Welcome to First Place Realty 650-2514 Sign in | Help
Risen from the dead LOL

It's been fun skiing for the last four months and this past winter I had a great time blogging about it. There's still good snow out there, but I'm getting too busy with real estate work to do much spring skiing. Despite being left for dead by the other blogs(how many times is it now?), like the robins, every spring you can count on DailyStats.ca to return. Unlike the birds, we'll stir up a little controversy.

When I embarked on my annual 1000K cross-country journey it looked like the end of the world was coming. Sales in November were down 39%. Not to be outdone, sales in January were down an astonishing 49%. The median price of an average house has dropped 12% since last year at this time. The flip side of that coin is that many people have been priced back into the market. Interest rates are the lowest they've ever been. An acquaintance who has a prime -1.01% mortgage has an interest rate of 1.49%. One point four-nine percent!! Amazing.

We're always full of new and creative ideas in order to help our clients achieve their goals. Last October, I gave bloggers an opportunity to weigh in and show their expertise at pricing a property and determining how long it would take to sell. As you know by know, the property sold quickly at a good price in the worst market conditions we have seen in the last 25 years. Side by side duplex is sold. There were a lot of interesting predictions, some amazingly bad and some almost dead on.  I'd like to offer this opportunity to any sellers out there who would like to take advantage of the fantastic exposure this blog can give you. If you have a house to sell, and are brave enough to hear what everyone thinks your house is worth, give me a call 403-650-2514 or send me an email bobtruman@shaw.ca

I'm serving notice, there will be no more Mr. Nice Guy this year. If you send me a comment which does not pass the approval committee's standards, it won't be posted. There is another blog where you can post your insults, vulgarity, and criticism of realtors. Wink Don't waste your time trying to get it published here.

Are you as surprised as I am that prices have stabilized? Is it just a temporary blip on the downward slide? Have we hit bottom? Where are we headed? I hope someone can tell me, because I sure don't know. Did anyone build a bunker and stock up on canned food? Predictions are welcome.

It's great to be back!Big Smile

Posted: Saturday, March 14, 2009 6:17 PM by Bob Truman

Comments

Bob Truman said:

With reference to my "What's New" entry of March 5 regarding absorption rates, erroneous information has been posted on this other blog Alberta Real Estate Watch, moderated by Bearclaw. He states "The problem with the above metric is it uses the listed price of inventory and the sales price of homes that have actually sold." That is incorrect.

The absorption rate is based only on list prices, just as it clearly states on the Table. If sales prices were used, the absorption rate would be lower.

For example, for homes priced under $400,000, there is inventory of 1712. In the past thirty days, 565 sales on homes listed below $400,000 gives you an absorption rate of 3.0.

Using sales prices for homes SOLD under $400,000, there were 606 homes sold for under $400,000 giving you an absorption rate of 2.8.(Again, the inventory is still 1712)

I know, it's mind boggling and it's easy to see why mistakes are made.

# March 14, 2009 6:21 PM

Denver-Calgary said:

What is your take on today's article from the Globe and Mail, entitled "Canada's dirty subprime secret"?

http://business.theglobeandmail.com/servlet/story/RTGAM.20090313.wsubprime14/BNStory/Business/home

Here's a rebuttal to that story:
There's no secret subprime mortgage problem in Canada

# March 14, 2009 7:59 PM

JackyJeff said:

Denver-Calgary said:  

What is your take on today's article from the Globe and Mail, entitled "Canada's dirty subprime secret"?

It's propaganda to scare nobrain people, don't waste time reading it.

# March 16, 2009 9:42 PM

Bob Truman said:

Canadian banks are turning down some of the funding that the government is making available to them, a sign that they are recuperating from the financial crisis. The banks have stopped selling the government the full amount of mortgages they could under Ottawa's $125-billion mortgage purchase program, the centrepiece of the federal government's plan to help the industry. "We actually don't need a lot of funding right now," a senior banker at one of the big five banks said yesterday. "All of the Canadian banks are pretty flush right now with cash. Read more in the Globe & Mail Canadian banks begin to decline federal aid in first sign of recovery

# March 17, 2009 7:40 AM

Vinny said:

I sure hope the Canadian banks don't need any more money. They have all already raised close to a billion dollars each in new debt and share issues in the last couple of months.

# March 18, 2009 2:07 PM
Leave a Comment

(required)

(required)

(optional)

(required)

Comment Notification

Subscribe to this post's comments using RSS