Year to date sales increase over 2016
Sales improved in all property categories in December, bringing the total number of sales for 2017 to 18,882, which is a 6.1% improvement over 2016's 17,796 total sales. It is definitely nice to see more buyers entering the real estate game, and getting off the sidelines. Despite the improved sales, benchmark prices have been dampened by an almost equal increase in new listings. 2017 saw 34,130 new listings come to market; amounting to a 5.77% increase in listings (32,269 total new listings in 2016).
Not all is equal when it comes to price changes
The detached and attached segments of the market remained relatively flat year over year, with a modest 0.63% gain in the benchmark price for a detached home, and a meagre 0.13% decrease in the benchmark price for attached homes. Apartments, however, were a different story, suffering a 3.97% drop in the benchmark price. Much of the blame for the decrease can be assigned to the elevated inventory in the apartment segment. As of the end of December, we had 1602 apartments on the market, representing a whopping 6.7 months of supply (remember that the Calgary Real Estate Board identifies 3 months of supply as a 'balanced market'; and anything over 3 months of supply delves further and further into a buyers market). This also means that our current apartment inventory is sitting 8.12% above December 2016.
Calgary property assessments to be mailed out
Most homeowners are aware that January means a new city assessment is coming in the mail for your home. And the media has been reporting a 2% increase to home values - wooo hoo!! Right?!
Let's not forget how, and why the city does an assessment every year. The assessments are completed by a process called 'mass appraisal'. This means homes are assessed in large groups, and for the most part, nobody has given your specific property a close, personal look. The assessments are based on the real estate market conditions as of July 1 2017, and the physical condition of your home as of December 31, 2017. Real estate markets change almost daily, so taking an estimated value, based on the Calgary market in July, and calling it your 'current' market value in January of the NEXT year... well, that would just be silly!
The why part is important as well - it's to determine your share of the tax burden. For the purposes of taxes, it is important to determine assessed values, and create a hierarchy in the Calgary real estate world. I mean, it's only fair that the owner of the $18 million home in Pump Hill pays more in taxes, than the owner of the $142,000 apartment in Bridlewood, right?!
So what is the market value of my Calgary home?
Well, that depends! But what I can tell you, is that it is important to base the value of your home on SOLD data, and not all of the dreamy asking prices that you see online, and in the newspaper and flyers. If I listed my own home at $1 million, which I can tell you it surely isn't worth, it does not change the value of my home, nor the value of my neighbours home! So try not to get caught up in the "Well, Peter down the street has his listed for $xxx,xxx, so mine must be worth $xxx,xxx" talk. The only way to determine market value is by comparing recently sold homes to yours!
If you are curious about the realistic current market value of your home, click here to fill out our Market Analysis form, and I would be happy to provide a detailed analysis. Once you can see the prices at which your neighbours home actually sold for, you can get a better grasp of your own market value.
If you aren't ready for a full Market Analysis on your home, but want to know what your neighbours homes are selling for - CONTACT US and we would be happy to send you the data you are interested in!
Ok, so what is the assessed value of my Calgary home?
The City of Calgary will be mailing out assessment notices in the coming days, so you will likely have it in your mail next week. But, if you are curious and can't wait to view your 2018 city assessment....!!! Then go to the City of Calgary Property Assessment website, where you can view the new assessed value of your home. Click https://assessmentsearch.calgary.ca/externallogin.aspx to view the assessed value of your home. If you have an account, you can login to see more info regarding your assessment as well as other homes, or you can create an account if you don't have one already (you'll require the roll number from last years assessment). But don't fret - you can view your assessed value for free, with no account necessary.
As always, if you have any questions, would like a no obligation Market Analysis for your home, or would like to start the buying process, please CONTACT US. You can also contact Richard directly via email at firstname.lastname@example.org or by phone (call or text) at 403-815-0114.