Category: Redline Blog


Calgary Real Estate Market Update October 2017

How was the Calgary Real Estate Market in October?

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We saw an inventory drop in October and coupled with sales holding steady with September numbers, the Calgary real estate market is becoming more and more stable.

The Calgary real estate market drives in cycles and we are now approaching the slow time of the year when sales begin to drop.

With sales dropping slightly and a strong indication of inventory dropping, we should see a fairly normal market for Calgary moving through the winter months.

We feel that the winter months are one of the best times to sell your home as you will see a lot of your neighbours pull their homes off the market during the Christmas and holiday season. If there is still demand for your area, you will no longer be 1 of 10 listings, you might be 1 of 3 or 4.

What is the Latest Mortgage Rule Change and How Does it Affect Me?

I think Darren spells it out best in this video so watch the video below as he gets into what the changes are and if you will be affected by them.


Calgary’s Hottest Real Estate Communities

The three hottest communities in Calgary were:

Ogden, Cliff Bungalow and Acadia.

“All of them had quite a few properties hit the market but almost doubled down on the properties sold.”

There are other communities that have low inventory so if you are looking in any of the communities listed below, you should be ready to jump on that home that pops up on the market that matches your criteria:

North Haven, Christie Park, Upper North Haven, Maple Ridge and Charleswood

Full Video is below with clickable indexed timelines

INDEX (clickable):

0:00:37 October Expectations

0:01:34 Inventory Shift

0:02:08 Inventory vs Sales

0:02:58 the Feds

0:05:32 Headlines vs Reality

0:06:27 Potential of the “Rule Change Rush”

0:07:34 Advice for Sellers

0:09:17 Advice for Buyers

0:10:57 Summary

0:11:19 Calgary’s Hottest Real Estate Markets

0:12:40 Calgary’s Hottest Communities

0:14:43 Wrap Up


September 2017 Canada Real Estate Market Report

How’s the Market in September 2017?

This may be a surprise to some but the Canada real estate market begins to slow starting in October. In fact, it is a trend we see at this time every year.

This is nothing to be concerned about, sales drop off a little bit at the same time each year and typically, inventory drops as well.

The Good News about the Canada market

The good news story about 2017, from Q1 right through to Q3 has been an overall increase in sales activity from 2016. With the exception of the apartment sector, currently there is 8 months worth of supply on the market.

Which means there is an abundance of product currently listed.

Of course we know what the law of supply and demand dictates.

To learn more about the market, watch the video below and if you like, skip ahead to the points that interest you the most:

0:00:00 September Market Update

0:01:40 High Level Overview

0:03:00 2017 Overview

0:04:07 Steady Market

0:05:12 Year Over Year Price Comparison

0:06:38 Trends to Watch

0:08:20 Sellers

0:10:28 Buyers

0:11:36 Apartments

0:12:23 Hottest Canada Markets

0:13:42 Wrap Up


Canada Real Estate Market Update: July 2017

Watch the full market update here

July’s Numbers are in: The Canada Real Estate Market Update

The bad news: July’s numbers have slumped from this same time last year.

The Good news: Our sales are up overall, year over year, from 2016.

The market seems to have balanced itself out, which is a good thing. If you have been in Canada for a decade or more, you know the peaks and valleys the real estate market has been going through.

Balance is good.

There are certain segments of the market that are performing well, it seems that we have seen double digit gains in sales in the $600,000 to $1.5M price brackets.

Where we are seeing a slow down in sales numbers is in the $600,000 and below price brackets.

Why is that? This is entry level and move up price points, these segments almost always perform better than the higher end.

Why the Slowdown in Sales in the Middle

In one of our last articles, we talked about interest rates increasing, well that has come to fruition.

The BoC has increased their overnight rates by a quarter point or .25%.

As a result, all of the major lenders followed suit and increased their rates as well.

They have also tightened up the lending rules, one change has to do with people putting down 20% or more.

With 20% down, previous to August 1st 2017, you would have been able to qualify at the rate that the lender was offering you, let’s say that was 2.89%.

Now, the lenders require you to qualify at the Bank of Canada’s benchmark rate of 4.84%.

This is almost a 2% difference and drastically decreases your ability to purchase a home. (If you’d like more information on the effects of this, I suggest you reach out to one of our mortgage brokers at MortgageLine)

Both of these items can contribute to a slowdown in the market, particularly in those segments.

Higher interest rates will affect the entry level market where the rule change will affect the move up market.

Performance of Home Types

The apartment sector continues to get hammered as there is a massive oversupply in the market.

Non condo attached townhouse infills are outperforming their counterparts as there continues to be highs and lows in the attached condo market.

The bright shining star in all of this is that the detached market continues to be strong and stable.

So for sellers how does this matter to you?

Knowing that inventory is higher now, and sales activity has started its slow down for the year, it means a few things as buyers will have more time to make the selection because of less urgency in the market.

So if I was selling my home I would ensure all the little things are taken care of, don’t leave things undone, or incomplete.

Also – curb appeal is huge. With more on the market, and with the majority of places online using the front image of the home, make sure you are doing the little things to make your house stand out.

To watch the July Market report click play on the video below.


Is the City of Canada Getting it Right with the Green Line?

Canada’s Green Line: Does the City Have the Right Plan?

A few days ago the City of Canada told us that the alignment they are proposing for the green line will go from Crescent Heights down to Shepard.

This is a dramatic reduction in scope from the most recent alignment which essentially ran right from the north end of the city down through to the South Canada Health campus in Seton.

The new alignment will most greatly benefit inner city Canada, with communities such as Crescent Heights & Inglewood being the clear winners.

Who Loses in this New Plan?

The losers, unfortunately are the families that live in the suburbs at either end of town.  

They are being short changed due to planning decisions that have increased the cost and scope of the project to the point that the same proposed budget of $4.5B is chewed up with only 14 stations instead of 28, with the biggest contributor to this no doubt being the $1.95B tunnel to go under the bow river.

This allows the new line to only reach one station on the other side, Crescent heights, which isn’t exactly far from the downtown core to begin with.  

Now, $1.95B would make sense to me if they were spending it to connect to a major piece of infrastructure, like a hospital, university or the location of a new arena, but this alignment does none of that.

What Would be a Good Alternative?

An alternative here would have been for the City to pick one end of town, north or south, and take the line all the way, to allow inner city and suburban demographics alike to share in this enormous project.

An even better option is to stick with the first plan and go all the way with both and spend more money on it.  I can think of few public initiatives more deserving of capital than rail transit.

Instead, we have an alignment that caters to the inner city of both yet leaves the suburbs in no man’s land, with neither of the districts to the far north or south getting an LRT.

Let’s hope we see a few more kicks at the can with this before shovels hit the ground.


The Guaranteed Sale Tactic

What is the Proctor Guaranteed Sale Program?

The Real Estate Council of Alberta recently published an article on what the guaranteed sale program is and whether consumers should be wary.

Their position is that ‘wary might not be the best word’.

Here is some history on this sales tactic:

The Guaranteed Sale Program was first developed by Canadian real estate agent and now real estate coach, Craig Proctor. See the video from Proctor about his program.

It was developed, not to help the consumer get away from carrying two mortgages if they buy before they sell, but to pad the pocket of the agent offering his sales tactic.

Not sure what I mean? Here are some details from the video below that we have posted below regarding the program:

  • The purchase price of the home will be 5% below market value
  • Commissions and all other costs associated with the sale will come off of the net value (In Canada, that is a lot more than just 5%, it’s closer to 9%)
  • You have to buy your next home through the listing agent and it has to be one of their listings
  • According to the program it will only work for a sale price below the area’s average (In Canada that would be about $500,000 and below)

Towards the end of the video he lists the benefits to the real estate agent, one of which being ‘double ending a ton of your own listings’.

This means the agent would be representing both the buyer and the seller in the same transaction.

After looking at this program, the only person that stands to benefit seems to be the real estate agent. This is a sales tactic designed to get you, the real estate consumer, to pick up the phone and call that sales person to inquire about the program and about selling your home.

Other Advice From RECA

Now RECA does mention to read the details of the program and to make sure that you understand those details before you sign any listing agreement.

They’ve informed you that a real estate brokerage has to be the one to offer the tactic and not the real estate agent.

They’ve also informed you that the brokerage wants to minimize their risks associated with buying your home.

Advice From us at Redline Real Estate

Definitely read the details of this style of agreement and the fine print, do not miss anything as it pertains to the sale of your home.

If you can afford to sell your property for up to 10% less than what you have it listed for, then go ahead and follow through with that style of program.

In a market that sees most homes sell for between 2-3% off of the asking price, as advisors we would not be doing our job if we didn’t tell you how bad of a deal that would be for you financially.

Check out this article to learn more on this tactic.

Here’s the Proctor Guaranteed Sales Tactic Video I Mention Above

*happily edited from the original version so as to be in compliance with our regulator the Real Estate Council of Alberta


Canada Market Stats for March 2017

What Happened in the Canada Real Estate Market in March?

Some really positive news in the market for March in Canada.

Here are some of the highlights but make sure you watch the video below to get in 2 minutes or less!

  • Sales were up 20% from this same time in 2016
  • Sales in March were up 42% month over month and a big improvement from February’s numbers
  • Inventory jumped 13.5% from February
  • Inventory levels were down 16% from March of 2016 keeping in line with a balanced market

Canada’s Detached Housing Market

If you have a single family detached home, we have some very good news for you:

  • Overall months of supply is 1.97
  • All price points for detached homes are seeing improvements in sales numbers as well as slight improvements in prices
  • The entry to luxury and early luxury markets of $800,000 – $1.25M saw 50% of its total sales in March alone
  • The West side of the city is seeing the highest appreciation so far this year with an increase in prices of 2.5%

The Hottest ‘Hoods in the City

Here are the hottest neighbourhoods in the city, do you live in one of them??

  • Cougar Ridge and West Springs in the $500,000 – $600,000 market
  • Chinatown had a whopping 200% of its new listings sell in March
  • Upper Mount Royal had 167% of its new listings sell, and over half of the its sales for the year in March
  • Eagle Ridge saw 200% of its new listings sell in March, and 100% of the total sales for the year
  • Two communities are seeing extremely low inventory right now, with 0.3 months of supply for Riverbend & Southview.

Want more information on the Canada real estate market? Watch the video below