Sunday, January 30, 2011
Monday, January 24, 2011
Lethbridge Real Estate 2010 Market Report
The media had a fun time glamorizing the doom and gloom in the real estate market this year. Shall we say they are genius for predicting a slide in sales and average home prices? I think not. Our market has not grown cold, rather, it has merely returned to a state of "normal".
In March of 2010, the Canada Mortgage and Housing Corporation forecasted a slight increase in sales for the year from 2168 in 2009 to 2400 in the year 2010. I'm not entirely sure where they received their data from, but the MLS Statistical Reports for the Lethbridge and District Association of Realtors shows an actual number of 2354 total home sales in 2009 down to 2078 total home sales in 2010, or a 12% decrease. (I can only assume CMHC doesn't include vacant lots in their statistics, which may explain the discrepancy). Regardless, they were a bit off. Why??
Well, first of all, they do not have a crystal ball either, but my guess is that although at that time they were aware of the tighter lending practices that were about to take effect in April of 2010, they may have underestimated the impact it would have on the ability for many homeowners to qualify for a mortgage.
They were also a bit off on their prediction of a 4% increase in the Average MLS Price in 2010. The average price did rise ever so slightly from $258,156 in 2009 to $259,064 (these numbers are across the board, and include many of the smaller communities where more modest values skew city stats) but in the City of Lethbridge itself, there was also a slight rise in average home price from $274,863 to $275,795 in 2010 (also representing about a 1% increase).
CHMC also missed the mark on vacancy rates (which are an item of interest to anyone who owns or is looking to purchase a single family home for revenue purposes). They predicted a decrease from 3.8% in October of 2009 to 2.5% in 2010 when actual figures show a slight increase in vacancy rates to 4.1% for the Lethbridge area.
So what can we take from some of these numbers that might help us all to make wise real estate decisions in 2011??
1. Real estate should never be thought of as a "get rich quick" investment, as it erroneously has been in the past few years. I often hear people lament that they wish they had purchased prior to this last "boom". Well, real estate is cyclical and there will be another boom. It's just a matter of purchasing and HOLDING that investment until it's the right time to sell. Interest rates are still VERY attractive, with a 5 year rate at 3.69% and a 10 year rate of just 5.10% at the time of writing.
2. Now more than ever, you need an experienced Realtor on your side if you are selling your home. Pricing is very key and you will want someone who can give you an ACCURATE range in value, and who will be honest with you about what it will take to get your home sold and your estimated time on the market.
3. How you can make smart decisions in this market will depend on many things including the type of property you own or wish to purchase, whether you are upsizing, downsizing, relocating or purchasing for investment. There is not one set strategy for each person. It is crucial to find a Realtor who will take the time to understand your goals and to help you make the decisions that are best for you, even if that means staying right where you are.
Now, we've seen that even CMHC had a tough time predicting what the market would do, but just for fun, here are my predicitions for 2011:
1. I think CMHC was perhaps just a year ahead of themselves and a little overzealous with a 4% predicted increase in home values across the board for 2011, so I will predict a more modest increase of 2% over the course of the year followed by a larger increase in 2012.
2. As the Canadian economy recovers slowly and consumer confidence returns to the point where the Bank of Canada can gradually increase interest rates, I would expect we will see a decrease in vacancy rates. My number out of the hat for October 2011 is 3.6%.
3. Based on the fact that there is still some "levelling" to do with regards to average home prices within the City of Lethbridge, I would predict a very slight decrease in average home values within city limits with a more noticeable increase in the smaller communities surrounding Lethbridge which will effectively boost the average home price across the board.
If you have any questions throughout the year about the real estate market in Lethbridge, I am always happy to sit down with you to have a candid discussion. Please don't hesitate to call or email!!
***For a full market report including prices and the number of homes sold in each area of the city and across the board, please visit www.ldar.ca and click on Market Statistics
Friday, January 30, 2009
Moving to Lethbridge, Alberta, Canada
I first posted this article in May of 2008 and since then, our city has grown and a few of the other statistics have changed. Here is an updated version!
If you are considering moving to Lethbridge, Alberta here is some information that may help you make your decision.
Overview
As of January 2009, our city's population is just under 84,000 and growing steadily. The city is divided into three main areas, namely South Lethbridge, North Lethbridge and West Lethbridge. Lethbridge is situated roughly an hour and a half drive south of Calgary, AB which is home to the Calgary International Airport (YYC), and roughly an hour and a half north of the Montana, US border.
Weather
There is a saying about the weather in Lethbridge, AB... if you don't like it, wait an hour and it will change! Although our weather patterns are sometimes unpredictable, our winters are generally milder thanks to frequent "chinooks" or the warm west winds that provide reprieve from our cold snaps.
Employment
Service and trade industries generate more than 50 per cent of all the occupations in Lethbridge. The majority of occupations are diversified across the industries of manufacturing, public sector services, construction, transportation, finance/insurance/real estate and food processing.
Lethbridge employers draw workers from a large commuting area consisting of rural areas and smaller towns and villages within a 100 kilometer radius. The extended workforce population is estimated to be 86,000.
Our current unemployment rate as of January 2009 sits at 3.1% (slightly below the provincial average of 4.1% and well below the national rate of 6.6%)and there are many convenient ways to search for jobs in Lethbridge.
Schools and Post-Secondary Education
There are an abundance of choices when it comes to education and schools in Lethbridge. The Lethbridge School System consists of the Lethbridge School District No. 51 and the Holy Spirit Roman Catholic Separate Regional Division No. 4. It is also home to both the University of Lethbridge and the Lethbridge College. The U of L boasts flexible undergraduate programs in Arts and Science, Education, Fine Arts, Health Sciences and Management and the Lethbridge College also offers a wide array of both credit and non-credit programs and courses.
Lifestyle
There are countless ways to enjoy your free time in Lethbridge. For the sports enthusiasts, we are home to the Lethbridge Hurricanes Hockey Club, the Lethbridge Bulls Baseball Club, and the Lethbridge Soccer Centre to name a few. If the arts are for you, you can check out the New West Theatre productions or the Lethbridge Symphony. Or you can just take a stroll though one of our many parks and recreation areas. There's lots to do when you are seeking entertainment in Lethbridge.
If you've already made your decision to move, give me a call and I can help you find the perfect home. Or check us out at Lethbridge Real Estate for answers to all your real estate questions and helpful moving tips and checklists!
A Buyer's Real Estate Agent in Alberta - Do They Exist??
If you were to ask this question to a real estate professional, they would say "Of course they exist!" But the same question posed to a member of the general public might get a much different response, likely one clouded with uncertainty. Why is it that this little tidbit of information is common knowledge to real estate professionals, yet many home purchasers out there seem baffled by the notion of "Buyer Agency"? Let's unravel this mystery by first sorting through a few common human emotions:
1. Fear of Looking Stupid:
It is human nature to hide the fact that we don't know something that we feel we should. For example, the first time I purchased a vehicle, I really didn't want the salesman to know that I knew nothing about cars! Why? I thought that would make me look stupid and give him an advantage.
2. Fear of Getting Ripped Off:
When I made the above statement, it became apparent that I felt it was a me vs. him thing in the battle of buying a car. I didn't feel that he was working in my best interest and I felt I needed to keep my guard up.
3. Fear of Contracts
Signing a contract is a big deal. Unless you have a law degree or have signed a lot of contracts, it is likely that your heart will pound and you might get a bit sweaty. After you are done, your feet might get cold, you will doubt your decision and you may feel regret. If you don't feel these emotions, even just a little bit, you may not be human. Buying a home is a big deal... you have the right to feel some emotion.
Now that we have addressed some of these emotions, let's get back to why the general public seems to know very little about Buyer Agency? The answer is simple: FEAR. I have always felt that the best way to combat fear is to arm yourself with a whole bunch of knowledge.
Here are 5 things you need to know about Buyer Agency in Alberta.
1. As a buyer, you can choose any REALTOR® you like to represent you in a real estate transaction. You can interview them, ask them a million questions and find one that you feel comfortable with. If you are not sure if they have answered all your questions, keep asking.
2. When you find one you like, you can enter into an Exclusive Buyer Brokerage Agreement. This contract will ensure that the agent you choose is representing your best interests and that they will put your interests above their own at all times. If you choose to work without a Buyer Agency contract, the agent you choose still owes you fiduciary duties that should be explained to you. However, the duties are much more clear and extensive if you work with a Buyer Brokerage Agreement. If you don't understand something in the contract, just ask.
3. You don't pay directly for the services of a Buyer's Agent unless they specify in writing that you are responsible for payment (and this will be covered in section 5 of the Buyer Brokerage Agreement). Nine times out of ten, the seller of the home you purchase will designate a portion of the commissions they are paying to be paid to the Buyer's Agent. If you are unsure about how your agent gets paid, just ask them.
4. If you have hired a Buyer's Agent and they show you one of their own listings and you like it, with informed consent, you will enter into what is called Transaction Brokerage. In this scenario your agent is loyal to and will represent both you, the Buyer, and the Seller. If you choose not to enter into Transaction Brokerage, your agent's loyalty will revert to whomever they first entered into contract with and the other party will be given the opportunity to seek other representation (perhaps from another agent in the company or one from a different company).If you need more clarification on Transaction Brokerage, just ask.
5. If you walk into a home (on Open House for example) and have not chosen a Buyer's Agent to represent you, keep in mind that you are NOT being represented by anyone. The agent in that home is under contract with the seller and has been hired to protect their best interests... not yours! If you are unsure of whom they are representing, just ask.
When it comes down to it, the only thing that is required to remove this shroud of mystery is communication. You must be prepared to ask a lot of questions and you need to find a REALTOR® who is able to answer (or find answers) to all your questions. When you hire a Buyer's Agent, it is not you against them... it is a smart person working with another smart and knowledgeable person to achieve the goal of purchasing a home!
Visit me for more information on Lethbridge Real Estate.
Relocating to Lethbridge, Alberta, Canada
Relocation is one of the niches of real estate that I find most challenging... and most rewarding. But finding the perfect home for a family relocating to Lethbridge, Alberta from elsewhere in the province, across the country or even across the pond, isn't the hard part. There a
The hard part is that relocation is personal. Families making a big move are not only looking for a great house, they are also looking for a great place to call home and they are trusting my judgment (many times, implicitly) to help them make their decisions.
In order to give the best service possible, I really need to get to know a family (usually from a distance). I need to get a good feel for their lifestyle, their interests, their background, their careers, their kids, their pets... the list goes on.
So what criteria is most important?
Are schools most important? Will they enroll their kids in public or private school? Do they want to be within walking distance? Would they prefer to be in a smaller community where class sizes are typically smaller? Or are they childless and would prefer not to back onto a noisy school ground?
Is lifestyle most important? Are they frequent walkers who would appreciate a location near one of our many parks or lakes in Lethbridge? Do they want to be near shopping? Do they want to be active in a community where they can volunteer their time, get to know the neighbors and be accepted? Or would they rather keep to themselves and enjoy their privacy?
Are pets most important? If they are looking at condos, will Fido be welcomed? Is there a fence in place or will they need to have one in place before they move in? Or are they petless and would be horrified to find out that their neighbors dog barks 12 hours a day?
Is career most important? Do they want to be in an area where they can easily network and build new business contacts? Is commute time important? Do they work from home and would like a bright sunny area to call the home office?
The truth is, it's all important! Although there must be concessions in some areas and no home is perfect, these are all things to consider when helping a family relocate.
I pride myself on being not only knowledgeable about the real estate market in Lethbridge, but also about the community and what opportunities Lethbridge has to offer. I consider it part of my job.
If a client wants specific information, I will seek it out and provide it.
I am their eyes and ears until they move here, and I take that very seriously. I have gone so far as to help clients seek out employment, find temporary housing if the dates they give up their old house and move into their new home don't mesh, provide a list of babysitters if they have small children, restaurant guides... everything short of inviting them for dinner. I am usually a clients first impression of this city and could possibly have an influence on how their enjoy their life here. That's a big job and I don't take it lightly.
Visit us for more information on Lethbridge Real Estate or email me at mylethbridgerealty@shaw.ca to request a Relocation Package.
Buying Real Estate in Lethbridge, Alberta - Able, Ready and .... Waiting??
Are you considering buying a home in Lethbridge, Alberta? Are you looking for more space, a better location, an investment property? Are you pre-approved for a mortgage and ready to make your move? If you have answered all these with a yes... my next question is, "Why are you still waiting?"
The answer is likely "fear". Fear that you will overpay, fear that interest rates have not hit their lowest, fear that the timing is not perfect. Well, if your decision to wait is rooted in fear, I have something that can help you. No, it's not that almighty crystal ball (although that would make things much easier!) That something that I have is knowledge.
I have knowledge of the current inventory. I am out there seeing it every day and evaluating it with critical eyes. I am showing homes to great people who are seeing the opportunity to buy right now and we are finding the best buys and we are writing up offers.
I have knowledge of the lending industry right now. I married a great man who is also a mortgage specialist in Lethbridge and our pillow talk usually consists of interest rates, what it takes to get mortgage approval these days and a strong belief that now is a good time to buy.
I have knowledge of contracts. I know how to protect you from paying more than current market value for a home. Did you know that you can have your own Buyer's Agent when you purchase a home? When you sign an Exclusive Buyer Brokerage Contract, your REALTOR® works for you and you alone and represents your interests only. Some of the practices that I follow when working with buyers include performing a reverse market analysis on any property you are interested in purchasing and helping you understand why a certified appraisal can be a great negotiating tool when buying a home.
I have knowledge of investment properties in Lethbridge. As the 
I have knowledge of the range of emotions that a buyer goes through when purchasing real estate. It's a big investment and if you aren't a seasoned pro, you are likely experiencing a lot of different emotions. I am here to walk you through those emotions and make sure you are comfortable with your purchase.
I am ready to work for you and I would love the opportunity to put my knowledge to work for you. It's my job to study real estate every day and I take it very seriously. And believe me when I say, now is a good time to buy!
Visit me for more information on Lethbridge Real Estate
