Local Real Estate Market and COVID-19

The world will never get back to normal.  The COVID-19 pandemic has had an effect on everyone worldwide.  The Town of Vulcan and County of Vulcan are no different.  I receive plenty of questions about how our real estate market is doing through all of this.  Well, as real estate associates, we have made a few changes.  Not all selling clients want people going through their homes these days.  That is understandable.  Sellers do not have to let people in.  It is as simple as that.  Some people are taking their properties off of the market because of this, and will try again once this has passed.  Not all buyers want to go through someone else's house either.  We just do not know where people have been.  There are documents for people to sign to state that they are healthy and have not travelled anywhere lately, but that is not always enough to make people feel safe.  I have found that the vacant properties are getting more attention than occupied ones.  My office has about three or four deals on the go as of the time of this writing.  This is nice to see as this is usually the time of year when the market gains strength.  At Magnuson Realty Ltd., I am using FaceBook Live for virtual open houses, plus I record videos of properties to post on the MLS system.  These are things that I have been meaning to do for years, but just never did.  Now, I feel that it is a must.  People can view the properties from the safety of their own homes and decide from there if they want to see them in person.  We also have electronic signatures.  We do not have to meet face-to-face with our clients to sign contracts and make changes.  I have had this for several years now, and it saves time, fuel, makes the contracts much cleaner than faxes, and now apparently it is safe for us, as there is less physical interaction.  We have to adapt in order to keep relevant in this new world.  And there is more time for webinars to learn how to be better at what we do.  The goal here is to come out of this stronger than when it started.

A Look Ahead for 2020

The past few years have certainly seen their ups and downs in the local real estate market.  Last year, the whole province was on a downhill slide.  This year, so far, my office has not had many enquiries about the lake, but the ones that we have had, have lead to the sale of a cottage lot.  I am told that the lot beside it sold privately, and there was another cottage lot sale reported through the Calgary Real Estate Board.  In an area where we have not seen many, if any, cottage lots sell over the pasts couple of years, this is certainly a positive sign.  Plus, the indoor pool and hot tub are operational again!  That has added some excitement to the owners at the lake, as this has been a long time coming.  Positive signs!

Summer 2019 and the Start of Winter

It has been an interesting year at Lake McGregor Country Estates in 2019.  Owners who are not staying at the resort are getting their units winterized, if they have not already.  We have seen some sales at the resort, which is positive.  Park models on their own lot have been selling for as low as $81,000 and as high as $135,000.  Four of these sales were reported on the Calgary Real Estate Board, and I believe that there were a couple of private transactions as well.  There was a cottage that had been on the market for a few years that finally sold around the $250K to $260K mark.  A couple more sold, one almost $50K below list price.  The trend is that it is still a buyer's market.  Those sellers that are holding out for more money, may end up holding on to their properties longer than those willing to make a deal and move on.  On the maintenance end of things, the resort is looking well.  There is even work happening on the indoor pool!  That will be great when that is up and running again!  There has been a house moved on to an interior log.  I think that our recent wet weather has delayed the completion of the setting up of the house, but it is still nice to see progress. The Canada Day parade was a success again this year, and I hear that the kids were happy with Halloween in July.  Along with boat poker and a wake boarding competition, there was plenty going on at the lake.  We all are looking forward to an even better season next year!

First Day of Summer

Today is the official first day of summer.  The docks are in, the outdoor pool is operational, and people are enjoying life at the lake.  The market has seen a few properties trade hands, but the market is still much like previous years, it is weak.  Provincially, the residential real estate market is seeing a large amount of inventory with a small number of potential buyers shopping.  Commercial property owners in the cities are seeing their property taxes grow faster than they would like.  It is putting strain on those owners.  Recreational property owners in Vulcan County are expressing their concerns about their high tax bills.  There is a group of recreational property owners from Lake McGregor Country Estates, Little Bow Resort, and other areas that are trying to work with the County to help address the situation.  It will be interesting to see how everyone makes out.

Community Association Dues - 2019

Just a reminder that the community association dues for 2019 have increased to $175 per month, which is $2100 per year.  This is the second year of the two year planned increase. as discussed in the Fall 2018 AGM.  You can click on the title of this post and it will take you to the Lake McGregor Resort website for find out more information, including a list of properties currently on the market at the resort.

Supply vs Demand

We have been hearing more and more of this over the past several months - supply versus demand. There is a larger supply of inventory on the real estate market than there is demand. The result is that buyers can be more picky when they are shopping around and they can take their time to shop. There is not a lot of competition amongst the buyers. There is more amongst the sellers. DOM - Days on Market - is the time it takes for a property to sell. Even in larger centres such as Calgary and Airdrie, there average days on the market is larger than it used to be. In Vulcan, we are looking at an average of 134 days for a residential property to sell. Does it necessarily mean that these properties are no good, that they have "issues"? No. It may mean that there is just not much of a market for those properties right now (not many buyers). Of course there could be some properties that are just priced too high, or some that do have "issues", so that's where buyers and their agents need to do their homework in order to make an informed decision.

Summary of Sale for 2018

According to the records gathered by Magnuson Realty Ltd. from the SPIN 2 website, there were eleven real estate transactions at the lake this year. Cottage lots sold between $40,000 and $48,000. There were three cottage sales and five RV/RV lots sales. This is three more sales than in 2017, and the same number of sales as in 2016.

Hints for looking at properties in the winter

Looking for a property to buy in the winter can be a GOOD thing. There tends to be fewer other buyers out looking in the cold and snow, so there is less competition. Thus, here are a few hints that I have come across over the years when viewing houses in the winter months. First of all, wear good winter shoes/boots. If you plan on looking around outside, you are going to appreciate having a warm pair of winter boots on, especially if there is a lot of snow on the ground. Yes, sellers should have their sidewalks shovelled, but that does not always happen. Plus, you may want the freedom to look around the yard if something catches your eye, such as holes in fences or cracks in walls. Saying that, make sure that you have boots that you can slip on and off easily. If not, be ready to take the time to remove your shoes/boots when you go into the house. I had a person the other day tell me that he would just wipe off his boots as they were a pain to take off and on again. I told him that you are in someone else's house, so please remove your boots. He may have been a bit shocked that I told him to take off his boots, but he agreed and the showing continued. Tracking mud and snow into another person's house is not respectful. Imagine if it was your house. I have heard of several incidents when a seller came home to find mud tracked through their kitchen. This does not get things off on the right foot if an offer is presented and we need to negotiate. Now, if the sidewalks are clean of snow, that is a good sign that someone cares, or at least cares enough to have someone take care of the sidewalks. If you can see the roof, take note of the condition. Are the shingles curled? Is it a metal roof? If you cannot see the roof due to it being covered in snow, you will want to have an inspector check on the condition of the roof. Are there signs of pooled water/ice around the house? That could mean faulty eavestroughs, or no eavestroughs at all. Or perhaps the downspouts have been left up and were not put down when the snow started to melt. How big it the driveway? Is the sidewalk big? If it is a corner lot, does the sidewalk go around the corner too? That is good to note, because if you plan on buying the property, the snow will be your responsibility in the future. If you do not already have a snowblower, it may be a good idea to talk nice to Santa, especially if you will be having a large driveway and sidewalk to maintain in the winter. When inside, check for cold exterior walls - that could mean that the insulation has settled and may need to be upgraded. Are the windows clear, or are they frosted? If they are frosted and need to be replaced, you could use that in your negotiations. As always, I suggest a property inspection. As I have said before, property inspectors will find something wrong, as that is their job. It does not mean that it's a bad thing, as no house is perfect. However, an inspection will give you a better idea of what the future has instore for your potential future home.

Winding Down for the Season

There was another cottage sale that closed at the beginning of the month, and another one is scheduled to close next week. Plus, there are a couple of new cottages getting touched up before winter sets in. Nice to see there is still activity at the lake. For those already at the lake, it is time to get units winterized. For those who live out there year round, it is is business as usual, but for those who will not be out during the winter months, they need to get in contact with management in order to make arrangements to have the water shut off, and close things up. That being said, we DO live in Southern Alberta, so we may be snowed in during the winter, or we could have chinooks and have no snow at all! The clubhouse will be open during the winter, just changing to winter hours.

Mortgage Qualifier Tool - Canada.ca

Mortgage Qualifier Tool - Canada.ca

This information is provided by a separate website and should be used only as a tool for reference.  Please contact your local mortgage broker/lender for the most up-to-date information.

Looking a buyer a foreclosure property?

You see a foreclosure property on the market. Should you go for it? Perhaps you can get a deal on it. Before you take the plunge, here are a few things to consider. First of all, you are purchasing the property in "as is where is" condition. What does this mean? It means that the seller (usually the bank or mortgage company) does not warranty any information about the property. They have never lived there. Representatives of the bank may have never even seen the property in person. They do not usually know the history of the property, such as any leaks in the basement, structural issues, or whatever. When you look at purchasing a foreclosure property, you will be getting it in the same shape that you look at it. The seller is not going to fix it up for you. For example, the seller is not going to fix the roof, or repair a leaky faucet. This is why you should get a property inspection. At least this way, you will have an independent professional inspect the property and point out any defects that you may, or may not, have seen. Also, the seller will not be providing you a real property report. Remember those from a previous post? This is a survey of the lot, which shows the permanent structures and how they are situated in accordance to the property lines. If you are getting a mortgage to purchase a foreclosure property, you will be on the hook for getting a new RPR, as your lender will most likely want one. The risk is on the buyer, for pretty much everything. This may put some people off, but for others, purchasing a foreclosure property may end up being a great investment. If you get the property for a decent price, and can fix it up yourself (some people may leave the property in good condition, while others are usually leaving in not very good circumstances and may leave a mess and damage the property), you may have just made one of the best investments of your life. Just do your homework ahead of time. Do your due diligence during the buying process. Talk to the neighbours. Some may have some wild stories about the property (take them with a grain of salt!), while others may tell you that the previous owners took good care of the property, and just fell on hard times. Talk to the local municipality representatives, such as the town office, or city hall, to see if they have any history of the property. Talk to your real estate agent. Get as much history as possible about the property. Once you have done all that, then you should have enough ammunition to decide on whether the foreclosure property is right for you, or not.

Interesting Year

In a year where markets across the province are weaker than we have seen in recent years, the market at the resort seems to be holding its own. With three cottages sold in May/June, we are now seeing some cottage lots sell. Some of these lots have been on the market for a few years, but now there is interest. Plus, there are a couple of basements being set up for cottages to either be moved in, or be built on. It is nice to see activity at the resort, as it has been a while since we have seen this type of excitement in the local real estate market.

June 2018 Update

There are currently twelve properties listed for sale through the Calgary Real Estate Board at Lake McGregor Country Estates. One cottage, four cottage lots, and seven RV lots with units on them (either park model units or trailers). Over the past year, there have been eight sales reported through the board at the resort - three cottages, two cottage lots, and three park model units with lots.

Summary of May 2018

The start of the summer season is upon us at Lake McGregor Country Estates. As far as real estate goes, May was a busy month. Magnuson Realty Ltd. had three cottages listed during the month of May and all three have sold! One cottage was on the market for over one year, while another was on the market for several years. And the third cottage, well, it sold in less than one week of being listed. Could this mean that the recreational property market is finally turning around? Well, it's a start. Now we need to see if we can get some cottage lots sold, many of which have been on the market for at least one year, or more. I see that there are markings for what could possibly be a lot ready for a cottage to be moved on site. That would be nice to see. There are a couple of existing cottages that the owner are doing the final touches on out there. Outside of the real estate market, the boat docks are out and the grounds are looking nice and green! Much better than that white stuff that blanketed us not that long ago...

Local State of Emergency for Vulcan County

There is a state of emergency in place for Vulcan County. For more information, please visit the Vulcan County website at: www.vulcancounty.ab.ca. There has been overland flooding due to high amounts of snow melt and some roads have washout areas

Is it Spring yet?

April 16th, and Southern Alberta is getting hit with another snow storm today. This winter certainly seems to have drug on longer than average, and we certainly have had an above average snowfall. However, this means that we will have much more moisture to help our grass and trees get growing (whenever the winter decides to take a season off!). Like much of the real estate market in Alberta, perhaps Western Canada, the longer, colder, wetter winter has slowed an already weak market down. Yet, when the weather finally does start to warm up, I feel that the markets are going to get busy. Not 2006-2007 busy, but better. The reason being, people are sick and tired of being stuck indoors and will want to get out and do something. Soak in some sun! Get their boats in the water! Just be outside! In 2017, there were three less sales at Lake McGregor Country Estates than there were in 2016. Average roughly about 10 sales a year, including private sales and MLS sales. According to the Calgary Real Estate Board states, since January 1, 2016, there have been 9 sales reported at Lake McGregor Country Estates, and 5 sales at Little Bow Resort.

Lots of Snow

We have had lots of snow this winter, which means lots of green this spring! The moisture was a must, and we got it. As far as real estate activity goes, the interest has been minimal. With the weather due to warm up during the next month, we can expect some of the snow birds back, and people getting anxious to leave their igloos and look check out recreational property again. Here's looking forward to a busy spring!

Review of the 2017 Real Estate Market at the Lake

The following information was obtained from the Calgary Real Estate Board statistics, as well as through the Alberta Land Titles Registry. This is for information purposes only. In 2017, according to the Calgary Real Estate Board, there were five sales at Lake McGregor Country Estates - one cottage, two park model units on their own lot, and two cottage lot sales. The Alberta Land Titles Registry shows an addition RV lot with unit sold, as well as two more cottage lots. The highest priced cottage lot sold around the $45,000 mark, with the lowest priced lot selling around the $22,000 mark. It also looks like there was another cottage sold. Both cottages that sold this year were in the $265,000 to $270,000 mark. The positive thing to note from the sales this year is that one cottage sold that had been on the market for over five years, and one cottage lot sold that had been on the market for over five years too.

Fall 2017

As many owners at the resort have winterized their dwellings, things are slowing down at the resort. Mind you, with the last blast of chinook weather, there may be a few people coming out this weekend to enjoy some fresh air. The snow is almost all gone, and the lake has opened up again, as the ice melts. (Probably not good news for the ice fishermen) Sales activity at the lake continues to be weak, but that is expected for this time of the year.

Still Deals to be Made

Over the past month or so, there have been a couple of cottage lot sales. These are properties that have been on the market for years, one as long as seven years. It is nice to see them finally sell. The sale prices were much lower than what was asked for when they were first listed. Back then, the market had reached a high and was just starting to fall off. Hence, the sellers are disappointed as to the price point where they had to sell, but they are also relieved in that their lots finally sold. So now those sellers can move on, and we have new owners who are anxious to begin a new chapter of their lives at the lake!