Calgary Real Estate Blog | Christina in Petrotown

WANT TO TAKE STOCK IN THE BLOCK?

2012-01-24T10:20:00.000-08:00

Chip off The Block for 17th Ave. living
By Marty Hope
Calgary Herald January 23, 2012

It doesn’t look like much now — just a piece of snow-covered, weedy land wrapped in orange fencing.

Sitting a block off trendy 17th Avenue S.W. at 9A Street, and surrounded by apartment buildings, this land will soon host heavy equipment to begin development of The Block.

The 61-unit project is being undertaken by Avi Urban, the multi-family division of Homes by Avi.

“This is the biggest site left in the Lower Mount Royal area and it was just too good to pass up,” says president Charron Ungar of Avi Urban.

The Block will be a courtyard development consisting of 41 one-bedroom and nine two-bedroom flats.

It will also have 11 townhomes, with all the units facing into a central courtyard.

With construction scheduled to begin early this year, first occupancies could start in early 2013.

“I’ve lived in the area for about 20 years now and I’ve always wanted to do a contemporary residential development here — something suitable to the area; something with a Mount Royal look and feel,” says Ungar.

He also wants to build something that people want to live in and watch their families grow, rather than for investors to purchase and rent out. He estimates that 90 per cent of the residences will likely be owner occupied.

“I’ve chosen to build something that will be appreciated by people living there — a community within a community,” says Ungar.

Seeing as how the site is zoned for live/work residences, he expects a solid cross-section of buyers ranging from young professional singles and couples to more mature purchasers.

“I see them as active participants in the 17th Avenue lifestyle, not watchers,” he says. “They will be an integral part of the area’s makeup.”

The one-bedroom units measure 650 square feet and are priced from the mid-$200,000s.

The 850-square-foot two-bedroom residences are priced from the mid-$300,000s. The 1,200-square-foot townhouses are priced from the mid-$400,000s.

The show suite at 1022 17th Ave., which opened in November, is a mock-up of a typical one-bedroom suite in The Block.

The suite has its own patio looking into the courtyard. Inside, the dining area of the suite is finished with built-in cabinets and shelves.

At the living room, a pair of sliding doors open to the suite’s patio and the courtyard beyond.

The kitchen has custom tilt-up cabinets and the countertops are quartz.

An island, also with a quartz top, has a flush eating bar that seats three and holds the dishwasher. The appliances are stainless steel.

The bathroom has a quartz-topped vanity, tile floor and walk-in shower.

Past the kitchen, a barn door rolls open to show the bedroom with a walk-in closet and stacking washer and dryer.

The show suite is open from 2 to 8 p.m. Mondays through Thursdays, noon to 5 p.m. weekends and holidays, and Fridays by appointment by calling 403-536-7238.

WHAT YOU NEED TO KNOW

Project: The Block, which is a courtyard development consisting of 41 one-bedroom and nine two-bedroom flats, along with 11 townhomes.

Developer: Avi Urban, the multi-family division of Homes by Avi.

Location: 1715 9A Street S.W.

Prices: One-bedroom suites measuring 650 square feet are priced from the mid-$200,000s, while 850-square-foot two-bedroom suites start in the mid-$300,000s. The 1,200-square-foot townhomes are priced from the mid-$400,000s.

Directions: The construction site is at 1715 9A St. S.W. The show suite is at 1022 17th Ave. S.W.

Hours: The show suite is open from 2 to 8 p.m., Mondays through Thursdays, noon to 5 p.m. weekends and holidays, and Fridays by appointment by calling 403-536-7238.

GO UPTOWN IN STYLE

Located in the heart of the city in one of Calgary’s oldest communities, Uptown 17th Avenue is a neighbourhood where people come to live, work, dine, shop and to explore one of Canada’s most thriving cosmopolitan areas.

With its unique blend of state-of-the-art, fashionable shops, a sizzling array of eateries and entertainment venues, professional services and historic buildings, the avenue embodies both the charm of old-era small town and all the conveniences of a vibrant city.

There are more than 200 locally-owned and operated boutiques from 14th to Second Street.

For information, visit www.uptown17.ca

AWARD WINNER

Homes by Avi created Avi Urban in 2000.

From the beginning, the goal was to offer homeowners a higher degree of comfort and function through innovative townhome developments.

Avi Urban’s broad range of communities include a highly modern live/work development in the inner-city, multiple examples of street-orientated row housing in exclusive neighbourhoods, and large scale, multi-phase townhome developments.

Headed up by president Charron Ungar, Avi Urban has created notable projects in Calgary such as Victoria Cross in Currie Barracks, Olive in Bridgeland, Wentworth Pointe, and StoneWater at Lake Chaparral.

Named multi-family builder of the year in Calgary in 2008. Avi Urban has received numerous multi-family development and design awards.

SOME LIKE IT HOT!

2012-01-24T09:57:00.000-08:00

More mortgage rules planned if housing market gets too hot
Garry Marr
Financial Post Jan 23, 2012

A new round of mortgage rules from Ottawa could include tough new measures for calculating how the self-employed qualify for loans and tighten regulations for condominium buyers, according to two separate sources.

Ottawa remains concerned about the possibility of an inflated housing market and wants to crack down on the practice where consumers self-disclose what they make when applying for a loan. In the case of the condominium buyer, the government continues to consider a proposal that would have 100% of condo fees count when assessing how much debt a consumer could afford.

“None of this is happening just yet. The housing market has slowed down and the government wants to see what will happen next,” said one source. “If the spring market picks up, then we will see more changes to the rules.”

Bank of Canada Governor Mark Carney said Sunday that some parts of the Canadian real estate market are “probably overvalued” and policymakers are monitoring to see if further steps are needed to cool it.

“We see that in a number of real estate markets in Canada, valuations are at a minimum, firm; in others, they’re probably overvalued. So there are risks there. We’re watching it closely. We’re working with our partners, the federal government, the superintendent of financial institutions,” he said in an interview broadcast on Sunday on CTV.

” Measures have been taken. They’ve been effective. We’ll keep up that vigilance. If more needs to be done, I’m sure the appropriate authorities will take those measures.”

Stated-income products have become very popular during this housing boom, allowing more banks to get involved in loaning to the selfemployed.

“These are individuals that are self-employed, have great credit and won’t be able to validate their ability to pay if they are not showing their income on their notice of assessment,” said one source.

He says those people with stated income could have to make an even higher down payment than the normal 20% that exempts consumers from buying expensive mortgage default insurance.

The source said some self-employed are qualifying for loans based on the assumption they have a lot of write offs, like car payments and housing costs associated with home office costs.

“They get to include that based on the assumption that self-employed people have an advantage from a tax perspective,” said the source. “The government is trying to figure how they would present this.”

A source with one of the banks said the government is trying “zoom in” on marginal borrowers so it doesn’t get into a U.S. type of situation where they were not verifying income.

“What banks are doing usually when it comes with self-employment is not dealing with declared income because nobody believes it. What they do is look at their behaviour and put more weight on it,” said the source, referring to how those consumers handle their debt. “With an employer, you can call and verify their income.”

The labour market is roughly about 13% self-employed so new rules could have a major impact but the source indicated it does not mean those people would be shut out of the loan market. “It will be just more difficult for them. You are going to have to prove income in a more precise way,” he said.

The suggestion the government might crack down on condo buyers is not new, having been scrapped last year in favour of tougher new rules on amortization lengths and refinancings. Most people in the real estate sector now believe amortizations will be reduced to 25 years after having been as long as 40 just three years ago.

Brad Lamb, a Toronto real estate broker and condo developer, has heard the government is again considering including 100% of condo fees in calculating debt levels but doesn’t think it will happen.

“The 25 year amortization is a no brainer, they should do it,” said Mr. Lamb. “It’s not smart to have loose lending rules. But the condo market is hot because of investors not speculators. These investors are coming [from around the globe]. This silly [condo fee] change will do nothing. These people are buying with cash.”

Photo By: Todd Klassy

STEADY AS REAL ESTATE GOES!

2012-01-23T08:52:00.000-08:00

'Steady' as she goes forecast for resale
By Josh Skapin
Calgary Herald January 21, 2012

For resale house hunters, 2012 is lining up to be a year of stability.

That's the message from this week's annual forecast conference of the Calgary Real Estate Board.

"It's a nice, steady, relaxed atmosphere for buyers and sellers," says incoming president Bob Jablonski in his outlook for the coming year.

CREB's forecast includes an average sale price of $476,000 for resale homes this year, up 2.1 per cent from 2011.

It also predicts sales to reach 14,800, marking a 12.2-per-cent climb over 2010.

"Buyers have time to research and carefully consider their options without needing to be overly concerned about pricing changes," says Jablonski, a 25-year industry veteran.

Employment growth and migration are factors that are expected to help bolster the city's housing sector, says chief economist Ann-Marie Lurie of CREB.

"Calgary's job market has already recovered a lot of the jobs that were lost during the recession," she says, adding that much of the recent job creation is of the business professional variety.

"These are typically good paying jobs, which helps with growth in consumption and in housing."

Many of those who moved to Calgary for work, but lost their job during the economic downturn, left the city, says Lurie. However, people are once again moving to Calgary, she says.

"Those migrants are returning and forecasted levels remain strong relative to the long-term average," says Lurie. "Migrants coming to the city need a place to live and while their first choice is often rentals, in time, they will often move to ownership and cause a rise in demand for housing."

Going forward, Jablonski advised the realtors in attendance to listen, communicate and ask.

"Improve your skills and be the best you can be," he says.

"Build your relationships, your business and be the resource to your clients. There is always a market for wellpriced listings."

A TOAST WITH 7UP

2012-01-17T15:21:00.000-08:00

Calgary MLS sales in 2011 beat Canadian average
Up 7.0% from the previous year
By Mario Toneguzzi
Calgary Herald January 17, 2012

Calgary MLS sales in 2011 bested the Canadian average for year-over-year growth, according to the Canadian Real Estate Association.

In releasing its year-end data on Monday, the association said sales of 22,466 units last year were up 7.0 per cent from the previous year while in Canada sales grew by 2.2 per cent to 456,749 transactions.

Sales across Alberta jumped by 6.9 per cent to 53,146 units.

However, Calgary and Alberta were behind the national average when it came to the annual price hike.

Calgary and Alberta registered 1.0 per cent year-over-year gains in the average MLS sale price to $402,851 and $355,808 respectively.

The national average was a 7.2 per cent hike to $363,346.

"The momentum in sales activity provides clear evidence that low interest rates continue to draw homebuyers to the housing market," Gary Morse, CREA's president, said in a statement. "While buyers have become increasingly cautious, the hand-off for sales activity going into the New Year suggests that Canada's housing market will continue to benefit from low interest rates in 2012, and continue making a significant contribution to Canadian economic activity."

Momentum for national sales activity and average price remains positive but is slowing, which suggests that the continuation of low interest rates is not causing the Canadian housing market to overheat, said Gregory Klump, CREA's chief economist.

"High-end home sales seem unlikely to spike again in the first quarter like they did at the beginning of 2011, so national average price momentum may wane further over the next few months," he said. "With interest rates widely expected to remain low throughout 2012, home ownership will remain affordable, and continue to support home sales activity."

Douglas Porter, deputy chief economist with BMO Capital Markets, said the Canadian housing market showed distinct signs of moderation in late 2011, with even some of the hottest of the hot cities simmering down.

THE EV

2012-01-17T15:13:00.000-08:00

(Image: First by Fram+Slokker)

East Village residential sales centre opening April 1
Developments could break ground by this summer
By Mario Toneguzzi
Calgary Herald January 17, 2012

CALGARY — A sales and marketing centre for residential development in the East Village will open April 1.

Michael Brown, president and chief executive for Calgary Municipal Land Corporation, confirmed Tuesday that the 8,000-square-foot centre will educate interested Calgarians and future residents on the vision of East Village and will showcase the residential homes and product stylings of the area’s “pioneering” developer partners.

“This is the year when we grow up,” said Brown. “This is the year we focus on getting people engaged in the East Village.”

He said the first two residential condominium towers planned for the area could break ground by this summer.

Embassy Bosa is planning its 19-storey, 203-unit tower called FUSE.

Fram+Slokker is planning an 18-storey, 191-unit tower called FIRST.

The first residents are expected to move in by January 2014.

“Both of them in terms of both projects have a phasing approach they’re working toward. That phasing approach you could be looking at as far out as seven years in terms of complete phase build out. Our hope is, and I’m pretty optimistic, that they’ll achieve their sales to allow them to break ground this summer. So they’ll actually start on the construction of those projects,” said Brown.

To date, more than 7,000 people have registered their interest on the neighbourhood website to gain a sneek peek at the first residential offerings of East Village, said Brown.

“Now we’re at the point where we need to get the marketplace buying into it,” he said.

Combined, the two developers will eventually build 1,300 residential units in East Village. Bosa has plans for three towers. Fram+Slokker has plans for seven buildings.

At complete build out in a few years, the East Village neighbourhood will be home to about 11,500 residents.

Brown said recent research has indicated the area can accommodate up to 440,000 square feet of retail development and delivery of retail is the focus of attention for this year.

In the spring, CMLC will announce plans for the historic Simmons Building which has been around for 100 years and is 17,394 square feet. There will be four uses for the building including retail as well as food and beverage.

“Simmons is a jewel today and will be a jewel tomorrow,” said Brown.

Michael Kehoe, an Alberta-based retail specialist with Fairfield Commercial Real Estate Inc., said East Village will be an attractive area for retail development.

“The visible progress on the infrastructure side in the exciting transformation of the East Village into a densely-populated urban village is catching the eye of retailers and amenity-style service tenants eager to be part of the action,” he said. “The old saying that ‘retail follows the rooftops’ will certainly be the case in the East Village over the next three to five years. As the major condo towers are erected and populated, expect an armada of retail and food service brands and local business ventures to set up shop.”

This year promises to be a busy one for CMLC and the East Village development. It will complete Phase 3 of the RiverWalk project — the area of the promenade stretching behind Fort Calgary following the Bow River and Elbow River to 9th Avenue S.E. — about 400 metres in length.

CMLC will begin work on several of the neighbourhood’s urban parks, particularly 5th Street Square and Celebration Square.

The St. Patrick’s Island Bridge and island redevelopment program will begin this year and has been budgeted by CMLC at $45 million.

Construction of the new pedestrian/cyclist bridge to St. Patrick’s Island and Bridgeland will begin in March and the overall completion is scheduled for the fall of 2013.

(Image: Fuze by Embassy Bosa)

C/S = CONSEALED SALE OR CONDITIONALLY SOLD?

2012-01-12T13:49:00.000-08:00

Home sellers can now keep conditional sales under wraps
By Mario Toneguzzi
Calgary Herald January 11, 2012

There could be fewer conditionally sold stickers on for sale signs in Calgary's real estate market this year.

Not because of declining sales, though.

A new rule change implemented by the Calgary Real Estate Board gives the seller of a property the option of keeping the conditionally sold sticker off the sign when there is a conditional offer. As well, the seller has the option to not report the conditional sale through the MLS system.

"Before it was the real estate board's rule that once a property was conditionally sold you had to report it to the board and on the MLS system," said realtor Cody Battershill with Re/Max House of Real Estate in Calgary. "What the board has done now is give sellers the option because the real estate board wants to let sellers make the best decisions for them.

"There are positives and negatives to changing it or not changing it and that's where the discussion with your realtor and your circumstances comes into play. Sellers do now have the opportunity to decide if they want to report it as conditionally sold or not."

For sellers, not reporting a conditional sale allows them to continue to market their property and have a "backup" offer in case the conditional sale falls through. But for potential buyers, without knowing that a property is conditionally sold, it could cause them grief and time lost looking at a property that really isn't available.

Todd Strong, who conditionally sold his condo through realtor Claudia Walz of Re/Max Real Estate (Central), is waiting for all conditions to be met on the sale. There is no conditionally sold sticker on his property because it's not allowed through the condo's regulations.

But if he had the choice, he said he would not have advertised the conditional sale.

He said it would be nice to have a backup offer in the event that something goes astray in the conditional sale.

"It's nice to have it out there with people looking at it," he said.

David Finch, an assistant professor of marketing at the Bissett School of Business at Mount Royal University, said there is some merit in the change for sellers wanting to have a backup in case a conditional sale falls apart.

"However, I'm not a real estate agent, but as a marketer, transparency is absolute paramount as you build that relationship in any sales cycle. People want full disclosure," he said.

"If I spend the time and the energy researching, potentially going through a property, and if it's not disclosed to me that this is conditionally sold, that's only going to have a negative impact on possibly my interest in the property but also my perception of the parties selling the property, both the agent as well as individuals.

"I suspect the first question going in when your realtor is going to look at a house will now be 'is there any conditions or has been conditionally sold?' before you even go any further down that sales cycle."

Sano Stante, CREB's president, said the board has simply brought its rules up to date.

"The custom still is that when you have a good sound offer on your house you likely will not continue to show it and market it," he said.

RLP PREDICTS RISE IN 2012

2012-01-12T11:34:00.000-08:00

Expect home prices to keep rising in 2012: Royal LePage
By Derek Abma
National Post Jan 12, 2012

OTTAWA — Canada’s housing market will continue to be strong this year, with rising property values expected in all major markets, real estate brokerage firm Royal LePage said Thursday.

The company’s forecast called for prices across to country to rise 2.8% by the end of 2012, after stronger gains last year.

It said in the fourth quarter of 2011, the average price of a standard two-storey home was $375,427, up 4.2% from a year earlier. The average rate of a detached bungalow was up 6.1% to $344,392, while condominiums gained 3.6% to $234,680.

“Widespread calls for a major real estate correction in 2012 simply can’t be justified,” Royal LePage CEOPhil Soper said in a statement. “The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand — albeit at a slower pace.”

Statistics Canada reported Thursday that its new housing price index rose 0.3% in November, following on a 0.2% increase in October, and was up 2.5% year-over-year.

Price increases in Toronto, Oshawa and Montreal offset declines in Calgary, Vancouver and the Ontario metropolitan regions of Sudbury and Thunder Bay, the agency said. Builders in all four areas reported lowering prices in order to stimulate sales and remain competitive, while price increases elsewhere were attributed to higher material and labour costs.

The Canada Mortgage and Housing Corp. has forecast the average price of a listed homes for resale to be $363,900 this year, up 1.2% from 2011. The Canadian Real Estate Association predicted that the average price would be relatively flat at $362,700. Both forecasts were made in November.

Royal LePage said even pricey housing markets in Vancouver and Toronto — where standard two-storey homes averaged $1.1-million and $629,188, respectively, in the last quarter — will see continued price appreciation in 2012.

However, it said stronger gains will be seen in cities benefiting from commodity-based economies, such as Calgary, Regina and Winnipeg, where price gains will be in the range of four to five per cent.

Photo by: Nkuku Fairtrade

COMPARATIVE DATA

2012-01-04T08:48:00.000-08:00

Calgary MLS sales in 2011 top 2010: CREB
Eight per cent hike year over year
By Mario Toneguzzi
Calgary Herald January 3, 2012

CALGARY - Calgary residential MLS sales in 2011 increased by eight per cent over the previous year, says the Calgary Real Estate Board.

In releasing its December data on Tuesday, CREB said total sales reached 18,568 for 2011 compared with 17,267 in 2010.

“Recovering from tepid sales activity in the first half of 2011, early improvements in employment and migration resulted in a pickup in housing demand in the second half of the year,” said the board in a news release. “By the end of June 2011, year-to-date sales activity had only increased by two per cent compared to the second half of the year, where residential sales improved by 15 per cent.”

Sano Stante, president of CREB, said sales activity remained 17 per cent below the long-run average but monthly figures point toward the trend of this gap narrowing.

In the single-family home market, there were 13,186 sales in 2011, a nine per cent increase over the previous year.

Meanwhile, the condominium market recorded declining sales for nearly half of the year, but favourable pricing and improved economic conditions pushed sales up by double-digit rates for the second half of the year, said CREB.

Condo sales totalled 5,382 in 2011, a four per cent increase over the previous year.

“The demand recovery in the condominium market lagged the single-family market, as price adjustments in both the single-family and condominium markets resulted in more selection for consumers,” said Stante. “For the first time in several years, consumers had additional selection of single-family homes at a lower price range, which directly competed with the condominium market.”

The single-family average price in 2011 reached $466,402, a one per cent increase over the previous year. The average price for condos of $287,172 remained one per cent lower than the previous year.

“Throughout 2011, elevated levels of inventories have limited price growth as consumers benefited from sufficient supply of housing to choose from. However, as these inventories drop to levels more consistent with a balanced market, we can expect some moderate price growth moving forward,” said Stante.

ALBERTA...THE REVIVAL

2011-12-28T12:08:00.000-08:00

Energy revival fuelling boom
Province set to regain status as national leader
By Tamara Gignac
Calgary Herald December 27, 2011

Albertans know all about the B-word: boom.

For much of the past decade the economic pace was blistering, led by massive projects in the oilsands. The result was scores of high-paying jobs, a red-hot real estate market and an influx of thousands of new migrants.

The party was good while it lasted.

But in 2008, Albertans were blindsided by another B-word: bust.

A collapse in energy prices, the result of the U.S. financial crisis, took the steam out of Alberta's once-buoyant economy.

The oilpatch shelved or cancelled billions of dollars worth of projects, jobs evaporated virtually overnight and ordinary Albertans struggled to pay their mortgages.

But after sputtering for much of the past three years, Alberta appears poised to regain its position as Canada's economic juggernaut.

All signs suggest prosperity is sweeping the province. Unemployment is low, cash registers are ringing and the energy sector is once again on a hiring spree.

It begs the question: is Alberta headed for another overheated economy?

Economists are certainly bullish when it comes to the province's prospects.

The Royal Bank of Canada predicts Alberta's rate of growth - four per cent this year and 3.9 per cent in 2012 - will outpace all provinces except Saskatchewan.

"Oilsands megaprojects will continue to generate tremendous economic activity and will be a boon to Alberta's economy for years to come," says RBC chief economist Craig Wright.

"The boom entirely emanates from the private sector - the source of an astounding 116,000 new jobs this year," Wright said.

Improved employment prospects have translated into a record quarter for Sharlene Massie's local recruiting firm, About Staffing.

Alberta is bucking the national trend, a welcome relief from the hiring freezes of recent years.

As long as there's continued growth in oilsands production and Alberta's unemployment rate holds steady at about five per cent, the good times should continue, Massie says.

But she admits the spectre of an overheated economy could spoil the party and usher in a labour shortage similar to that of 2006.

In the worst-case scenario for employers, Alberta's jobless rate would return to levels seen in the last boom, driving skilled and unskilled wages to unprecedented levels.

"We're not there right now. We're comfortable," Massie says. "There's enough jobs out there and every-body's happy. Let's hope we can stay this way."

A report this year warned that a looming labour shortage is the Achilles heel of the provincial economy and that industry should brace for a chronic scarcity of workers in the years ahead.

It comes as Calgary's oilpatch, and the rest of the natural resources sec-tor, is set to lead the nation with the highest projected salary increases in the year ahead.

But boom or bust, Alberta's shifting demographics will probably require a new approach to labour issues in the coming years, suggests Calgary Chamber of Commerce CEO Adam Legge.

The province has repeatedly looked to the federal government to change immigration policies so Alberta can hire the workers it needs.

There's expected to be a short-age of everything from tradespeople and health-care workers to financial service employees, retail staff and public-service jobs.

"We're going to face a labour shortage whether we have a strong economy or not because there aren't enough workers to backfill the retiring baby boomers," says Legge.

He says he believes inflation pressure associated with rising labour costs could prove troublesome for Alberta.

"As soon as you see wages being driven up - as they are right now - people have more spending power and are able to bid up prices on everything from houses to goods and services," Legge says.

"The Bank of Canada will want to keep an eye on Alberta because we will have stronger inflation in our economy than the rest of Canada."

A heated labour market is only one indicator of Alberta's changing economic fortunes.

Figures from Statistics Canada show a three per cent increase in retail sales in October compared with the month before - the largest increase in Canada.

It comes as more Albertans purchase new vehicles, electronics and clothing - a welcome prospect for retailers, who saw cash register receipts dwindle during the recession.

Discretionary spending is also on the rise in the province.

Recent reports suggest people are choosing to dine in restaurants more frequently, purchase a morning latte or even fly away on a holiday.

Alberta's housing industry also got a much-needed boost in 2011.

"The strength in our economy, combined with affordability levels that outperform most major centres, will continue to attract migrants to the city and spur further growth," says Sano Stante, president of the Calgary Real Estate Board.

But along with an economic boom comes social challenges, as cities and smaller communities struggle to meet infrastructure pressures caused by an influx of new workers.

Todd Hirsch, senior economist with ATB Financial, says he doesn't expect to see a repeat of 2006, when "people lived in tents by the river" due to lack of affordable housing.

"I think you can call this a 'mini-boom,' at least relative to everywhere else in the country and even the industrialized world," Hirsch said.

"(But) if we did see a major collapse in Europe or a real calamity, that could knock the stuffing out of oil prices pretty quickly."

Hirsch is keeping an eye on developments with the Keystone XL project. The $7-billion Alberta-to-Texas pipeline proposed by TransCanada Corp. has been held up by a political battle in Washington.

The fate of Keystone XL could be a "harbinger of a more challenging environment" for Alberta's energy industry, he says.

"My feeling is this is not just one project we're talking about. It indicates we are in a whole new world in which putting pipelines in the ground is not going to be as easy or straight-forward as it was in the past."

So far, the province's fortunes have been mostly insulated from global economic turmoil relative to other regions.

But some observers, like Leonard Waverman, wonder if sluggish growth for Alberta's biggest trading partner - the United States - will eventually hit home.

The dean of the University of Calgary's Haskayne School of Business chooses a weather analogy to characterize Alberta's economic prospects in 2012.

"I'd suggest we have an economic chinook," Waverman says. "One must remember that chinooks are very capricious. They come in and move out very quickly."

But even as Alberta prepares for a new round of prosperity and good times, some still struggle to make ends meet after the recession.

During the past three years, Alberta recorded the country's second-highest increase in food bank usage, according to a recent HungerCount survey.

Talk of an economic boom is probably meaningless for the many house-holds still trying to find a way out of the last economic bust, says Kathryn Sim, a spokeswoman for the Calgary Inter-Faith Food Bank.

"We're seeing people bouncing back and they are coming to us as donors, which is lovely to see," she says.

"But it's hard to dig out of the hole. It's taking a longer time for people to get out of the situation they found themselves in when the economy crashed."

Photo By: Larry He's So Fine

THAT'S OUTRAGEOUS!

2011-12-28T11:27:00.000-08:00

The 15 most outrageous home sales of 2011
By Morgan Brennan
Forbes Dec 25, 2011

The U.S. housing market is still in the pits, closing another year marked by falling prices, lackluster sales volumes and a steady stream of foreclosures. For the rich and famous, though, it’s been a year of record-breaking purchases.

We sorted through the biggest, splashiest home sales of the year to bring you a recap of the 15 we deem the most outrageous.

One of the biggest purchases of the year just closed: an US$88-million penthouse condo in New York City’s billionaire-coveted 15 Central Park West. The 6,744-square-foot apartment, which hit the market in November, sold less than six weeks later to Ekaterina Rybolovleva, the 22-year old daughter of Russian billionaire Dmitriy Rybolovlev, reportedly for the full US$88-million asking price.

It is the highest individual transaction in Big Apple history and the second-largest transaction in the U.S. for 2011. Jonathan Miller, chief executive of Miller Samuel, a New York City-based real estate appraisal firm, explained to my colleague Luisa Kroll recently, “This sale is an outlier. It works out to be about $13,000 per square foot, the highest on record, for anything, that has ever occurred.”

The pricey pad belonged to former Citigroup chairman Sandy Weill, who purchased it with his wife in 2007 for US$43.7-million — less than half of what it just sold for. The Weills plan to donate the proceeds to charity and Rybolovleva plans to reside there while attending university in the area. Despite Miller’s insistence that the gargantuan 15 CPW sale is an anomaly, there were two other pricey purchases in New York City this year, both for US$48-million apiece.

California’s real estate market welcomed several huge sales as well. The year’s largest individual transaction was the US$100-million purchase in March of a 25,500-square foot Silicon Valley mansion called Palo Alto Loire Chateau. Russian venture capital billionaire Yuri Milner reportedly plans to use the nine-figure compound as a secondary residence. The Levi Strauss estate, with its humble 2,050-square foot abode, in nearby Atherton sold to an unknown buyer for a hefty US$53-million in September.

The Spelling Manor, a Los Angeles manse formerly known as America’s most expensive home for sale, secured a buyer this summer after nearly three years on the market. The hulking 56,500-square foot Holmby Hills estate was listed for $150 million, and ultimately sold to yet another 22-year-old billionaire heiress, Petra Ecclestone, the daughter of Formula One founder Bernie Ecclestone, for a more reasonable US$85-million. Like Milner, Ecclestone has no plans to reside there full-time, and will split time between the palatial crash pad and one in London.

But while US$85-million may seem like an exorbitant sum to throw down on what essentially will be a pied a terre, David Kramer, the Hilton & Hyland agent who represented Ecclestone for her L.A. purchase, says the wealthy British family consider it a good investment. “If you say to someone who has billions of dollars, ‘Hey I’ll get you 43% off of a landmark home that in a good market really would be a US$100-million or more home, they will say let’s do it.”

Many real estate experts, Kramer and Miller included, chalk up increased interest in the home market among the big-money set to the same thing: perceived bargains. The weak dollar coupled with depreciated home prices (even at the high end) have translated into investment opportunities, particularly for rich foreigners looking to hedge fortunes in brick and mortar assets.

All of the headline-grabbing sales that have transpired this year have led to even more high-profile properties hitting the sale block. A plethora of trophy homes are available like Manhattan’s US$90-million Woolworth Mansion, Guess co-founder Armand Marciano’s US$63-million Beverly Hills compound, a US$60-million private resort in Indian Creek, Fla., and the less expensive but equally noteworthy US$12.5-million former Sinatra estate called Farralone. A US$175-million ranch in Jackson, Wyo. also came to market this year.

“I am seeing unique, special properties that no one ever would have thought would come on the market,” says Kramer. “These are properties that, like a piece of art, can and will never be duplicated. They can be considered part of people’s collections.”

South Florida’s luxury market has welcomed big spenders, too. Miami clocked four transactions priced at roughly US$20-million or higher this year. The most recent, the sale of the Setai South Beach’s palatial penthouse for US$21.5-million, is believed to be the highest price ever paid for a Miami Beach condo unit. The Thai-inspired apartment, which had belonged to Netscape founder Jim Clark, had been listed for $27 million. Another Russian billionaire, Roustam Tariko, coughed up US$25.5-million for a Star Island estate, the highest price paid in Miami since 2006.

“We have had an influx of rich people that have come to the city recently,” says Farid Moussalem, a ONE Sotheby’s International Realty agent who represented the buyer of Sunset Island’s Villa Tranquilla estate. The property was sold by American billionaire George Lindemann for US$19.8-million this summer, about 34% off the initial 2009 asking price of US$30-million. “I don’t think this is over; I think next year we will see more of these kinds of high-end sales,” says Moussalem.

Some ritzy residences didn’t find buyers this year until their asking prices were drastically cut. Oracle’s Larry Ellison, No. 3 on the Forbes 400 list of the richest Americans, picked up Porcupine Creek in Rancho Mirage, Calif., for US$42.9-million, 43% off the initial US$75-million asking price; fertilizer billionaire Alexander Rovt scooped up New York City’s Sloane Mansion an hour before its foreclosure auction for roughly US$33-million, or about 48% off the initial US$64-million ask price. Perhaps the biggest high-end discount sale of the year was Le Reve, a massive Versailles-like compound just north of Atlanta, Ga., that finally sold this summer for US$9.5-million. It had been originally listed at US$45-million.

Also making our roundup were two infamous foreclosures, both repossessed by lender Bank of America. Patricia Kluge’s Albemarle estate in Charlottesville, Va., once listed for US$100-million, was taken by the bank in February for US$15.26-million; and San Francisco’s St. Regis penthouse, once listed for US$70-million, earned the title of most expensive bank-owned property when it was sold back to the bank by former owner-developer Victor MacFarlane in lieu of foreclosure. That penthouse found a buyer just recently for US$28-million.

CORE VALUES

2011-12-22T11:34:00.000-08:00

Downtown office space fills up at record rate
Central core vacancy drops to 5.7 per cent
By Mario Toneguzzi
Calgary Herald December 22, 2011

Demand for Calgary downtown office space reached new heights in 2011 with record leasing activity.

A report by CBRE Ltd., published Wednesday, says the downtown market saw net absorption - the change in occupied space - of close to 2.6 million square feet in Calgary in 2011. That pushed the overall central core vacancy rate down to 5.7 per cent in the fourth quarter of this year from 7.0 per cent in the third quarter.

A year ago, the downtown office vacancy rate was 13.0 per cent.

"The fourth quarter capped a stellar year for Calgary," said Greg Kwong, executive vice-president and regional managing director for Alberta for CBRE. "The delivery of The Bow in 2012 will mark the continuation of our momentum and will symbolize the bright future that lies ahead for Calgary.

"Office demand was high again this year for the same reasons as 2010. The oilsands sector is booming again and related companies are leasing space to accommodate expansion. . . . We should get at least one more new building announced next year."

The Bow and its nearly two million square feet of office space will be home to energy giants Encana and Cenovus.

On Tuesday, the owners of Eighth Avenue Place announced they were going ahead with the second tower on the downtown site, a 40-storey, 850,000squarefoot office building that should be ready for occupancy in 2014. A 49-storey, 1.1 millionsquare-foot office tower exists on the site of the old Penny Lane complex.

Oxford Properties is in the pre-leasing stage for a proposed 25-storey, 615,000-square-foot tower.

Susan Thompson, business development manager of real estate for Calgary Economic Development, said the downtown office market is primarily driven by the oil and gas industry. "And we've seen fairly strong growth in that category this year. They're obviously growing and looking for more space," Thompson said.

"Every indication is there that it will continue to grow in the new year."

In its report, CBRE said the overall Calgary office market, including the suburban category, saw its vacancy rate drop to 7.1 per cent in the fourth quarter from 8.0 per cent in the previous quarter and 13.2 per cent in late 2010.

CBRE said the Calgary industrial market added 900,000 square feet of space this quarter, the most since the fourth quarter of 2008 as developers look to take advantage of economic growth in the region.

The overall availability rate in Calgary's industrial real estate market rose to 4.9 per cent in the fourth quarter from 4.3 per cent in the third quarter.

In its National Office and Industrial Trends Fourth Quarter 2011 Summary Report, CBRE said total absorption of office space across the country was just under eight million square feet, up from five million square feet in 2010.

The vacancy rate for Canadian downtown offices fell from 6.3 per cent last quarter to 6.1 per cent in the fourth quarter. The suburban market, however, saw vacancy rise by 10 basis points to 10.7 per cent, the second quarterly increase this year.

"Despite the apparently never-ending problems in Europe, the Canadian commercial real estate market continues to move forward, albeit slowly," said John O'Bryan, vice-chairman of CBRE.

88 BIG ONES

2011-12-22T08:28:00.000-08:00

22-year-old buys $88-million apartment in New York City
Agence France-Presse
Dec 21, 2011

NEW YORK — The daughter of a Russian billionaire has broken New York real estate records by paying $88 million for a huge Manhattan apartment, Forbes magazine reported.

Yekaterina Rybolovleva, daughter of former fertilizer magnate Dmitry Rybolovlev, paid full asking price for the multiroom spread at 15 Central Park West, the magazine reported Monday, saying this was a record for an individual transaction in a city renowned for pricey property.

The record was previously owned by Sanford Weill, a former chairman of Citigroup.

Forbes quoted a representative for Rybolovleva, 22, saying she had “signed a contract to purchase an apartment at 15 Central Park West… Ms. Rybolovleva is currently studying at a US university. She plans to stay in the apartment when visiting New York.”

She is a resident of Monaco and has lived in the principality and in Switzerland for the last 15 years, the statement said.

Rybolovlev is one of the small group of Russians who became fabulously wealthy during the post-Soviet privatization of the economy and are known as oligarchs. He is the former owner of fertilizer business Uralkali.

CLIMBING HIGHER!

2011-12-16T10:18:00.000-08:00

Canadian house resale prices climb higher
By Eric Lam
Financial Post · Dec. 15, 2011

Canada’s housing market is still chugging along steadily as sales activity nudged higher and prices continued to climb in November, data from the Canadian Real Estate Association said Thursday.

Sales activity rose a seasonally adjusted 0.5% in November, compared with the month before, as about 35,000 houses changed hands.

The national average price increased 4.6%, but that is the smallest increase since January.

Year-to-date sales remained in line with 10-year averages as 432,048 homes have been resold so far in 2011, up 2.1% from year-ago levels.

The sector is showing some signs of slowing down, however, as the number of newly listed homes declined 3.4% between October and November.

That said, actual national home sales figures (not seasonally adjusted) in November actually moved 7% above the 10-year average, the fourth-highest level on record for the month.

“National sales activity picked up late last year, and November’s results suggest that a similar trend may be playing out again this year,” Gregory Klump, chief economist with CREA, said in a release.

Interest rates are expected to remain low for the foreseeable future, so the housing sector will be closely watched for signs of excess, he said.

“That said, current trends for resale housing and new home construction suggest that tightened mortgage regulations are working as intended and fostering economic stability,” he said.

Photo By: Travis Atwood

A PORTRAIT OF A CARPORT

2011-12-14T13:23:00.000-08:00

Improve the dark, dingy look of a carport
Wide-spaced trellis planted with vines adds interest
By Suzanne Rowe
The Montreal Gazette

Here lives a beautiful young family.

I chose this house mostly because of its carport. People don't quite know how to improve this dingy space.

Aside from the obvious option to convert it to a garage, a less-expensive alternative is to close off the right side and the back with horizontal stained wood planks leaving a door for the backyard. My option is to build a widespaced trellis from ceiling to ground all the way to the back. Stained white and decorated with one natural climbing vine, these psychological walls will provide a perception of privacy while adding ornamental value. A white enclosed ceiling would complete the newer and cleaner area. Adding two hefty square posts on each side of the car port will redefine the structure and give it visual strength.

I've also incorporated two similar posts right under the floating triangular shaped roof, giving it a sense of solidity, depth and interesting architectural detail. The screen door has to go into retirement.

A tall wooden flower box stained the same tint as the bricks would bring a different texture to the facade. A smaller shallower one could also do the trick just fine if respecting the width of the window above.

If, in the future the roof requires replacement, using a colour similar to the bricks would give the optical illusion that the house is taller. A very dark chocolate brown for the roof could be appealing if the front door is also painted the same colour in a semi-gloss finish.

A walkway from the street is a good addition to the one near the driveway. Two big square slabs would be placed side by side to form a rectangle. They would be repeated all the way but leaving in between a gap of about one third of the size of one tile. To soften the lines, tiny mosslike ground cover would spread throughout the spacing and bloom with miniature white flowers in June. A hedge consisting of lovely white Campanulas perennials would great their guests to their lovely home.

On the left half and in front of the foundation, the lawn will be removed to form a rectangular-shaped flower bed.

Three evergreen shrubs could be planted to furnish the new area under the triangular roof area and at the same time hide the awkward brick transition.

On the left corner, three pyramidal evergreens frame one side of the house while making it look wider.

A handsome shrub on a stem is at its best when displaying its snowball-shaped clusters of flowers. Any small ornamental tree with white flowers would do.

For a different and more dramatic look - budget permitting - an evergreen Juniperus Scopularum "Tollenson's Blue Weeping'' would steal the show.

Vegetation (from left to right):

- (3) Thuja Occidentalis 'Smaragd' (evergreens)
- (1-3) Heuchera 'Palace Pur-ple' (perennials)
- (3-5) Hemerocallis X Hy-brida 'Apricot Beauty' (perennials)
- Weigela Samba (shrub)
- (3) Taxus X Media 'Hicksii' (evergreens)
- Campanula Carpatica (per-ennials, white, hedge)
- Arenaria Verna (ground cover)
- Tropaeolum Majus (an-nuals, flower box)
- Viorna on stem (small ornamental shrub)
- Parthenocissus Quinque-folia (climbing vine)

WIND IT UP!

2011-12-12T13:57:00.000-08:00

Luxury home sales spike
By Mario Toneguzzi
Calgary Herald December 10, 2011

Calgary's luxury home market has seen a spike in demand this year, with sales in the upper-end approaching the record levels of 2007.

Brendan Hughes, a realtor with Re/Max Real Estate (Central) in Calgary, said sales in the higher-end market are a sign of a good economy in the city. "It's vibrant and it's growing. Jobs are being created. People are moving here."

According to the Calgary Real Estate Board, so far this year from January to November there have been 25 MLS condo sales over $1 million compared with 19 for the same period in 2010.

Year-to-date, there have been 406 single-family sales at that price point, up from 326 a year ago.

The record number of luxury home sales in the Calgary market took place in 2007 with 431 single-family sales over $1 million and 30 condo sales in that price bracket.

Sano Stante, president of the Calgary Real Estate Board, said there is a lot of confidence in the local real estate market these days.

Many oilpatch executives are showing confidence because of what they see coming up for the future with projects in the energy sector. "Those are the people that are buying these properties. So there's confidence in that realm," said Stante. "There's a fair bit of inventory out there available in that upper range as well. The people who are buying them now are being selective in the upper-end, in the luxury market. There's a lot of good product to choose from and they're selecting only the best deals. So homes in the luxury range have to be priced right to sell in a reasonable amount of time."

According to CREB, the top sale prices for single-family homes in Calgary this year have been $4.525 million in Rideau Park, $3.995 million in Elbow Park-Glencoe and $3.8 million in Aspen Woods.

Top selling condos this year have been $4.1 million in Eau Claire, $2.935 million in Eau Claire and $2.05 million in Victoria Park.

Hughes said one factor in the demand for upper-end product is executives who have been relocated to Calgary. "They like the high-end condo market," said Hughes. "We're also seeing these young professionals - the investment bankers, the lawyers, - they work really hard . . . they're looking at that high end.

"And then there's that investment side of it too. Some people shudder when you mention a million-dollar condo, but compared to a lot of other markets what you get here for $1 million, $2 million, is a lot more than you're getting in some of the other markets. And people see that."

A PLEASANT FORECAST IN CALGARY?

2011-12-07T15:31:00.000-08:00

Strong 2012 forecast for city's housing market
By Mario Toneguzzi
Calgary Herald December 7, 2011

Fuelled by low interest rates and job security, demand for residential real estate in Calgary is on the upswing, says the Re/Max Housing Market Outlook 2012 report published Tuesday.

And the real estate firm says Calgary will be a Canadian leader next year in the annual growth rate for MLS sales.

By year-end 2011, 22,500 homes are expected to change hands, an eight per cent increase over the 20,801 sales reported in 2010, it said.

And the average price in Calgary is forecast to appreciate as well, rising a "modest" one per cent to $405,000 in 2011, up from $401,186 one year ago.

The report forecasts the average MLS sale price will jump by three per cent in 2012 to $417,000, while sales will rise by five per cent to 23,600 units.

Lowell Martens, of Re/ Max Real Estate (Mountain View) in Calgary, said any hesitation on the part of some buyers in the city is more than likely a direct reflection of the uncertainty in the European economic situation.

He said commercial realestate construction taking place in Calgary "tells us the long-term feeling out there is very positive for Calgary."

"We have a very stable market over the next little while. We don't anticipate any big upswings, but at the same time we don't anticipate any big downswings either. It's going to be very stable," he said.

Buyers in the city are cautiously optimistic after more than two years of recession, making their moves while interest rates are at historic lows and housing values are affordable, said the report.

"Single-family homes remain most popular with purchasers, representing close to 60 per cent of total residential sales. Demand is greatest for entry-level product, priced between $350,000 and $450,000," it said. "Con-dominium apartments and town houses have also experienced solid momentum in recent months, with the lion's share of activity occurring from $200,000 to $300,000. Luxury home sales - priced over $1 million - have been particularly brisk, up approximately 25 per cent over 2010 levels."

While global concerns still loom, the market appears to be gaining some traction moving into the new year, said the report. Re/Max said Canadian residential realestate defied conventional logic and outperformed expectations in 2011, posting another solid year of housing activity virtually across the board. The trend is expected to carry forward into 2012 as Canadians "continue to demonstrate their faith in home ownership, despite concerns over the European debt crisis and its impact on the global economy."

"What 2011 proves is that real estate continues to have momentum," said Elton Ash, regional executive vice-president, Re/Max of Western Canada, in a statement.

"The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further."

Photo by: Hypnotic Love

PAID, STAMPED, FILED!

2011-12-06T15:00:00.000-08:00

Canadians paying off mortgages early: CMHC
Financial Post Staff
Nov 29, 2011

OTTAWA — Canadian homeowners are doing a good job of paying off their mortgages early, according to the Canada Mortgage and Housing Corp., which released its third-quarter results Tuesday.

While mortgage repayments can be spread out over 30 years, the CMHC reports that the average amortization period for mortgages insured by the national housing agency is under 25 years, and the loan-to-value ratio of those homes was 80% or less. As of Sept. 30, the outstanding loan amount per household for all homeowner loans was $159,740, slightly above the figure for the previous year.

“CMHC analysis shows that a substantial percentage of CMHC-insured high ratio borrowers are ahead of their scheduled amortization,” the agency said in its report. “Accelerated payments shorten the overall amortization period, reduce interest costs, increase equity in the home at a faster rate and lower risk over time.”

The agency says its mortgage arrears rate is 0.42%, in line with industry trends.

Rules brought in by the federal government in March, in response to historic levels of household debt, which reduced amortization periods on certain mortgages, and limited the amount that can be borrowed when a house is refinanced, cut refinancing activity by 31% from last year, the CMHC said. The agency’s homeowner purchase mortgage insurance showed a year-over-year decrease of 12%.

“The level of household debt remains a concern but there are encouraging signals,” it says. “There has been a significant deceleration in the growth of mortgage credit since March, particularly in recent months, impacting the growth rate of total household credit. Growth in personal loans, lines of credit and credit cards has levelled off in recent months.”

The agency notes general economic conditions have been favourable in 2011, with stable mortgage rates, a healthy housing market and a declining unemployment rate.

“Overall arrears levels and arrears rates have been improving and (mortgage insurance) claims volumes have been lower than expected,” it said. “Given current economic forecasts, it is expected that trends will improve moderately going forward, although both downside and upside risks remain.”

While housing sales have slowed since January, the CMHC expects sales for the year to fall within a range of 423,600 to 470,100 units, and next year’s sales to be somewhere between 406,100 and 509,000 units. Prices should “modestly grow as market conditions are expected to remain in the balanced market range,” it said.

The agency notes it keeps an eye out for bubbles, but so far it sees “little evidence of over-valuation” in the Canadian housing market.

Photo By: *_Abhi_*

THE LOGICAL SONG

2011-12-06T14:53:00.000-08:00

Housing market to continue to defy logic
Garry Marr
Financial Post, Dec. 6, 2011

Even one of Canada’s leading real estate companies agrees the rising housing market may not appear to make much sense.

But appearances are deceiving and Re/Max says both sales and average prices will continue to climb in 2012.

“Canadian residential real estate defied conventional logic and outperformed expectations in 2011,” the company said in its year-end report on the market.

Re/Max expects 2011 to finish with prices up 7% and the average home across the country selling for $363,000. The market won’t be as robust in 2012 but consumers can still expect another 2% jump in prices.

Sales figure for 2011 are forecast to climb by 3% from a year earlier with 460,000 homes having changed hands by year end. For 2012, expect less than a 1% increase in activity with only an additional 4,500 sales.

“The Canadian housing market has demonstrated tremendous resilience in recent years but 2011 stands out,” said Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada. “Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and fourth quarter.”

Re/Max looked at 26 markets across the country and predicts 23 will show an increase in average price for the year. Sales were up in 22 of those 26 markets. The company says 81% of markets studied will see price increases in 2012.

Among the reasons cited for the Canadian housing market’s continued strength against the odds has been population growth which has gone up by 11% since 2000. Re/Max notes by 2031, the country will have 42 million people.

“Population growth and immigration are major factors expected to prop-up housing demand and household formation in the coming years,” says the company.

Condominiums are expected to continue to garner a growing share of the housing market with investment and income-producing properties in high demand. Low vacancy rates are said to have driven those markets in 2011 and those conditions are expected to continue.

Photo By: Bru76

RESALE NEWS

2011-11-30T15:10:00.000-08:00

Calgary sees more home resales as average price drops
By Mario Toneguzzi
Calgary Herald November 30, 2011

Calgary's resale housing sales grew in October, but the average price dipped, according to the Conference Board of Canada.

In a report published Tuesday, the board said the seasonally adjusted annualized rate of sales in Calgary was 22,572 during the month, up from 22,344 in September and an increase from 19,524 in October 2010.

But the average price fell in October to $402,561 from $408,466 in September. A year ago it was $396,041.

As for new listings, the annualized rate in October decreased to 43,656 from 44,664 the previous month, but up from 42,960 in October 2010.

In October, the sales-to-new listings ratio in Calgary was 0.512. It was 0.471 in September and 0.455 a year ago. The conference board said Calgary can expect short-term year-over-year annual price growth of between five and seven per cent.

According to the latest Canada Mortgage and Housing Corp. market outlook report, MLS sales in the Calgary region are forecast to increase by 2.3 per cent in 2012 to 22,700, while new listings are expected to decrease by 1.1. per cent to 43,700. The average MLS sales price is forecast to jump by 2.2 per cent in 2012 to $411,000 in the Calgary census metropolitan area.

The CMHC housing market outlook says despite many positive factors for real estate, "competing factors such as uncertainty in the global economy has kept some prospective buyers on the fence and will continue to temper any large increases in sales."

Photo By: Where To Willie

A NOTABLE MENTION!

2011-11-25T09:12:00.000-08:00

GTA condo sales this year smash record
Garry Marr
Financial Post Nov 22, 2011

Condominium sales are taking over the Greater Toronto Area new housing market and some parts of the country are following closely behind as rising costs push consumers into vertical housing, a new report suggests.

The Building Industry and Land Development Association said there were 23,747 condo sales in the Greater Toronto Area through the first 10 months of the year, smashing the previous high of 22,316 in 2007 — with two months yet to go.

High-rise sales accounted for approximately 61% of all sales in GTA from January-October. At this point last year high-rise sales only accounted for 57% of the overall market.

“It’s very much becoming a condo market,” said Joe Vaccaro, acting president of BILD. “Ten years ago the split was 25% high-rise versus 75% low-rise.”

The trend appears contained not just to Toronto’s urban core but is now moving to the suburbs. “There seems to be a new trend setting in over the last couple of months with the 905 [suburban] areas outperforming Toronto when it comes to [condo] sales,” said Mr. Vaccaro.

Suburban land costs have skyrocketed because of what the industry refers to as regulatory inertia with no new land developments approved in the suburbs over the last five years. It has led to the hoarding of land and rising prices for single detached homes.

A report Tuesday from Altus Group suggests the GTA will not see any sort of slowdown in new condo construction in 2012.

“New condominium apartment sales in Toronto and Ottawa continue to hum along, which will continue to buoy apartment starts in Ontario through 2012,” said Altus.

Peter Norman, chief economist for the Altus Group, says population growth has supported the Toronto condominium market. “That number of people generates a fair amount of housing demand no matter what is happening,” says Mr. Norman. “Add in the interest rate environment, and them not going up, and that adds to it. There has been a restriction on [new] lots and a lot of people have been shoved into apartments.”

The group looked at 10 real estate markets across the country and found only Alberta is set to rise in 2012. Regina, along with Toronto, is forecast for flat sales.

“Calgary and Edmonton employment growth in 2011 has more than made up for 2010’s declines,” says Altus. “Although employment growth will be more moderate in 2012, the strong showing this year is favourable for stronger housing starts in 2012.”

Altus is forecasting apartment starts to jump to 5,475 in 2012, up from 3,975 in 2011. Single family construction is also forecast to jump to 22,325 in 2012 from 20,906, putting high-rise construction at almost 20% of the Alberta market.

Phil Soper, chief executive of Royal LePage Real Estate Services Inc., says his company has noticed the trend in top condominium apartments in its corporate owned franchises in Toronto and Vancouver. “There is the cost of the commute, the hard costs like gas and insurance but then there is the soft costs in time,” he said, noting consumers look for housing that is closer to subways and urban cores.

If anything, he says Canadian cities, including Toronto, are playing catchup when it comes to high-rise construction. “Look at big established mature cities like New York. They have much more vertical living per resident than we do, they just don’t have as much on per capita basis that is new,” says Mr. Soper. “We have hundred of thousands of new Canadians that have to be accommodated in Toronto.”

Photo By: Surrealplaces

ALL OF THE LIGHTS!

2011-11-23T12:20:00.000-08:00

ZooLights

November 25, 2011 - January 7, 2012
(Excluding Christmas Day and December 31)

6:00 PM – 9:00 PM nightly
Gates close at 8:30 PM
North Gate entrance ONLY

$10 Adults + GST (includes parking)
$7 Children + GST
TICKETS ARE ON SALE NOW!!

Please contact the Zoo’s guest relations office for information on group rates.

As you wander through Zoolights, you will be surrounded by the most amazing holiday cheer there is. Sip your hot chocolate, warming up by a fire pit and enjoying the great Canadian winter weather.

Speak directly to Santa at the North Pole, shop at the Elf’s Toy Shop that’s just for kids, participate in the NEW Penguin Plunge Kidz Zone and take a walk through Candy Land!

Don’t forget your non-perishable food bank donation. Collection bins will be placed at the North Gate entrance to the Zoo.

There are more then 1.5 million light reasons to come to Calgary’s favourite Holiday tradition:

•SantaVision allows children to talk directly to Santa in the North Pole. Later you can download the conversation to send to family and friends.

•New Penguin Plunge Kidz Zone with activities such as Happy Feet, March of the Penguins, Reindeer Toss and more!

•Ice Carving demonstrations every Friday and Saturday nights by Frozen Memories.

•Learn about the many different kinds of Wishing Trees celebrated around the world and then write your own wish to hang on the Zoo’s Wishing Tree.

•Every Friday and Saturday night, enjoy performances by local Calgary choirs.

•Enjoy two new light exhibits, including Candy Land and an Ode to Canada.

Please give yourself at least one hour to fully enjoy all that Zoolights has to offer

OIL SANDS OUTPUT PROJECTIONS!

2011-11-23T09:02:00.000-08:00

Canada oil sands output to triple by 2035: report
Reuters
Nov 23, 2011

Production from the oil sands will more than triple over the next quarter century, to 5.1 million barrels per day, Canada’s national energy regulator said in a report released on Tuesday.

In a look at energy production and consumption through 2035, the National Energy Board said output from the oil sands, the largest source of U.S. oil imports, will continue to expand from around 1.5 million bpd currently as new mining and thermal projects tap the resources.

The oil sands of northern Alberta are the world’s third biggest crude reserves, behind only Saudi Arabia and Venezuela, but the largest open to private investment.

The NEB said its forecast also assumes oil prices will rise slowly through to 2035, reaching $115 a barrel in 2010 dollars, a level that provides a reasonable profit even for expensive new mining and upgrading projects such as those operated by Suncor Energy Inc, Royal Dutch Shell and Canadian Natural Resources Ltd.

The board also estimates that Canadian oil exports will rise to 5 million bpd by 2035 from about 2 million currently, with most of the additional supply coming from oil sands projects.

However the board cautioned that its forecast assumes markets and infrastructure will be available to handle the additional production. That outlook comes despite a U.S. decision delaying the approval of TransCanada Corp’s Keystone XL pipeline from Alberta to Texas by as much as 18 months.

The NEB said total production of Canadian crude oil would rise to 6 million barrels a day by 2035, double current levels. Though most will come from the oil sands, output from oil shale reserves like the Bakken field in Saskatchewan will also help bolster the total.

Photo by: Luuk van Beek

THE 411 ON T.O. CONDOS

2011-11-18T10:33:00.000-08:00

Cool with condo
Alex Newman
National Post Nov. 18, 2011

As Toronto condo prices march steadily upward, luxury suites are right in step. Fetching at least $1,000 per square foot with sizes anywhere from 1,800 to 4,000 sq. ft., final sale prices are well into the millions. Not surprisingly, such projects are situated in the city's toniest neighbourhoods - Forest Hill, Yorkville, Yonge and St. Clair, the financial district, plus a smattering along the waterfront.

What is surprising, however, is who is buying. In addition to the wealthy couple downsizing from their large family home, and foreign investors looking for a safe financial haven, there's a newly emerging group of younger buyers.

What's even more surprising is that a sizable number of them are first-time buyers, according to Tina Amato, vice-president at Baker Realty, which handles sales for the Ritz-Carlton. Given that suites start at $1.4-million, these younger buyers are clearly well employed. Because most are single and work long hours, they love to be able to walk to work through the PATH system, and love the hotel perks such as maid or room service, she says.

As much as they like to be pampered in exchange for the gruelling schedules, Ms. Amato says they're also realistic about spending: "If they can't manage the Ritz, they'll go the next project down, which may not be the Ritz, but is still luxury." Stephen Price, COO of Graywood Developments, which built the Ritz-Carlton, says 10 years ago "that group wouldn't have existed in a project of this nature."

A similar shift is apparent at Trump Toronto. "Early on, the bulk of our purchasers were a mix of Canadian and foreign investors," says Howard Tikka, director of marketing for Trump. As the tower nears completion, however, he is finding more local people, some empty nesters but particularly area finance workers who want to have a downtown residence. It's also attracted companies looking for guest suites for clients who come to Toronto on business.

A similar story unfolds at the Shangri-La - a 66-storey, 370-unit project described by its marketing manager Michael Braun as being at the "intersection of the cultural entertainment and business worlds." Situated at University and Adelaide, with suites ranging from $1-million to $13.3-million for a 6,700-sq.-ft. two-storey penthouse, it's attracting whiz kids who work in the financial district and are buying up some of the smaller suites.

Even empty nesters seem to be younger downtown. Mr Braun notes that a number of buyers aged 40 to 55, not yet retired but with older kids who are moving out, "want the action of downtown." Call it a condo mid-life crisis, if you will.

While the downtown buyer wants a hip location, the downsizing older couple craves a luxury spot in familiar territory: midtown or north Toronto where they've owned large family homes. They end up choosing suites in projects like The Four Seasons, Museum House and The Avenue.

"Buyers in a downsizing phase still want to stay in the community where they have always lived," says Elli Davis, a top Royal LePage agent for luxury residential resale. "They want to be able to walk to Forest Hill Village, take a quick streetcar ride to Yonge and St. Clair, be near the subway."

Those buyers are the majority of Hunter Milborne's clientele, as well. As managing partner of Sotheby's, he's sold some of the city's most expensive condos to people from "higher-end neighbourhoods, like Bayview, Forest Hill and the Kingsway. And most are independently wealthy."

The suites they buy - for anywhere from $1-million to $10-million - aren't even a "huge part of their net worth," Mr. Milborne says. One couple, who couldn't decide which apartment to buy, purchased both, figuring they'd sell whichever one they decided not to keep.

And what this market wants more than anything is space, says Mimi Ng, vice-president for Menkes, which developed the Four Seasons. "Our purchasers are primarily end users who are either downsizing from a family home, or already living in a condo and making the move to a larger suite in a new building," she explains.

The other draw is service, which could put hotel-condos in the front of the luxury pack. "A big part of buying into the [Four Seasons] is its reputation for incredible personalized service, and access to all those amenities, concierge, spa, restaurant," Ms. Ng says.

The final group of luxury buyers is international. "International buyers represent about a third of the suite sales at Shangri-La," Mr. Braun says. He figures these buyers probably have business interests in the city, and tend to travel from home to home.

Trump Toronto also has its share of the international market. Mr. Tikka says their buyers come from the U.K., the U.S. and 20 other countries. While Canadians account for about 35% of Trump purchasers, U.K. buyers represent about 25% and U.S. about 20%. The remaining 20% are scattered throughout the world.

The waterfront is a big draw for the international buyer, says Cityzen Group's president Sam Crignano. His Pier 27 project has a wide variety of suite prices, but luxury purchasers are attracted to the penthouse suites, which command about $1,000 per square foot.

Mr. Crignano has recently noticed an increasing interest "from wealthy buyers from mainland China and south Asia," he says. "They may want to live in the suite, but mostly they want to park money with the reassurance that if there's political upheaval where they're from, there's a place they can go to."

Foreign buyers have always gravitated to waterfront properties, Mr. Crignano says. "[It's a trend] that's not just here but elsewhere in the world, because there's a perception that waterfront projects demand a higher-per-square-foot price."

While location and suite size are major factors in luxury purchases, suite finishes are a close second. These include marble bathrooms, 10-or 12foot ceilings, top-of-the-line fixtures and kitchen cabinetry and appliance packages featuring Sub-Zero, Wolf or Miele. Other draws: soaker tubs and rainshower sprays and saunas and private elevators, also real hardwood floors (as opposed to engineered hardwood), granite, marble or limestone tiles, plaster cornice mouldings, and eight-inch baseboards.

Amenity spaces are also lar-ger and more luxurious. The city's usual requirement of two square metres of amenity space per unit won't do in a luxury building. For one thing, units are typically large, so there are fewer per building, which makes amenity space smaller than any mid-market building.

The pampering quotient of amenities is nice, especially when they include spas and such, but they're as much about increasing a resident's overall living space. A 1,000sq.-ft. condo in the Trump Tower, for example, expands exponentially to include housekeeping and room service, a two-level full-service spa and wellness facility, and a 10,000-sq.-ft. business facility.

Naturally, maintenance fees reflect these benefits, with high-end projects levying $1 per sq. ft. "What creates cost is staff," Mr. Milborne says. "Valet parking, concierge, spa manager that all translates into high maintenance fees."

About 8% of the condobuying public qualifies for a luxury product. What's financing this choice, at least in the downsizing set, says Ms. Davis, is the fact that they own large homes that have appreciated wildly since first purchased. Simultaneously, there's a "transfer of funds coming down the generations."

They've got the money, but they're ready to shed responsibility, Ms. Davis says. They're trading the high-maintenance large home for the freewheeling condo lifestyle. But with few options in familiar neighbourhoods - close to the shops and cafés they're attached to - developers have had to find land, even if it's on the fringes of established single-family neighbourhoods. 1717 Avenue Road - the first condo project in that whole area - for example has attracted three of Ms. Davis's empty nester clients.

Although the price tags on luxury suites can run as high as $10-million, Ms. Amato says Toronto is still "cheap" in the world market: "Our prices are lower than any other large city in the world, including Vancouver. The Ritz, at $1,100 per sq. ft. for example, is a lot lower than New York where I'd say it's at least $4,000 per sq. ft. for something super luxury."

Which is to say, luxury could be considered a bargain in this city.

STAGE RIGHT?

2011-11-17T13:27:00.000-08:00

MARKET READY
By TIM McKEOUGH
New York Times September 28, 2011

Q. Our old apartment is sitting empty, and not selling. Is it worth the money to hire someone to stage it?

A. Staging an apartment — adding furniture and accessories to make it look lived in — can be expensive. But you may be able to cover your costs, and then some, by creating a more appealing environment.

“I won’t let people come on the market empty if I can help it,” said Deanna Kory, a senior vice president at the Corcoran Group, who has used staging to help sell apartments for more than a decade.

Ms. Kory, who has staged apartments on her own and worked with professional staging companies, said renting a hand-picked selection of furniture and arranging it with accessories will often speed up a sale and generate a higher selling price. Generally, she has found that sellers with empty apartments can increase their selling price by “at least 5 to 10 times the investment you’re going to make” in staging, she said.

For instance, if you put in $10,000, it should yield between $50,000 and $100,000 more in profit than an apartment sold empty, she said.

But, she added, “There are good stagers and not-so-great stagers.”

“You have to get recommendations,” Ms. Kory said. “If they have a good track record, they should be able to tell you stories and show you some photos.”

One stager she has worked with is Sid Pinkerton, who runs a company called From Drab to Fab. Mr. Pinkerton has been in business since 2003, and he estimates that he has staged over a thousand apartments in New York City during that time.

One of the primary reasons for staging, he said, is that potential buyers often have difficulty understanding the proportions of empty rooms.

“Most Americans are what I call ‘visually challenged,’ ” Mr. Pinkerton said. “When rooms have no furniture in them, you have no size spec. It raises the question, ‘Will my furniture fit in here?’ The whole point of staging is to answer those questions before they even arise.”

This is especially true, he noted, when it comes to bedrooms. “They might feel small when they’re empty, when in fact they will very easily hold a queen-size bed, nightstand and dresser.”

While every job is different, Mr. Pinkerton said his services for staging an empty apartment “can be as little as $5,000, but up to $15,000 and more,” depending on factors like size and layout. Those figures include furniture rental; if you add some of your own furniture to the mix, the fee would be lower.

The other option, if you’re confident in your design skills, is to do it yourself. Companies like CORT (888-360-2678 or cort.com) and Churchill Furniture Rental (800-941-7458 or furniturerent.com) carry a range of pieces catering to different tastes, available for short-term rental.

Just remember the goal. “You’re trying to appeal to the baseline needs of the general public,” Mr. Pinkerton said, not create a space that reflects your personal style. “Staging is the complete counterbalance to interior design.”

http://www.nytimes.com/2011/09/29/garden/staging-an-apartment-market-ready.html?ref=marketready

Images featured is the work of Bloom Property Stylists in Calgary, Alberta

GEARING UP FOR THE SEASON!

2011-11-17T09:49:00.000-08:00

IS IT EASY BEING GREEN?

2011-11-17T09:22:00.000-08:00

MARKET READY
By TIM McKEOUGH
New York Times November 16, 2011

Q. Can green updates increase the value of my home? If so, what are the most cost-effective options?

A. “If you do just one thing, it’s probably not going to add value,” said Jeffrey Schleider, managing director of Miron Properties, a real estate company specializing in green properties, in New York.

But when a number of environmentally friendly updates are implemented all together, they can help your home stand out from the crowd. “If you do five or six things as a package,” he said, “it really makes your property more appealing.”

That said, he added, “there are some investments where you won’t see a return on your investment, because they’re too expensive relative to the value they add.” So he advises starting with easy low-cost changes that target energy savings, clean water and clean air.

To cut energy consumption, he recommends motion-sensor switches in bathrooms and closets that will automatically turn lights on and off when people come and go. Basic models often cost under $20 at hardware stores.

To improve water quality, he suggests installing an under-counter filtration unit by a company like GE or Kohler, for filtered water at the kitchen sink.

“That’s something that people, both environmentally conscious and not, are interested in,” he said. “It stops the use of bottled water, but it’s also a convenience to have clean water at your tap. Even a very good system can be added for a few hundred dollars, and that adds value.”

To improve air quality, he said, sellers should use paints with low or no volatile organic compounds. “It’s not significantly more expensive,” he said, “but can be a huge appeal to buyers. Certain buyers are especially sensitive and can’t even look at homes that don’t have no-V.O.C. paint.”

Ellen Hanson, a New York interior designer who focuses on sustainability, echoed Mr. Schleider’s advice about using low- or no-V.O.C. paint.

She also suggests adding Energy Star-certified kitchen appliances, low-flow bathroom faucets and showerheads, and dual-flush toilets to the list of possible upgrades.

All these items save energy and water, she said, while giving your home a fresh new look.

“We also like to use multilayered window treatments to control solar gain and heat loss,” Ms. Hanson said. “You end up consuming less energy, but whether a buyer of your home would perceive that or not, I’m not sure.”

Indeed, many of these upgrades may go unnoticed if not spelled out in promotional materials. “A lot of them are choices you don’t see,” Ms. Hanson said. “But you can brag about them when you describe your property.”

Mr. Schleider also stresses the importance of marketing these upgrades, pointing out that they could give sellers an edge on the competition.

“It’s pretty tough to sell in some markets right now,” he said. “So any edge you can have is a positive.”

http://www.nytimes.com/2011/11/17/garden/can-green-updates-help-a-homes-resale-value-market-ready.html?ref=garden#

Photo By: Hat Sharpener

BULLISH CONSUMERS

2011-11-16T08:39:00.000-08:00

Canadian consumers remain bullish on real estate market
October sales highest since beginning of year
By Garry Marr
Financial Post November 16, 2011

The Canadian housing market continues to defy those who have long predicted its collapse.

It was just another set of numbers, but if anything the market seemed to pick up steam with October sales across the country the best they have been since January.

The upward push caused the Canadian Real Estate Association to slightly revise its predictions for 2011. The group now says sales will be up 1.4 per cent from a year ago, instead of 0.9 per cent.

"The continuing strength of home sales activity in the face of ongoing financial volatility speaks volumes about the confidence of Canadians in our housing market," said Gary Morse, president of CREA.

Even going into 2012, CREA doesn't see much changing in the marketplace with interest rates near record lows. It's calling for a relatively minor 0.5 per cent reduction in sales next year.

The industry continues to have plenty to gloat about as annual sales have held steady in the $450,000 range for the past three years. Prices have also shown a steady upward trajectory and are now forecast to reached an average of $362,700 in 2011, which would be a seven per cent jump from the year before. Next year, prices are expected to remain flat - something most people in the real estate industry see as an accomplishment in the present economic environment.

"Home sales activity over the past couple of months suggests buyers are confident that the Canadian economy will remain relatively unscathed by global economic risks, since every home purchase is a homebuyer's vote of confidence in the future," said Gregory Klump, chief economist with CREA, adding there is strong feeling the government's fiscal policy would be coordinated to give housing any support it should need in the event of a pullback.

So far, the industry seems to be getting all the support it needs from a low interest rate environment that has kept people in the market. Variablerate mortgages tied to prime are still available as low as 2.7 per cent while a five-year fixed rate closed mortgage is now being discounted down to 3.19 per cent.

Toronto continued to carry the national market in October with sales up 14.3 per cent from a year ago. The activity in Canada's largest city helped boost overall sales activity, which rose 8.5 per cent from a year earlier. Prices across the country continue to be moderate with the 5.5 per cent year-over-year increase the smallest it has been since January.

The consensus among economists is that the housing industry might not have much more to give in terms of price increases or sales but they also are not predicting a massive decline either. "The fact that prices are overvalued today does not necessarily mean they will crash tomorrow," said Benjamin Tal, deputy economist with CIBC World Markets.

He thinks a "violent market meltdown" would need a catalyst like the a sub-prime crisis or a jump in interest rates like the industry saw in 1991. "We do believe the housing market in Canada will stagnate in the coming year or two," Tal said.

That housing market has become a key component of the country with a report from TD Economics saying the construction industry was second fastest growing industry in the country and accounts for 10 per cent of GDP. "While the industry's performance over the last decade has been astonishing, some of the recent strength is likely to taper off in the coming years," the bank said.

Photo By: WCampos3

WHAT TO KNOW ABOUT THE BOOM

2011-11-15T14:01:00.000-08:00

What you need to know about Canada’s booming housing market
By Christine Dobby
November 15, 2011

With sales of existing homes in Canada rising in October to the highest level since January, the Canadian Real Estate Association boosted its forecast for resale activity for 2011.

The industry group released data on October sales activity as well as a revised forecast for the year on Tuesday.

National sales of existing homes increased 1.2% from the previous month, building on a gain of 2.5% in September. Price gains however cooled to 5.5%, the smallest gains since January.

A total of 397,561 resale units have traded hands so far this year, CREA said, up 1.8% from levels in the first 10 months of 2010.

Here’s what you need to know about the booming Canadian housing market:

Ontario leads the way

Third-quarter sales activity in the province was stronger than forecast, while the rest of the country came in broadly in line with expectations, the CREA said.

It was the strength of activity in Ontario that prompted the CREA to boost its annual forecast for 2011 to 1.4%, up from 0.9%.

The industry group now predicts national sales of 453,300 for the year, compared with 446,915 in 2010.

198,000 of 2011′s residential sales are expected to come from Ontario, with Quebec and British Columbia expected to have sales of 77,000 and 76,600, respectively.

Home prices are still up but showing signs of cooling down

CREA kept its national average home price forecast for the year little changed at $362,700. That’s an annual increase of 7.0% compared with $339,049 in 2010.

Prices are expected to remain flat next year, with the CREA forecasting $362,700 again for 2012.

The industry group pointed to moderating prices in Vancouver in the third quarter compared with the first half of the year, with sales of multi-million dollar properties in that city returning to “more normal levels.”

CREA said the national average price in October rose 5.5% from a year earlier to just under $362,899, the smallest increase since January.

The balance of supply and demand is tight but the market remains on solid footing

October’s monthly rise in sales resulted in a slightly tighter balance of supply and demand, but the national housing market remains “firmly rooted in balanced territory,” the CREA said.

The national sales-to-new listings ratio, a measure of market balance, stood at 53.4% in October, up from 52.8% in September.

Low interest rates continue to bolster the market

CREA also revised its forecast for 2012 upward slightly, predicting a smaller easing than previously expected of 0.5% to 451,200 units.

The uptick is largely due to expectations that Canada’s interest rates will stay low until well into 2012, CREA said.

But domestic and global economic headwinds could put pressure on the sector

“A number of factors will keep Canada’s housing market in check as interest rates remain low,” said Gregory Klump, CREA’s chief economist.

He pointed to tightened mortgage regulations, high household debt and slower economic and job growth as possible headwinds.

However, Mr. Klump noted that persistent news of global economic uncertainty has put only minor dents in consumer confidence to date.

“How confidence evolves depends on how global turmoil plays out over the coming months,” he said.

JUST LISTED

2011-11-14T12:07:00.000-08:00

#304, 2417 - 17 Street S.W.
Just listed for $239,900
Check it out at: http://petrotown.com/categories/lofts-amp-condos/properties/304-2417-17-street-sw

TOP FLOOR TWO BEDROOM FLAT IN BANKVIEW WITH AMAZING CITYSCAPE VIEWS! Located across the street from the Bankview Community Association with park, tennis courts and a playground; the location of this 3 storey walk-up will impress. Renovated in 2005, the interior features modern beadboard cabinetry in the kitchen with contemporary pulls, tiled granite counters, a full stainless steel appliance package and cozy office & breakfast nook. Designer light fixtures, maple hardwood/lush neutral carpet flooring, a 4 piece bathroom, insuite laundry and abundant storage, parking, bike enclosure and an east facing balcony with incredible views; brilliant elements in the inner city. Located close to 17th Avenue and minutes to both Downtown and Marda Loop, many of Calgary's best boutique shopping, stylish dining and all amenities are steps away. Book an appointment to view!

TRUE NORTH

2011-11-14T12:01:00.000-08:00

In Mats Gustafson’s Stockholm living room, antique and modern mingle freely. Photographs by Magnus Marding. Styled by Jacob Hertzell.

True North
Mats Gustafson
By PILAR VILADAS
November 4, 2011

When you walk into the artist and illustrator Mats Gustafson’s apartment in Stockholm, you’re not quite sure what era you’re in. In the foyer, a turn-of-the-century painting of a bourgeois Swedish interior hangs beneath one of Isamu Noguchi’s oversize paper lanterns, and underfoot is a colorful mid-20th-century rug by Barbro Nilsson for the renowned Swedish workshop MMF. Under a midcentury nude painted by Birger Ljungquist, Gustafson’s great-uncle, sits a simple 1950s stool by the Swedish designer Carl Malmsten. Walk through an angled doorway into the living room, a high-ceilinged space with the graceful proportions and architectural ornament typical of late-19th-century buildings, and the mix gets even richer. An upholstered 19th-century Swedish bench along the window and a group of slipper chairs, all from Gustafson’s family, blend easily with sheepskin-covered wood chairs designed in the 1930s by Bruno Mathsson and tables by Josef Frank. Vases by Scandinavian Modern ceramics masters like Axel Salto and Berndt Friberg are clustered atop a traditional tiled fireplace, and the immaculate plaster walls (which are painted, aptly enough, Stockholm White) are hung with Gustafson’s spare, elegant watercolors. Venture into the apartment’s long corridor, however, and you’ll find up-to-the-minute bathrooms and a sunny, south-facing kitchen in which crisp, utilitarian cabinets provide a clean backdrop for an antique wooden table and chairs. This is an interior that’s modern and old-fashioned at the same time, and in all the right ways.

Gustafson, a Swede who moved to New York in 1980 (and who now lives in a 19th-century farmhouse in Sag Harbor), had kept a small apartment in this building — an imposing structure in Stockholm’s Sodermalm neighborhood — since the 1970s, but when a two-bedroom apartment became available, he couldn’t resist. “I needed a more mature place,” he said, one that would give him a space to work, and which would also provide comfortable living quarters for him and his partner, the jewelry and product designer Ted Muehling. Gustafson treasured the Old World graciousness of the space and wanted to make it more functional while protecting its considerable charms, “not to make it into something it wasn’t,” he explained.

His allies in this effort, as they were in the renovation of the smaller apartment and the Sag Harbor house, were the husband-and-wife architects Neil Logan and Solveig Fernlund of the New York firm Fernlund + Logan. Gustafson and Fernlund, a fellow Swede, have been friends for years. They come from similar backgrounds — they both grew up in the countryside; his mother designed rugs and hers was an art historian — and Gustafson’s 1989 watercolor portrait of Fernlund hangs in the new apartment’s living room. The architects are known for their aesthetically obsessed clients, including artists like Rirkrit Tiravanija and the textile manufacturer Michael Maharam, as well as Muehling, whose new Manhattan shop they recently completed.

The Stockholm apartment had been occupied for decades by Hilding Linnqvist, a painter who died in 1984, and his wife, and the rooms were in need of renovation. The kitchen was small, with a separate entrance, and there was a maid’s room, as well as lots of storage that had been added awkwardly throughout the apartment. Fernlund and Logan reorganized this part of the space, enlarging the kitchen and adding a doorway at each end to connect it visually and functionally to the rest of the apartment, getting rid of the maid’s room and adding a laundry room and a modern bathroom (one of two). As Fernlund explained, “The goal for everything we did was to add things we need to live now, without making them feel cut off from the apartment.” Wiring was replaced, woodwork was stripped (and repainted with an oil-based paint to bring out its details), and what had been the service hallway was cleared of its cabinets to make a central corridor that connects the apartment’s studio, living room and master bedroom (which are enfilade, with generous doorways between) with the kitchen, bathrooms and guest room. It was important to the architects that the subtlety of natural light be felt in every room. “Without shadows,” Fernlund said, the light becomes flat and lifeless, “adding that there is no built-in or recessed lighting in the rooms because Gustafson and Muehling prefer the glow of lamps and candles.

Once the spaces were completed, it was time to decorate, and Gustafson had plenty to work with. In addition to his own collections of Scandinavian Modern furniture and decorative arts (which he bought at thrift shops and junk stores before they were rediscovered), he had antiques and paintings from his parents’ house and saw no obstacle to mixing periods. “Rather than get ‘new’ old things,” he said, “I’d reuse these. There’s more of a connection.” Both he and Muehling believe that decorating is layering: “It’s not about perfection. This is very much our territory,” he added. And Muehling brought a touch of humor to the serene rooms with the addition of pieces like a Royal Copenhagen blue-and-white vase painted with ships, which he describes as “kitsch, or bordering on it. It’s different from the extreme good taste that we both tend to do.”

The apartment’s palette consists mainly of grays, browns and ochers against the cool white walls, and though it’s tonally restrained, it’s texturally complex. Gustafson said that his idea of the apartment was less “Fanny and Alexander” and more Vilhelm Hammershoi, the Danish painter known for his monochromatic, nearly empty, ethereally lighted interiors. “The Swedish sense, even if 19th century,” he suggested, “is more homespun — a little drab, if you want — but it is a Nordic thing. It’s not silk and velvet, let’s put it that way.”

http://tmagazine.blogs.nytimes.com/2011/11/04/true-north/

SHABBY TO CHIC!

2011-11-14T09:30:00.000-08:00

Say yes to renos a fixer-upper can save on the overall cost of the house
National Post
Nov. 12, 2011

Don't pass by that shabby house just yet. With the average price of Ontario homes on the rise to almost $360,000, the Ontario Real Estate Association (OREA) recommends looking beyond move-in-ready properties. "Everyone wants a house or condo that will be perfect the minute they move in," says Barbara Sukkau, president of OREA. "But with the price of houses continuing to rise, and some buyers looking for a family home in a seller's market, it may not be an option for all buyers. Buying a property that needs work can be a way to save on the overall cost even when you factor in the cost of an extensive renovation," she says. OREA recommends identifying properties with your realtor that will build equity after improvements are made but still remain in budget, and make sure the neighbourhood you invest in is worth it.

126% DECADE OVER DECADE

2011-11-10T11:23:00.000-08:00

Calgary house prices increased 126% over past decade
Projected 2011 average cost: about $402K
By Mario Toneguzzi
Calgary Herald November 8, 2011

Strong in-migration, population growth and a vibrant oil and gas sector have pushed Calgary average house prices to an increase of 126 per cent in the past decade, says a new report published Monday by Re/Max.

The report said renovation spending and new construction have been "considerable" secondary factors propping up values throughout the city between 2000-2010.

The report also said the total value of residential building permits in the city during that period was the third highest in the country at $23.1 billion behind Toronto ($77.3 billion) and Vancouver ($35 billion).

"A few reasons I believe Calgary has seen such growth in the last 10 years is simple due to our strong economy from natural resources which has been a driving force in migration into Calgary for jobs," says Tanya Eklund, a realtor with Re/Max Real Estate Central.

"This has resulted in growing our population to well over one million, low unemployment rates, a strong GDP and the demand for housing.

"We are highly affected by inventory levels in real estate. When inventory is low and the demand is there, prices increase. . . . We had a very balanced market in this time period and saw huge economic growth which proved significant gains in the housing sector."

In Calgary, the average price rose from $176,305 in 2000 to $398,764 by year-end 2010.

The Re/Max Housing Evolution report said the average residential price in Canada rose 106 per cent in the past decade, led by Regina, which saw a hike of 173 per cent.

Regina was followed by Edmonton (165 per cent), Saskatoon (163 per cent), Winnipeg (158 per cent), Kelowna (156 per cent), St. John's (149 per cent), Greater Vancouver (128 per cent) and Calgary.

The report said investment in Canada's housing stock is at an all-time high in the 16 Canadian residential real estate markets surveyed.

"Revitalization, renovation and new construction have been largely underestimated in terms of overall impact on rising average price," said Elton Ash, regional executive vice-president of Re/Max of Western Canada. "Yet, outside of supply and demand, these have been among the foremost variables influencing real estate values.

"Population growth is a central to housing evolution, supporting steady household formation, which in turn will boost revitalization, new construction and investment in Canada's housing stock for years to come. Ultimately, a rising population bolsters the health of the real estate sector and fuels the trends that lead to continued average price growth on all fronts."

A Housing Market Outlook by Canada Mortgage and Housing Corp. said many factors that support resale housing demand in Calgary have become or remained favourable this year, including growth in full-time employment, low mortgage rates and improved net migration.

"However, competing factors such as uncertainty in the global economy has kept some prospective buyers on the fence, and will continue to temper any large increases in sales," said the CMHC.

The average price for a residential property in the Calgary census metropolitan area this year is forecast to be $402,000, up 0.8 per cent from 2010.

As the supply in the resale market moves lower and conditions become more balanced, stronger price growth is expected next year, said the CMHC. In 2012, the average price is anticipated to rise 2.2 per cent to $411,000.

BE A LAMB & BUILD IN CALGARY!

2011-11-10T10:26:00.000-08:00

Toronto tower builder eyes three Calgary projects
‘You can feel the wealth,’ says Toronto developer
By Dan Healing
Calgary Herald November 9, 2011

CALGARY — A Toronto residential tower condominium developer is proposing three projects for Calgary, attracted by the city’s wealth and style.

Brad Lamb, head of Lamb Development Corp., said Wednesday his company will partner with Fortress Real Capital on the first project, a 30-storey, 230-unit condo at 10th Street and 6th Avenue S.W.

The project is expected to cost about $62 million to build and its residential units and ground level retail to sell for around $80 million, he said.

“I’ve been looking at Calgary for five years trying to find the right opportunity,” he said.

“And I believe now is right for Calgary.”

Lamb said he believes Calgary is the most affluent city in Canada and, furthermore, that the downtown region between the Beltline and the river is ripe for high-density development.

“You can feel the wealth in Calgary,” he said as he prepared for a meeting with potential investors on Wednesday evening.

Lamb said his second project will be a hotel and condo combination and the third will be a highrise but its details can’t be revealed as yet.

The downtown Calgary market for residential towers has come back from 2008 when the shrivelling economy dealt a death blow to the four-tower Arriva project by Torode Residential Ltd.

In August, Vancouver-based Mike Bucci of Bucci Developments Ltd. said his company was shifting focus to Calgary, with two new projects, because the economy is more promising than in the company’s home town.

Canada Mortgage and Housing Corp. reported Tuesday that multi-family starts in the city are up 70 per cent for October and five per for the first 10 months compared with last year.

The numbers are being driven by the highest number of apartment unit starts since May 2008, it noted.

THE BIG BABY PHENOMENON!

2011-11-09T12:09:00.000-08:00

Adult kids living at home? It is going to cost you
Jonathan Chevreau
Financial Post Nov 9, 2011

In Italy, they’re called “big babies.” In North America, Generation Boomerang, which is also the title of a one-hour documentary about the phenomenon of adult children still living at home with their parents. It airs on CBC’s Doc Zone Thursday night at 9 p.m. EST.

This is a far more pervasive trend than you may think: fully half (51%) of young Canadians in their 20s still live with their parents, often in the bedrooms they’ve occupied since they were children. The percentage jumps to 60% when narrowed to just those aged 20 to 24.

Social scientists say it’s a global trend not likely to fade away – at least so long as developed economies are stagnant and jobs scarce. According to Newsweek, 55% of American males aged 18 to 24 still live at home.

The phenomenon is even more pronounced in Europe. In Italy, 70% of young adults live at “casa mama.” The Italian term “Bamboccioni” means big babies. And in the United Kingdom, one in three parents are remortgaging their homes to support “Yuckies” – Young, Unwitting, Costly Kids.

A year in the making, the documentary was produced by Vancouver-based Dream film Productions and directed by long-time business partners Sharon Bartlett and Maria LeRose, both Baby Boomers and parents. Their next project addresses youth unemployment.

Thursday’s show begins with and periodically revisits Vancouver comedian Phil Hanley, who has “mined comedic gold” about living with his parents in his 30s. His opening line is “I’m not only a comedian, I’m also a stay at home son.”

If Hanley can make the leap from living at home to show business success, he can skip entry-level jobs. As Maria LeRose notes, the irony is the topic of living at home may be what ultimately gets him out of there. In fact, he’s often on the road, but the parental home serves as his base.

Other subjects in the documentary have a similar strategy, prompting Seattle-based social psychologist Jane Adams to declare this a generation that refuses to start at the bottom and pay their dues.

“There are jobs the Boomerang generation don’t consider because they don’t fit their self image, values and expectations,” she says in an interview. “They want to live in the same style their parents raised them in, forgetting it took those parents 25 years to get there.”

Perhaps that’s why Paul Lermitte in Richmond, B.C. has decreed sons Patrick and Jeremy must leave home by 25. The youngest, 23-year old Jeremy, sees home as a “harbour” while he studies to become a financial analyst. The documentary builds suspense as Patrick approaches 25. He wants to break into film but figures jobs are scarce so needs to stay home while he builds up his contacts. “I don’t want to be stuck in a job where I’m not happy,” he tells the camera.

Publicist Jeremy Katz says Boomers were an historical blip in leaving the nest early. “Their parents and their parents’ parents lived at home until they got married and started their careers/life’s work.” When Boomers came of age, jobs were plentiful and housing cheap. “They just lucked out,” says Katz, himself a Boomer.

Here in 2011, 30 looks to be the new 20. Call it extended adolescence. Some sociologists consider it an entirely new life stage dubbed “emerging adulthood.” One former Boomeranger, Christina Newberry, twice returned home in her 20s and has parlayed the experience into a book and blog: www.adultchildrenlivingathome.com.

If you’re a Boomer parent, you better believe Junior’s extended stay will cost you, even delaying your own retirement. On average, it costs $200,000 to raise a child to 18 but an extended stay into their 20s can easily add on another third. A U.S. study found parents spend 10% of their income to support their adult children. Jane Adams doesn’t think economics alone explains the phenomenon but warns Boomers can’t get on with their second adulthood if their kids haven’t got on with their first one.

I wonder if these kids are shortchanging themselves by avoiding entry-level jobs and the raw material of life experience. Every job, no matter how humble, provides life lessons and may lead to unforeseen opportunities via random encounters unlikely to occur while they’re holed up in their childhood bedrooms surfing the web.

Many of these kids appear to be aspiring writers or creative types, in which case the supposed “joe jobs” they’re spurning might furnish more comedic or creative gold than would staying at home.

Photo By: Mimi Jaffe

GOOD ADVICE WHEN SELLING!

2011-11-02T14:26:00.000-07:00

A guy's guide to a spiffy abode
Barbara Mahany
Chicago Tribune October 31, 2011

We’re not pointing fingers or anything, but let’s just say we might have strolled into more than one apartment in our time in which the fellow in charge of cleaning was, well, clearly otherwise preoccupied.

Exhibit One might have been the kitchen sink, piled high with a good month’s worth of dirty dishes, spaghetti sauce now permanently splattered to the wall, a la Jackson Pollock. Or maybe it was whatever lurked behind the bathroom door. And made us slam the door, dash down the hall and bang on some stranger’s door in search of a salle de bain not quite so, um, pungent.

Fact is, plenty of males we know need help in the cleanup department. And we are here, mop and dustbin at the ready, to leap to the rescue. We enlisted the expert advice of Nicole Sforza, senior home editor at Real Simple magazine and a clean freak who knows her way around all the nooks, crannies and dust holes that might trip up a lesser soul.

Herewith, our Guy’s Guide to Housecleaning, headlining the top 10 tips for a spick-and-span abode. Or, as Sforza put it: “How to minimize the gross factor.”

1. DITCH THE TOILET BRUSH, DUDE. No really. You do not want that nasty thing festering in the holder, over there in the corner. “Minimize the concept altogether,” says Sforza. Go with disposable toilet brushes. Swish, and ditch. (Or ditch ‘em altogether: Next time you find yourself in need of Alka-Seltzer, well, your toilet bowl could use two, too. Just pop ‘em in the bowl, let the bubbles do their thing, and 20 minutes later, flush it all away.)

2. HIDE THE GOODS. Keep a bottle of all-purpose cleaner in every room in your house, but hide it. Under the couch. Beneath the sink. You name it.

3. CUT THE BIG SCREEN FIXATION. Do not, do not spritz any sort of cleaner on your big screen, boys. Ditto for the computer screen or any electronic gizmos that sport a dusty patina. Instead, next time you haul a load of laundry out of the dryer, grab the old dryer sheet (yes, the one that just came out of the dryer) and wipe down your screens, all of ‘em.

4. BE STILL MY DUSTER HEART. Yes, the hand-held shaggy-haired wandy thingy is the next best thing to that genie in a bottle. You don’t need any spray. Just swipe the duster on any surface and you’ll clear the decks of dust. But beware: When the duster starts to turn a greyish colour (say, how you look when you glance in the mirror on the morning after a big night out), it’s time to toss it out.

5. LEAVE IT WHERE YOU’LL TRIP OVER IT. The tile cleaner, that is. Tuck it between the shower curtain and the shower liner (if you have one), so you’ll remember to spritz the tile walls every time you suds up.

6. HIDE ALL BUT THE ESSENTIALS, when it comes to the bathroom at least. Toothbrush? Toothbrush holder? Razor? Rusty can of shaving cream? Why do you think medicine cabinets come with doors? Shove ‘em back there, and forget ‘em. If you’re lucky, no nosy body will stick her nose in there and sniff out your unsightly ways.

7. VROOM, VROOM GOES THE VACUUM. Just because you have thick rugs or shaggy carpet and can’t see the dirt, don’t think it’s not down there. Plug in the vacuum, and suck it up. Sforza’s tips: Don’t pretend you have no vacuum; remember to overlap your path; and a mini hand vac never hurts — you can swipe up a rug in no time.

8. THE BATHTUB. We could spend weeks on this sorry pit, but let’s start easy. If you’ve remembered to put a hair trap over the drain, know this: You do have to clean out the hairs. And pouring a shot of white vinegar and a clump of baking soda down that drain will never ever be a bad idea. Have at it, Mr. Volcano Man.

9. MOVE OVER, MICROWAVE GRUNGE. You’re gonna love this: Fill a microwave-safe bowl with water (a squirt of lemon scores you extra points); zap for five minutes, till the inside of the ‘wave is all steamy. Wipe it down with paper towel and you’re back in business, splatter-free.

10. TIME TO HIT THE KITCHEN SINK. Once you suds through the month’s worth of dirty plates and bowls, you will notice that there is a sink down there. It will need a shine. Take half a lemon and swipe it all over your sink’s surface, and if — and only if — you have a garbage disposal, make it purr: Stuff a half lemon down there and crank it up. Your kitchen will smell like a citrus grove. Well, maybe.

AND NOW FOR SOME TRICKS TO GET YOU IN THE CLEANIN’ GROOVE:

—INVITE FOLKS OVER. Yes, sir, surest way to force you to clean is to consider the faces of your friends when they realize what a slob you really are. Sorry, tough love is the only way sometimes.

—SPEED CLEAN. Set a time limit, something tolerable, say, 20 minutes. Crank the timer. Rush around like a crazy man. See how much real estate you can cover before the gong goes off.

—STICK TO COMMERCIAL BREAKS. Got a long night in front of the big screen? Well, put those commercials to good use, and commit to cleaning while the ads whir by. By the time you click it off for the night, your home sweet home could be shinin’.

—A GREAT PLAYLIST IS A HOUSECLEANER’S BEST FRIEND. We’ll let you compile your own.

Photo By: Christian Yanchula

A TIME TO REMEMBER OUR HEROES!

2011-11-02T12:40:00.000-07:00

Miracle man: How one Chinese diplomat saved thousands of Jews from the death camps
Joe O'Connor
National Post Nov 1, 2011

TORONTO — Eric Goldstaub curses, spits out a stream of naughty words and then abruptly apologizes for having uttered them. He can’t help himself, he says. It was a long time ago, a lifetime, but when he thinks back to the Vienna he once knew and all the doors that he knocked on — and all the doors that were shut in his face — his temper sparks.

“I went to every goddamn consulate there ever was in Vienna. Vienna, as the Austrian capital, had all the consulates,” the 89-year-old growls. “I wanted to get visas for my parents and for my relatives. I had 20 relatives. My family, we were 20. And I was going from one bloody consulate to the other. ”

He was a Viennese Jew, and this was his beloved Vienna in 1938, after the Austrians had welcomed Hitler and his Nazi thugs with straight-armed salutes and a campaign of Jewish persecution that would escalate into the Holocaust.

Mr. Goldstaub was a teenager from an influential Jewish family, with a trench coat, a fedora, kind-looking eyes and a talent for dancing.

His fruitless waltz around the city district housing international embassies ended when he visited the Chinese consulate and was met there by Dr. Feng Shan Ho, the Consul General.

“It was a warm reception, and he said bring your passports tomorrow and we will give you all visas,” Mr. Goldstaub says.

“I didn’t believe my eyes, my ears. It was like a miracle that he would say that and, sure enough, I went back the following day and brought all the family’s passports and he sent me away with visas for Shanghai, China.

“And I didn’t even know where the hell China was.”

Much was lost in the Holocaust including, in large part, the story of a Chinese diplomat, an Oscar Schindler of the Far East who, with a stroke of the pen rescued thousands of Jews from the death camps.

“Very few people did the right thing during the Holocaust,” says Bernie Farber, former CEO of the Canadian Jewish Congress, who is lecturing in Toronto on Wednesday about the unsung heroes of the Holocaust, for which Mr. Goldstaub will be in the audience. “If more people acted as did Feng Shan Ho, and others, it would be a different world today.”

The world in 1938 was a dangerous place, especially for Jews. Shanghai, an open port city without any diplomatic controls and with a Japanese occupying army watching over it, became a safe harbour for thousands fleeing the coming horrors in Europe.

“People usually ask me two questions about my father,” says Manli Ho, the diplomat’s daughter, from San Francisco.

“Why would some Chinese guy be saving Jews in Vienna when so many Europeans were turning their backs, and why didn’t he talk about it?”

The answer, she believes, is that helping people was the most natural thing for her father to do. And since it was, he never spoke about it after the fact.

Dr. Ho devoted one sentence of a 700-page Chinese language memoir he published in 1990 to the Viennese visa scheme. What he omitted is a Hollywood blockbuster that has never been made.

For two years, he issued visas. Five hundred a month on average, despite being ordered to stop by his superiors and being evicted from the building housing his office by the Germans. Dr. Ho opened a new office, and paid for it out of his own pocket when his Chinese boss in Berlin shut off the money tap. He kept issuing visas until he was transferred out of Austria in 1940. He died in California in 1997, having never met the people he helped save, beyond a fleeting, life-giving encounter in Vienna.

..Mr. Goldstaub was among the lucky ones. He got out with his family and, after 12 years in Shanghai, a time he remembers as a “great adventure” of youth, he moved to Canada and began importing classic clocks and barometers.

“My company is called Ergo Industries — Ergo — for Eric Goldstaub,” says the proprietor, plunking a business card in my palm.

Mr. Goldstaub is honorary president. It is a title he takes seriously, spending most mornings at an office in suburban Toronto reading newspapers, drinking tea and kibitzing with the employees, including his son, Danny, who runs the place.

The old man is turning 90 in a few weeks. On a rare morning at home, in a spacious apartment, surrounded by ticking clocks and trinkets from China and photos of his grandchildren, Mr. Goldstaub smiles. He says that he has lived a good life, one full of richness and luck.

“If I never knocked on that door in Vienna I would have been in a concentration camp,” he says. “And I would have died, I am almost sure of that. Our whole family would have died.

“We needed Feng Shan Ho. He saved us. It was a miracle.”

National Post

HAPPY HALLOWEEN!

2011-10-31T13:14:00.000-07:00

HAPPY HALLOWEEN EVERYONE!
I WANT CANDY - BOW WOW WOW - Check it out!

ROBUST RETAIL

2011-10-31T09:57:00.000-07:00

Calgary demand for new retail space ‘unprecedented’: Colliers
More than 10 million square feet proposed
By Mario Toneguzzi,
Calgary Herald October 31, 2011

CALGARY — Demand for new retail space in Calgary has reached an ‘unprecedented’ level, says a report by Colliers International.

The commercial real estate firm says 27 projects comprising just over 10.7 million square feet throughout the city are in the planning, permitting or construction stage.

“The momentum of the Calgary retail market in 2011 can be best described as resilient and very robust,” says the report. “The overall vacancy rate has remained unchanged over the past 12 months at 1.45 per cent.

“Calgary has the distinction of having one of the lowest, if not the lowest, retail vacancy rates in all of North America.”

With the influx of both Canadian and international retailers, all vying for a “slice” of the Calgary market, the retail market is expected to remain very strong into 2012, with vacancy rates approaching 1.3 per cent, says Colliers.

“The retail development community is actively pursuing new projects throughout the city, including a push into inner-city mixed-use developments,” says the report.

A FRENZIED PACE!

2011-10-28T09:15:00.000-07:00

Calgary office leasing activity a sign of prosperity
Employment growth expected to follow
By Mario Toneguzzi
Calgary Herald October 27, 2011

CALGARY — It is a symbol of both current and future prosperity.

And judging by the record, frenzied pace of leasing activity in the downtown office market, Calgary’s economic fortunes appear to be looking good right now - and down the road.

The leasing activity is sure to lead to future employment growth.

“Companies don’t snap up office space just to lounge in it — if energy companies are expanding their office footprint, they plan on growing their business. This means more drilling, more investment, more jobs and more economic growth for Alberta moving forward,” said Dan Sumner, economist with ATB Financial in Calgary.

Greg Kwong, executive vice-president and regional managing director of CB Richard Ellis Ltd., who moderated a panel discussion on the topic Wednesday at the Calgary Real Estate Forum, said so far this year absorption in the downtown market is 2.2 million square feet.

“To put it into perspective, the average over the last 15 years has been about 750,000 square feet annually. So unbelievable in that respect,” said Kwong. “Why is it happening? Probably two factors. One is if you talk to the oil and gas companies and energy-related services companies that are taking space ... they’re banking space again.

“The second factor is that there was an unusual amount of lease renewals that came up for expiry in the last couple of years and they took advantage of what was deemed to be a slower market.”

Kwong said the difference in the oil and gas industry between today and 30 years ago is that capital budgest and decisions involve billions of dollars being laid out over 10, 15 or 20 years.

Todd Throndson, managing director of Avison Young in Calgary, said many companies are making plans for the long term.

“They want to protect themselves for projects that they may have in six months, in 18 months, in 24 months. Down the road, they’re thinking big picture,” he said. “A lot of companies back in 2006 and 2007 were put in very compromising positions because of their real estate needs. They weren’t able to get the space they wanted. They had to pay a lot more money for the space than what would have been ideal.

“So a lot of them with strong balance sheets are making sure they protect themselves and get their space for their corporate needs going into the future.”

That’s reflected in the downtown office vacancy rate. According to Avison Young, it’s reached its lowest level since early 2009. Over the last three months, downtown office vacancy has dropped from 7.4 per cent to 6.2 per cent.

The addition of skycrapers Eighth Avenue Place and the Bow have not spiked the vacancy rate as was feared a couple of years ago. And demand is fuelling talk of more new development on the horizon.

Bryan Slauko, managing director of Base 10 Capital Advisors, said the amount of absorption implies significant growth in the number of office jobs in Calgary that would be needed to fill those seats. And filling all those seats requires new employees which would mean population growth in Calgary. But population growth can’t match that level of employment growth.

“It begs the question: if there’s not a ton of new office employment currently compared to the historical level to absorb all that office space then in my opinion it seems to mean . . . it’s for speculative growth. They’re planning on growing into that space in the future if the economy holds up and their hiring plans continue,” said Slauko.

“But that comes with a fair amount of risk to the office market because we see today in the economy there’s a lot of global economic uncertainty and I don’t believe Canada is immune and Alberta’s not immune because there’s a lot of risk to the natural resource prices that we depend on.”

And if the economy heads south then potentially a lot of office space will be coming back onto the market for lease.

A BRIGHT SPOT!

2011-10-19T12:11:00.000-07:00

Resale home sales seen as bright spot
Garry Marr, Financial Post
October 18, 2011

Existing home prices in Canada continued to increase last month, although the gains recorded were the smallest since January.

The Canadian Real Estate Association said the average price of a home sold in September was $352,581, a 6.5% jump from a year earlier.

The continued strength of the market in the face of a battered world economy was on display last month as sales rebounded from August, increasing by 2.7% on a seasonally adjusted basis. For the first three quarters of the year, existing home sales are now 1.2% ahead of last year's pace.

The Ottawa-based group, which represents about 100 boards across the country, said new listings have been flat for two months and markets have tightened but all signs indicate most jurisdictions are still in balanced territory.

The group says nationally the sales-to-new-listings ratio was 52.8% in September, up from 51.6% in August. CREA says almost two-thirds of Canadian markets have a sales-to-new-listings ratio of 40% to 60%, which is considered balanced.

"The Canadian housing market remains a bright spot against a backdrop of mixed headline news about the global economy," said Gary Morse, CREA president. "Low mortgage rates continue to draw buyers to the housing market, while recently tightened mortgage regulations are working as intended."

Adrienne Warren, an economist with Bank of Nova Scotia, noted that even as Canadians spend less on retail purchases, those low interest rates are enticing home buyers.

"Continuing uncertainty over the global economic outlook and highly volatile financial markets have yet to contribute to any notable slowing in Canada's housing market," says Ms. Warren.

Last month's numbers were boosted by a strong contribution from the country's largest market. Toronto average sales prices rose 8.9% last month from a year ago to $465,369 while sales activity was up 21.3% during the same period.

"It's pretty clear Toronto is the star of the national real estate scene at least in this act," said Phil Soper, chief executive of Royal LePage Real Estate Services. "The reality is while the world may be on shaky economic footing and there are scenarios where it would cause hardship to business in Toronto, the current reality is we got jobs back from the recession quickly and there has been some slight upward pressure on income and salaries."

The market also appears to finally have adjusted to new mortgage rules. The latest round of changes saw amortization periods lowered to 30 years from 35 years, reduced refinancing limits to 85% of a home's value from 90% and removed government insurance on homeequity lines of credit.

Mr. Soper said those moves, combined with rule changes in 2010 that forced condominium investors to have a minimum 20% down payment, had slowed down the market. "What we didn't want to see was speculative house flippers and that's been tightened up," he said.

Gregory K lump, chief economist for CREA, noted housing has remained stable in face of market volatility, which has contributed to Canadian confidence in the economy.

"Interest rates are expected to remain low for longer, and evidence suggests that recent changes to mortgage regulations are preventing the kind of excesses they were designed to avert. Both of these developments are good news for the housing market," he said.

Photo By: Fiona Katherine

UP YOUR ALLEY!

2011-10-13T12:38:00.000-07:00

Most walkable neighbourhoods: Beltline bustles with some big-city hustle

By Tony Seskus,
Calgary Herald October 13, 2011

Sushi bars, bridal shops, nightclubs, art galleries, homeless programs, historic sites and yoga studios — a stroll through Beltline is unlike any other in Calgary.

It’s got a big-city feeling that’s bustling, vibrant and even gritty, sometimes within a single block.

“It’s one of the few places in Calgary where one can live without a car quite easily and it’s probably the best place to do it,” said Rob Taylor, an area resident since 1983 and community president.

“It’s fun to go outside and watch what’s happening when there’s a variety of people and a variety of things going on.”

On a sunny weekday afternoon, the streets are indeed alive.

Office workers, hipsters, a panhandler and two police officers walking the beat all momentarily share the busy corner of 10th Avenue and 1st Street S.W.

They are among the thousands of pedestrians who use Beltline’s sidewalks each day.

It’s little wonder that when the Herald used walkscore.com to get a sense of Beltline’s walkability, it rated “very walkable.” That means most errands can be run on foot.

Strolling with Bright Pryde of the Beltline Planning Policy Group last June, that much is obvious.

There are streetside businesses to satisfy nearly every consumer urge. And away from the bustle is Central Memorial Park, which includes a stylish garden cafe that would look at home in any major metropolitan centre.

The community thrives on visitors and its large population.

Beltline has nearly 20,000 residents, filling a densely populated neighbourhood of upscale condos, rental apartments, townhouses and a few single-family homes.

As day becomes night, crowds arrive in the neighbourhood to dine, drink and be entertained.

With so many eyes on the street, Pryde says she always felt safe on foot in the community.

“I used to live in this little building here — it’s kind of a sketchy corner,” said Pryde, pointing to a rental where she might hear arguments in the street at night. “But, you know, when I walked out onto the streets, I felt safe. I felt comfortable because I knew that the community was there with me.”

There’s no avoiding the crime statistics, but behind the headlines there’s been improvement.

Beltline had 47 street robberies in 2010, but that number is down nearly 30 per cent from 2008.

Car thefts and thefts from vehicles are also down significantly from 2008, coinciding with policing efforts in the community.

Trotting through Beltline, the community’s size is striking.

Yet its grid street system, a legacy of early planning, often makes it easy to find quick walking routes.

But there are challenges.

Walking conditions range from model sidewalks to rugged paths.

The best routes are wide, treed and have comfortable benches. They’re as good as any in the city.

But there are also instances where sidewalks are narrow, patched or crumbling. Some have utility poles or other obstacles that walkers have to navigate.

And, of course, thousands of vehicles pass through the community daily. Along the busiest roads, there’s the steady din of traffic.

Despite the beauty of Central Memorial Park, there are also no parks north of 12th Avenue.

The community association is hopeful that improvements will come along as the city looks to bolster walkability in the city.

While interest in the “urban lifestyle” is growing in popularity, Taylor acknowledges it doesn’t suit everyone’s needs. But there’s also great pride in the many things the community does offer.

“If you’re of an urban mindset, it’s fun,” Taylor said.

And as Pryde headed off to work down one of Central Memorial Park’s picturesque garden pathways, the community’s walk appeal was clear.

“I always hear people say that it’s impossible to live in Calgary without a car,” added Pryde, who is currently studying abroad.

“I always argue the opposite. You’ve got to pick the right community. No, you can’t live in Cranston without a car. But you could easily live (car-less) in the Beltline — and many people do.”

Photo By: RemotelyBoris

BLAZING AHEAD

2011-10-11T15:36:00.000-07:00

Canada’s housing market steams ahead
Reuters Oct 11, 2011

TORONTO — Canadian housing starts jumped much more than expected in September, helped by a surge in the condominium sector, suggesting Canada’s property boom stayed intact last month and should help the economy avert recession.

Canada Mortgage and Housing Corp. said on Tuesday that starts rose to seasonally adjusted annualized rate of 205,900 units last month. August starts were revised up to 191,900 from 184,700.

September starts far exceeded the consensus expectation of analysts, who had called for 188,000.

Driving the gains were a jump in construction of multi-residential buildings such as condominiums.

“Housing starts picked up in September due to an increase in multiple starts in the Atlantic region, Quebec and in British Columbia,” Mathieu Laberge, a deputy chief economist with CMHC said in a statement.

“Multiple housing starts are expected to move back toward levels consistent with demographic fundamentals in the near term.”

The agency said urban starts increased by 8% to 185,900 units in September, with multiple urban starts up by 14.2% to 118,000 units. Single family housing starts in urban areas decreased by 1.5% in September to 67,900 units.

Rural starts were estimated at 20,000 units.

CIBC World Markets economist Emanuella Enenajor said in a note to clients that while multiple starts are widely expected to scale down in the months ahead, residential construction could be a plus for GDP in the third quarter.

Canada’s economy contracted marginally in the second quarter, partly due to the supply chain impact of Japan’s earthquake and tsunami. There had been fear the economy could shrink again in the third quarter, meeting the textbook definition of a recession.

But recent data has been encouraging. A report on Friday showed Canada created six times as many jobs as expected in September, helped by an economy that is largely humming along even as other rich nations struggle with debt and slumping confidence.

Canada’s housing sector has played a major role in the recovery. The country avoided the subprime housing boom that drove the United States into recession and helped trigger the global financial crisis.

Property prices and sales briefly weakened after the crisis. But the Bank of Canada’s decision to cut interest rates to a record low, which pulled mortgage rates lower, fueled a fresh boom.

The housing boom was helped along by the fact Canada’s conservative banks escaped the crisis largely unscathed and were able to keep lending.

The fear now for many policymakers is a fresh asset bubble could be in the works.

A NEW PERSPECTIVE

2011-10-08T10:06:00.000-07:00

Project Calgary will give new perspective on Calgary's neighbourhoods
By Tom Babin
Calgary Herald October 8, 2011

What would make your neighbourhood better?

It’s a simple question, but the answers are not. The answers come wrapped in expectation and are coloured by perception, history and experience. Still, the question should be asked. Without it, our city will never improve.

That’s why we’re posing it. It’s what’s driving Project Calgary, a new initiative of the Calgary Herald that kicks of today and runs for the next 100 days. In hundreds of ways, we will seek answers to that question, and we want your help.

At the heart of Project Calgary lies an ever-growing archive of data that we have spent months compiling. In nearly 50 different areas, we have collected data on Calgary’s 200 individual neighbourhoods that collectively shed never-before seen light on community life in the city. We have crime statistics, housing data, affordability indexes, and measures of neighbourliness and much more. Want to know how much parkspace your community has compared to your best friend’s? We’ve got that. Want to know where your neighbourhood ranks on an index of coffee shops? We have that too. Worried about growing enclaves of poverty, or the plight of seniors living alone? We have data that can shed light.

Over the course of the project, all of that data and more will be made available to everybody, as spreadsheets or in more easily understood maps and interactive charts, on our website. It’s a project of open data, so we want you to take it, interpret it, post it on your blog, share it with your friends on Facebook, and tell us what you think.

The data, however, is just the starting point. It will kick off conversations about how we can make our neighbourhoods, and thereby our city, better. Our journalists have spent months combing the data, looking for stories and trends that will illuminate, inform and perhaps even enrage all of us.

There are a few points to remember as we begin this journey. Calgarians like their city. A poll commissioned for this project found 83 per cent of people satisfied with the quality of life in the city. And Calgarians like their neighbourhoods even more — 85 per cent said they were satisfied with 39 per cent saying they were very satisfied. There is, however, room for improvement.

“I think a question like this shows that (Calgarians are) content,” said Jaideep Mukerji, managing director of Angus Reid, who conducted the poll. “It’s a positive feeling but it’s not necessarily a very intensely positive feeling with respect to Calgary in general.”

Affordability, for example, is still a concern for many Calgarians, and along with this comes questions of poverty, charity and community. Interestingly, our poll found the most important part of neighbourhood life to Calgarians is not safety or amenities, but the old-fashioned notion of neighbourliness.

“It’s the quality of your neighbours and the quality of your housing that really tend to drive overall satisfaction,” said Mukerji. “It’s very much ‘Do I live around nice people?’ and ‘Do I live in a nice place?’ And those seem almost banal, but they actually really do have a pretty big impact on people’s overall satisfaction with their neighbourhood.”

These are just some of the issues that will be addressed over the coming 100 days. We’re kicking off Project Calgary with a look at one of the most contentious areas of civic life: Transportation. Over the next two weeks, you’ll see data and stories related to walkability, traffic and transportation, and it’s sure to spark a discussion — as the launch this week of a new bike lane in the city has proved.

In addition to the stories, photos, maps and data you’ll see in the print edition of the Herald, our website will feature even more.

Project Calgary is intended to be an ongoing conversation about neighbourhood life, so we invite you to get involved. Share your comments on our blog, discuss the data, tell us why you love your community or what would make it better. Project Calgary is being set up as a living initiative, so if you have an idea for us to explore, or some data you think we should track down and share, let us know. Tell us about your community, share your photographs and take part in our regular live chats. This project is intended to be a journey, and we’d love some company for the ride.

LATE SUMMER BUILDING PERMIT BOOM

2011-10-07T10:40:00.000-07:00

Developers give Calgary 'a vote of confidence'
By Mario Toneguzzi,
Calgary Herald October 7, 2011

A burst of late summer construction put Calgary among the country's biggest gainers in building permit values last month.

Statistics Canada reported Thursday that local building permit values soared to $461 million in August, an increase of 23.6 per cent from July and 77 per cent from a year earlier.

Susan Thompson, business development manager for real estate for Calgary Economic Development, said the numbers indicate "developers are giving Calgary a vote of confidence. It takes time to build a building, but they're thinking there's going to be the demand there.

"By the time they're complete, we're going to need these buildings," said Thompson.

Half of the 14 permit applications valued at more than $20 million this year have been for multi-family housing projects, said Thompson.

Building permits are a good indicator of the city's economy going forward, she said.

"It speaks to intention," she said. "They wouldn't build them if they didn't think there was going to be demand. They obviously feel the economy is going to keep growing and the demand's going to be there."

Building permit values through August in Calgary now top $3.4 billion, an increase of 36.8 per cent from the same period a year ago. The total is almost equally split between the residential and non-residential sectors. The residential sector has increased by 9.5 per cent and the non-residential sector is up 84.1 per cent.

Ben Brunnen, director of policy and government affairs and chief economist for the Calgary Chamber of Commerce, said the numbers reflect renewed confidence in the Calgary economy.

"When we see building permits in Calgary increase that's for the construction sector and that tends to be the sector that falls off first in a recession and comes on last in a recovery," he said. "So the fact that we're seeing these increases in Calgary particularly relative to the other cities suggest that there's a vote of confidence for Calgary's economy moving forward."

TELL ME A STORY

2011-10-06T14:47:00.000-07:00

What's the real story of Canada's housing market?
Financial Post · Oct. 5, 2011

OTTAWA — Home prices rose during the third quarter of 2011, but the raw numbers may not be telling the whole story of the Canadian housing market, a new survey says.

The Royal LePage House Price Survey released Wednesday found that the average price of a home in Canada increased between 5.7% and 7.8% in the third quarter of 2011 compared with the same period last year.

The average price of a detached bungalow was $349,974, a standard two-storey home was $388,218 and a standard condominium was $239,300, according to the survey.

Royal LePage said that the rise in price defied expectations and suggested that record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence.

However, the third quarter of 2010 was a relatively weak period for housing prices, which makes the increase this year appear rosier than they are and may mask a decline in prices in the months ahead, it said.

“The strength in Canada’s national housing market conceals signs of predictable softening in some regions,” Phil Soper, president and chief executive of Royal LePage Real Estate Services, said in a statement.

“A broader slowdown is expected in the months ahead, but fears of a U.S.-style correction are completely unfounded.”

Vancouver had the highest priced homes in the country during the third quarter of 2011 and was the only city in the survey where the average bungalow or two-storey home cost more than $1 million.

Halifax, Montreal, Toronto, Saint John, N.B., and Ottawa all saw prices increase between 4.4% and 10.4%.

In Alberta, the volume of homes trading hands increased, but prices stayed soft, the survey found: Detached bungalows in Calgary fell 1% in the third quarter.

Victoria was similarly weak, with detached bungalows and standard two-storey homes falling two and 1.1% respectively.

BIG PLAYERS, BIG MONEY!

2011-09-29T09:39:00.000-07:00

Calgary magnet for big players
Claudia Cattaneo
Financial Post; Sept. 26, 2011

Like the rest of the country, Calgary has seen its ups and downs over the past decade, but what hasn't changed is its ability to attract corporate headquarters.

The latest one landed last week, when Aecon Group Inc., the largest publicly traded construction and infrastructure development company in Canada, opened a co-head office in Calgary to support activity in Alberta, British Columbia and Saskatchewan. It mirrors its long-standing legal headquarters in Toronto. Each office will employ 15 to 20 people.

The move, announced in the middle of another scary week in the markets, reinforces a trend that, if it continues, could see Calgary surpass Toronto in the next 10 years in terms of the number of headquarters, said Wilf Gobert, chairman of Calgary Economic Development (CED).

Calgary already boasts Canada's highest concentration of headquarters relative to its population.

The trend seems to be progressing as companies look past fears of a recession and establish roots in the city on long-term expectations that Alberta's energy-based economy will remain vibrant.

"We are involved in three basic sectors - the resources sector, the energy sector and the transportation sector," Aecon chairman and CEO John Beck said in an interview. "We don't see slowdowns in any of those sectors."

Aecon joined Brookfield Residential Properties and Native American Resource Partners in opening headquarters in Calgary this year. Universal Power Corp., Stream Oil & Gas Ltd., Petromanas Energy Inc., Osborne Interim Management made Calgary their home base in 2010.

Calgary's metropolitan area increased its headquarter count by 55.7% between 2001 and 2010 - to 123 from 79, according to figures compiled by CED from FP 500 data.

In contrast, headquarters in Toronto's metropolitan area declined by 18% over the same period - to 260 from 317.

The only other Canadian city that had a bigger growth rate was Edmonton, which grew its headquarters by 64.3% - to 23 from 14, between 2001 and 2010.

"Generally speaking there is a shift from East to West," Mr. Beck said. "We are just part of that shift. We see more growth in the West in terms of population growth, we see growth in terms of exports to Asia. Voting power is moving towards Western Canada. I would say that the normal thing that would follow that shift would be a continued addition of head offices in the West."

The growth in head-office jobs shows up in office leasing, which is moving at a record pace. According to CED, 1.5 million square feet of office space was leased in the first six months of 2011 in downtown Calgary. In contrast, in the Greater Toronto Area, where the leasing market is four times Calgary's size, 1.2 million square feet were leased over the same period.

The leasing reflects the arrival to the Calgary scene of new energy players such as China's state-controlled oil companies. While they may not be part of the head-office tally, they are setting up significant subsidiaries and buying up condos to house their expatriate workers. PetroChina, with offices in the Sun Life Plaza, has the largest presence. Sinopec is in Bow Valley Square. Cnooc Ltd. is flying people in and out, but is expected to have a large permanent office once its acquisition of Opti Canada Inc. is finalized.

The influx of Chinese money is so large there are calls for direct flights between Calgary and Beijing, bypassing Vancouver, even as British Columbia steps up efforts to establish itself as Canada's gateway to Asia.

Aecon opened a Calgary co-headquarter in the city's core to better serve its clients and further develop its business, Mr. Beck said. A third of its $3-billion in annual revenue is coming from projects in Alberta, where its clientele includes Syncrude Canada Ltd., Suncor Energy Inc. and ConocoPhillips.

Mr. Beck doesn't expect a repeat of the oil sands cancellations that resulted from the financial meltdown three years ago.

"That was at US$30-US$35 oil. We are at US$80 to US$90, so I think we are far away from that," he said. "A lot of the commitments that have been made can't be stopped. Production has to continue."

Bruce Graham, president and CEO of CED, said Calgary's exceptional headquarter growth is based on the strength of energy and other commodities and is unique in Canada.

In addition to drawing energy companies, Calgary is attracting industries that are accommodating that growth, such as procurement, finance, construction, he said.

"It demonstrates the optimism and the activity that is happening, despite the somewhat mixed signals that we are getting in the global markets," Mr. Graham said from Montreal, where he was part of a campaign last week with Calgary Mayor Naheed Nenshi to recruit workers and businesses to the city.

But, Mr. Graham said, "We are not an island. Hopefully things settle out globally because obviously we need the marketplace to accommodate the production that we are putting on stream."

RISE & REPEAT

2011-09-29T09:16:00.000-07:00

Prices rise for repeat home sales in city
By Mario Toneguzzi
Calgary Herald September 29, 2011

A survey of repeat home sales shows Calgary prices increased in July by 2.3 per cent from the previous month.

But the Teranet-National Bank House Price Index, released Wednesday, also indicated Calgary prices are down 0.9 per cent from a year ago - the only centre in the survey to experience a year-over-year price decline.

The index is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index.

The survey also said Calgary's index is still down 8.8 per cent from its alltime high of August 2007 and down 0.9 per cent from its pre-correction peak of August 2010.

For the six centres surveyed, the index was up 1.3 per cent on a monthly basis and 5.3 per cent on an annual basis.

Monthly increases were experienced in Montreal, 0.5 per cent, Ottawa, 1.0 per cent, Toronto, 1.7 per cent, and Vancouver, 0.9 per cent.

Annual increases were experienced in Halifax, 3.3 per cent, Montreal, 6.0 per cent, Ottawa, 4.1 per cent, Toronto, 4.8 per cent, and Vancouver, 8.5 per cent.

Meanwhile, the latest Global Real Estate Trends report released by Scotia Economics said the renewed slowdown in global economic activity is putting further downward pressure on already-weak residential property markets across much of the developed world.

And while Canada's hot housing market also has begun to cool, it remains a "notable outperformer," said Adrienne Warren, senior economist and real estate specialist with Scotia Economics.

Of the nine major developed markets tracked by Scotia Economics, with available second quarter data, only Canada, France and Switzerland registered positive year-over-year real price growth.

The report said Canada's housing market stands out in its resilience and longevity. Average inflation-adjusted existing home prices were up five per cent year-over-year in the April-June period, on par with the first-quarter's pace of appreciation. Data for July and August point to continued firm but stable sales through the late summer, alongside a levelling out in prices.

"Ultralow interest rates will continue to support affordability in the face of record high prices," said Warren. "Nonetheless, heightened economic uncertainty combined with recent signs of a loss of momentum in Canada's jobs market could keep some potential buyers on the sidelines for the time being. On balance, we anticipate a modest slowdown in the volume of sales transactions heading into year-end, alongside relatively flat prices."

Photo By: Design Inspiration Gallery

CURB YOUR UNRULY BUSH!

2011-09-22T11:42:00.000-07:00

Get enthusiastic about curb appeal
By Sheila Brady
Postmedia News September 11, 2011

It doesn't matter if you're just starting out in a new home, thinking about selling, or stayin' put - buffing up the curb appeal of your house is an absolute must. How your home looks from the outside is the first impression viewers get of who lives inside.

And real estate agents will tell you when it comes to selling, there is no bigger turnoff than a messy front yard or sad-looking front door.

The cheapest way to put a shine on the old address is to grab the rake.

Weed, trim edges for a clean appearance and prune and shape overgrown bushes. Snip off lower branches of pines for a good neat factor.

Add mulch or stones under cedars and around flower beds. Just like a new haircut, you will feel lighter by the end of the day.

Think about eliminating fences and using joint walkways, garden beds and plantings on smaller suburban lots, especially when there are bungalow or two storey townhouses, says landscape architect Welwyn Wong.

When it comes to door colour, co-ordinate with trim work and the brick colour, says colour specialist Jasmine Houghton. Avoid shocking colours.

BUYERS LURED!

2011-09-22T11:20:00.000-07:00

More buyers attracted to city's condo market
By Mario Toneguzzi
Calgary Herald September 20, 2011

Two high-profile projects will launch into the next phases of their development this weekend, suggesting the city may be poised for a residential condo rebound.

Keynote Urban Village will open its doors to a new show suite for its second tower in the east Beltline area while University City will launch its Building 3 project near the Brentwood LRT Station.

"Activity in the condo market has been gradually improving," said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp.

"Gains in employment, favourable mortgage rates, and price reductions have attracted buyers to the condo market, especially those looking for their first place."

A majority of Calgary condo sales this year have been for units priced below $300,000, said Cho, who expects to see more apartment-type condos break ground in the coming months. "There has been an uptick in the number of apartment permits issued, signalling the intention of more activity," he said.

According to CMHC figures, the 451 apartment starts in August was the highest monthly total since May 2008.

The 29-storey second Keynote residential tower will include 250 suites.

Possessions are scheduled for summer 2013.

Project sales manager Jeannie Elrafie said sales have been surging during the past eight months and that's "telling us there is an upswing underway in the Calgary real-estate market".

"We're getting a lot more demand than we ever were," she said.

The Keynote development, which encompasses nearly an entire city block on 1st Street S.E., already includes a 26-storey residential tower comprising 179 units, and a 14-storey office tower that includes 40,000 square feet of retail space, occupied by the likes of Sunterra Market, Starbucks, and an RBC Royal Bank branch.

The city's subdivision and development appeal board last week approved construction of the first two condo highrises for the University City project.

An invitation for this weekend's VIP launch of the third building says 400 condos sold in five days for the project's first two buildings.

A public launch is expected to be announced next week.

The first two towers are 18-storeys, each with 216 units.

The University City website states the project's third and fourth phases will consist of 12-to 14-storey buildings.

The planned fifth phase will be four storeys.

THE SIMPLE LIFE

2011-09-19T09:29:00.000-07:00

Small, simple, smart
By Pedro Arrais
National Post · Sept. 16, 2011

The combination of an aging population, first-time buyers and rising real estate costs has created the trend toward downsized living areas, with the resulting challenge of how to do more with less.

Smaller rooms have folks rethinking their furniture needs. Disposing of some items is an option, but the solution many people are turning to is multi-functional furniture.

Some pieces have long been multifunctional. In many homes, a dining room chair is moved to another room - a home office, for example - to serve as an occasional chair until needed for large dinner parties.

In many households, the dining table functions as a task desk by the family before and after dinner.

"People expect their furniture to do more," says Dana Wright, merchandising manager for La-Z-Boy Furniture. "They are looking for a simpler life."

She says the trend toward multi-functional furniture began when home sizes began to get smaller. Interior changes, such as a move away from separate living and family rooms to a great room in houses, created a need to reduce visual clutter.

Nowadays, ottomans invariably double as storage bins, and coffee tables have drawers for remotes and magazines.

"It is an ongoing evolution," Ms. Wright says. "At one time there was only a television to contend with. Now we have large flatscreen televisions and gaming consoles. All those components and controllers need to be hidden away."

It is easier to adapt to small living spaces if the furniture is smaller as well. An average sofa is about 216 centimetres long. A condo-size sofa can be 198 centimetres.

"Manufacturers typically put straight and narrow armrests instead of wider, more traditional rests on condo-size couches. That makes the difference in width not that noticeable but it fits better in smaller spaces," says Love Dodd of Dodd's Furniture in Victoria. "Some bottoms flip up to reveal storage underneath, some have a chaise on one end and others can recline. It is all about catering to different needs."

Even the traditional sofa bed, the original multi-functional piece of modern furniture, has evolved.

"Our hide-a-bed couch separates into two chairs, which can face each other, turn and swivel," says Chris Morton, assistant manager at Nood Furniture, a chain of stores in Western Canada. "We carry furniture with more European sizing, with smaller dining chairs and slipper chairs with no arms."

Also in an effort to declutter, people are looking for elegant solutions to recharging their electronic devices. Complex docking stations with hidden power bars are now built into bedroom night stands or kitchen sideboards.

Furniture is not the only item that is being asked to do more. Increasingly, interior designers are also being tasked with coming up with multipurpose rooms.

"It comes up all the time," says Cydney Hellier Gray, principal of an interior design business that bears her name in Victoria. "The classic scenario is for a condo's only extra room to be a TV room, a den, an office and a guest room when called upon."

She advises people to build more custom cabinetry to take advantage of dead space in a room. But she also warns multi-functional pieces should be used in proportion to a room's dimensions.

"I am not a fan of wall beds," she says. "They tend to make a room look smaller because of their bulk." She tries to keep furniture less than 91 cm in height because it visually preserves a sense of volume in a room when a person can see the wall. Any higher and that piece dominates the room because it eats up a person's sight lines and makes a small room look smaller. She says Murphy beds work better in larger spaces.

"It all comes down to a sense of balance and proportion." PH

OIL & REAL ESTATE

2011-09-19T08:35:00.000-07:00

House prices to get burst of energy
Strengthening oil sector to boost real estate
By Marty Hope
Calgary Herald September 17, 2011

Where oil goes, so goes Calgary.

As much as we like to say the city isn't as dependent on black gold for its health and prosperity, the fact is, we are.

With oil prices regaining strength and with hiring happening in the oilfields, the economy is beginning to strengthen - and it's pulling consumer confidence along with it.

A real estate axiom says that when the economy is good, the pace of home sales at the higher end of the market increases.

People in those income brackets aren't likely to buy if there is an indication the economy is headed south.

"That's probably true," says Norb Park, managing broker with Sotheby's International Realty Canada. "The businessminded are probably saying the economy is heading in the right direction, the oilpatch is in good shape, so this isn't a bad time to deal."

Resale housing statistics from the Calgary Real Estate Board tend to agree.

From the start of the year to the end of August, 948 homes priced at $700,000 and more changed hands, up from 779 for the same eight-month period in 2010.

In August, sales in that price range totalled 104 compared with 67 for the same month a year ago.

"There's a mindset that when oil is doing well, then the economy must be good," says Park. "That, in turn, increases consumer optimism - and right now, people are feeling positive."

But not all of us can afford homes that expensive.

Matter of fact, nearly 50 per cent of single-family homes sold this year and last were priced between $300,000 and $450,000.

"With Calgary's energy sector slated to grow, it is expected to lift the city's employment, income and in-migration - and in turn help contribute to growth in the resale market," says Sano Stante, president of the Calgary Real Estate Board. In-migration refers to the migration of people to the city.

"We expect price growth to improve as we approach the end of 2011 and move into 2012," he says, adding the market is seeing a boost in sales at both ends of the market.

"Improving economic conditions, coupled with affordability and price stability, has given Calgary a boost in buyers for upperend homes and entry-level condos," he says.

CREB also reports the average price for singlefamily resale homes reached $468,051 by the end of August, a one-per-cent increase compared to last year.

Taking a page from the RBC affordability reports, Stante says: "When looking at Canada's major cities, Calgary is one of the most affordable regions for homeownership in the country. Buyers are benefiting from improved selection at all price ranges in the market."

The single-family home market had 1,106 sales in August, an increase of 28 per cent when compared to the same month last year - which, by the way, was the lowest for August since 1994.

Sales of 9,485 for the start of the year to the end of August are 10-per-cent higher than the same period last year.

Condo sales totalled 468 units in August 2011, with a year-to-date total of 3,885 - similar to levels recorded in the first eight months of 2010.

Photo By: Mr. Alejandro Zeta

THEN THERE WERE TWO...BUT IN THE MEANTIME...

2011-09-13T14:44:00.000-07:00

Home buying help for singles
By Helen Morris
National Post

Purchasing a home alone can be daunting but help is at hand to make the most of your single income.

"Get pre-approved -with a single income, many times people are looking at condominiums. The condo fees and taxes need to be included, and, of course, the mortgage payment," says Kevin Suddaby a mortgage broker with Invis in Calgary. "Make sure you've got a complete assessment of what you can afford. Get an interest rate held, so that you are protected while you are looking for a home."

The new mortgage rules effective March 18 need consideration.

"We don't have access to the 35-year amortization anymore. This is impacting singles more than couples who have dual incomes," Mr. Suddaby says. "You can qualify for less property now."

One option may be to ask a co-signer, such as a parent, to help you qualify for the mortgage.

"By co-signing or guaranteeing the debt the parent is obligated as much as their son or daughter with the payments," says Stan Falkowski, senior vice-president, Mortgage Intelligence in Toronto. Helping with the down payment may make more sense.

"We're looking at the baby boomers. Their kids are now buying homes. If parents can afford it and they have assets, it wouldn't be a bad time to gift a down payment," Mr. Falkowski says.

With only your income under consideration, putting together a healthy deposit is more important than ever.

"For those who are looking to buy in the next two or three years, it's a good point to max out on their RRSPs every year if they can," Mr. Falkowski says.

"They can in turn use those funds for the down payment."

If you meet the Canada Revenue Agency criteria as a first-time buyer, you can withdraw up to $25,000 from RRSPs to buy or build a qualifying home. Mr. Suddaby says you may also borrow funds to put into an RRSP and then withdraw those after 90 days to generate a down payment.

"The borrowed loan affects your total debt service," Mr. Suddaby says. "If you contributed to an RRSP earlier this year, there's a chance you would get a tax refund that can also be used as a down payment."

If you are receiving child or spousal support, these can count as income. Mr. Suddaby says many clients come to him too soon after they become single. The separation must be legally documented and the lender needs to see a clear record of payments. Mr. Suddaby says a home with a separate rental unit can generate more income, but it is critical to get good advice on all the expenses involved and work out if the additional time and effort is worth it. If you do not qualify now Mr. Falkowski says don't give up, have a plan.

"If they take a look at their financial situation: They can't get a gifted down payment; their RRSPs are a little low; it's never too late as long as they put a plan in action," Mr. Falkowski says. " 'With what I can put away, I can buy a place in two, three years or whatever.' In the time frame that they're actually starting to save they could meet someone and they could start saving together."

APARTMENT SALES ENLARGEMENT

2011-09-13T13:49:00.000-07:00

Mondo condo sales for 2011
Lisa Van De Ven,
National Post, Sept. 10, 2011

If you ask Ben Myers, 25,000 is the magic number. There may still be a few months left of 2011, but Mr. Myers, executive vicepresident and editor at real estate research firm Urbanation, already has his forecast for the year. He expects there will be 25,000 new condominium sales by the end of 2011. If he's right, it'll be a new record, surpassing 2007's previous record of about 22,500 new condo sales.

"We're certainly on pace to have the most condominium sales in any one year in 2011," Mr. Myers says. And with the Toronto new-condo market coming off a busier-than-normal summer and a record-setting second quarter, he's not surprised.

Urbanation recently released its second-quarter results. From April to June, Mr. Myers says, 9,455 new condo units were sold in the Toronto CMA. That's a record in itself; the previous best quarter was 2007's second quarter, when 6,997 units were sold. That wasn't the only Q2 number to be beat, though. The quarter also set records for the number of active projects, the number of active units, the number of new condominium launches and the number of projects and units under construction.

"There was a huge number of new projects coming on line," Mr. Myers says. "And surprisingly, even with all of this extra supply, they had the highest absorption rate ever of new product. Even in the face of all this additional supply, they sold better than any other new release that we had in a quarter."

But Mr. Myers is quick to dispel any talk that the Toronto market might be in the middle of a real estate bubble. Prices, he says, have remained "pretty consistent" over the past five years, with 7% to 9% increases in the new condo market from year to year.

"A bubble is characterized by rapid increases in prices, and we haven't seen that," he says. "That's the type of thing you obviously saw in the United States and you even saw in Calgary a few years ago, where you saw 20% and 25% increases year over year, and in our market in the '80s where we saw prices double in three years."

Developers, he says, have been doing their homework and "setting fairly moderate pricing." They're also, it seems, paying less attention to the sales seasons of the past. Whereas spring and fall are still the prime selling times, more developers decided to release their projects in the summer this year. Since the market is being driven by investors more than ever, Mr. Myers says, there was less need to wait out the summer season, when end users are typically on holiday and less focused on condo buying.

According to the Building Industry and Land Development Association (BILD, using data provided by RealNet Canada), 1,490 new condo units were sold throughout the Greater Toronto Area in July, up almost 20% from last year. "Forget the old conventions of a spring and fall market," says Stephen Dupuis, BILD's president and CEO. "The market's that much bigger now - it's active all the time."

Photo By: GalleryLoftsCA

REACH FOR A GREAT GRADE!

2011-09-07T13:05:00.000-07:00

Homebuying 101
Take into consideration all of the costs
By Marnie Bennett
Postmedia News September 6, 2011

Perhaps you are one of those fortunate first-time homebuyers for whom making the big decision to buy came easily. And then again, maybe you aren't. For many, the decision is difficult.

It's a decision that requires careful consideration. You may have concerns about financial obligations, the responsibility of upkeep or even the idea of being "tied down." Maybe you've just landed your first significant job and the idea of home ownership has only recently taken root in your imagination.

Or, like many people, you've been renting for what feels like forever and dread the thought of writing yet another cheque to help pay down your landlord's mortgage.

Numerous factors will influence your decision, but I'd encourage the fence-sitters among you to consider two overarching questions.

First, how strongly do you feel about owning your own home? While it's possible to live perfectly well while renting a good space, many of us find home ownership important to our sense of comfort, security and identity.

Certainly, there's also a sense of satisfaction in watching your home equity increase with every mortgage payment. As a solid investment, a home is hard to beat: How many investments provide shelter and comfort to the investor?

There is a big payoff - ultimately, you will own your home outright and monthly payments will be a distant memory. That is a luxury renters simply do not have.

This brings us to the second, more crucial, question: Can you afford it?

Remember, your first home need not be a palace. Assuming that you're steadily employed and do not plan to move again in the near future, the purchase of a modest home or condominium is nearly always a smart move. You may even find mortgage payments surprisingly affordable and not a far cry from your monthly rent.

It is paramount to consider the additional costs of ownership. Things like property taxes, utilities, condo fees, insurance and mainte-nance can add up and force you way over your budget. I strongly suggest you speak with a mortgage broker or bank representative for help designing a realistic home budget.

If home ownership is close to your heart, you'll find a way.

Marnie Bennett is a leading broker with Keller Williams VIP Realty in Ottawa, with more than 30 years' experience in real estate.

LOCK IT OR FLOAT IT? THAT IS THE QUESTION.

2011-09-06T15:48:00.000-07:00

Is it time to lock in mortgage?
Garry Marr
Financial Post · Aug. 31, 2011

The gap between short-term and long-term rates has shrunk enough that it might be time for anyone renewing a mortgage to consider locking in.

Moves last week by the major banks to reduce the discount on variable-rate mortgages comes as the discounts for long-term mortgages have gotten as steep as they have ever been.

"What seems to be happening is they are focusing their attention on fixed rates. We are starting to see some aggressive competition on four-and five-year products," says Gary Siegle, a mortgage broker and Invis Inc. regional manager in Calgary.

How aggressive? Try as much as 190 basis points. A five-year, fixed-rate mortgage with a posted rate of 5.39% is now being offered for 3.49%.

For whatever reason, the four-year, fixed-rate mortgages are being priced even more aggressively.

Mr. Siegle says he can lock consumers into a four-year, fixed mortgage for as low as 3.09%.

The discounting comes as variable-rate products, linked to prime, have become more expensive. Short-term money has become more expensive in the bond market, forcing banks to reduce discounts.

The banks traditionally move their prime rate with the Bank of Canada rate. With no flexibility there and existing customers getting huge discounts based on old deals, banks are forced to raise rates for new loans as short-term money gets more expensive.

The trend began in April when FirstLine Mortgages, a subsidiary of Canadian Imperial Bank of Commerce known for its low rates, cut its discount on variable rates.

Others banks were slow to follow, hoping to make money on volume. But refinancings have dried up under tougher mortgage rules and sales have slowed, creating the need to tighten profit margins on variable-rate products.

Today, the discount on a variable-rate mortgage is about 55 basis points off the prime rate of 3% - in other words, 2.45%. Compare that to 3.09% on a four-year mortgage and the premium to lock in is not that much.

"This gap is about as narrow as it goes," says CIBC deputy chief economist Benjamin Tal. "It reflects a flat yield curve, which makes it difficult to make money in this business."

Mr. Tal says variable-rate mortgages tend to be more attractive when there are inflation expectations not yet expressed in short-term rates. This time, he says, the bond market is depressed, anticipating recession, and that has shrunk spreads dramatically.

The one thing keeping people in short-term money is the sense that there is no urgency to move because the U.S. Federal Reserve Board has pledged not to raise rates for two years, which also effectively ties the hands of the Bank of Canada.

"We know the five-year rate is attractive, but we also know short-term rates are not raising," Mr. Tal says.

What does that mean on a practical, dollars-and-cents basis?

Let's use the Canadian Real Estate Association's 2011 average sale price forecast of about $360,000 and assume a 20% down payment and a $288,000 mortgage.

At 2.45%, your monthly mortgage payment based on a 25-year amortization would be $1,282.98. At 3.09%, your monthly payment rises to $1,376.28.

But even at the gap, you would pay about an extra $7,000 in interest to lock in over four years.

Ultimately, the $7,000 amounts to an insurance policy. You get payment certainty for four years, but at a price.

If rates climb 200 basis points on your variable-rate mortgage, it could cost you $22,000 more in interest over four years. The reality is that rates wouldn't jump at once and, therefore, increases would likely be gradual.

Moshe Milevsky, the York University finance professor who wrote the oft-quoted study that variable-rate mortgages do better than fixedrate mortgages 88% of the time, said if you start thinking about it like insurance, it comes down to your risk tolerance.

"There are people who pay a lot for protection on their portfolio; there are people who pay a lot for life insurance," Prof. Mr. Milevsky says. "If the premiums are low enough, you might say, 'Sure, I'll pay.' But if you have a tight budget, every basis point counts, and it might not be worth it."

To me, he still has the ultimate answer for the tough decision whether or not to lock in.

"I still don't get why more Canadians don't split their mortgage," Prof. Milevsky says. In other words, locking in half of the mortgage and floating with prime on the other half.

"When is a bank going to come to the realization Canadians hate making this choice?"

He's right. Even with rates this low and the gap between short-term and long-term rates this narrow, it is still a tough call.

Photo By: Accretion

SPELLING CHA-CHING!

2011-08-24T15:06:00.000-07:00

It's Official: America's Most Expensive Home Has A Brand New Billionaire Owner

By Morgan Brennan

Well folks, it’s official. The Spelling Manor, America’s most expensive home for sale, officially has a new owner. The sale of the $150 million Los Angeles, Calif. estate closed today and FORBES has the exclusive interview with co-listing agent Sally Forster Jones of Coldwell Banker Previews International. Forster Jones, who has more than $1 billion in sales to her name over the past decade alone, shared the listing with Rick Hilton and Jeff Hyland of Hilton & Hyland, an affiliate of Christie’s International Real Estate.

“We are sold, it is closed,” says Forster Jones. “It’s the highest broker sale in Southern California in the history of Southern California and Los Angeles.”

As with many other ultra luxury home sales, the brokers signed Non-Disclosure Agreements on the property, meaning they can’t divulge the final sales price or confirm the identity of the buyer. But we have good reason to believe it is Petra Ecclestone, heiress to the Formula One racing empire and daughter of British billionaire Bernie Ecclestone. Representatives of Ecclestone, 22, announced she was in contract on the 56,500-square foot mansion last month. Today The Wall Steet Journal reports that the opulent estate sold for $85 million, or at a steep 43% discount off the $150 million asking price.

The Spelling Manor, built by Candy Spelling and late TV producer husband Aaron Spelling, was on the sale block for two and a half years, maintaining that hefty nine figure asking price the entire time. Forster Jones says the sale transaction went very smoothly. Deals of this magnitude tend to be all-cash — something we strongly suspect to be the case with this transaction. The high-end home broker could not confirm the nature of the sale but she did assert that sales of trophy properties like this one, “tend to be cash-type buyers because they [the home buyers] are the ultra wealthy part of population.”

Forster Jones also notes that the property enjoyed a “tremendous amount of interest” and that, unlike for sale homes at lower price points, two and a half years is not a long time on the market. “This is a glitzy Hollywood property, but it is also very homey – all the potential buyers could picture themselves calling it home,” remarks the Realtor.

The Spelling Manor, originally named L’Oiseau, is situated on about 4.7 acres in tony Holmby Hills, an exclusive Los Angeles neighborhood. The three-story, seven bedroom estate boasts every outrageous amenity a celebrity or billionaire could imagine. Among the offerings are a dog grooming room, five bars, a wine cellar and tasting room, a China room for displaying ritzy server ware, a “gift-wrapping” room, a flower-cutting hall with professional florist fridge, a projection room, game and billiards rooms, a bowling alley, and a beauty salon. An elevator runs between the floors.

The lavish estate’s grounds encompass expansive gardens, an orangery, a koi pond, lamp posts imported from Paris, a pool complex and tennis courts. The fountain-studded motor court holds up 100 cars in front of the limestone mansion.

Ecclestone is said to be moving into the palatial pad following her August nuptials to James Stunt, a businessman and London nightclub fixture. It’s been reported that the couple will split their time between London and and their new SoCal digs.

Candy Spelling, mother to actress-turned-reality star Tori, was the home’s seller. She snapped up a $35 million penthouse apartment in Century City, a luxe L.A. high rise owned by billionaire Stephen Ross‘ Related Co. in December and relocated there shortly after. Forster Jones has represented the Spelling family on six real estate transactions and says Spelling is “wonderful to work with.”

The Spelling Manor joins the ranks of most expensive billionaire homes in the country with Yuri Milner’s $100 million Silicon Valley estate, and industrial billionaire Ira Rennert‘s hulking Fair Field Estate in the Hamptons, valued at $200 million according to tax assessments.

Its sale today sheds light on a growing trend in America’s ultra high-end housing market: foreign buyers. Forster Jones says foreign buyers, primarily from Asia, Russia, Europe and the Middle East, constitute roughly 75% of all showings she gives of her $20 million and higher property listings. Coldwell Banker Previews International’s $10 million and higher listings in the Los Angeles area have been enjoying a rebound this year. Twenty-seven homes worth $10 million or more have sold thus far in 2011, compared to 15 sales in 2010 and 12 in 2009. Many of them were purchased by foreigners.

DROP IT LIKE IT'S HOT

2011-08-23T14:02:00.000-07:00

Canada home affordability drops, Vancouver pricier
REUTERS
Monday August 22, 2011

TORONTO (Reuters) - Housing in Canada became harder to afford in the second quarter, with Vancouver's pricey market playing a major role in the deterioration, according to a report by Royal Bank of Canada on Monday.

It was the second straight quarter in which the bank's quarterly Housing Trends and Affordability Index dropped. The cost of housing rose nationally across all the housing types the index tracks in the second quarter.

The index measures the proportion of pretax household income needed to service the cost of owning a home. A rise in the measure indicates a loss of affordability.

For a detached bungalow, the measure rose 1.7 percentage points to 43.3 percent. For a standard condominium, it edged up 0.8 percentage points to 29.2 percent, and for a standard two-storey home it climbed 1.8 percentage points to 49.3 percent.

Vancouver, which has long seen exceptional growth in home prices compared with other Canadian cities, directly accounted for up to one-third of the deterioration in affordability on the national score, the RBC report said.

"Vancouver's housing market is without a doubt the most stressed in Canada and is facing the highest risk of a downturn," said chief economist Craig Wright.

Other local housing markets were reasonably affordable or at worst, slightly unaffordable, the report showed.

Housing sector observers generally see the overall pace of housing activity, from starts to resales, slowing in the coming months, partly due to tighter mortgage regulations introduced earlier in the year and as pent-up demand gets absorbed.

(Reporting by Ka Yan Ng; editing by Peter Galloway)

OH, CANADA!

2011-08-23T13:36:00.000-07:00

Housing market defies expectations

Garry Marr, Financial Post
Aug. 17, 2011

July proved to be a another strong month for Canadian home sales with the Canadian Real Estate Association now predicting 2011 will see an increase in sales as opposed to a previous forecast for a drop.

Actual sales last month were up 12.3% from a year ago while year-to-date sales are 1.6% lower than the same period for 2010.

Prices also continue to have some upward movement, al-beit some of the increase year over year being attributed to the introduction of the HST in British Columbia and Ontario, and tighter mortgage regulations in 2010.

The national average price for homes sold in July 2011 was $361,181 - the lowest level since January - but rep-resented a 9.3% increase from a year ago.

Greg Klump, chief economist at CREA, cautioned not to read too much into the average price statistics.

"Changes in the national average home price are open to being misinterpreted," Mr. Klump said. "They often signify changes in the mix of sales activity across and within local markets, rather than a rising or falling price trend for typical homes in a specific market."

However, the Ottawa-based group, which represents 100 boards across the country, says the scales have now tipped modestly in favour of 2011 outpacing 2010.

CREA is predicting 450,800 sales in 2011, just under a 1% increase from a year ago. The group had been forecasting a decline of 1%. Sales are expected to drop less than 1% in 2012.

Prices in Vancouver continue to affect the country, as they helped push CREA's forecast for the average sale price in 2011 to $363,500, a 7.2% increase from a year ago. This was also an increase from a previous forecast. Next year, prices are expected to be flat.

The group noted longtalked-about increases in interest rates have failed to materialize in the market.

"While there had been some talk of potential interest-rate increases, that hasn't happened," said Gary Morse, president of CREA. "In fact, rates have actually come down, and are now expected to remain low for the remainder of this year and into 2012."

Douglas Porter, deputy chief economist at Bank of Montreal, said the housing market just seems to keep surprising everybody.

"In a world seemingly awash in negative economic surprises in 2011, one positive surprise has been the resiliency of Canada's housing market," said Mr. Porter, adding few analysts were predicting the kind of price increases the market has seen.

"Canadian housing remains surprisingly robust, thanks to still-low interest rates and solid job growth. While the recent financial market turmoil may temporarily weigh on activity, sales should ultimately find support from continued exceptionally low borrowing costs."

Phil Soper, chief executive of Royal LePage Real Estate Services, said his company's recent forecast was for a 2% decline in sales and 3% increase in price for 2011. He doesn't anticipate that changing.

"I think we're going to start to see it's not so much the strength of the market but the weakness last year. The market had run out of steam at this point last year," Mr. Soper said. "I think we are seeing a more normal curve to the market, with the exception of the Vancouver market."

A GOOD BUY IN CALGARY?

2011-08-23T13:05:00.000-07:00

Calgary housing among most affordable
By Mario Toneguzzi
Calgary Herald August 23, 2011

Owning a home in Calgary may be expensive for many people but a report suggests housing affordability in the city is among the lowest in the country for major centres.

And with interest rates now expected to remain at a low level, Calgary's affordability will continue to be remain that way, say industry experts.

A report by RBC Economics, released Monday, said Calgary's housing affordability actually deteriorated in the second quarter of this year compared with the previous quarter but affordability in the city is better than the national average for detached bungalows, standard two-storey homes and standard condominiums.

Sano Stante, president of the Calgary Real Estate Board, said prevailing negative economic conditions will restrain any increases in interest rates for awhile.

"Those are increases that we fully expected prior to these events and they've now been abated," said Stante. "That was our biggest risk of deteriorating affordability.

"With an assurance that interest rates are going to stay low for the next 12 months anyway - and there's somewhat of an assurance of that - then it really looks like we're going to lead the nation in affordability especially when we start to get increased employment and in-migration towards the end of this year. That should really lend to a more robust real estate market."

Robert Hogue, senior economist with RBC, said he too expects Calgary's affordability to remain about the same.

"Previous to a few weeks ago we expected higher interest rates would start really putting more and more pressure across the board in Canada including in Calgary on the monthly costs of home ownership," he said. "Now we've pushed everything out to the middle of next year. "

The RBC Housing Affordability Measure, which has been compiled since 1985, shows the proportion of median pre-tax household income that would be required to service the cost of mortgage payments (principal and interest), property taxes and utilities. The higher the measure, the more difficult it is to afford a house. For example, an affordability measure of 50 per cent means that home ownership costs take up 50 per cent of a typical household's pre-tax income.

In the second quarter, Calgary's measures were 37.1 per cent for a detached bungalow, 38.5 per cent for a standard two-storey, and 23.0 per cent for a standard condominium. The measures increased by 0.6 per cent (bungalow), 1.1. per cent (twostorey) and 0.4 per cent (condo).

However, they are lower than a year ago by 3.1 per cent for a bungalow, 2.9 per cent for a two-storey and 1.6 per cent for a condo.

Housing Affordability Q2 2011

Detached bungalow

Legion Avg. price YoY chg. Affordability* Q/Q chg.

Canada $347,600 5.2% 43.3% 1.7%

Alberta $339,500 -2.6% 32.8% 0.7%

Calgary $411,700 -2.0% 37.1% 0.6%

Standard two-storey

Canada $393,100 5.0% 49.3% 1.8%

Alberta $370,300 -1.1% 36.4% 1.3%

Calgary $415,200 -1.6 % 38.5% 1.1%

Standard condominium

Canada $230,000 3.4% 29.2% 0.8%

Alberta $216,200 1.0% 21.3% 0.5%

Calgary $249,000 -1.1% 23.0% 0.4%

*Shows the proportion of median pre-tax household income that would be required to service the cost of mortgage payments (principal and interest), property taxes and utilities. Source: RBC Housing Trends and Affordability report

GOTTEN GAINS

2011-08-08T11:34:00.000-07:00

Condo market gains strength
By Kathy McCormick, Calgary Herald
August 6, 2011

The story of the resale condo market in Calgary is positive, albeit fragile, say some of the city's realtors.

For the first time since April 2010, sales of resale condos have gone up year-overyear - and in terms of new condos, several inner-city highrise projects that were in limbo have been brought back to the market.

For April 1 to the end of June, sales of resale condos reached 1,617 within the city.

The Calgary Real Estate Board's Zone C - which roughly corresponds to the city's southwest and includes the Beltline - posted the most sales from April 1 to the end of June at 881.

Not surprisingly, the busiest communities during that period were in the innercity neighbourhoods of Connaught with 95 sales and Victoria Park with 50 sales.

"Condo sales bounced back this month (in July) and we now have less than four months of supply on the market," says Sano Stante, president of the Calgary Real Estate Board. "Stronger condo sales, combined with a decline in inventory, will lend more balance to this market in the months to come."

The key, though, is prices, says Marlene Swinton of Real Estate Professionals Inc.

"Buyers today are extremely nervous and a lot of them come in well below list price," she says.

"A lot of sellers, on the other hand, haven't recognized that prices have changed. They don't want to hear that the marvellous prices they heard they could get for their place once isn't there anymore."

That resonates with Chris Zaharko of Royal LePage Foothills. "My gut feeling is that people are only in the position to buy and pursue it if they think it's the absolute bottom line."

Prices during the second quarter of the year averaged anywhere from $77,600 for five sales in Forest Lawn in the board's Zone B - which roughly corresponds to northeast Calgary - to $850,000 for one sale in Bayview in Zone C.

But overall, affordability was key. A total of 30 communities within Calgary had average sale prices under $200,000 - with more buyers purchasing condos under that price range this year compared to last year during the same period.

"Buyers in this market expect value and many are taking advantage of some affordable buys in both the single-family and condo markets," says Stante.

He expects this fall to be more active. "I think as the inventory is absorbed, more particularly in condos, the shift will be to sellers and there will be slight increases in price."

Swinton, who has a condo apartment building of 11 units among her portfolio of properties for sale, says she had three calls for showings for that development on the last weekend of Stampede - traditionally a very slow time for real estate transactions.

"It was priced well and a good product, but still, that is investors looking to buy, so that's positive."

Zaharko, too, points to the new condo market where several highrise developers are starting marketing or re-starting projects that had been on hold during the downturn in the inner city.

"The big developers are coming back to the table," he says.

"They've got their pulse on the market, and see what the oil and gas industry will be doing in the next couple of years. The timing is right to start now."

Typically, a highrise project can take two years or more for construction to be complete.

Zone C, which is mostly southwest Calgary and the inner-city neighbourhoods in the Beltline, was not surprisingly the most active for resale condos in the second quarter.

It also had the highest average price and highest median price at $317,301 and $285,000 respectively. The median price is the mid-point of all sales.

Overall, most condos took an average of 54.5 days to sell - but if it's the right product at the right price in the right location, it will sell quickly.

A $835,000 condo in Eagle Ridge in Zone C, for example, sold in just nine days during that period; another condo in Citadel in Zone A went for $440,000 in just four days.

PERMIT TO SOAR

2011-08-08T11:14:00.000-07:00

Calgary building permit values soar in July
Up 43 per cent from a year ago
By Mario Toneguzzi
August 8, 2011

CALGARY — The estimated construction value of building permit applications in Calgary soared in July compared with a year ago.

The City of Calgary says the value ballooned to $328 million for the month, up 43 per cent from July 2010’s $229 million.

It is also up three per cent compared with the five-year average of $318 million and an increase of 15 per cent compared with the 10-year average of $284 million.

In July, residential values were up 41 per cent from a year ago to $189 million while non-residential values were up 47 per cent to $139 million.

“The residential increase for July building permits goes across all sectors – single family, garage, two family, apartment and townhouse,” said David Watson, general manager of planning, development and assessment, said in a news release. “In the non-residential categories, values were highest in the commercial sector whereas there was a marked decrease in the government and institutional sectors for new construction.”

Year-to-date ending July 31, total values across all categories are up 44 per cent over the previous year to $2.7 billion compared with $1.8 billion in 2010, said the city, with the residential category up eight per cent to $1.2 billion and the non-residential category up 96 per cent to $1.5 billion.

The non-residential values are significantly higher than 2010 due to a major airport terminal improvement project valued at $600 million from January.

Major projects for July included three new apartment projects valued over $10 million (St. John’s Tenth Street at $26 million; Mikkelsen House Phase 1 at $14 million; Panorama West at $11 million), a $18 million senior citizen home improvement (Bow view Manor) and two new warehouse/storage facilities (HCP Phase II Building ‘A’ at $18 million; Canada Post at $10 million).

LOOK TO THE SKIES!

2011-08-08T10:46:00.000-07:00

Spectacular aurora activity near Calgary

Dr. Robert Berdan, Calgary nature photographer and U of C assistant professor, took these remarkable photos about 2 a.m. on Aug. 6. At about 7 p.m. the evening before, an aurora alert was issued by the University of Alberta indicating there was a 70% chance of auroral activity in the southern prairies including Calgary. Berdan says, "I headed out at 10:30 p.m. to photograph the aurora and local thunderstorms and stopped on Township Road 252 near Cochrane and photographed the aurora until 2 a.m. Getting bright auroras this far south is a relatively rare event. However, the Aurora is nearing its 11 solar max."

Source: Calgary Herald

WANT TO GO STEADY?

2011-08-05T09:34:00.000-07:00

Canada property results improve on deals, leasing
Reuters August 5, 2011
By Ka Yan Ng and Amruta Sabnis

TORONTO/BANGALORE — Canada’s biggest office and retail landlords reported strong quarterly results on Friday, boosted by acquisitions and long-term leasing renewals.

Brookfield Office Properties and RioCan Real Estate Investment Trust REI said funds from operations, the most closely watched performance measure for REITs, rose in the three months to the end of June.

Even so, activity for the Canadian companies could slow if a flagging global economy makes it more difficult to raise capital and complete deals. “We’ve had a ton of acquisition activity and capital raising going on over the last two years,” said Karine Macindoe, an analyst at BMO Capital Markets.

“This market environment is probably going to slow some of that down because … share prices are far more volatile and declining.”

Canada’s resilient economy, rising rents and easy borrowing are fueling a buying spree among real estate investment trusts, highlighted last month by the largest office property deal ever by a Canadian REIT.

STEADY EXPANSION

The second quarter revealed few signs of weakness. Brookfield, a major office landlord in Manhattan and other North American cities, reported a 23 percent jump in leasing activity. It leased 1.6 million square feet of space, compared with 1.3 million square feet leased a year earlier.

FFO rose to $166 million, or 30 Canadian cents a unit, from $156 million, or 30 Canadian cents, a year earlier. FFO strips out the effects of depreciation and other factors from the earnings of property companies, giving a more telling quarterly reading. RioCan REIT, Canada’s largest landlord of retail space, also turned in a strong performance.

FFO rose 12 percent to $93-million, or 36 Canadian cents a unit, from $83-million, or 34 Canadian cents, a year earlier. RioCan has steadily expanded its portfolio in Canada, while looking for opportunities for growth in the United States for more than a year. “RioCan’s acquisition platform remains on track to meet our objectives for the year,” Chief Executive Edward Sonshine said in a statement.

“RioCan has been able to take advantage of historically low interest rates to generate solid growth through acquisitions, development, and increased occupancy and rents.” It renewed 1 million square feet during the quarter at an average rent increase of 13.9 percent, or $1.99-per square foot. It also added five properties in the quarter. In July, Dundee Real Estate Investment Trust said it is buying 29 properties from U.S. private equity giant Blackstone Group for $831.8-million. It was the largest deal ever for a Canadian REIT.

RioCan’s units were up 0.6 percent at $25.05 on the Toronto Stock Exchange. Brookfield shares were off 0.3 percent at $16.80 on the Toronto Stock Exchange, but its New York-listed shares were up 1.35 percent to $17.26.

Photo By: mb17chung

CHECK IT OUT!

2011-07-09T16:13:00.000-07:00

CALGARY FOLK MUSIC FESTIVAL
JULY 21- JULY 24, 2011

GIDDY UP!

2011-07-09T16:09:00.001-07:00

MARKET BLOOMS

2011-07-06T10:47:00.000-07:00

City's housing market blooms in June
Condo market posts first gain of the year
By Mario Toneguzzi, Calgary Herald
July 5, 2011

Calgary's residential real estate market experienced a significant late spring upswing.

Single-family MLS sales last month finished up 32 per cent, to 1,398 homes, from June 2010's 1,059 transactions, according to data released Monday by the Calgary Real Estate Board.

Condo sales -up almost 31 per cent -were up year-overyear for the first time since April 2010. The real estate board recorded 581 sales last month, compared to 445 in June 2010.

While sale prices continue to lag and 2011 sales are up only two per cent over the first six months of 2010, the late spring swoon has brought tempered optimism of a continued turnaround.

"We had a late spring maret this year. It's all starting to come together in June," said Sano Stante, president of the Calgary Real Estate Board.

"Last year we had an exuberant market early on and it died in June.

"So to draw comparisons year-to-year for that month shows an exaggeration of the trend."

The average sale price for a single-family home in June remained almost flat, falling to $479,580 from $481,960 a year ago.

Condominium prices, on average, rose to $296,501, the highest since May 2010, from $292,182.

On a year-to-date basis, single-family home sales for the first six months are up more than 5.5 per cent, while condo sales are down almost five per cent.

"Strong monthly increases does not imply a housing boom, as it is important to put into perspective that sales activity remains below longterm averages," the real estate board said in a statement.

However, there are signs the local housing market is starting to find its footing, said Stante.

"This gradual levelling has been fuelled by growth in employment, and in particular growth in full-time jobs," he said.

Improved job prospects, combined with an increase in the number of people moving to Calgary, will give lift to our housing market for the remainder of this year and into the next."

Dan Sumner, an economist with ATB Financial in Calgary, said a year-over-year comparison may be misleading as to the strength of the Calgary housing market given that June is often one of the busiest months for sales, even though the same month last year was abnormally slow.

"Fuelling sales is a stronger economy specifically in Alberta, which feeds through into consumer confidence and that's making Albertans more comfortable with home purchases again," he said, adding low interest rates are also luring buyers.

THE LOW DOWN ON LOW FEES

2011-07-02T09:36:00.000-07:00

The common cents of strata fees
Keeping costs low may put future building maintenance, repairs at risk
By Tony Gioventu, The Province
June 19, 2011

Q: Our strata council is under a lot of pressure from our owners to keep our strata fees down, but it means we are going to have to reduce maintenance and services to our building.

We have been checking out strata fees in the Abbotsford area, and while we are a bit on the higher side, we do have some additional services that other apartment complexes do not.

Is there some way to compare our strata fee rates in a 61-unit woodframe building with other regions of the province? It would be helpful if there was some way of knowing whether our fees are in line or not.

We had a real estate agent at our AGM in May who recommended we keep our fees low and simply have special levies when we needed them for repairs, but that appears to us to be self-serving for the agents and not realistic for the strata corporations to be able to operate; and if we maintain strata fees at exactly the same rate as last year, we will likely be facing a

A: Comparing your fees to another strata corporation will only establish a comparison of the amount, but will not take into consideration any of the services, amenities, maintenance or operational functions, geographic variations, landscaping functions, or even the basic building construction and durability of each of the properties.

Strata fees are set by approving the annual budget. The annual budget is proposed by the strata council to the owners at the annual general meeting, and based upon the amount approved in the annual budget and the contribution to the contingency reserve fund, that amount is used to calculate the monthly contribution of each strata lot.

We did a research comparison in 2008 between two almost identical properties in Richmond and Nanaimo.

Both were approximately the same age, design, number of units, basic construction, and offered the same services. Both had central heating and hot water which were included in the monthly strata fees and had a comparable history of operations. The one main difference was that strata fees were almost 50-per-cent higher historically in the Nanaimo strata, and the main influence was an integrated maintenance and operations plan in their annual budget.

At the time, the Nanaimo strata was not facing any special levies for major repairs, while the Richmond strata was facing two levies for roofing and balconies.

The process of annual budgeting really has little benefit if a strata corporation has not created a maintenance and operations plan and simply agrees that last year's budget seemed to work because it balanced at year end.

What you should really assess is: "What did we leave out last year?" A basic inventory of your major building components and an understanding of the maintenance and inspection requirements each year will have an overwhelming benefit to your strata corporation if you provide enough funding to meet those obligations.

With an aging strata inventory, the grim reality of neglected maintenance and repairs is rapidly setting in. Much of that problem is caused by underfunded budgets and low strata fees, the genesis of which was often created by the development industry showing artificially low budgets to make new housing more affordable and attractive.

Consumers are now faced with rising special levies for the replacement and renewal of major building systems that have not served out their full life expectancy, often due to neglect; and that neglect is usually linked to lack of funding with no planned maintenance and operations plan.

In addition, rising energy costs are absorbing the desperately needed increases for maintenance and renewals.

If you show a simple graph of a building aging and the costs to operate, both lines should run on a rising parallel.

For every year a property increases in age, the life of the roof, windows, balconies, plumbing, elevators, proportionally decreases until they are renewed. The more important question ever yone should ask: " Are our strata fees high enough?"

Tony Gioventu is executive director of the Condominium Home Owners' Association.

SOME WILL BURN A HOLE IN YOUR POCKET!

2011-07-02T09:21:00.000-07:00

Pocket-(Sized) Listings: Homes Under 550 Square Feet for Sale

Jun. 17 2011
FORBES MAGAZINE

Size is not everything, especially if you ask a small, but mighty movement of people who prefer 400 square feet of real estate over 4,000. People who choose to live in smaller-sized homes cut down on living costs and since the recession and housing bust, the trend is really catching on, says Kent Griswold author of TinyHouseBlog.com.

These small homes can encompass a range of sizes, all the way down to a 84-sq ft home in Olympia, WA that was featured in NPR’s “tiny house movement” video.

"People are trying to downsize their lives, get rid of debt,” Griswold said. “Your cost of living is lower, your utilities don’t cost nearly as much. It changes your whole attitude — you’re in a small space, you only have room for so many items, it’s a lifestyle change.”

While some people purchase land and build their own small homes through kits, like, Cusato Cottages, others just choose to buy or rent homes that are smaller in size. Interested in downsizing your life? We rounded up a few small homes for sale, each with dimensions around 550 square feet or below:

6559 Beach Dr. SW Seattle, WA
For Sale: $335,000
Square Footage: 460

This romantic and private bungalow is nestled on prime Seattle real estate along the Puget Sound in the West Seattle neighborhood of Seaview. Built in 1926, the log cabin has original leaded windows, a claw-foot tub, stone fireplace and darling nook-sized bedroom.

15 Napier Ln San Francisco, CA
For Sale: $1,230,000
Square Footage: 550

Own a piece of San Francisco history by purchasing this piece of Telegraph Hill real estate. Built around 1884, this home is one of the few Telegraph Hill homes that survived the 1906 earthquake and fire. The two-story cottage was remodeled in 2002 and 2003. The 2-bedroom, 2-bath home has partial views of the bay and an open floor plan that makes it feel more spacious than its 550 square feet.

741 Wilcox Ave Los Angeles, CA
For Sale: $549,000
Square Footage: 528

It’s no secret that Hollywood real estate is pricey and this 2-bedroom, 1-bath bungalow is one prime example. Despite the home’s small size, it boasts a variety of amenities that up its home value, including a large entertainment-sized deck with hot tub and pergola, as well as a gated courtyard at the entrance of the home and hardwood floors throughout. Built in 1921, this little house was last sold in 2009 for $265,000.

9 Lincoln Ave Hampton Bays NY
For Sale: $599,000
Square Footage: 488

This updated piece of Hampton Bays real estate is a tiny alternative to a vacation condo. Set on Tiana Bay, the cottage has 50 feet of private beach access. Built in 1991, the home has undergone a complete remodel with updates to the kitchen, bath, electric and plumbing systems. With an open floor plan and high ceilings, the 1-bedroom, 1-bath house is a perfect summer hideaway.

7 S Maine St Kennebunkport, ME
For Sale: $385,000
Square Footage: 280

With only 280 square feet of living space, this piece of Kennebunkport real estate makes some New York studios look spacious. A part of Cabot Cove, a cottage beach community, this cottage has been professionally landscaped and furnished. The cottage has views of the cove and river and can be used as a primary residence, or summer rental.

527 Berkley St Berkley, MA
For Sale: $67,600
Square Footage: 478

Built in 1921, this 1-bedroom home is listed on the Berkley real estate market as a “great condo alternative.” The 478-square-foot cottage sits on a wooded lot just over half an acre just four minutes from Berkley’s city center, and about an hour’s drive from Boston.

507 N 21st St Wilmington, NC
For Sale: $119,900
Square Footage: 500

Sitting at 500 square feet, this World War II-era bungalow is within minutes of downtown and a local beach. The “move-in ready” 2-bedroom, 1-bath home was previously listed for $127,000 on the Wilmington real estate market.

2702 N. Ardmore Ave Manhattan Beach, CA
For Sale: $685,000
Square Footage: 498

Listed on the prestigious Manhattan Beach real estate market, this 2-bedroom, 1-bath home has been completely updated since its construction in 1954. The 498-square-foot cottage has a slate fireplace and brand new kitchen and bath. The house includes a breakfast nook, extra room, and gated front yard.

ALOHA CANUCKS!

2011-07-02T08:47:00.000-07:00

Hawaii's house prices grab Canadians' attention
Foreclosures driving the market
By Grania Litwin, Postmedia News
July 2, 2011

Snorkelling, swimming, surfing and suntanning aren't the only reasons Canadians visit Hawaii these days.

They're saying aloha to condos and homes that have plummeted in price as much as 60 per cent since January 2008, while the Canuck buck soars. Why buy a cottage on a lake in B.C. or Alberta, when you can laze on a beach with gardenia breezes?

"What's really driving the market is foreclosures," says Re/Max Resort Realty's Howard Dinits, who lives on Maui.

"Many island properties here were bought as second homes by speculators in the States. In the economic downturn people used revenue from these holiday rentals to make payments on their main homes -then defaulted on the island properties. "In some areas prices have dropped 40 to 60 per cent and it's as bad as Phoenix."

He gets calls and emails from Canadians daily. "Some are waiting for a bell to ring that says we have hit absolute bottom," he jokes. "Others have pulled the trigger because in Maui we're having a half-off sale."

The loonie, valued at 62 cents US almost a decade ago, hit $1.05 in April. That means a million-dollar property in Hawaii, that would have cost a Canadian about $1.6 million in 2002, is now under a million.

The best values are on the big island. "In Maui, you need two wallets -on Hawaii you can survive on one," Dinits says. "You can get a nice house on Hawaii today, six blocks from the ocean, for $66,000. That would be a bank owned foreclosure, or REO (Real Estate Owned) deal."

The Hawaiian capital, Honolulu, is on Oahu, where property values declined only 7.1 per cent in the last year thanks to a more stable population and U.S. military base.

While cheaper homes sell fastest, on Maui more than 250 homes sold for over $1.8 million last year. A typical condo now sells for about $250,000, while a typical house is $480,000.

Dinits sold Ottawa businessman David Renfroe, 38, a two-bed, two-bath condo in the Maui town of Lahaina last year for his growing family. "We went over looking for a bank foreclosure," Renfroe says. "With our strong dollar it seemed like a no-brainer."

After doing his due diligence, he made a lowball offer and was shocked when he got it. "We paid $245,000 for a condo previously priced at $550,000. We were thrilled."

He has reserved several months for family and friends and rents it the rest of the time.

"Everybody here is looking at Florida, but there's hurricanes and 20 per cent unemployment there. I think the Hawaii market will come back quicker."

Dinits recently sold two oceanfront condos to a Lillooet couple: a one-bedroom for $250,000 and a two-bedroom for $300,000. Both are available for vacation rental, which is important, as strata fees can be $800 a month.

Another young Canadian family recently bought a vacation home in Lahaina for $245,000. "It's managed by a company that rents it, cleans it and had it 90 to 100 per cent rented all winter at $195 a night." The unit was worth $500,000 in 2005.

The best deal he has seen most recently was a $123,900 condo previously valued at $289,000. Located at the north end of Kihei, a block from the beach, it had a recent $40,000 renovation and features two bedrooms, two baths and two parking stalls.

"There's no pool, but it's a block from the 'big' pool. And strata fees are under $400 because of that," says Dinits, who closed 67 deals last year.

The most affordable living is in Hilo or Puna, on the lush (rainy) side of Hawaii. Here a three-bedroom, two-bath, 1,200-square-foot home, built five years ago goes for $125,000 to $175,000. Not all neighbourhoods allow vacation rentals, however.

"Raw land sold for $75,000 an acre in Puna in 2008. Today I just sold some for $19,000."

There are deals at the top end, too. A Lahaina house was just listed for $1.25 million. Completely remodelled, it has a pool, ocean views, four bedrooms and 2,600 square feet; it was $1.88 million three years ago.

Hawaii has a 10 per cent federal and five per cent state withholding tax, to force people to pay the 15 per cent tax on capital gains. It does not apply if a person sells for a loss, or reinvests in more U.S. property.

Dinits doesn't see prices strengthening any time soon.

"I don't think we'll see irrational appreciation in the next five years, although Americans do have amnesia."

Oahu real estate agent Kalama Kim agrees. Kim is with Coldwell Banker and specializes in Waikiki, where the median price for a condo is $296,000.

"Canadians now make up 15 per cent of the traffic at open houses and there's lots of inventory," says Kim, noting there are 487 condos for sale in Waikiki.

Jay MacMillan, of the MacMillan Team in Edmonton, is doing brisk business in Maui these days.

He has made three sales this year, in addition to his father, who bought a condo six months ago, and his brother, who bought two.

"All of them are cash flowing." Strata fees are steep because pools, barbecue areas and lush landscaping are expensive to maintain, "but there is money to be made.

"Prices have dropped while the rental market is still extremely good -and it is so easy to hop on WestJet and get there.

"Instead of buying recreational properties on lakes here or in B.C., people are getting places in Maui for the same price."

Photo by: Altus

CELEBRATE GOOD TIMES

2011-06-30T15:18:00.000-07:00

Calgary MLS sales top year-ago levels

First time since April 2010
By Mario Toneguzzi
June 30, 2011

CALGARY — For the first month since April 2010, MLS sales in both the single-family and condominium markets in Calgary will show year-over-year increases in June.

According to preliminary data by realtor Mike Fotiou, of First Place Realty, from June 1 to June 28, there were 1,267 single-family MLS transactions in the city and 531 condo sales, topping the entire month of June 2010 sales for each category.

A year ago this month, there were 1,061 single-family home sales and 445 condo sales.

Christina Hagerty, a realtor with RE/MAX Realty Professionals, said the industry started feeling a resurgence in the real estate market in the last quarter of 2010.

“Unlike many other parts of the world, Canada, and in particular, Alberta is a safe and stable place to call home,” she said, adding demands in the oil and gas industry will lead to more people coming here for work.

“The inner city is usually the last to feel any downturn and the first to recover. Now, more than we’ve felt in a while, people are moving. Expats from the U.K., U.S. and other areas across the country ... are coming here.”

So far in June, the average MLS sale price for a single-family home is $476,413, down slightly from June 2010’s average of $481,964, according to Fotiou’s preliminary, unofficial data. The condo average sale price this month was $297,984, up from $292,238 a year ago.

Hagerty said phones are busier today. Builders are confident to start building homes again. And conditionally sold and sold stickers “dot the streets.”

Photo By: Cuppojoe

THOSE ARE RESULTS

2011-06-13T14:00:00.000-07:00

Resale Flexes Muscles
By Marty Hope
Calgary Herald June 11, 2011

May was a relatively strong month for resale residential activity in smaller centres surrounding the city, says the Calgary Real Estate Board.

There were 395 sales in May, an increase of nearly 17 per cent from the 338 for the same month last year, it says.

But from January to Mary, 2,386 homes changed hands, down from the 2,676 deals for the same period in 2010.

In terms of average price, both the May and the five-month averages trail year-ago figures.

Last month, the average was $343,071, down from $363,231 a year ago -while the five-month figures are $348,840 and $358,879 respectively, says the board.

LRT - LONGER RIDE TOLL-FREE

2011-06-13T13:49:00.000-07:00

Calgary considers expanding downtown LRT free-fare zone
By Richard Cuthbertson
Calgary Herald June 13, 2011

CALGARY — Extending the LRT free-fare zone to the Stampede station could create security headaches at the platform, and may encourage commuters to park in the area and then cram onto busy trains travelling into downtown at peak hours.

This is according to a report heading to a city committee on Wednesday that looks at the advantages, and the drawbacks, of broadening the section of the LRT network where people can ride without a ticket.

The report also confirms Calgary Transit will lose up to $2 million a year in revenue if the free zone, which currently stretches along 7th Avenue, grows to include the Victoria Park/Stampede station.

But the proposal still has merit for the organizer of a major expo this coming weekend, who suggests some middle ground can be found in the whole debate.

“Ultimately, what does every special event, what does every convention need? They need people,” said Kandrix Foong, the organizer of the Calgary Comic and Entertainment Expo, to be held at the Stampede’s BMO Centre.

“If you add a couple extra elements to your show that can tilt the favour of whether they’re going to come out to your show or not, then obviously it’s worth it.”

He suggests something be worked out where people attending conventions at the Stampede grounds could to ride the LRT for free.

The report looks at a proposal spearheaded earlier year by three aldermen to create a “seamless event package” by connecting Stampede Park with the Telus Convention Centre through public transit.

The proponents on council said in their motion the change would lead to economic spinoffs by attracting bigger events and raising the appeal of Calgary as a host of conventions and conferences.

The problem, according to the report, is it is difficult to quantify how economic benefits of major events relate to transportation.

Meanwhile, the financial hit to Calgary Transit of extending the zone is pays for between 40,000 and 50,000 transit hours.

The report also suggests extending the free-fare zone would bring questionable characters to the Stampede platform, and transit security would have to be adjusted.

“These individuals can cause disruptions and make other customers uncomfortable,” the report says.

“Extending the free-fare zone would provide a greater range for these individuals to operate.”

Making it free will also encourage more people to park in area and then take the train into the downtown for work, creating “operational issues,” according to the report.

That will lead to complaints of bad service when people at the Stampede platform can’t get on the LRT because the trains are full heading into downtown, the report says.

Ald. Druh Farrell said extending the free-fare zone is a bad idea, adding the current zone along 7th Avenue has become a hub for vagrancy.

“To extend that outside the free-fare zone would be problematic,” Farrell said.

“It would just extend the problems outside of the downtown and make it very difficult for the police to monitor.”

Farrell said she also worries that if the free-fare zone is extended outside of downtown, those affected communities will turn into park and ride lots.

If the city wants to boost tourism, it could introduce a multi-pass giving admission to various sites in Calgary, with public transit included, Farrell said.

VACATION TIME!

2011-06-13T13:17:00.000-07:00

Recreational property markets bouncing back: Re/Max
John Morrissy
Jun 13, 2011

OTTAWA — Canada’s recreational property market appears to be bouncing back from a recessionary lull as buyers seek to capitalize on equity and stock-market gains, Re/Max says in a report Monday.

Demand rose 78% in the 46 markets across the country covered by the realtor’s Recreational Property Report, while sales had risen or were on par in 41% of those centres.

“Buyers who held off during the recession are back in recreational property markets from coast-to-coast,” says Pamela Alexander, chief executive of Re/Max for Ontario-Atlantic Canada. “Their patience has been rewarded with more affordable recreational values and greater inventory levels.”

While prices have remained stable in many markets, values could be found for higher-end properties, pushing luxury sales higher in almost half of the markets examined, Re/Max said in its report.

Opportunities were also to be found in Western Canada.

“Prices are down as much as 20% from peak levels reported in 2006-2007, bringing ownership within reach to many potential purchasers,” said Elton Ash, regional executive vice-president of Re/Max in Western Canada.

On British Columbia’s Salt Spring Island, for example, starting prices for oceanfront properties have fallen to $669,000 today from $1.3-million in 2008.

In the North Okanagan Valley, a three-bedroom, winterized recreational property on a standard-sized waterfront lot — the common measures used in Re/Max’s report — that sold for $1.5-million in 2008 now sells for $995,000.

Starting prices for similar properties on Alberta’s Sylvan Lake are now at $800,000 from $1.25-million previously and in the Rocky Mountain resort town of Canmore, a two-bedroom condo has fallen to $229,000 from $320,000.

“The strengthening oil sector has . . . brought Albertans back into mix, driving demand for both local and coastal B.C. properties,” Ash said.

Another factor influencing the recreational property market has been that Americans who bought when the Canadian dollar was at 65 U.S. cents are now cashing out, boosting inventories.

The report found that there has been some tightening for entry-level properties in about one-third of the markets covered. As well, it noted, the supply of properties has tightened considerably at the lower end in Ontario, Quebec and Atlantic Canada.

It also noted that recreational properties are moving more toward year-round homes, with fewer traditional cottages available for sale.

“These waterfront properties are disappearing from the landscape. Meanwhile, today’s average recreational getaways are truly earning the distinction as the “home away from home,” with many of the bells, whistles and comforts of their residential counterparts.

Photos: The Shores In Tofino

For More Information, Check Out http://www.theshoretofino.com/

I WANT TO BE A BILLIONAIRE

2011-06-01T14:29:00.000-07:00

Cities with the most billionaires – 2011
Morgan Brennan
May 30, 2011

When the U.S. economy was riding high for most of the 20th century, it would have been impossible to imagine a foreign city--especially one in a Communist country--with more of the planet's very richest than New York, home of old-money Wall Street. But that indeed is the case. Today Moscow is the city with the most billionaire residents in the world.

The Russian capital boasts 79 billionaires, a stunning increase of 21 in just one year. That more than edges out No. 2 New York, with 59 billionaires, and No. 3 London with 41. Other cities in the top 15 include such rising stars as Mumbai, Taipei, Sao Paolo and Istanbul. Los Angeles manages a tie for No. 8.

The combined fortunes of Moscow's billionaire population top $375 billion, more privately amassed wealth than in any other city in the world.

Despite New York's relegation to second place, the city remains a favored locale of billionaires, whose collective net worth is $221 billion. The Big Apple boasts some of the most expensive ZIP codes in the U.S., due in part to the real estate prices paid by billionaires in this city. Indeed, many Moscow residents own secondary homes in New York, including fertilizer and coal magnate Andrey Melnichenko, whose wife recently closed on a $12.2 million penthouse apartment. Even the world's richest man, Carlos Slim (home: Mexico City), snatched up a $44 million mansion on Central Park last year.

To compile our list, we tallied the primary residences of all 1,210 billionaires on the 2011 Forbes World's Billionaires list, our annual assessment of people sporting seven-figure or higher fortunes in U.S. dollars. We did not take secondary homes into account for this list.

In the U.S. we stuck strictly to city limits. For example, while a smattering of prominent media barons like Viacom founder Sumner Redstone and T.V. tycoon Haim Saban reside in Beverly Hills, they are not included in the pile of Los Angeles residents since Beverly Hills is its own city (although largely surrounded by Los Angeles).

Here are the the world's five top cities for billionaires:

Istanbul, Turkey scores No. 5.
No. 5: Istanbul
Number of Billionaires: 36
Total combined wealth: $60.5 billion

Billionaires include: Turkey's richest person, Mehmet Emin Karamehmet, chairman of mobile phone company Turkcell; Turkey's former richest, finance and retail scion, Husnu Ozyegin; and Macedonian-born Sarik Tara, founder of construction giant, ENKA.

Hong Kong scores No. 4.
No. 4: Hong Kong
Number of Billionaires: 40
Total combined wealth: $176.8 billion

Billionaires include: Greater China's richest person, Hutchison Whampoa chairman Li Ka-shing; the Kwok family, the brothers behind Hong Kong's largest real estate developer, SHKP; and Angela Leong, the controversial heiress of Stanley Ho's casino empire.

London scores No. 3.
No. 3: London
Number of Billionaires: 41
Total combined wealth: $164.3 billion

Billionaires include: Indian citizen Lakshmi Mittal, the world's sixth-richest man thanks to steel-maker ArcelorMittal; daredevil Virgin founder Richard Branson; and Philip & Christina Green, the married couple behind clothing company Topshop.

New York City scores No. 2.
No. 2: New York
Number of Billionaires: 59
Total combined wealth: $220.8 billion

Billionaires include: media mogul and current mayor Michael Bloomberg; fashion designer Ralph Lauren; and real estate developer-turned-reality T.V. celebrity Donald Trump.

Moscow scores No. 1.
No. 1: Moscow
Number of Billionaires: 79
Total combined wealth: $375.3 billion

Billionaires include: Russia's richest man, steel magnate Vladmimir Lisin; commodities investor and Chelsea soccer team owner Roman Abramovich; and venture capitalist and Facebook investor Yuri Milner.

A CANADIAN RECORD

2011-05-30T10:32:00.000-07:00

Four Seasons sells penthouse apartment in downtown Toronto for $28 million

By The Canadian Press
May 30, 2011

TORONTO - A Toronto penthouse apartment has been sold for $28 million, setting a Canadian record.

The apartment occupies the top floor of a 55-storey residential building at Bay Street and Yorkville Avenue in one of Toronto's most posh shopping areas.

The penthouse apartment is part of a condominium development that will have a total of 210 private residences and a 253-room Four Seasons luxury hotel.

The identity of the buyer was not revealed.

The record-breaking property will be in the taller of two residential towers, which are currently under construction.

The apartment has about nine thousand square feet of living space and 12-foot high ceilings, as well as four corner terraces with a view of Toronto's skyline.

Included in the price is a separate residence for penthouse staff, in the shorter 26-storey tower of the came complex.

"As one of the largest developments of its kind in North America, our exciting new hotel and private residence in Toronto represents a wonderful affirmation of the strength of the Four Seasons brand in Canada and around the world," said Isadore Sharp, founder and chairman of Four Seasons Hotels and Resorts.

The hotel, which will occupy the first 20 floors of the taller tower, is scheduled to open in the summer of 2012.

The private residences range in size from 1,000 to 9,000 sq. ft. and cost at least $1.9 million each.

EVERYBODY'S WELCOME

2011-05-30T10:17:00.000-07:00

Low rates to keep house party going
Eric Lam
Financial Post May 30, 2011

With the Bank of Canada now widely expected to hold off on a rate hike until the end of summer, house prices in Canada are likely going to stay hot for a few months longer.

The central bank will again leave its benchmark lending rate unchanged at 1% at its regular policy announcement on Tuesday, according to the unanimous result of 22 economists surveyed by Bloomberg News.

With signs the U.S. and global economies have entered a soft patch and the European debt crisis continuing to roil, most economists do not expect the bank to raise its overnight target rate until at least September. That would mark a full year on hold for the bank, which last raised rates in September 2010.

The upshot is, these ultralow lending rates will continue to a fuel a Canadian housing market that appears in full spring bloom. Average prices hit $372,544 in April, up 8% year over year for the third straight month, led by a supercharged Vancouver market.

"It will lead to more strength in housing in the near term than anticipated, and the slowdown in housing will be more of a 2012 story," said Derek Burleton, deputy chief economist at TorontoDominion Bank, in an interview.

TD and economists at Royal Bank of Canada and Bank of Montreal have recently pushed their expectations for a hike back to September. TD and Royal forecast the rate to settle at 1.75% by the end of the year, while BMO does not expect it to rise past 1.50%.

Mr. Burleton figures homes are at least 10% overpriced. Extending a low-borrowing environment into the prime sum-mer shopping season would encourage more prospective buyers to take the plunge, creating even better pricing opportunities for sellers.

However, Phil Soper, chief executive of Royal LePage Real Estate Services, said recent price increases have been driven by intense foreign investment in Vancouver, especially from newly cash-rich investors from China, and not low interest rates.

"Much of it is concentrated in a few neighbourhoods, which have attracted Asian investors who use largely cash," Mr. Soper said. "Also, there just aren't enough homes for sale in Canada right now. An increase in the cost of buying would not impact the supply side at all. In general, the pent-up demand for housing that grew during the recession has been exhausted."

Data from Re/Max Canada showed that 747 homes in the Greater Vancouver Area sold for $2-million or more between January and April 2011, a 118% increase on 2010, the biggest increase by far. To compare, 435 homes sold for $1.5-million or more in the Greater Toronto Area in the same time period, a 9% increase on 2010.

"When you take Vancouver out of the equation, the rate of house price appreciation is cut in half," Mr. Soper said.

Doug Porter, deputy chief economist at BMO Capital Markets, agreed that Vancouver has skewed averages.

"We aren't calling for a massive correction on the market, but Vancouver is a market unto itself, and it's certainly at risk of a full-fledged correction in the years ahead," he said. "But most other major markets don't seem to have broken from fundamentals. The likely outcome is a long period of subpar increases or flatness for prices."

Mr. Burleton said even the small rate hikes forecast for the end of the year are unlikely to have much of a material impact on the economy.

"I don't see the impact being dramatic. We're really talking about a quarter difference here, and part of the Bank of Canada's job is being done by the high Canadian dollar, so there's some wiggle room," Mr. Burleton said. "There's a good likelihood the increase next year will be accelerated to some extent to make up for some of the lost ground this year. Most of the action on the interestrate front will happen in 2012."

CURB ANY DOUBT

2011-05-28T12:16:00.000-07:00

Create curb appeal
By Karen Cole Banack

Check out some welcoming ideas that will enhance your home and create curb appeal.

A house with curb appeal stands out from the rest. We notice it because it provides us with simple aesthetic pleasure every time we pass by. Most homes have their own unique blend of charms. Even two identical homes can achieve very different looks with a combination of pleasing exterior elements. Here are some welcoming ideas that you can use to enhance your home and create curb appeal.

Colour

Colour is a powerful tool when used correctly. A facade with a beautiful colour combination is extremely pleasing.

• When choosing exterior paint, look to your landscape for inspiration. Also keep in mind that the colour of your trim should complement the colour of your roof.

• Bright sun will often make strong colours appear bolder and vibrant ones seem brighter. For a toned-down look, try historical paint colours with grey undertones.

• Save brights for outdoor accessories or small areas. A colourful market umbrella, porch chair, painted bird feeder or striped retractable awning are attractive ways to spruce up the front of your house.

Entrance

Treat yourself and your guests to a welcoming entrance area. Even a small area can offer a charming greeting.

• Paint your front door with a strong colour so that it stands out from the rest of the house. Embellish the door further with a knocker, polished-metal kickplate and an inviting, homey touch like a wreath, bunch of pussy willows or basket of flowers.

• A new railing will add panache to an old porch, as will attractive wicker or teak furniture and accessories like flower-filled planters.

• Make a small entryway more inviting with a pair of urns, planter boxes or ivy-covered trellis panels flanking the entrance, or display a hurricane lamp on a table next to the door.

Facade

When making any structural changes, always remain true to the architectural integrity of your home. Don't try to make a country cottage look stately or a tall, handsome Georgian look cute.

• Use unique architectural details to enhance your home. A round stained-glass window, weather vane on a turret, portico painted in a rich colour or window boxes all offer lovely ways to bring interest to a home's exterior.

• When painting shutters, select a rich complementary shade that doesn't overpower the rest of your house's colour scheme.

Lighting

Even simple outdoor lighting will bring your home to life at night.

To create drama, install lighting along a walkway, between shrubbery or in trees.

• Mount a pair of beautiful coach lanterns on either side of French doors to give your home an elegant and stately appearance.

• Design indoor lighting to convey warmth and interest when viewed from outside. For instance, a light in a small round attic window lends character to a home's exterior.

Landscaping

Architectural landscaping is a very effective way to add colour, beauty, vitality and personality.

• Define a walkway by embedding stepping stones into the grass or gravel.

• A brick path surrounded by an overgrown all-white garden looks simple and elegant.

• A rose- or clematis-covered arbour or pergola makes a lasting impression.

• Fences are another option for creating individual style. Try a white picket fence for a cottage look, wrought iron for stately elegance and tall wood slats for privacy.

HIGH-END HEALTH

2011-05-27T15:25:00.000-07:00

High-end resale sign of health
By Marty Hope
Calgary Herald May 27, 2011

Overall, Calgary’s housing markets have been struggling to regain ground lost to the economic downturn — and it’s been a tough fight.

The resale industry found itself saddled with a huge inventory when consumers turned fickle and decided the housebuying binge of the early part of this decade was ending.

They went into hibernation and are now gradually coming back into the market.

The economic fundamentals — job creation, migration and salaries — are improving and in general, so is the housing outlook.

A look at one specific segment of the resale sector is proof the economy is coming back.

A few years back, I had a chat with a realtor who told me that as long as the high end of the resale market was active, the economy was in good shape.

People buying in those price categories wouldn’t be spending that kind of money if they had any notion the economy was in trouble.

If figures from the Calgary Real Estate Board are any indication, everything is humming along.

For the first four months of this year, 437 resale properties priced at $700,000 or more changed hands compared with 368 for the same period last year — and were selling faster.

On the heels of these impressive numbers came a report from Re/Max regarding activity at the upper end of housing markets in 12 major centres in Canada.

The report says that improved financial standing among people with high net worth is the major factor driving strong resale activity at the top end of Canadian housing markets.

It found that luxury home sales surged in nearly two-thirds of housing markets from January to April compared to the same period in 2010.

In terms of percentage gain, the largest growth occurred in Greater Vancouver at 118 per cent, followed by Ottawa at 59 per cent and Calgary at 51 per cent.

Greater Toronto was well down the list at nine per cent.

On the new homes front, Calgary builders continue to cater to a growing number of buyers looking for large homes in inner-city communities, estate neighbourhoods in the suburbs, and acreages in rural areas surrounding the city.

“The upper end of the market is vibrant,” says Jim Quinn, president of QuinnCorp Holdings Inc., which is developing Aspen Estates on the west side of the city.

“Calgary has a deep pool of wealth. It’s quiet, reserved and subtle, but it’s there.”

PRICE IS RIGHT

The pace of the resale market is growing for homes with larger price tags, says the Calgary Real Estate Board.

“We are seeing improvements in the sale of homes in the higher price points,” says board president Sano Stante.

“Homes above $700,000 are selling within an average of 41 days. This is consistent with pre-recession levels.”