Calgary Real Estate News - An Unbiased look at 2007

Calgary Homes Plummet $20,000 in 1 Month!

Real Estate in Calgary is booming!

Every time you open the newspaper or listen to the 6:00 news- you hear about how expensive Calgary Real Estate is getting- currently the median house is over $505,000.

In my opinion, the worst thing you can do as a buyer or seller, is get caught up in the media hype. While many of the statistics are right, the way they are presented can be very misleading.

I hear the same questions all the time- "is it a good time to sell, or buy, is the market going to crash or is it plateauing"?

So I make it a priority to my clients that they are well informed before buying or selling in this crazy Calgary market. I have worked in the Calgary Real Estate sector for the past 5 years in many different capacities (including and investor) , so I understand the market from more than what can be found on MLS.

I started my career as a Tax Assessor, then into Urban Development (planning at the City of Calgary). In the meantime I started investing in Real Estate, and decided I wanted to understanding the financing aspect- so I worked at a Fortune 500 company as an Investment Analyst for Commercial Real Estate.

I have learned why some buyers are successful, while others ride the roller coaster of boom-bust cycles-> jumping from one get rich quick market to the next, only to find out they where 6 months too late and end up having to start all over.

To have a successful transaction, first and foremost, you need to understand the fundamentals of Real Estate- why prices go up/down and why. It really comes down to Supply and Demand, and which factors will have the greatest impact.

Factors like the Bank of Canada raising interest rates, increased GDP in Canada (specifically Alberta), low unemployment, oil and natural gas production and current prices, all have an effect on Calgary real estate. Then you start looking at Annual house income vs. median prices of houses, average rents (compared to the average price of a house).

Understanding where in a market cycle a city or town is will give you a good idea as to what your strategy should be (flipping fast vs. long holds).

My own opinion (Calgary, as of August 2007), the demand for houses is remaining high, so I see no reason why prices should dip or fall. Yet, with so many houses on the market (supply is high); I feel that it is as good a time to buy as any. As you know anything can happen and nothing is certain.

Look around at all the new construction downtown. Do you really believe these multi-billion dollar firms are building huge office towers because they think the market is going to crash? No, they have done their homework and understand that the fundamentals are strong, meaning little corrections here and there are not going to make or break the market.

But when the media gets a hold of some juicy statistics (the only way papers sell if these stats are alarming) - you will see the masses react exactly how the Calgary Herald or Sun intended. Then, next week, on page 18, they will talk about the old stats as preliminary, and "due to change in the way CREB is reporting average sale prices.....” You get the picture, real investors don't let one article change their minds or determine how they are going to invest.

The majority of my clients are Investors, as I understand their needs the most:

My business comes to me by Referral and word of mouth. I don't spend thousands of $$$ to advertise on bus stops, or send out direct mail- I focus on delivering the best service I can to my exclusive clients with zero risk. I only work with 2 clients at a time.

I focus my energy on earning your trust. I spend the time researching the market you are looking to buy in and then explaining everything to you. So if you are looking to start investing, fill out the form below and let me know what type of investment property you're after. If you are looking for an experienced Realtor who has a private list of sellers (if your looking to buy) and buyers (if you need to sell quickly, give me a call at (403) 214-1884 or contact me by filling out the form above.

I focus on Helping you achive your goals. The best way to do that is first find out what your goals are and then build a strategy on how we can arrive there. There is always more than 1 way to get to a specific place- and I make sure you have all your options first before making a final decsion.

Thank you,

Shane Melanson

P.S Because I sell houses so quickly, I only work with 2 clients at a time.

If you are looking to buy or sell in Calgary make sure you have all the facts. Don't rush into a purchase or sale. Take your time and get some educated opinions.

I don't proclaim to know it all, that's why I'm always talking to people involved and in the know in Calgary. If you have questions, please give me a call. I find that a 3-5 minute conversation can sometimes save you thousands of dollars.

Call my office at (403) 214-1884 or fill out the form above and we can discuss how I can help you.