases in the demand again as those that would like to move before the holidays will start to be come active. 

My favourite time to list a home is actually December because of lack of sellers during that time. Buyers will continue to look, but most sellers don’t want to inconvenience their holidays. 

If you are currently in the market, the apartment and townhomes market might not be where you want to be looking right now. I would start to focus in on the detached and semi-detached homes to see if you can find some savings. 

And for sellers, if you have a property in the townhome or apartment segments, this when you will get your maximum return. Year over year this same month apartments are up 22%. Definitely a great return on your investment. 

Thank You

As always, thank you for time and checking out this update and market breakdown. I hope you found it useful. If you’d like to set some time aside with me to chat about your questions or needs in the market, please feel free to click here to access my calendar directly. 

I have some great resources if you are looking to buy, sell, or invest. Set up a time with me above and lets talk about how I can help you achieve your real estate goals. 

Thanks - Aly

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I have sold a property at 606 733 14 AVENUE SW in Calgary

I have sold a property at 606 733 14 AVENUE SW in Calgary. See details here

MINUTES FROM 17 AVE | ALL UTILITIES IN CONDO FEE | SOUTH FACING UNIT - Welcome to Centro 733 and this exceptionally finishes 1-bedroom unit in the heart of Beltline. 3 blocks away from all that 17 Ave has to offer, this unit boasts great size, an exceptional and open living and dining room, and a great-sized bedroom to fit a bed and additional furniture. The bathroom is finished well. The unit also includes a dedicated laundry and storage room with a European washer/dryer combo. The Beltline is one of the most sought out communities inner city. With some of the best restaurants, and shops. Book your private viewing today!

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I have sold a property at 2131 2131 Edenwold HEIGHTS NW in Calgary

I have sold a property at 2131 2131 Edenwold HEIGHTS NW in Calgary. See details here

TOP FLOOR | OVER 900 SQFT | OVER AND ABOVE AMENITIES - Welcome home to Edgecliffe Estates and an exceptionally sized 2-bedroom, 2-bathroom unit in one of the gems of Northwest Calgary, Edgemont. Entering this top-floor unit, you are welcomed to a completely open-concept kitchen, dining and living area. The two bedrooms are remarkable in size with plenty of space for a bed and additional furniture. The unit is complete with two full bathrooms, ensuite laundry, and a stall right outside the building. The complex amenities are unparalleled in NW Calgary with a full gym, indoor pool, and party room. Edgemont is not only located in the heart of NW Calgary, but offers some of the best school designations, easy access to both Shaganappi and Jean-Laurie and not to mention the amazing backyard of Nose Hill Park. Book your private viewing today and don't let this one slip away.

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New property listed in Beltline, Calgary

I have listed a new property at 606 733 14 AVENUE SW in Calgary. See details here

MINUTES FROM 17 AVE | ALL UTILITIES IN CONDO FEE | SOUTH FACING UNIT - Welcome to Centro 733 and this exceptionally finishes 1-bedroom unit in the heart of Beltline. 3 blocks away from all that 17 Ave has to offer, this unit boasts great size, an exceptional and open living and dining room, and a great-sized bedroom to fit a bed and additional furniture. The bathroom is finished well. The unit also includes a dedicated laundry and storage room with a European washer/dryer combo. The Beltline is one of the most sought out communities inner city. With some of the best restaurants, and shops. Book your private viewing today!

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New property listed in Beltline, Calgary

I have listed a new property at 606 733 14 AVENUE SW. See details here

HEART OF BELTLINE | FINISHED WELL | TONS OF NATURAL LIGHT - Welcome home to the Beltline and this exceptionally finished 1-bedroom unit. Complete with hardwood floors, stone countertops, stainless steel appliances, and European washer/dryer combo. The layout is perfect for entertaining with a completely open living and dining area. The bedroom is a wonderful size with ample size to fit a bed of any size. Book your private viewing today and don't let this opportunity to living the Beltine slip away. Condo Fees: $473.90/month

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New property listed in Edgemont, Calgary

I have listed a new property at 2131 2131 Edenwold HEIGHTS NW in Calgary. See details here

TOP FLOOR | OVER 900 SQFT | OVER AND ABOVE AMENITIES - Welcome home to Edgecliffe Estates and an exceptionally sized 2-bedroom, 2-bathroom unit in one of the gems of Northwest Calgary, Edgemont. Entering this top-floor unit, you are welcomed to a completely open-concept kitchen, dining and living area. The two bedrooms are remarkable in size with plenty of space for a bed and additional furniture. The unit is complete with two full bathrooms, ensuite laundry, and a stall right outside the building. The complex amenities are unparalleled in NW Calgary with a full gym, indoor pool, and party room. Edgemont is not only located in the heart of NW Calgary, but offers some of the best school designations, easy access to both Shaganappi and Jean-Laurie and not to mention the amazing backyard of Nose Hill Park. Book your private viewing today and don't let this one slip away.

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