Calgary Real Estate predictions?

[Tron_fdc]

Small tidbit from yahoo

http://ca.news.finance.yahoo.com/s/1...se-august.html

[Mike Oxlong]

Originally Posted by chemgear

Interesting, I wonder if more banks will start to push this:

http://www.theglobeandmail.com/globe...rticle1752474/

Unlike traditional mortgages, the collateral mortgages are difficult to transfer from one lender to another, because they must be paid in full to be cancelled. That means if someone wants to change lenders, they need to renegotiate from scratch.

(or requalify?)

These are causing a bit of an uproar in the Mortgage broker world today. A lot of brokers do not like the product at all and are saying they would never put a client in that because it is so hard to get out.

Unfortunately TD is going to trap a lot of clients into those products.
It's a shame what banks are able to get away with sometimes.

[chemgear]

To be fair, http://www.canadianmortgagetrends.com had the story much sooner (nearly a week earlier in fact.)

[Skyceman]

Calgary MLS home sales decline but prices rise from last year. Third highest drop in country


Read more: http://www.calgaryherald.com/busines...#ixzz12S2r4qW4

[chemgear]

Mike Fotiou has a nice summary on his blog for the October stats so far:

http://calgaryrealestatereview.com/

Total October sales looking good to be down 30-40% from last year again. The 1-14th period has been the worst in close to a decade. Prices continue to slowly ease, inventory is still kicking at the 6 month supply range. Interestingly, median prices are getting close to the $375,000 low during the 2008-2009 panic/dip.

[Winsor_Pilates]

Funny video on selling a house. NSFW
http://www.xtranormal.com/watch/7214397/?ref=nf

not sure how to embed xtranormal

[chemgear]

Riverfront is having a default sale:

http://www.riverfrontpointe.com/calg...iverfront.html

A nice weekend post on findcalgary and how "it's always different in <insert city name here>"

http://calgaryrealestatereview.com/2...state-summary/

[Winsor_Pilates]

So is that a default as in buyers that defaulted, or as in a developer who always defaults?

[chemgear]

Originally Posted by Winsor_Pilates

So is that a default as in buyers that defaulted, or as in a developer who always defaults?

Hehe - Customer/Buyer:

http://findcalgary.files.wordpress.c...riverfront.gif

[Cowboy89]

Originally Posted by chemgear

Hehe - Customer/Buyer:

http://findcalgary.files.wordpress.c...riverfront.gif

I always laugh at car dealerships and condo sellers who have promotions where there are clearly defined days for the sale as if they wouldn't sell you unsold inventory at the sale price afterwards. Clearly if buyers are defaulting and units go unsold by the 26th, I'm sure you could walk in there and get that price on the 27th.

[Winsor_Pilates]

Originally Posted by Cowboy89

I always laugh at car dealerships and condo sellers who have promotions where there are clearly defined days for the sale as if they wouldn't sell you unsold inventory at the sale price afterwards. Clearly if buyers are defaulting and units go unsold by the 26th, I'm sure you could walk in there and get that price on the 27th.

Often with condos there's a quota the developer needs to reach for minimum sales, so there's sometimes legitimacy to the sales.
If they sell enough to secure their financing, the rest of the sales can come at a slower pace and the developer doesn't mind. They don't see the money until closing time anyway.

[AMG_G]

This maybe a far shot...Does anyone know why there is major construction work being done at the Solarium condos (108 15 AV SE Victoria Park, Calgary, AB)? Kind of curious at to why they ripped out all the exterior stucco and insulation on the west side of the building. The building was built in 2002 so who is paying for this repair?

[SportsJunky]

Originally Posted by AMG_G

This maybe a far shot...Does anyone know why there is major construction work being done at the Solarium condos (108 15 AV SE Victoria Park, Calgary, AB)? Kind of curious at to why they ripped out all the exterior stucco and insulation on the west side of the building. The building was built in 2002 so who is paying for this repair?

Not sure who is paying for it. The initial install failed as there was no air barrier or drainage plane behind the EIFS. Moisture got in to the walls so badly that the steel studs have had to be replaced in many cases. We have been working on it for sometime now with the Demo contractor and the EIFS applicator. The work on the west side is only the beginning of a very large undertaking.

[AMG_G]

Originally Posted by SportsJunky

Not sure who is paying for it. The initial install failed as there was no air barrier or drainage plane behind the EIFS. Moisture got in to the walls so badly that the steel studs have had to be replaced in many cases. We have been working on it for sometime now with the Demo contractor and the EIFS applicator. The work on the west side is only the beginning of a very large undertaking.

There are a few units for sale in that building. I hope their reserve fund is huge but for an 8 year old building how big can it really be. I smell special assessment.

[Winsor_Pilates]

Anybody go to University City?
I hear they have big lines right now and have sold a lot. I wouldn't be surprised if they sell out this weekend.

[cmyden]

October was interesting, the median price for single family homes looked like they were going to take a serious beating (down $20k at one point) but then rallied near the end of the month to end up only down $1.5k.

Same goes for sales, the last week of October had the most sales since June.

From Mike Fotiou's end of the month stats...

http://www.findcalgary.ca/listings?p...=127&pageId=19





The median for condos dropped about $10k.




But yet...

Anybody go to University City?
I hear they have big lines right now and have sold a lot. I wouldn't be surprised if they sell out this weekend.

Apparently it was really busy and they sold the majority of the units (130). Mike has a post on it today on his blog.

cM

[chemgear]

I'm not sure I would call DOM an indicator either way to be honest. Being able to reset the number seems to take it out as any reliable/useful indicator of anything - perhaps I am wrong? I fall back on the months of supply which seems to be holding very nicely at 5-6.5; with that ratio, I'm guessing there will be downward pressure month after month until that falls back into the CREA definition of a balanced market of 1.5-3. It's been essentially 5 months straight that way so far already.

That University project looks interesting. I guess not surprising really given the suite prices versus what is available in the resale market (price wise.)

[Travis Munroe]

I am very excited for the university project. Going to be some awesome investment properties!
Things are slower for myself right now and on 6 active listings we maybe get 5-6 showings total each week. The good news is I am still selling a place every 2-3 weeks. Basically showings are way down compared to normal but it is the true buyers shopping. Clients dont have to show the home 30 times for a offer!!!

[Winsor_Pilates]

Originally Posted by Realtor 1

I am very excited for the university project. Going to be some awesome investment properties!

Did you go there? Are they cooperating with Realtors? I've heard mixed reports

I've got mixed feelings on it now. I thought it was better when I first heard about it, but the thought of a building housed completely by University renters scares me.
Great for parties, but for a quality home?
I also wonder what rental rate forecasts are like there, and if homes will cash flow.
I'd also be interested in details on their construction financing with such low deposits.

I don't want to comment on it too much, as it's kind of bad form when representing other developments, but it's certainly been interesting to watch and my buyers are talking about it a lot. I had a lot of people come in to Drake this weekend after being there first and it helped me get a few sales.

One things for sure, they've done a great job of marketing it and generating crazy line ups in a fairly slow market.

[Winsor_Pilates]

Originally Posted by chemgear

I'm not sure I would call DOM an indicator either way to be honest. Being able to reset the number seems to take it out as any reliable/useful indicator of anything - perhaps I am wrong?

IMO, It's only useful when looking at properties that have been on for 60+days, or in markets where they average is far below that.
60 days is the min for a listing, so if Avg DOM is low like 10-20, you can tell things are moving fast.