For many folks, Alberta winters are more about skiing and hockey games than buyers and sellers. But as we turn our clocks ahead and the spring weather arrives, so does a renewed interest in real estate.
We are very excited to announce that our Smith & Griffith Team achieved the Top Partnership at CIR Realty in 2019. We are very grateful for the support of our clients, partners, brokerage, friends and family. We have lots of support in our community and we really enjoy helping our clients achieve their real estate goals.
While navigating our spring real estate market we must consider the economy, the local market and everyone’s own personal situation. It’s a balancing act between what makes sense for you in your life and what the market can bear. This balance can easily be interrupted when life changes force us to make a move. When this happens, considering the “time value of money” can help ease the transition. Is the money you are holding out for from your property sale worth the opportunity cost of being tied to it and unable to move on with your life, family plans, lifestyle change, or career opportunities?
Overall, economic conditions in Alberta have been depressed for many years and extremely volatile more recently with high unemployment, mortgage stress tests, the energy crisis, increased interest rates, limited job growth and sadly, the list goes on. Now add in, the forecasted world economic downturn, oil price crash, and of course the dreaded Coronavirus. Even though the situation changes daily, and no one can predict the market effects of COVID-19 both in the short and long term, but we can expect to see increased real estate price volatility with a downside bias. Restricted travel will shut out most foreign buyers from the Canadian real estate market for the near term. Canada is poised to experience a further economic slowdown that will result in more potential job losses, forced sales of homes, and foreclosures.
Having said all that, there remains a fair bit of choice for buyers in the market today as the oversupply problem hasn’t corrected itself yet. Both buyers and sellers should note that changes to market factors like the amended mortgage stress test and lower interest rates are shifting more demand into the lower price ranges of the detached and attached markets.
In the past two years, the “mortgage stress test” has resulted in negative impacts on the real estate market. Recently announced changes are not taking us back to the “good ol’ days” but are definitely a step in the right direction. To understand these changes, we asked Patricia McKean and Stacey Scott from Unbeatable Mortgages to explain what they may mean to you … click here to see their explanation. When you are buying, Mortgage Brokers can help make the buying process easier. Contact Patricia McKean or Stacey Scott at unbeatablemortgages.ca.
The necessity to understand the markets within the real estate market continues to be very important. The “new normal” for the Alberta market requires an understanding of how to position a property in the market with proper pricing and generating adequate buyer interest and activity from the start. Pricing the property correctly, following a marketing/price reduction strategy and timeline, and keeping the property in ideal showing condition are all key components for selling in today’s market.
When you’re looking for an honest conversation about the real estate market, our team is here to help. We work hard to stay on top of trends and give you our best interpretation of the current state of the market. Combined with our years of expertise and market intuition, we can provide a comprehensive evaluation/comparative market analysis of your property. 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 team name. We’d love to assist others, so please send colleagues, 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 healthy spring – with all things, “This too shall pass.”
Rees & Kari – Opening Gates to the Country & Doors to the City.
Click to view our “Welcome to Spring 2020” edition newsletter