Technology and social media-obsessed society bombards us with content. Just because something is popular doesn't mean it's accurate. The source of our information is more important than ever. Does the website's creator have a specific reason for posting certain content? In what way does this website serve its purpose?

This is one of the biggest questions that is raised as we watch the battle unfold among tech companies to eat up US home stock and dominate the increasingly competitive high-tech house-flipping sector, sometimes known as the fast-growing "iBuyer" industry.

Zillow were among the first high-tech middlemen to enter the housing market a few years ago.

Armed with cash and seeking to benefit off the bedrock of American middle-class prosperity, “iBuyers” hunt for well-maintained mid-level properties, offer to buy them for cash, and then quickly resell it after a few minor repairs, likely at a higher price. In exchange, they charge the seller a fee that fluctuates depending on a variety of factors. During a recent earnings call, Zillow announced similar ambitious plans. So what’s it like to use Zillow?

You can "click" to be contacted by an agent if you look for properties on Zillow and find one you like. There are two options for doing so. The first is to choose a listing agent. These listing agents have previously signed a confidentiality and fiduciary agreement with the seller, outlining his obligations to that seller. To put it another way, he can't legally offer you any information that isn't in the seller's best interests, and this Realtor is usually barely up to speed on the specifics of the listing, and often the area or niche of that certain type of property.

Furthermore, Zillow's data is notoriously erroneous, and it frequently updates improperly (with price and property status changes, for example). It may occasionally display properties that appear to be for sale but are not. In most cases, it also won't show "coming soon" listings. So unless you're working with a (good) agent you've chosen based on your personal needs and style, you're not likely to see all of your possibilities.

What does Zillow mean for the average consumer?

Despite a huge database of fragmented, misleading information, it is becoming incredibly popular. When our team looked into Zillow this year, we heard several horror stories, one about a woman who put her listing on line and was repetitively pestered by Realtors for hours on end by agents who “bought” her lead. The number of deals that went wrong due to misinformation, poorly formatted contracts and other glitchy technical problems doesn’t seem to be dissuading clients who notice the possible opportunity to save a tiny fraction on their fees:

Starting off the year with a purchase of 3,800 properties in the second quarter, Zillow is planning to scale massively through the remainder of 2021, estimating that its Homes segment would generate $1.4-1.5 billion in revenue next quarter, about double what it did this quarter. One has to wonder if Zillow is pushing for this rapid expansion at the expense of user experience, and what this means for a fair playing field for smaller, private investors, families and first-time home buyers who are continuously getting priced out of their cities.

Allen Parker has claimed that "Zillow has been selling homes at a 13 percent premium to what it paid for them in the past," a figure that the corporation intends to fall over time. In July, the News & Observer reported that OpenDoor, a competitor, had risen to become the top buyer of single-family homes in Wake County, North Carolina, and that it resold them for an average of $14,000 more than it paid.

What does Zillow mean for Canadians?

The Federal Trade Commission, at least in one case, appears to have had its interest piqued by some of these companies. "Opendoor's advertising claims relating to the amount of its offers, the repair costs charged to home sellers, and the amount of net proceeds a seller may receive from selling to Opendoor versus selling in the traditional manner" were "inaccurate and/or inadequately subscribable," according to an SEC filing from February. With Zillow expanding into Canada, we can expect similar controversy as customers experience similar issues.

Every day in the news we hear more and more about ways technology, AI and machine learning is changing the way people do business, the way people do sales and make deals. We don’t know how the market will look next decade, but at the moment, not only are these systems are in their infancy, but the user experience is riddled with errors, questionable fine print and elusive at best customer service.

We still recommend going with a seasoned Realtor who knows their neighborhood with a good reputation and a strong network. They can save you money, make the transaction go much more smoothly, and have a great deal more intrinsic knowledge of if a neighborhood will work for your family than a half baked computer algorithm.

Interested in learning about some of the modern marketing strategies Realtors use to stay competitive in today's market? Check out this aerial tour we did of an inner city property in the Northwest!

This Bridgeland lot truely stands out among many houses for sale in calgary. Canada's market is still hot, check out what all the buzz is about!

This week in Calgary as the smoke cleared and we finally got some nice clear skies, we were very lucky to check out a unique and special lot in Bridgeland-Riverside that presents a variety of possible opportunities – Holding, rental or redevelopment; many different types of clients would be interested in such a unique location in a vibrant area. The existing home on this lot has 3 beds, two 3-piece baths and a lot of character unique to the original 1912 build. Canada has changed a lot, and so has it's real estate market, since this original home was built, the contrast truely reveals the big changes that are happening in some of these amazing inner city neighborhoods!

This neighborhood has all the makings of one of the most walkable, livable neighborhoods in all of Calgary, and investors are truely beginning to notice!

Bridgeland-Riverside is known for its walkability, convenient neighbourhood amenities, and accessibility to downtown. What we found when we came to check out this location was that the neighborhood has a growing community character: fun, welcoming, historical, community-minded, eclectic, and eccentric are just a few of the adjectives that come to mind when describing this place.

With new developments, parks and infills forming what appears to be the beginning of a nice high street area both along 4th street, Edmonton Trail and in the surrounding area by Murdoch Park, it’s only a matter of time until Bridgeland becomes it’s fully realized inner city community. Bridgeland is gradually becoming one of the coolest areas in town, with award-winning restaurants such as Diner Deluxe.

New developments will offer further choices for shopping and dining, there’s already lots to chose from just a few blocks to the northwest along Edmonton Trail.

After taking a quick browse through inner city Calgary MLS listings, our Realtor friends agree that action is picking up in this area. An opportunity to develop in such a prime inner city lot is rare!

Close enough to the urban core, but far enough out to provide some privacy. Not everyone wants to live in the busiest part of the Core, but many do want to be close to work. Bridgeland has the best of both worlds: it's close enough to be convenient, but far enough away to have its own identity.

The location is close to Princess Island, Rotary Park, and Centenary Park, and is only minutes away from the Bow River's trails. Excellent spots for an evening run or an afternoon picnic; the option is yours.

Thinking of selling soon? Check out my good friend and colleauge Patrick Hospes' recent blog post on how to spruce up your property prior to selling!

Since 2002, Ron Garneau has had the pleasure of helping countless clients in the Calgary area. Contact Ron today for a free home evaluation or with any questions about your next move!

Here was a fun aerial video we did for an inner-city property just north of 16^th Avenue, Calgary!

It can be challenging finding great deals on Inner City properties, but if you know your fast paced and busy lifestyle would be complemented by such a change, I would encourage you to get in touch with us and see what kind of properties within your budget might be a perfect match!

Capitol Hill: Calgary Inner City Living close to every amenity imaginable!

The property we had a look at in our video today features this great vibrant area of the city. Residents of this part of the Northwest rave about how many great options or venues are local without even having to drive into Downtown Calgary for the evening! Football, the Jubilee Auditorium, golf, various dining options along 16^th, if you are looking at the particular price point of this area your family will hugely benefit from the proximity to some of the city’s main features, particularly if you kids will be attending one of many post secondary institutions in Calgary’s Northwest.

Tuxedo: Calgary Inner City living with Charm

We really love Tuxedo for its relative affordability, charming character, accessibility, and practicality. Send your kids to school on the reliable 301 BRT; Drive walk or bike to a variety of boutique shops on Edmonton trail, and escape to the mountains with easy access to Deerfoot Trail just to the east. Homes have great canopies, and the area isn’t as gentrified as areas like Marda Loop so this makes Tuxedo and some of it’s surrounding neighborhoods a serious hidden gem within Calgary.

It’s also far enough away from SAIT that the demand for student housing and some of the associated noise and activity are somewhat lessened.

Lakeview: A Hidden Gem, still quite Central to Downtown Calgary

Who would have thought that Lakeview would one day be considered inner city! Stay tuned for my upcoming writeup on the Lakeview community and all the reasons why it’s such a great place to call home in Calgary. Lakeview offers giant lots, generously sized bungalows, both in Lakeview Village and the rest of the community. It’s a 10 minute drive from Downtown, but also has access to many neighboring amenities and feels quite secluded from the rest of the city due to natural barriers. A great choice for those looking to stay central but want to feel a bit more secluded!

 “Over the past several months, we have seen housing market conditions trend toward more balanced conditions,” 

Ann-Marie Lurie, CREB® Chief Economist

“This eased some of the upward pressure on prices, as prices are starting to stabilize following steep gains that occurred in the first half of the year.”

July sales were 2,319 units, far above long-term averages and setting a new high for the month.

The rate of sales growth has slowed in recent months, but the rate of new listings growth has also slowed.

This has helped to keep monthly inventory growth to a minimum, and while overall supply is marginally higher than last July, it is primarily due to increases in apartment and row product.

In July, there were 6,678 units in inventory, bringing the months of supply to just under three months.

As a result of these improvements, there is significantly more equilibrium between sellers and buyers.

However, months of supply varied significantly by product type, ranging from two months in the detached sector to over six months in the apartment condominium sector.

The city's benchmark price was $460,100, slightly higher than last month and about 10% higher than last July.

The detached sector has seen the most price gain, with prices now sitting 11% higher than last year and finally recovering from earlier highs in 2014.

Detatched Homes in Calgary 

Both sales and new listings decreased from the previous month, although remained higher than the previous year. Although sales are currently at record levels, the sales-to-new-listings ratio remained reasonably high at 78 percent in July, with only 1,822 new listings coming onto the market.

Slower sales compared to inventory levels resulted in an increase in months of supply. With only a little more than two months' worth of food, things are still tight. This is, nevertheless, an improvement over the previous five months. Activity varies by price category as well, with properties priced below $500,000 still experiencing tight market conditions with less than two months' supply.

This month's prices continued to rise in comparison to last month's. Prices are 11% higher than last year's levels, with a city-wide benchmark price of $539,900. Prices have risen in every district, however only the City Centre has prices that are lower than the 2014 peak.

Calgary Semi-Detached Homes

While sales activity in some districts has dropped this year compared to last, overall year-to-date numbers remain at historic highs. While new listings are higher than last year, they have been trending lower in contrast to last month, resulting in a small monthly inventory decline. After 209 sales and 577 units in inventory, the months of supply grew to over three months. This is still lower than last year's levels, but it's a far cry from the suffocating circumstances that plagued the first half of the year.

Benchmark prices have continued to climb over the previous month, but at a slower rate than other property categories. Nonetheless, levels are about 10% higher than last year and have recovered from earlier highs, with a benchmark price of $428,400 in July. While prices have risen in most districts, they have not yet entirely recovered from prior highs in the City Centre, North East, South, and East districts on a year-to-date basis.

Calgary Row Houses

Year-to-date sales have reached new highs after 351 transactions this month. While the rate of sales increase is reducing compared to earlier this year, the rate of new listings entering the market is also slowing, preventing any further monthly inventory gains.

With inventory levels over 1,000 units and somewhat fewer sales this month compared to the previous month, the months of supply have surpassed three months. While the levels are lower than last year, the more options is moderating the monthly price increase. However, prices are approximately 11% higher than they were in July of last year.

Prices have risen in every area compared to last year, with hikes ranging from 6% in the northwest to 20% in the east. Despite the gains, prices are still significantly below their previous highs.

Condominiums

Inventory levels decreased over the previous month due to fewer new listings, but they remain quite high with 1,918 units available. While sales are down from last month, they are still significantly stronger than any July in the previous six years. The greater stocks compared to sales did, however, contribute to the monthly increase in months of supply, which now stands at little under six months.

Depending on the district, more supply options are having an impact on costs. While most districts' prices have stalled or declined marginally since last month, the south and southeast areas have seen significant gains. While prices are higher than they were in July, they are still far from recovering.

Southern Alberta Real Estate Info

Airdrie

Year-to-date sales of 1,510 units were set after another record month. Airdrie sales are just shy of the yearly record high of 1,695 achieved in 2014. With only seven months of data, Airdrie sales are just shy of the annual record high of 1,695 set in 2014. Some of the factors contributing to the spike in demand are relative affordability and flexible work arrangements. At the same time, the market's supply cannot keep up. Southern Alberta's inventories continued to fall in comparison to previous months and last year.

Sales were strong, and inventories were low, keeping the months of supply barely above one month. The market circumstances of persistent sellers resulted in further price rises. The detached sector continues to see the most price growth, with benchmark prices reaching $435,300 in July, about 1% higher than last month and 15% higher than July 2020 levels.

Cochrane

July sales were rather good, contributing to the year's record-breaking pace. With less than two months' supply, conditions continue to favour the seller, but there was modest inventory growth in July. Inventory levels increased this month, thanks to an increase in new listings relative to sales. Despite minor supply increases, total inventory levels are still among the lowest seen in July since 2007.

Prices in the area are still being influenced by persistently tight conditions. The most significant improvements were in the detached sector, where benchmark prices surpassed $500,000 in July, up over 2% from the previous month and up 17% from last July.

Okotoks

While sales improved in July compared to last year, they had been going downward compared to earlier in the year. This is mainly due to further supply decreases. In July, 73 new listings were added to the market, keeping the sales-to-new-listings ratio at 96 percent and bringing supply down to 109 units. The market continues to favour the seller, with inventories at their lowest level since 2006 and less than two months' supply.

Prices are still being influenced by persistently tight market circumstances, as they are in other industries. The separate sector's price rise is mostly to blame. In July, detached home prices hit $511,800, about 1% higher than the previous month and more than 13% more than the previous year.

Source: CREB Media Release

Pricing trends in Homes for sale in Calgary Canada - July

Calgary is a dynamic and active city with a young and successful economy, making it a happy place to call home. It began as a modest police station in 1882 before gaining its current renown. The city was not established until 1893, after which it saw tremendous expansion. This was especially true in the 1970s, when it became a transportation centre for energy resources such as Canadian oil. Because of the increasing economy and rapid expansion, over 85 percent of Canadian energy firms have set up shop here.

About 55 percent of homes in Calgary are single detached homes, with the remainder consisting primarily of modest apartment buildings and townhouses. The majority of the homes in this city have four or more bedrooms and three bedrooms. About 70% of the city's units are occupied by homeowners, while 30% are rented. Approximately one-third of the dwellings in this city were built after the year 2000, with the majority of the remaining structures dating from the 1960s and 1980s.

When compared to the active listings reported on the last day of the month, 42.1 percent of all MLS® listings in the City of Calgary were sold in June 2021. (Excluding expired and terminated listings throughout the month). It also implies that nearly 57.9% of homeowners were unable to sell their homes, and their listings either expired or were canceled at the seller's choice. Homeowners were able to sell their houses with a 14.8 percent lower success rate in 2020, with roughly 27.4 percent of all listings in Calgary that were up for sale being sold.

For strategies and ideas in how to navigate today's real estate market, contact Ron Garneau for a free Home Evaluation or Buyer's Consultation.

Average Housing Prices in Calgary

In June 2021, the average price of a house in Calgary was $499,111. It is currently 7.3 percent more expensive than it was in the same month of 2020, when the aggregate price of single-family, condos, and attached homes was $460,099.

Stay tuned for tomorrow's blog post: We will take a deeper dive into last month's data and consider what options various types of clients should consider taking in Calgary's market.

Many townhouses, detached homes, and luxury properties are posted around the city every single day and being able to see them all in one spot makes it feel simple to figure out what you like and can afford. If you're ready to take a break from online searching and explore properties in person over the weekend, visiting open houses in Calgary through Zillow is becoming a popular option for prospective home buyers, but what are some of the things you need to know first?

What’s the catch with Zillow?

It's simple to understand why over 95% of house buyers turn to the internet when they're ready to start looking for their ideal home. Buyers may browse townhouses, single-family homes, condominiums, and luxury real estate all around Calgary from their computer or phone. It's simple to get a decent sense of which houses one would like to view in person with images to browse through and data such as year constructed, price, square footage, and the number of bathrooms clearly mentioned.

Many of these new services offer shortcuts around the traditional practice of using a realtor for the home buying process. Many people think they can maneuver the mountain of paperwork, hurdles, legalities, and challenges that a realtor will take care of for you, and a qualified real estate agent removes these challenges altogether.

We have seen a lot of clients who have reverted to using our services after trying to privately buy or sell a home.

Average Real Estate Prices in Calgary

In June 2021, the average price of a house in Calgary was $499,111. It is currently 7.3 percent more expensive than it was in the same month of 2020, when the aggregate price of single-family, condos, and attached homes was $460,099. Having an expert at hand who can help assess market factors and trends often pays for itself. Zillow and alternatives to the traditional real estate approach are great tools for browsing, but we highly recommend choosing an experienced realtor when it comes time to make a move.

How Long Does It Take to Sell a House in Calgary?

In June 2021, the average number of days a property was on the market was 34. The typical MLS® listing in Calgary sold in 55 days in the same month of 2020. This number represents all listings on the Calgary MLS® System, including condominiums, apartments, townhouses, and single-family and attached homes located within the city borders of Calgary. What we have found over the years is that private sellers often struggle with marketing, showings, and the overall selling process. Realtors constantly achieve faster sell times than private sellers.

Number of Homes Sold in Calgary

In Calgary, there were 2,915 houses sold in the previous month. When compared to May's statistics of 2,989 sold units, or a 2.5 percent drop, it reflects a seasonal pattern. The number of sold units grew by 65.3 percent on a year-over-year basis.

Not only does using a realtor equip you with a variety of strategies, marketing, and information to make sure your transaction is fast and efficient, but many of these newer websites that seemingly offer efficient and trustworthy private sales can carry a substantial amount of risk.

Find out why countless clients continue to trust Ron Garneau; serving Calgary and surrounding area for over 20 years.