Calgary Real Estate Blog

Calgary Lenders Condo Document Review - Buyer Beware

2010-05-13T20:59:00Z

Recently, banks and finance companies have started to assert a condition of reviewing condo docs and financial statements of the condominium corporation on closing. This can, and has, caused serious problems for both buyers and sellers because financial institutions are not disclosing this condition to buyers when commitment papers are signed.

Buyers end up not being able to move into their new home because the bank is not willing to finance, and sellers are faced with the problem of not having their property sold, so oftentimes cannot go ahead with their plans.

In this case, buyers would usually lose their deposit and coiuld face litigation since they have removed conditions and committed to a firm sale at htis point. Also, if you are a seller and cannot close on your next property (purchase) because of this, you could potentially end up in court as well.

If you will be buying or selling a Calgary condominium, be sure that your realtor is aware of this potential problem and that he or she takes appropriate action to protect you.

New Mortgage Rules - CMHC- April 19, 2010

2010-03-22T21:31:00Z

Recently, we have had a lot of clients asking about the new mortgage rules coming into effect on April 19, 2010. Allan Jansen, a trusted Mortgage specialist that we often work with, provided us with some Q&A insight:

Q & A Government Regulatory Changes

New Qualifying Rate Rule Changes for both Conventional and Insured (CMHC/Genworth) Mortgages:

Do the new qualifying rate rules apply to both conventional and insured mortgages?

Yes. Similar to today, our policy will use the same qualifying rate rules for both conventional and insured mortgages

If I have a pre-approval prior to April 19^th will the old qualifying rate rules apply if I enter the complete application after April 19^th?

If you have a pre-approval which you have not converted to a real deal and you do not have a Purchase Agreement signed prior to April 19^th, then the new Post-April 19^th qualifying rules would apply.

However, if you have a signed Purchase Agreement prior to April 19^th then the old (pre-April 19^th) qualifying rate rules would apply. You will need to advise the underwriter that a Purchase Agreement was signed prior to April 19^th.

Will pre-approvals be valid if they expire past April 19^th?

No. If the pre-approval expires the new rules will apply.

If I complete a pre-approval before April 19^th, would my customer still be automatically approved if he/she finds a property after April 19^th or would the deal need to be re-adjudicated, using the new rules?

The deal will need to be adjudicated based on the new (Post-April 19^th) qualifying rate. The regulatory requirements stipulate that the customer must have a signed Purchase Agreement prior to the April 19^th date.

The regulations stipulate that a signed Purchase Agreement must be in place prior to April 19^th. Does that also mean that all conditions must be waived?

All conditions do not have to be waived, however if the purchase falls through because the purchaser couldn’t satisfy the conditions and the borrower purchased a different property then the new rules would apply if the new purchase was signed on/after April 19^th.

Under what scenarios will a customer lose their pre-April 19^th mortgage approval that would require them to be re-adjudicated under the new rules?

None. If the application has been approved prior to April 19^th, all changes will be re adjudicated based on the qualifying rules prior to April 19^th.

Will there be any exceptions for my deals that were approved prior to April 19^th 2010?

The Government’s announcement advised “Exceptions would be allowed after April 19^th where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010”. If your deal has been approved prior to April 19^th, the old qualifying rules will apply for that deal.

What will happen if my customer’s refinance application was approved prior to April 19^th but then the customer required additional funds?

The mortgage will be qualified based on the qualifying rate prior to April 19^th, even with the additional funds.

What will happen to a customer’s application, if it is approved on April 19th?

The new qualifying rate rules will be in effect as of April 19^th; as such your application will be approved based on the new guidelines.

Maximum Loan to Value when Refinancing an Owner Occupied Residential Property:

Is the 90% Loan to Value announced in the change for refinances only, or will it impact purchases?

The 90% Loan to Value is for refinances only, not purchases. Purchasers may still borrow up to 95% of the home value, while refinancing is restricted to withdrawing up to 90% of the home value.

Maximum Loan-to-Value for Non-Owner Occupied (Rental) Residential Properties:

How do these changes impact rental properties?

a minimum down payment of 20% is required for non-owner-occupied properties. This stipulation does not include our “2^nd home” policy at this time.

What happens if a customer has bought a condo (non-owner occupied) and he has approval in place under the old rules, does he now have to put down 20% under these new rules if it closes after April 19^th?

No, the customer does not need to increase their down payment as long as the customer has an approval and a signed Purchase Agreement in place prior to April 19^th. The property can close after April 19^th 2010.

New Calgary Home Search Feature!

2010-01-13T20:30:00Z

Yesterday afternoon we added a new listings search feature to our website. Some people aren't aware, but there can be a 24-48hr delay from when a Calgary home is entered into the MLX system, and when it actually makes it to the MLS.ca (realtor.ca) website.

We now have an option to sign up for our automatic listings search, where you receive listings the instant that they go on the market. No more waiting for MLS. Just fill out our form, and we will create a search for you, emailed directly to your inbox.

Want to see Calgary Homes For Sale the instant they hit the market? Fill out our form!

Carolyn B for Rob J

Confused by Feedback on your Calgary Home For Sale?

2010-01-05T21:09:00Z

If you have ever sold your home with Rob, or if you have it currently listed for sale, you know that we always contact Realtors who have shown your property for feedback. We try to find out how their clients felt about your home overall, as well as if they think it is priced fairly or not. Sometimes we receive conflicting feedback - for example, with one of our listings, we had one Realtor say they thought that it was overpriced, and another say it was priced well.

With conflicting reviews such as this, it is important to note that the showing Realtor is protecting the interest of their clients, and that their feedback may be an attempt to put the property in a more favourable position for their client. A Realtor representing a buyer who is interested in the property might say they thought it was overpriced, in hopes that the price is lower. A Realtor who might have a client with a competing listing might say that the property is priced "just right", in order for their listing to stay competitively priced.

Your best bet is to work with a Realtor who is knowledgeable and experienced, and can review comparable properties in the market, and tell you where you stand.

Rob Johnstone
Calgary Homes For Sale

With over 5400 Calgary Realtors associate with CREB, Rob goes above and beyond

2009-10-19T19:40:00Z

Here is a testimonial from a recently satisfied client of Rob's:

"Rob was very flexible and worked around our schedules. He never showed us anything above the price range we discussed with him, he was never pushy and he was very friendly"

Darcy B & Kim B.

What to do on a Rainy Calgary Day? Why not visit the new Mega-Mall?

2009-08-19T21:37:00Z

How about a short drive to Balzac to visit the new megamall that opened today: Crossiron Mills. This new mall is now the largest single-floor shopping centre in Alberta.

Many retailers new to Alberta can found. Some first-time retailers include: : Bass Pro Shops, BCBGMAXAZRIA (Outlet); Bed, Bath and Beyond; Browns Shoe Outlet; Calvin Klein Jeans (Outlet); Fossil Outlet; Jones New York Outlet; Lucky Brand (Outlet); Sixty Outlet; Naturalizer Outlet; Olsen Europe Outlet; Oakley Vault; PÜSCH Outlet; Quiksilver Outlet; Skechers Outlet; Tommy Bahama Outlet; Town Shoes Outlet; and Underground Outlet.

Also, many retailers have opened their largest store in Alberta at the mall. They include: Toys R Us; La Senza, H&M, The Children's Place, Tommy Hilfiger Outlet, Laura Outlet and Forever 21.

Construction of the entertainment wing began in the early summer of 2009, and is expected to open in the Summer of 2010. It will include include a theatre complex, bowling and restaurants.

A list of the shops:

Access

Aeropostale

Aldo

Aldo Accessories

American Eagle (Opening 2010)

Ann-Louise Jewellers

Ardene Outlet

Athlete's World

Banana Republic Factory Store

Bass Pro Shops Outdoor World (1)(2)

Bath & Body Works

BCBGMAXAZRIA

Bed, Bath and Beyond (1)

Bell

Below the Belt

Ben Moss Jewellers

Bentley Outlet

Bluenotes

Brooks Brothers (Opening 2010)

Browns Shoe Outlet (1)

Build-a-Bear Workshop

Calendar Club

Calvin Klein Jeans (Outlet) (1)

Capz

Carlton Cards

Carriere Studio

Claire's

Cleo

ClickHeat (Cart)

Cork Fine Wine, Liquor & Ale

Costa Blanca

Culture Craze (Kiosk)

Danier Factory Outlet

Dynamite

Ecco Shoes

Eccoci

Empire by Brar

Esprit

French Connection

FeetFirst

XXI Forever (2)

Fido (Kiosk)

Fossil (Outlet) (1)

Foot Locker

Fruits & Passion

GameStop

Gap Generation

Garage Clothing Co.

GEOX (1)

Glamour Secrets Beauty Superstore & Salon

GNC Value Nutrition Centre

Godiva Chocolatier (1)

GUESS Factory (1)

Gymboree

Hallmark

HCV Hardcore Watches (Cart)

H&M (2)

Hermit Crabs (Cart)

HMV

HomeSense

Indigo

International Clothiers Factory (Outlet)

International News

J. Michaels

JACOB

JCY House Boutique

Jersey City

Jones New York (1)

Just Dogs! Gourmet

Kixs Sneaker Boutique

Kiya Furnishings

Koodo (Kiosk)

La Senza (2)

La Vie en Rose Outlet

Lacoste

Laura Superstore (2)

Le Chateau

LensCrafters

Lift Kings Dream Garage

Lucky Brand (1)

Lush Fresh Handmade Cosmetics

Melanie Lyne

Mexx

Michael Hill Jewellers

Michael Kors Outlet (Opening 2010)

Motherhood Maternity

Murdawg Apparel Shop

Naturalizer

Nine West Shoe Studio

No Excuses Perfume Outlet

Oakley Vault (1)

Off the Wall Clothing

Oceana Clothing & Wigs (Cart)

Olsen Europe

Party @ Buck or Two

Payless Shoe Source

Peoples Jewellers

Please Mum

Premier Spa Boutique

Pro Hockey Life

PUSCH Outlet (1)

Purdy's Chocolates

Quicksilver Outlet (1)

Quilts Etc.

Regal Ridge (Cart)

Revolve Furnishings

Ricki's

Rogers Plus

Roots 73 Outlet

RW & CO

Running Room

Santa & Me (Coming October)

Shoe Warehouse

Sixty Outlet

Skechers Outlet (1)

Shutterbug

Smart Set

Soft-Moc Shoe Rack

Sport Chek

Spring Outlet

Squeezy Love (Cart)

Stitch It

Stokes

Style in Shades (Cart)

Sully's

Sun Sports Shop

Sunglass Hut

Suzy Shier

Swimco

Tabi

Telus-Smart Communications

Teaopia

The Body Shop

The Childrens Place (2)

The Shoe Company

The Source By Circuit City

Tip Top Tailors

Tommy Bahama (1)

Tommy Hilfiger Outlet (2)

Town Shoes

Toys 'R' Us/Babies 'R' Us (2)

Underground

Urban Behavior

Urban Planet

VisionQuest Eye Wear

Watch it!

West 49

Wind Spinners (Cart)

Winners

Wirelesswave (Kiosk)

(1) First in Alberta

(2) Largest in Alberta

For more information: http://www.crossironmills.com/

Not your average Calgary Real Estate transaction...

2009-08-19T21:34:00Z

Earlier this week, the sale of a $10.3 Million dollar home made national news:

Katherine O'Neill

Edmonton — From Wednesday's Globe and Mail Last updated on Wednesday, Aug. 19, 2009 03:01AM EDT

It's just one real-estate deal, but its $10.3-million price tag has reminded Albertans that Calgary, the province's financial capital, is still far from going bust.

“There is still a lot of money in this city,” said Donna Rooney, one of the realtors who helped sell the Calgary mansion that has the entire resource-rich province talking.

The 12,700-square-foot Elbow Park home, which boasts imported antique fireplaces, custom inlay hardwood and private courtyards, was owned by former Calgary Flames goaltender Mike Vernon. Listed in May for $10.5-million, it recently sold for $10.3-million, a new residential-real-estate record for the city.

The sale doesn't surprise business owners such as Paul Kuhn. He owns a Calgary art gallery that mainly sells Canadian pieces from $1,000 to $15,000. His gallery also supplied the art used to help sell Mr. Vernon's home.“We're busy. Our only slow month was February,” Mr. Kuhn said.

“My customers aren't the unemployed construction workers,” he later added.

When the global economic recession hit and energy prices collapsed last year, many expected money in Calgary, the headquarters for most of the province's oil and natural-gas companies, would quickly dry up. There were fears that the city, one of the country's fastest rising financial stars, would experience another bust similar to the one in the 1980s when low energy prices and high interest rates devastated the entire province.

This time around, there have been serious economic setbacks. Many condominium developments have been put on hold or scrapped. Employment insurance claims in Calgary have been almost four times higher than the national average. Some businesses, including high-end furniture stores, have even gone under.

But through it all, new ones opened, while others continue to thrive.

“People are still spending,” said Julie Denhamer, co-owner of Bite Groceteria, a gourmet grocery store located in Calgary's trendy Inglewood neighbourhood. However, she said many customers are no longer snapping up as many of the store's higher-priced items.

“We've gone from selling premium, premium olive oils by the boatload to our restaurant clients and now they aren't going as much.”

Todd Hirsch, senior economist with ATB Financial in Calgary, said the city's real-estate market has been showing signs of life in recent months and the record $10.3-million residential house sale is encouraging.

“It's just a one-house, one-month situation, so you can never read too much into that,” he said, “However, it does suggest that the Calgary housing market is relatively healthy.”

Mr. Hirsch expects the provincial economy will begin to rebound by next year at the earliest. “We've seen the worst of the recession and it's going to be a gradual climb out of it,” he said.

While oil prices have begun to recover, natural-gas prices haven't. Until that happens, Alberta will still be facing tough times, according to Mr. Hirsch.

Natural-gas royalties account for more than half of the province's total non-renewable resource royalties.

Market Value doesn't always equal City of Calgary Assessed Value - Here's Why

2009-06-25T17:25:00Z

From time to time, we receive emails asking why the "Market Price" we give in a home evaluation differs from the City of Calgary assessed price. In the current Calgary Real Estate market, assessments are typically higher than market value. This is because the assessment is based on the approximate value last summer. In Calgary's dynamic market, assessed value is often not accurate.

Even though the assessed value is a tool when preparing property evaluations, the ultimate value is determined by comparison to similar properties that are on the market and those that have recently sold. As with any other commodity, in the end, supply and demand dictate what something is worth. The market governs prices.

While assessments are a tool for determining value, the market is governed ultimately by supply and demand. In the 2006 market properties were selling for higher than their assessment from the city. In that market the buyers were saying just the opposite of what you are now saying. " The assessed value is lower so that is what it is worth." After losing out on a few properties to competing buyers they learned that the market determines price. In today's market, prices have fallen somewhat since the assessments were taken resulting in assessments being high relative to market values.

This does not mean that you are paying too much in property taxes, because the assessment is used to determine a fair distribution of the city's tax burden. As long as your value is relative to other Calgary properties, in general, the taxes work out to be equitable. If everyone's values were lower, the mil rate would be increased to distribute municipal expenses.

Currently market values tend to vary 5 to 10% off of the city's assessed value, although I have seen as much as a 25% discrepancy.

Curious how much your property would sell for in todays market? visit www.CalgaryHomePros.com and request a free home evaluation.

2 Story For Sale in Springbank Hill

2009-06-23T16:47:00Z

• 3,143 sq. ft., 3 bath, 4 bdrm 2 story - MLS® $919,900

Springbank Hill, Calgary - This Craftsman Style home, features a circular plan, natural materials such as rock and wood, and meticulous attention to detail. Rich colors and hand-crafted cabinetry define the open sun-drenched kitchen boasting copper countertops, apron front sink and walnut butcher block island. The family size nook is nested between a spectacular cityscape, natural views and a cozy double-sided fireplace. Other features include a separate Den and grandly proportioned laundry/mud room. The upstairs features four spacious bedrooms, and a bonus "Fun" room. The master suite is complimented by a second double sided pebble stone fireplace, fantastic views and fully appointed ensuite plus an extra large walk-in-closet hosting a second laundry. The walkout basement features in-floor heating, and showcases large windows that let in plenty of sunshine. This unfinished space allows you to add your own personal touch. This fastidiously cared for Eco sensitive home is in a perfect quiet walkout location.

Property information

Soundproofing Your Home (especially usefull if you have a basement suite)

2009-05-20T15:38:00Z

Perhaps you have been considering renting out the basement suite, or maybe you already have a tenant living downstairs. If you have ever lived below someone, you know that sound travels easily. We have compiled a few tips, ranging from less expensive, to more expensive, to soundproof your home.

In our research, we found it highly recommended that you take measures for soundproofing before your home is constructed. This would be ideal, however the majority of homes bought and sold in Calgary are not brand new. (Probably only 10-15% of Calgary home sales are actually new homes).

Less Expensive Ways To Soundproof your Home

Soft surfaces absorb sound. Think Carpet, Rugs, Curtains, Furniture. These materials help dampen sound waves, and absorb sound. Bookcases, dressers (full of clothes), and beds (matresses) also help to block sound waves from travelling to your neighbours. You can purchase sound-deadening drapes, and sound deadening mats, to cut down on noise.

If light can travel, so will sound. Turn off the lights, and see if any light escapes through unsealed cracks, crevices, etc. These should be sealed. Pay attention to cracks along baseboards, etc. Install weatherstripping on your bedroom & interior doors.

Consider using a white noise. A fan can mask other noises, drowning them out.

More Expensive Ways to Soundproof your Home:

Install additional drywall - Double up your walls to create more of a barrier.

Install a dropped ceiling - A suspended acoustic tile ceiling can help create a buffer between you and those above you.

A quick google search led us to http://www.revealconnections.com/connect/soundivide , who has a lot of information on soundproofing using various materials designed to soundproof your home as well.

Calgary Real Estate - on Twitter?

2009-04-21T16:49:00Z

Yes, you read that right! With all the buzz about Twitter, we had to see what it was all about. We have added a widget to our website on the right hand side, so that you literally stay informed up to the second, on new listings, price changes, and other important Calgary Real Estate information!

Blue-Cart Service Comes to Calgary

2009-03-31T18:43:00Z

Call me a tree-hugger, but I'm excited about blue cart service coming to Calgary! See the link below for more information on the recycling program starting this spring :

http://www.calgary.ca/portal/server.pt/gateway/PTARGS_0_0_780_237_0_43/http%3B/content.calgary.ca/CCA/City+Hall/Business+Units/Waste+and+Recycling+Services/Recycling+Information/Residential+Services/Blue+Cart+Recycling/Blue+Cart+Recycling+FAQ.htm?f=FromFlashPage

Carolyn B
Marketing Specialist to Rob Johnstone
Calgary Homes For Sale

Some interesting homes indeed......

2008-12-17T17:00:00Z

This link was sent to us, and we couldn't help but pass it along. Here are some of the most unusual homes you might ever see:

http://realestate.sympatico.msn.ca:80/PhotoGalleries/unusual_homes

The Calgary Real Estate Market Makes the News - Again.

2008-12-16T21:58:00Z

It is no secret that Calgary's Real Estate Boom is over. I had originally anticipated that the market would soften, and had been hopfull that the Fall would be the bottom of the market. This article from the Globe & sums up the state of the Calgary Real Estate Market quite nicely:

Housing sales hit 20-year low as real estate slump widens

Rob Johnstone

Calgary Real Estate in The news ..... (Again)

2008-01-17T18:16:00Z

Calgary house prices to inch toward $500,000

Real estate board predicts 5% gain in 'normal' market

Mario Toneguzzi, Calgary Herald

Published: Thursday, January 17, 2008

The average sale price of a single-family home in the city will flirt with the half-million-dollar mark this year, according to the Calgary Real Estate Board.

In its 2008 forecast Wednesday, real estate board president Ed Jensen said the MLS average will increase by five per cent this year to $495,800 while condominium prices will rise by six per cent to an average of $335,300.

Total sales will dip by five per cent for both the condo and single-family markets, to 7,700 and 17,500 respectively, compared with 2007.

"Two thousand and eight will be a good year and a year of opportunity for serious buyers and sellers," said Jensen. "Seeing a solid Alberta economy, strong employment, predictions of movements to past levels of net migration, I see the Calgary market moving closer to normal market conditions -- as normal as Calgary can be."

According to the real estate board, single-family homes in the city averaged $472,230 in 2007, up 17.94 per cent from $400,398 in 2006. The average sale price of a condo was $316,370, an increase of 19.98 per cent from $263,684 in 2006.

Single-family sales in 2007 were 18,438, down 3.5 per cent from the 19,113 recorded in 2006, while condo sales dropped by 1.9 per cent to 8,236 units compared with 8,396 the previous year.

Lai Sing Louie, senior market analyst in Calgary for Canada Mortgage and Housing Corp., said the organization's forecast for 2008 is similar to the real estate board's.

"We're looking at about 5.5 per cent moderation in MLS sales and our price growth is in the same ballpark. We're looking around the 3.5 to five per cent level, too," said Louie. "There is a lot of supply out there. Going into the last part of the year we saw demand ease off. Some of that was because of the higher prices, but also there is a lower level of net migration that we're seeing coming to Alberta."

Several different real estate reports in the latter part of 2007 predicted average price growth in Calgary ranging from zero to 12 per cent.

Jensen said the resale real estate market in 2007 came in like a lion and went out like a lamb. In the past six years, the city has experienced one of the hottest real estate markets on record.

But in that atmosphere speculators and flippers have also come into the market and impacted its direction.

"A portion of the real estate market has always had an investor component where most adhere to an invest-and-hold program," said Jensen. "This type of investor is great for the marketplace, but investor flippers don't care about the community and can create an artificial demand, which contributes to an artificial price increase situation."

The Calgary market overheated in the past couple of years, setting records in nearly all areas and straining affordability, he said.

But a change happened in the past few months. The city moved from a seller's market, where the sellers could name their price, to a buyer's market where there is a better supply of homes giving buyers better choice.

"We're just coming off two record years," said Jensen. "Obviously, there's lots of speculation with a lot of outside investors coming to the economy and I believe that artificially created new listing environments."

The real estate board forecast for acreages and recreational properties indicates listings and sales will both decline by five per cent in 2008. The average sale price for rural properties will jump by five per cent to $875,600.

For surrounding towns, sale prices will rise by five per cent to an average of $396,000.