Happy Fall to our past and present clients and followers of the SMITH & GRIFFITH REAL ESTATE TEAM with CIR Realty. Rees and I are very proud to be entering our third year together as a Real Estate Team. We are dedicated to expanding our business and extremely proud of the top-level service we provide our clients. Thank you for your support, business and well wishes.
Residential Market:
The majority of sales in residential markets are happening in the lower price range. It is likely due to the decreasing rental vacancy rates which in turn is pushing tenants into the market. This trend has been developing over the past year, which is great news for residential real estate. As the first-time home buyer market picks up, so will the “move-up” markets. Many buyers in today’s markets are also selling, so having a more active starter market will ignite the “move-up” buyer market.
The current market is improving slightly for sellers as the number of new listings coming onto the market are starting to decline and prices are stabilizing. Some recovery is being driven by homes under $500,000 where supply has been slowly decreasing while sales activity has finally picked up. New listings continued to ease, which causes inventory to decline, thus, helping the market shift toward more balanced conditions.
“Employment numbers have been improving, but mostly in industries that are traditionally lower paid,” said CREB®chief economist Ann-Marie Lurie. “This is contributing to the shift that we are seeing in the housing market, with growth being limited to product priced below $500,000.”
Despite improving sales and reductions in inventory, housing market recovery will take time. Inventory levels remain elevated and sales activity is still well below historical norms. The market continues to favor the buyer, with over four months of supply from which to choose from.
While buyers still have a lot of choice in the market, they are more likely to start seeing competing bids, particularly on more affordable options. Eventually, falling inventories and growing competition for more affordable homes should translate into higher prices overall for the market.
As sales and price declines are not consistent across all areas and types of properties, buyers and sellers need to be realistic about their objectives. Motivation is key in this market when you look at the expectations of sellers and the reality of what buyers are willing to pay. Buyers need to be aware that price changes differ depending on what and where they are buying and the motivation of the Sellers. It’s extremely important to be well in-informed, pre-approved for a mortgage and have the most up-to-date information about the prices in the community/area you are buying in.
This fall looks to be a great time to buy – lots of opportunities. Let the Smith & Griffith Real Estate Team with CIR Realty know what you’re looking for and we’ll sort through the inventory to make finding your ideal property a whole lot easier.
Sellers need to be well informed to be competitive. They need a good understanding of what has been selling around them and how their property compares to homes that have successfully sold. In many markets, the name of the game is aggressive pricing and clear motivation! The Smith & Griffith Real Estate Team use the latest digital and social media marketing tools to maximize the number of people who see your property listing. We are confident that your property will be seen by “ALL BUYERS IN THE MARKET”. If priced correctly, buyers will reveal themselves and come looking for properties that meet their perception of price to value. Let’s hope our fall weather is warm and sales start to warm up as well!
Agricultural Market:
Demand remains strong for farmland in the province, despite geopolitical headwinds. Land prices appear to be holding firm this year. Farm Credit Corporation noted that the province has experienced steady sales in all regions. However, many financial gurus have cautioned that Alberta farm landowners should not take rising farmland values for granted.
“The price of farmland in Canada has roughly tripled over the past two decades, even after adjusting for inflation,” said MacAulay, senior vice-president and divisional head for BMO Bank of Montreal’s Prairies-Central Canada division. “Despite these gains, it’s worth being cautious any time an asset price turns skyward. Land prices have crashed before and nobody wants to be caught,” he said.
There are three main drivers that have kept demand for land and prices strong to date – profitable commodity prices, high yielding crops/livestock production, and low interest rates.
On a slightly less upbeat note, farm income is fully expected to be lower in 2019. Global trade issues have brought much lower ag commodity prices and increased volatility putting pressures on farm income. This downward pressure on farm income may result in some land buyers becoming tentative, reduce the amount of capital they are willing to invest, and put decreased limits on their debt exposure than they would have in late 2018 or even early 2019. On the up-side, interest rates are not expected to increase, and we may actually see a rate cut or two in the next year. While we have some serious short-term challenges ahead of us for the balance of 2019, we think the long-term outlook remains positive.
If you’re planning on BUYING land, get on our FIRST CALL BUYERS LIST to avoid the disappointment of missing out on new listings as they come to market. If you’re SELLING, talk to us about maximizing the dollars in your pocket by using our marketing experience and tools to reach competitive land buyers that would otherwise be unaware of your land for sale. Landowners risk leaving substantial dollars on the table by only approaching neighbours, renters, or friends because it is difficult to establish the true market value of your land without exposing it to the greater buyer market.
When you’re looking for an honest conversation about the real estate market, our team is here to help. We work hard to give you our best interpretation of the current state of the real estate market. Combined with our years of expertise and market intuition, we can provide the most comprehensive evaluation/comparative market analysis of your property available today! For a Free Market Evaluation, give the Smith & Griffith Real Estate Team With CIR Realty a call – Rees at 403.350.7815 or Kari at 403.803.3299.
Our business is growing because of referrals from clients and friends like you and we thank you for passing on the Smith & Griffith name. We’d love to assist others, so please send colleges, friends and family our way. We promise to provide them with great service as we are committed to working with our clients to achieve their desired results!
Wishing you and your family a warm and wonderful fall season and wishing all the farmers a quick and successful harvest!