The Calgary May Market Explained (info from the Calgary Real Estate Board (CREB)):

DETACHED:

For Sellers:

If you are selling a detached home in Calgary, there are important dynamics to consider. While there has been a rise in sales for homes priced above $600,000, there has been a decline in sales for lower-priced homes. In May, there were 1,486 home sales, which is eight percent lower compared to the previous year. This means that there is less competition for higher-priced detached homes, which could work to your advantage. However, for lower-priced detached homes, the market is more challenging due to decreased sales activity.

Additionally, the number of new listings for homes priced below $700,000 is falling. This limited supply of lower-priced homes gives you an edge as a seller because there are fewer options available for buyers looking for affordable detached homes. Furthermore, even for higher-priced properties, the market remains competitive due to strong demand. This high demand across all price ranges is driving further price gains, meaning you could potentially achieve a higher sale price for your detached home.

In May, the detached benchmark price reached $674,000, which is nearly two percent higher than the previous month and over four percent higher than the peak price recorded last year. Each district in Calgary reported new record high prices for detached homes. The year-over-year price gains ranged from a high of 12 percent in the East District to a low of two percent in the City Centre. These price increases indicate the overall upward trend in detached home prices, which can work to your advantage as a seller.

For Buyers:

If you are a buyer looking for a detached home in Calgary, there are key factors to be aware of. While sales have increased for higher-priced detached homes, there has been a decline in sales for lower-priced properties. This means that there may be less competition for higher-priced homes, giving you more negotiating power. However, for lower-priced detached homes, the market is more competitive due to limited supply and strong demand.

The number of new listings for homes priced below $700,000 is falling, making it more challenging to find affordable detached homes. With fewer options available, you may need to act quickly and be prepared to make competitive offers when you find a suitable property.

In May, the detached benchmark price reached $674,000, indicating a nearly two percent increase compared to the previous month and over four percent increase compared to last year's peak price. Each district in Calgary reported new record high prices for detached homes. The year-over-year price gains varied across districts, with the East District experiencing the highest increase at 12 percent, while the City Centre saw a more modest two percent increase. These price gains highlight the overall appreciation in detached home prices, which could impact your buying decision.

Overall, the detached housing market in Calgary presents both opportunities and challenges for buyers and sellers. It's important to consider the specific dynamics of the price range you are interested in and be prepared to navigate the competitive market conditions accordingly.

SEMI - DETACHED

For Sellers:

In Calgary's semi-detached housing sector, there is good news for sellers. Sales of semi-detached homes have risen to near-record highs, indicating strong demand for these properties. This means that if you are a seller, you have a higher chance of attracting potential buyers and achieving a successful sale. The increased sales activity also suggests that there is a market for semi-detached homes, making it an opportune time to list your property. Furthermore, the tight inventory levels, with fewer new listings entering the market, work in your favor by reducing competition and potentially allowing you to secure a better price for your home. With the rising prices in this segment, you may benefit from the overall appreciation of semi-detached homes in Calgary.

For Buyers:

For buyers interested in semi-detached homes in Calgary, there are important considerations to keep in mind. Firstly, the high sales figures indicate that many buyers are actively seeking these types of properties. This suggests that semi-detached homes hold value and are in demand, making them a worthwhile investment. Additionally, the limited inventory means that you might face some competition from other buyers. However, it's worth noting that the tight market conditions have resulted in further price gains, indicating that purchasing a semi-detached home now could be a wise financial decision. With prices on the rise, buying sooner rather than later may allow you to benefit from potential future appreciation. Overall, the increased sales activity and rising prices underscore the desirability and potential value of semi-detached homes in Calgary.

ROW STYLE HOMES

For Sellers:

If you are selling a row-style home in Calgary, there are important factors to consider. In May, there was an improvement in new listings compared to earlier in the year. However, despite the increase in new listings, the high sales-to-new listings ratio of 89 percent indicates that the market remains highly competitive, and there has not been a significant shift in the low inventory situation. This means that the limited supply of row homes continues to be a prevailing trend, contributing to the current market conditions.

Although sales activity for row homes is still lower than last year, this is primarily due to the lack of available supply in this segment of the market. The inventory levels have decreased by 50 percent compared to the previous year, further highlighting the scarcity of row homes for sale.

With such limited supply, it's not surprising that prices for row homes continue to rise. In May, the benchmark price reached $390,500, which represents a two percent increase compared to the previous month and nearly nine percent higher than the peak price observed last year. This upward trend in prices is consistent across all districts in Calgary. The North East, South, and East districts experienced the highest year-over-year price gains, exceeding 15 percent. Conversely, the City Centre, North West, and South East districts reported slower price gains, but still at rates of over seven percent.

For Buyers:

If you are in the market to purchase a row-style home in Calgary, there are important considerations to be aware of. Despite an improvement in new listings compared to earlier in the year, the high sales-to-new listings ratio of 89 percent indicates a highly competitive market. This means that the limited inventory of row homes continues to create a challenging environment for buyers, with high demand and limited options available.

The scarcity of available row homes is reflected in the decreased sales activity compared to the previous year. However, it's important to note that this decline is primarily due to the lack of supply rather than reduced buyer interest. The inventory levels have significantly dropped by 50 percent compared to last year, making it more difficult to find and secure a row home.

Due to the low inventory levels, prices for row homes continue to rise. In May, the benchmark price reached $390,500, which represents a two percent increase compared to the previous month and nearly nine percent higher than the peak price observed last year. These price gains are consistent across all districts in Calgary, with the North East, South, and East districts experiencing the highest year-over-year increases of over 15 percent. The City Centre, North West, and South East districts saw slower price gains, but still at rates of over seven percent.

As a buyer, it's important to be prepared for a competitive market and potential price increases when considering a row-style home. Acting swiftly and being flexible with your preferences can increase your chances of finding a suitable property in this limited inventory environment.

APARTMENT CONDOMINIUM

For Sellers:

If you are selling an apartment condominium in Calgary, the market conditions present favorable opportunities. In May, sales of apartment condominiums reached 858 units, representing a significant year-over-year gain of 36 percent. This surge in sales has contributed to a new record high for year-to-date sales, with a four percent increase compared to previous years. The recent increase in new listings has played a role in driving stronger sales, as there were 1,025 new listings in May, an eight percent increase compared to the previous year.

Despite the increase in new listings, the sales-to-new listings ratio remains high at 84 percent. This indicates that the market remains competitive, and the limited inventory situation persists. Inventory levels in May were 23 percent lower than what was available in the market in May 2022. The low inventory levels and high sales activity have resulted in a low months of supply, with just over one month's worth of inventory available. These tight market conditions work to the advantage of sellers, as it can potentially lead to higher prices and a favorable selling environment.

In terms of pricing, apartment condominiums have experienced further price gains in May. The unadjusted benchmark price reached $298,600, indicating a monthly gain of over one percent and a significant year-over-year gain of nearly 11 percent. This recent growth has brought the unadjusted prices of apartment condominiums back to 2014 levels, signifying a strong appreciation in value. While not all districts reported new record high prices, the North, North West, West, and South East districts have shown a full recovery in prices. Overall, year-over-year price growth varied across districts, with the North District experiencing the highest increase at 16 percent, and the City Centre seeing a comparatively lower growth of 10 percent.

For Buyers:

If you are in the market for an apartment condominium in Calgary, there are important insights to consider. The high sales figures in May, with a year-over-year gain of 36 percent, indicate strong buyer demand in this segment. This increased sales activity is a result of recent gains in new listings, which provide buyers with more options to choose from. The market conditions have remained competitive, as reflected in the high sales-to-new listings ratio of 84 percent. This means that while more listings have become available, the limited inventory situation persists, resulting in a highly competitive market.

Inventory levels in May were 23 percent lower compared to the previous year, indicating a scarcity of available apartment condominiums. With low inventory and strong demand, the months of supply remain low, slightly above one month. This means that as a buyer, you need to act promptly and be prepared to make competitive offers to secure a desired property.

In terms of pricing, apartment condominiums have seen significant price gains. In May, the unadjusted benchmark price reached $298,600, reflecting a monthly gain of over one percent and a substantial year-over-year gain of nearly 11 percent. This indicates an appreciation in value and suggests that apartment condominiums can be a worthwhile investment. However, it's important to note that price growth varies across districts. While some areas have reported new record high prices, such as the North, North West, West, and South East districts, other areas, like the City Centre, have shown relatively lower growth.

Overall, the apartment condominium market in Calgary offers both opportunities and challenges for buyers and sellers. The strong sales figures, limited inventory, and price gains highlight the current market dynamics. As a buyer, being proactive and prepared to compete can increase your chances of finding and securing a suitable apartment condominium.

In the competitive world of real estate, standing out as a top-producing agent requires an unwavering commitment to excellence, a deep understanding of the market, and a relentless drive to provide exceptional service to clients. In Calgary, Alberta, three agents have consistently risen above the rest, demonstrating their expertise and dedication month after month. Let's take a closer look at Jason Streich, Tina Tian, and Manan Shah, the top-producing agents for the month of May 2023, and explore what it takes to reach such heights of success.

Jason Streich: The Powerhouse Negotiator

With a career spanning over a decade, Jason Streich has become a force to be reckoned with in the Calgary real estate scene. Known for his exceptional negotiation skills, Jason consistently achieves outstanding results for his clients. His ability to navigate complex transactions, anticipate market trends, and advocate fiercely for his clients has made him a trusted advisor for both buyers and sellers.

Jason's commitment to his clients is evident in the long-lasting relationships he builds. He takes the time to understand their unique needs and goals, providing personalized guidance throughout the entire real estate journey. His dedication to staying informed about market dynamics and industry best practices ensures that his clients receive the most accurate and up-to-date information, empowering them to make informed decisions.

Tina Tian: The Market Maven

Tina Tian's unwavering commitment to her clients and her deep market knowledge have propelled her to the top of the Calgary real estate market. With a passion for understanding market trends and identifying lucrative opportunities, Tina consistently delivers exceptional results for her clients. Her keen eye for detail and ability to spot emerging neighborhoods and investment potentials have earned her a stellar reputation among buyers and investors alike.

Tina's commitment to her business and clients is unparalleled. She goes above and beyond to ensure that her clients' needs are met, whether it's conducting thorough property inspections, coordinating efficient closings, or leveraging her extensive network to connect clients with reputable industry professionals. Tina's dedication to providing an exceptional client experience sets her apart as a top-producing agent in Calgary.

Manan Shah: The Customer-Centric Professional

Manan Shah's success as a top-producing agent can be attributed to his unwavering commitment to his clients and his exceptional customer service. With a focus on building long-term relationships, Manan takes the time to understand his clients' preferences, priorities, and budget constraints. His patience, empathy, and open communication style have earned him the trust and loyalty of a diverse clientele.

Manan's commitment to his clients extends beyond the transaction. He understands that buying or selling a property can be a significant life event, and he strives to make the process as smooth and stress-free as possible. From assisting with financing options to coordinating inspections and ensuring timely communication, Manan's attention to detail and genuine care for his clients' well-being make him an invaluable resource in the Calgary real estate market.

Becoming a top-producing agent in the competitive real estate market of Calgary requires a unique combination of skills, dedication, and a client-centric approach. Jason Streich, Tina Tian, and Manan Shah exemplify these qualities, consistently going above and beyond to deliver exceptional results for their clients. Their commitment to excellence, deep market knowledge, and relentless work ethic have earned them well-deserved recognition as top-producing agents for the month of May 2023 in Calgary, Alberta. Whether you're a buyer or seller in the Calgary real estate market, entrusting your needs to these exceptional agents guarantees a remarkable experience and optimal outcomes.

1. Licensing and Membership Fees: 

• RECA New Realtor Licensing Fee 2023: $750

• CREB® Entry Fee: $650

• CREA Initiation Fee: $200

• CREB TOTAL 2023 Dues (including admin costs): Prorated for May - $1,583.55

• AREA Initiation Fee: $800 (separate from CREB)

• AREA Annual Dues: $300 + GST

2. SentriLock Activation Fee: $50 (one-time fee for activating SentriKey Access)

3. Course Costs:

• Education Eligibility Application: $100

• Licensing Course Through AREA: $400

• Practice Exams: $65

• Licensing Exam: $250

• AREA Fundamentals of Real Estate: $600

• Practice Exam: $65

• Exam: $250

• Sub Total: $1,730

4. Licensing and Fees:

• RECA License: $900

• CREB Membership: $1,876 (prorated monthly)

• AREA Dues: $1,155

• Sub Total: $3,931

5. Total: $5,661

6. Business Costs:

Brokerage Fees with GC: $150 (monthly fee)

CREB Monthly Costs Minimum: $91.88

Printer

Scanner

Computer Costs

Virus Protection

Signs: $200 for Lawn (2 signs), Sandwich Boards: $90

Lockboxes: $150 each ($25/month, part of CREB costs)

Incorporation Costs

Accounting Costs

QuickBooks

Mileage Tracking: $90/year (mile IQ)

E-Signature Accounts: $129 (Authentisign)

Cloud Service (e.g., Google Drive Business Account): $20/month

Website (MyRealPage): $50/month

Business Cards

For Sale Signs: $200/sign

Sandwich Boards: $120/sign

Conditionally Sold/Sold Riders

Lockbox Covers: $100

Stationery

Professional Photos

Branding Materials

Please note that these costs are provided as estimates and may vary.

Introducing a wonderful bilevel semi-detached home with stunning curb appeal, located in the highly sought-after community of Tuxedo Park. This charming home offers numerous updates and a host of desirable features that make it a standout choice for buyers. As you enter through the private wooden door with etched glass, you'll immediately appreciate the attention to detail and craftsmanship. The main floor showcases beautiful hardwood flooring and an updated kitchen with granite counters, stainless steel appliances, and a new stove. Natural light floods the living room through a large bay window, creating a warm and inviting atmosphere. The home boasts four bedrooms and three full baths, providing ample space for a growing family or guests. The primary bedroom offers a walk-in closet and a private 4-piece ensuite. Additionally, the main floor features a separate laundry room with a washer, dryer, and pantry for added convenience. Step outside through the patio doors off the primary bedroom and discover a charming, tree-filled backyard oasis. You'll also find a single garage with power for lights and electricity, providing a fantastic workspace for projects or storage. The furnace and hot water tank are only three years old, ensuring efficient and reliable home systems. Descend to the lower level, where large windows fill the space with an abundance of natural light. This level boasts a spacious recreation room, two generous-sized bedrooms, and one additional full bath, providing plenty of room for relaxation and entertaining. Now let's highlight why Tuxedo Park is a highly desirable neighborhood for buyers. Located in the northwest quadrant of Calgary, Tuxedo Park offers a central location that provides easy access to downtown Calgary and other major areas of the city. Surrounding the community are several shopping centers, restaurants, and entertainment venues, making it a convenient place to live. Tuxedo Park also boasts a range of community amenities. Residents can enjoy the lush green spaces of Tuxedo Park, Rotary Park, and Confederation Park, which offer opportunities for outdoor activities such as hiking, cycling, and picnicking. Families with children will appreciate the presence of multiple schools in the area, including public, Catholic, and private institutions. One of the defining features of Tuxedo Park is its strong community spirit. The Tuxedo Park Community Association organizes various events throughout the year, including a Stampede breakfast, movie nights, and community cleanups. This fosters a warm and friendly environment, allowing residents to connect with one another and build lasting relationships. In summary, Tuxedo Park presents an exceptional living experience for those seeking a beautiful, convenient, and community-oriented neighborhood in Calgary.

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Imperial Floor Plans 213 24 Avenue NW

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Congratulations Derk Patton, Manan Shah and Liping (Tina) Tian.

Calgary’s real estate market is thriving, with the persistent sellers' market conditions driving up home prices to record highs. In this market, being a top agent requires not only knowledge and expertise but also the ability to adapt and excel in a fast-paced and competitive environment.

To be the best in this type of market, these top agents have proven to have exceptional skills in communication, negotiation, and marketing. They are able to connect with their clients, understand their needs and expectations, and provide them with the best possible solutions. They should also have a deep knowledge of the local real estate market, including the latest trends, developments, and regulations.

Furthermore, Derk, Manan and Tina are able to market their clients' properties effectively, leveraging various channels and platforms to reach potential buyers. They have a solid understanding of the latest digital marketing techniques, such as search engine optimization, social media advertising, and email marketing.

In this competitive market, they have proven to be creative and resourceful in finding new opportunities for their clients. They are able to identify emerging trends, explore untapped markets, and come up with innovative strategies that set them apart from the competition.

Overall, being a top agent in the Calgary real estate market requires a unique blend of skills, expertise, and personality. It takes dedication, hard work, and a passion for helping clients achieve their real estate goals. With these qualities, Derk Patton, Manan Shah and Liping (Tina) Tian have proven they can thrive in any market condition, including the current one where prices are reaching new record highs.

Calgary, Alberta, could potentially be negatively affected by a global economic growth collapse due to its reliance on natural resources and close ties to the energy sector. If demand for these exports declines, it could impact job growth and the overall economy. A reduction in consumer spending could also affect businesses and the real estate market in the city. However, Calgary has a resilient economy and has weathered economic downturns in the past.

In addition to the impact on natural resources and the energy sector, a decline in demand for goods and services could lead to a reduction in exports from Canada to the United States. This could lead to job losses and reduced economic activity in regions that rely heavily on these industries. Any disruptions in trade between Canada and the United States could also lead to higher costs for Canadian businesses that rely on imported goods or materials from the United States.

To mitigate the impact of a potential economic collapse, Canada should diversify its trade relationships and reduce its reliance on any one trading partner, including the United States. While the specific circumstances of any potential economic collapse are difficult to predict, Canada's resilience and ability to adapt to changing economic conditions will be key to weathering any potential downturn.

CREB Stats April

Persistent sellers’ market conditions placed further upward pressure on home prices in April. After four months of persistent gains, the total unadjusted benchmark price reached $550,800, nearly two per cent higher than last month and a new monthly record high for the city. 

“While sales activity is performing as expected, the steeper pullback in new listings has ensured that supply levels remain low,” said CREB® Chief Economist Ann-Marie Lurie. “The limited supply choice is causing more buyers to place offers above the list price, contributing to the stronger than expected gains in home prices.”

In April, sales reached 2,690 units compared to the 3,133 new listings. With a sales-to-new-listings ratio of 86 per cent, inventories declined by 34 per cent compared to last year and are over 45 per cent below long-term averages for April.

While sales have eased by 21 per cent compared to last year, the steep decline in supply has caused the months of supply to ease to just over one month. This reflects tighter market conditions than earlier in the year and compared to conditions reported last April.

March 2023 saw a rise in home prices as seller-friendly conditions continued to prevail in the market. Sales and new listings improved from the beginning of the year, resulting in expected monthly inventory level gains. However, low inventory levels of just 3,233 available units left purchasers with limited choices, pushing up home prices.

Residential home prices in March reached a total of $541,800, a two per cent gain over the previous month and almost one per cent higher than last year. While prices are still below the May 2022 high of $546,000, the pace of price growth in the first quarter exceeded expectations due to the persistent seller's market conditions.

According to CREB® Chief Economist Ann-Marie Lurie, the challenge lies in the limited supply of available homes, with existing homeowners hesitant to list their homes due to difficulties in finding acceptable alternatives in this market. Additionally, higher lending rates may also reduce incentives for homeowners to sell.

Overall, while the market conditions are not as tight as last March, low inventory levels continue to impact homebuyers' choices and drive up prices.

As a Foreign Seller looking to sell property in Canada, it is crucial to be aware of other significant concerns, in addition to the ongoing discussions surrounding the Foreign Buyer's Ban.

Seller Non Resident of Canada

In the context of a residential real estate transaction in Canada, withholding tax can apply to non-resident sellers of the property. The amount of withholding tax that a buyer of residential real estate in Canada may be required to withhold and remit to the Canada Revenue Agency (CRA) on behalf of a non-resident seller depends on the type of property being sold and whether it was used to generate income.

If the seller is a non-resident of Canada and the property was used to generate income, the buyer is required to withhold and remit 25% of the sale price related to the land value plus 50% of the sale price related to the building value, unless the seller obtains a Clearance Certificate from the CRA. If the property is capital property, meaning it is a personal-use property, such as a cottage or vacation home, and was not used to generate income, the buyer is required to withhold and remit 25% of the gross sale price.

Filing for a Clearance Certificate with the CRA as soon as your property is sold is best to avoid a withholding tax. If the seller applies for and obtains a Clearance Certificate from the CRA before the sale, they can provide it to the buyer, who then does not have to withhold any tax from the sale price. The Clearance Certificate confirms that the seller has complied with all Canadian tax laws and does not owe any taxes.

On the other hand, if the buyer fails to withhold the required amount of tax, they may be liable for any taxes owed by the seller, plus interest and penalties.

A Clearance Certificate is required in a residential real estate transaction in Canada when the seller is a non-resident of Canada. The certificate confirms that the seller has complied with all Canadian tax laws and does not owe any taxes. The Clearance Certificate serves as proof that the non-resident seller has paid any taxes owed to the Canada Revenue Agency (CRA) related to the sale of the property.

Obtaining a Clearance Certificate is the responsibility of the seller, who must apply to the CRA for the certificate after the sale has been completed. The application process can take several weeks to complete, and the seller must provide documentation to the CRA to support the application.

It's important for non-resident sellers of residential real estate in Canada to obtain a Clearance Certificate to avoid any delays or complications in the sale process. It's important to note that the rules and requirements related to withholding tax in residential real estate transactions can be complex and vary depending on the specific circumstances. Sellers and buyers of residential real estate in Canada should consult with a tax professional or lawyer to ensure compliance with applicable tax laws and regulations.

Seller of Underused Housing "Tax"

The Underused Housing Tax in Canada is an annual 1% tax on vacant or underused housing, which came into effect on January 1, 2022. The tax is primarily targeted towards non-resident, non-Canadian owners, although it can also apply to Canadian owners in certain circumstances. It is important to note that failure to file a return for this tax can result in significant penalties, with minimum penalties of $5,000 for individuals and $10,000 for corporations.

If you are a foreign seller of Airbnb properties, you may be required to pay the Underused Housing Tax. The tax applies to foreign real estate owners who do not reside in or rent out their properties. However, if your property has been occupied for at least 180 days in a year, you may be exempt from this tax.

It is also worth noting that detached residential homes with more than 3 self-contained “dwelling units” are automatically exempt from the Underused Housing Tax. Furthermore, if a detached home has at least 4 separate rentable dwelling units with private kitchen, bath, and living areas, it is exempt from the tax even if the rentals are less than one month at a time. However, this exemption only applies to detached homes and not to semi-detached homes, townhouses, or condos.

In summary, as a foreign seller, you need to consider the Underused Housing Tax when selling an underused or vacant property in Canada. If you are unsure whether this tax applies to your property, it is recommended that you seek professional advice from a tax specialist or lawyer.

As the real estate industry continues to grow and become increasingly competitive, standing out from the crowd requires a great deal of effort and hard work. Greater Calgary Real Estate recognizes the top-performing real estate agents every month, highlighting their exceptional skills and outstanding results. In this blog post, we take a closer look at the achievements and tactics of the top real estate agents in March 2023.

Building Strong Client Relationships: The top real estate agents prioritize building strong relationships with their clients. By investing time in understanding their clients' needs, preferences, and goals, they tailor their services accordingly. This approach has been key to their success in March 2023.

Effective Communication: Communication is a vital aspect of any successful real estate transaction. The top agents make sure to keep their clients informed at every step of the process and maintain open lines of communication to address any concerns or questions promptly. Clear and concise communication is crucial to ensuring a successful outcome for their clients.

Market Knowledge and Expertise: The top agents in March 2023 have a deep understanding of the real estate market, including local trends, pricing, and inventory. They leverage their knowledge to offer their clients strategic advice on buying and selling decisions. Their expertise enables them to provide valuable insights and guidance to their clients throughout the transaction.

Proven Track Record: The top agents have a proven track record of delivering exceptional results for their clients. Their reputation as experts in their field has earned them repeat business and referrals from satisfied clients. Their success in March 2023 is a testament to their commitment to excellence and dedication to their clients.

Adaptability and Flexibility: Real estate transactions can be unpredictable, and the top agents in March 2023 are well-prepared to handle any challenges that may arise. They are flexible and adaptable, ready to pivot their strategies as needed to achieve their clients' goals. Their ability to adjust and adapt has contributed significantly to their success in the industry.

Achieving success as a real estate agent requires a combination of skills, knowledge, and dedication. By learning from the strategies and tactics of the top agents in March 2023, aspiring real estate professionals can gain valuable insights into what it takes to excel in this competitive industry.