What’s Happening in Calgary…

Calgary, May 1, 2011 – According to figures released by CREB® (Calgary Real Estate Board), City of Calgary year-to-date sales declined by 4 per cent compared to the first four months of 2010. The decline was offset by a 14 per cent drop in listings recorded over the same period, resulting in lower inventory levels, and a moderate growth in average prices. For updated Calgary Real Estate Market stats every hour go to http://www.nancyball.ca/crebstats

Interest Rates and Monthly Mortgage Payments

The reality for buyers that is looming is whether or not, the interest rates will rise this summer. Based on the latest media coverage it looks like June or July it could rise so mortgage  planners are suggesting to lock in a pre-approved rate now so a buyer can take advantage of the extra savings. Most banks and mortgage planners can lock in a rate hold for 90-120 days which allows the buyer to take their time in finding the right place. With the recent mortgage rule changes that took place earlier this year, it would seem the sooner you can buy a home the better. The good news is Spring and Summer there are a lot more listings to choose from giving the buyer the upper hand. Visit http://www.nancyball.ca/calculators as a tool to see your overall monthly mortgage payment with your interest rate.

Recent Calgary and Rural Market Stats

Active Listings as of May 1, 2011
——————————————————————————————————————-
                                             Count                     Average Price             Average DOM
Single Family                  6,615                          $516,273                           63.39
Houses
Condominiums               2,563                          $322,236                           66.40

Combined Residential
Active Listings                9,178
——————————————————————————————————————-
Rural With Home             1,015                           $1,109,394                        105.60
Rural Land                          593                                $740,767                        179.63
Total Rural                       1,608
——————————————————————————————————————-
Total MLS                      10,786
Active Listings

Sales For April 2011
——————————————————————————————————————-
                                              Count                      Average Price                 Average DOM
Single Family                  1,477                           $464,905                             47.69
Houses
Condominiums                604                            $285,827                             58.46

Combined Residential
Sold Listings                     2,081
——————————————————————————————————————-
Rural With Home                 67                                $838,914                        93.56
Rural Land                            22                                $384,436                        90.45
Total Rural                            89
——————————————————————————————————————-
Total MLS Sales             2,170

Inspiration of the Month There is no formula for success except, perhaps, an unconditional acceptance of life and what it brings.

- Arthur Rubinstein

Nancy Ball
CIR Realty
Ph) 403-510-6000
www.NancyBall.ca
Platinum Award Club Member 

 # 7 out of the office for 2010

What is needed to drive growth in Calgary and Alberta?

Jobs and Migration

Confidence in employment prospects and family income will determine the pace of the housing market.   As such, a more robust improvement in Calgary’s housing market will require new permanent jobs.

Oil and Gas

Oil and gas have contributed to some improvement in employment in
Alberta this year, but these jobs have been focused in the northern regions of the province. Consequently, net interprovincial migration from June 2009 to June 2010 showed 2,183 people left the province. Jobs and more affordable housing attracted migrants to BC (9,367),
Saskatchewan (3,909), Newfoundland (1,309), and New Brunswick (722).

Projection for Employment Growth

Overall, Alberta’s employment growth will fare better in 2011 than in the year past, but will only grow by about 1.3 per cent.  Like 2010, job growth is expected to be in oilsands.

source: StatCan

To view the rest of this article visit:

http://www.creb.com/public/documents/Electronic%20Media%20Package/CREB_ForecastReport_2011.pdf

What is the issue that the Competition Bureau has with CREA (Canadian Real Estate Association)?

CREA’s membership approved the current “Interpretations” in 2007, which dealt with the acceptance of listings on Boards’ MLS® Systems. In March of 2007, the Competition Bureau initiated a formal inquiry (which followed ongoing informal investigations by the Bureau) and obtained a court order requiring CREA to produce, among other things, documents related to CREA’s rules and the operation of Boards’ MLS® Systems. On October 20th, 2009, CREA representatives were advised by the Bureau that the Commissioner of Competition had completed her inquiry.

What is the Competition Bureau proposing?

The Competition Bureau has requested that CREA change certain Rules and Interpretations that deal with the acceptance of mere postings on Board MLS® Systems (i.e., where the agreement between the listing agent and the seller is that the listing agent will not provide services other than listing the property on a Board’s MLS® System).

What will happen if CREA does not agree to the Competition Bureau’s Proposal?

The Competition Bureau has said that if CREA does not remove these restrictions the Commissioner of Competition will initiate an application before the Competition Tribunal, which is a quasi-judicial body that can, among other things, make orders requiring or prohibiting certain conduct (e.g., requiring rule changes).

What is CREA’s position?

CREA is awaiting additional information from the Competition Bureau about its proposed resolution and is reviewing the matter to gain a better understanding of the ramification of the proposed changes. CREA’s position is that Boards’ MLS® Systems are and should remain member-to-member systems. A settlement with the Bureau regarding the changes to CREA’s Rules would be subject to member support.  The Calgary Real Estate Board (CREB®) does not agree with the Bureau’s findings and conclusions. However, before providing their final input to CREA, CREB® and its board of directors are committed to obtaining the feedback of members with respect to this issue.

Are media reports accurate?

Some media are reporting that there has been a settlement with the Competition Bureau or that CREA has changed its MLS® Rules resulting in Boards’ MLS® Systems no longer being member-to-member systems. These media statements are incorrect.  CREA has not reached a settlement with the Competition Bureau and CREA has not changed its MLS® Rules and Interpretations.

The member of the public should be told that the media has inaccurately reported that a proposed resolution between CREA and the Competition Bureau would result in members of the public being able to access a Board’s MLS® System to list their homes for sale without the involvement of a REALTOR®. This is incorrect. A Board’s MLS® System is a system for REALTOR® members of CREA. If that person would like to list a property on a Board’s MLS® system, they should contact a REALTOR®.

What are the timelines for a settlement agreement or if the matter goes to the Competition Tribunal?

Timelines are unknown at this point.

What is Nancy’s opinion?

I am not concerned.  There are discount brokerages now on the MLS® database and those brokerages can set their fees wherever they want for the consumer. Home sellers are also free to sell their homes themselves and have powerful networking tools and companies offering for sale by owner postings.  While the MLS® system offers a database of homes for sale, its all the value-added services that I provide that make my business work.  I show the value of my services to my clients and they get results.  It’s so much more than just having access to the MLS® system.

Only time will tell how this all unfolds.  Bottom line: There is no sure fire way to tell what gets a home listed and sold.  It takes many things coming together to get a home successfully sold and closed on time.

Nancy Ball, CIR Realty
Calgary Real Estate Agent