CALGARY TOPS IN GROWTH

Calgary leads country in housing market price growth
Prices up nearly 7% from last year
By Mario Toneguzzi
Calgary Herald August 15, 2013

CALGARY — Calgary led the country in July with the best year-over-year price growth in the resale housing market.

The Canadian Real Estate Association’s MLS Home Price Index, released Thursday, indicated prices in Calgary were up 6.79 per cent — more than doubling the national aggregate of 2.66 per cent price growth.

The index measures the rate at which housing prices change over time taking into account the type of homes sold. Nine major Canadian centres are surveyed.

“Our market is trending towards a selling market. Listing inventory is 20 per cent lower than this time last year and pricing is approximately seven per cent higher overall,” said Tanya Eklund, with RE/MAX Real Estate (Central) in Calgary. “The Calgary floods created a short-term surge in house purchases in certain areas. People who could afford to buy have purchased, so their families were not displaced. Due to the very low vacancy rate, rental inflation and difficulty in finding rental accommodation, this made some consumers turn to purchasing instead of renting.

“We are seeing many inner-city communities flourish with sales, however I am seeing certain suburb markets higher in inventory in the plus $1 million, so sales have not been as abundant as other communities closer to the interior of the city. Overall, it appears to be a great time to sell. Buyers have less time to think about their purchases with hopes of not losing out on their ideal home. I am confident we will continue to see a stable real estate market as we enter into the fall.”

CREA stats indicated Calgary MLS sales in July of 2,976 were up 18.9 per cent from last year while the average sale price jumped by 7.0 per cent to $438,192.

Across Canada, sales were up by 9.4 per cent to 44,829 units and the average price rose by 8.4 per cent to $382,373.

In Alberta, transactions increased by 17.8 per cent to 6,853 units while the average price was up by 4.3 per cent to $379,696.

“Canadian home sales have staged a bit of a recovery in recent months after having declined in the wake of tightened mortgage rules and lending guidelines last year, but the numbers for July suggest that national activity is levelling off at what might best be described as average levels,” said Gregory Klump, CREA’s chief economist. “Sales dropped sharply in August last year, so we may see some year-over-year increases in sales and average prices next month that would reflect weakness in the rear view mirror.”

Sales and prices in Calgary are continuing their upward trend in August. According to the Calgary Real Estate Board, month-to-date until Wednesday, total MLS sales of 945 were 32.17 per cent higher than the same period last year and the average sale price was up 13 per cent to $455,688.
In another report released Thursday, Canada Mortgage and Housing Corp. forecast MLS sales in the Calgary census metropolitan area to rise to 27,800 transactions this year from 26,634 in 2012. Sales are expected to jump to 28,300 in 2014.

The agency forecast the average MLS sale price in the Calgary region to rise from $412,315 in 2012 to $435,000 in 2013 and to $445,000 in 2014.

Nationally, the CMHC’s point forecast is for MLS sales across Canada to decline from 453,372 in 2012 to 448,900 this year and then rise to 467,600 in 2014.

The national average sale price is expected to see year-over-year growth of 2.7 per cent this year to $374,800 followed by an increase of 2.1 per cent in 2014 to $382,800.

BOOM BOOM POW

Alberta economy continuing its 'impressive boom'
By Mario Toneguzzi
Calgary Herald March 19, 2013

CALGARY — Any dark clouds that are currently hanging over Alberta will clear by 2014, paving the way for strong business and consumer activity, says a report by RBC Economics.

The bank’s latest Provincial Outlook, released Tuesday, said the province’s economy will continue its “impressive boom” through 2013, after leading the country’s economic growth in 2012, despite facing challenges.

RBC forecasts a provincial real GDP growth rate of three per cent due to strong crude oil production as well as high levels of capital investment, employment and population growth. This will be second in the country behind the 5.1 per cent growth expected in Newfoundland & Labrador.

RBC is predicting Alberta will lead the country in economic growth of 4.2 per cent in 2014.

In December, RBC forecast growth of 3.5 per cent this year for the province. The forecast for 2014 has remained the same.

“Even though the province recently announced a $2 billion budget deficit, Alberta is unquestionably in the midst of an impressive economic boom – particularly with capital investment fuelling manufacturing and wholesalers’ sales. Attractive employment opportunities are also bringing new migrants to the province, boosting population growth and in turn, consumer spending,” said Craig Wright, senior vice-president and chief economist at RBC. “As the economy continues to thrive across the majority of key industries, Alberta will remain at the top-end of Canada’s economic growth rankings this year.”

Economic growth in the province in 2011 was 5.1 per cent followed by 3.5 per cent last year.

Todd Hirsch, senior economist with ATB Financial, said Alberta’s economy is moderating somewhat.

“So I think we will see probably a slower year for growth than what we saw in 2011 or 2012,” said Hirsch. “A lot of that of course prompted by those softer energy prices and maybe a little bit of pullback by the provincial government. But I think we’re still going to see kind of a nice moderate healthy level of growth of around 2.5 to three per cent.

“Going forward beyond that it gets trickier and we don’t really do forecasts beyond 2013 but I would still see 2014 as a pretty good year ... It’s not going to feel quite like the boom years of 2006, 2007 either. We’re just going to have nice healthy moderate growth.”

RBC said there are a few weak spots in Alberta’s economic outlook. Investment intentions in the oil and gas sector are essentially flat for 2013. RBC said Alberta’s energy developers’ plans are being weighed down by rapidly rising energy production in the U.S., pipeline bottlenecks and the ‘bitumen bubble’, all of which contributed to lower crude oil prices in Canada relative to global benchmarks late in 2012.

“Weaker than expected oil prices put a multibillion dollar hole in Alberta government’s revenues, and led to a 2013 provincial budget that detailed renewed public sector spending restraint,” said Wright. “Still, any pullback in capital spending will be short-lived as pipeline issues are addressed and crude oil price relationships normalize.”

RBC trimmed its real GDP growth forecast for Canada to 1.8 per cent through 2013, following softer-than-expected growth in 2012. For 2014, it is forecasting 2.9 per cent growth across the country. In December, it forecast growth of 2.4 per cent this year and 2.8 per cent in 2014.

“After boasting a relatively strong economic performance over the past several years, Canada’s economy hit a speed bump in late 2012,” said Wright. “That said, financial conditions continue to support growth. As confidence recovers, business spending should accelerate, albeit at a less rapid pace than we saw in the early days of expansion.”

LIGHTS AT THE ZOO!

Witness 1.5 million Christmas lights in their most glorious state at the Calgary Zoo.

Voted Best Christmas Event 2011 by Calgary’s Child Magazine’s Parents’ Choice Awards.

Calgary’s Favourite Holiday tradition is back, and this year we are adding even more light displays, figures and activities for you and your loved ones to enjoy.

November 23 — January 5
(excluding Christmas Day
and New Year's Eve)

6:00 pm – 9:00 pm nightly
gates close at 8:30 pm
North Gate Only

$10 General (16 +) + gst (includes parking)
$7 children (3-15) + gst
Under 2 years are free

Group Rates – Please contact the Calgary Zoo’s Guest Relations office for information on group rates. 403-232-9300

Calgary Co-op locations will stop selling Zoolights tickets as of January 5, 2012. Tickets will be available through the Calgary Zoo website or at the north gate.

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, warm up by a fire pit and take in 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.

Come experience Calgary’s favourite holiday tradition.

There are more then 1.5 million 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 Water Wonderland Kids Zone!

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

•The Country 105 Wishing Tree - enter to have a wish you’ve made for yourself or someone you love granted!

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

•Enjoy the plethora of new light figures and exhibits created for your enjoyment

•Don’t forget your non-perishable food bank donation. Collection bins will be placed at the North Gate entrance to the Zoo and you’ll receive a 2for1 admission ticket to the Zoo.

TOP MARKETS

Calgary and Edmonton displace Toronto and Vancouver as top real estate markets
Limited supply in Calgary pushes rents higher
By Mario Toneguzzi
Calgary Herald November 6, 2012

CALGARY — Calgary and Edmonton have displaced Toronto and Vancouver as the top-ranked cities for overall real estate prospects, according to the Emerging Trends in Real Estate 2013 report released Tuesday.

The report, by PwC and the Urban Land Institute, said the Canadian real estate market is expected to remain steady with “modestly good” investment and development prospects across most property sectors for 2013, reflecting expectations of solid supply and demand.

Calgary was the top-ranked city in the country followed by Edmonton, Toronto, Vancouver and Ottawa.

In this year’s survey, Calgary ranked first in both investment and development prospects and second in homebuilding prospects.

“Growth characterizes Calgary’s future; it displaces Toronto as the top ranked city for 2013,” said the report. “This has made it challenging to acquire high quality real estate in Calgary, absorption of prime properties has reached record levels, and rents are being pushed due to limited supply.

“This trend will continue in 2013, especially in office and industrial employment space. Construction will increase in the housing and non-residential arenas, but nowhere near pre-crisis levels.”

According to survey participants, Canada’s real estate market will follow along in a seeming state of near-perpetual equilibrium compared with other more volatile regions studied in the report, including most obviously the United States.

“The results of this year’s Emerging Trends report reflects the fact that the Canadian real estate community understands real estate fundamentals and knows how to react to fluctuations in monetary policy and capital markets. Canada’s real estate industry continues to operate well despite uncertainties in domestic and global economies,” said Lori-Ann Beausoleil, PwC Canada’s Real Estate Leader.

The report said Calgary’s expanding economy is requiring a larger and more highly-skilled workforce. Employment forecasts indicate growth of 2.8 per cent next year and 2.9 per cent in 2014.

“This growth, driven mostly by the oil and gas industry, has made it challenging to acquire high-quality real estate in this market,” said the report.

“Absorption of prime properties has reached record levels and rents are continuing to be pushed due to limited supply.”

The report said potential approvals of controversial pipeline projects to the United States and into British Columbia would boost real estate construction projects further in Calgary.

The strength of Calgary’s real estate market is evident in both the residential and non-residential sectors.

According to the Calgary Real Estate Board, year-to-date as of Monday, total MLS sales in the city of 18,905 are up 15.56 per cent from the same period last year.

Canada Mortgage and Housing Corp. is forecasting total housing starts in the Calgary census metropolitan area to finish at 12,400 units this year, an increase of more than 33 per cent from 2011 and the highest level since 2007.

RealNet Canada recently said Calgary has experienced the second best ever year for commercial real estate transactions for the first nine months of the year with $3.394 billion in sales so far this year.

And a recent report by Jones Lang LaSalle suggested a downtown office development boom in Calgary could be on the horizon.

FUEL EXPANSION

Calgary and Edmonton to lead Canadian economic growth
Energy-related investment to fuel expansion
By Mario Toneguzzi
Calgary Herald September 18, 2012

CALGARY — Calgary and Edmonton are forecast to be the fastest growing economies in Canada over the next four years, according to the Conference Board of Canada’s Metropolitan Outlook-Autumn 2012 released Tuesday.

“Energy-related investment in Alberta is expected to stay vibrant throughout the next four years. For instance, about $29-billion worth of energy-related projects are now underway in the province, and nearly $86-billion worth of projects are proposed for the future,” said Mario Lefebvre, Director, Centre for Municipal Studies, for the board.

“All this investment will continue to be a boon to Calgary’s economy, which remains the services hub of the province’s energy sector.”

The board is forecasting Calgary to have the best economic growth in the country over 2013-2016 at an average of 3.7 per cent followed by Edmonton’s average annual real GDP growth at 3.5 per cent during the forecast period.

For this year, the board is predicting Edmonton will lead the country with 4.6 per cent growth followed by Calgary at 3.8 per cent.

“Without a doubt, I expect that Alberta is going to be the envy of the country moving forward into closing out 2012 and into 2013,” said Ben Brunnen, chief economist with the Calgary Chamber of Commerce. “While the growth will be the strongest in the country, particularly for our cities, that doesn’t necessarily mean that we’re in great economic times.

“There are some storm clouds on the horizon. I expect fully we’ll see a recession in Europe. The Chinese economy is slowing substantially. And the U.S. has its election coming forward. What this means is there’s going to be a dampening on economic growth globally and as a consequence it’s going to affect Canada. That said, the investment in the province has been strong to date and should continue to be strong.”

The board said Calgary is coming off a “very strong performance” in 2011 with economic growth at 5.0 per cent. The strong growth expected during the forecast period will be “helped along by strong consumer spending and spinoff benefits from the energy sector.”

Employment growth is forecast for 4.1 per cent this year in Calgary followed by annual growth rates of 1.9 per cent, 2.6 per cent, 2.5 per cent, and 2.1 per cent from 2013 to 2016. And retail sales are forecast to grow by 9.2 per cent this year followed by growth of 6.2 per cent, 5.3 per cent, 5.3 per cent and 4.8 per cent during the forecast period.

Also on Tuesday, a report by TD Economics said Canada will likely experience a shift from household and government-led growth towards exports and investment, but global headwinds appear to have delayed this transition until the first half of 2013.

In the meantime, the report said, the economy will be stuck in neutral and Canada’s economic expansion will be constrained to a pace near two per cent.

“In the first half of 2012, governments constrained their spending while households pared back their rate of borrowing and spent at a miserly pace. While most major housing markets have held up reasonably well, there are signs — most notably in Vancouver — that markets have reached a peak,” said TD Bank Group’s chief economist Craig Alexander. “And in the near term, the slowdown is expected to broaden across the country, following the implementation of tighter rules on insured-mortgage lending this past summer.

“Canada’s economy has turned out a relatively strong performance in recent years, but the growth has not been broadly based and imbalances have amassed. On the plus side, governments and households, which have been pulling Canada’s economy along by the coat-tails for years, have begun to address their debt challenges. Recent changes to mortgage borrowing rules will help to address part of the over-valuation in housing markets. Going forward, it will be equally critical for the economy to transition to more export and investment-led growth.”

Photo By : Bulliver

FAMILY SIZE & THE CONDO MARKET

Shrinking family sizes bode well for Canada’s condo sector
Garry Marr
Financial Post Sep 19, 2012

Maybe the condo industry knew something revealed to the rest of us only Wednesday — family sizes are shrinking.

Statistics Canada’s census data showed a dramatic increase in one-person households, up 10.4% from 2006 to 2011. For the first-time, more households were comprised of couples without children than with children. Family size also shrunk, with the average number of children dropping from 2.7 in 1961 to 1.9 in 2011.

All of this seems to bode well for a condominium sector which demands its occupants accept smaller quarters than they are historically used to.

“I think the housing stock has already responded,” said Don Lawby, chief executive of Century 21 Canada. “I think the major cities are the ones that reacted the fastest. There is a movement that has been forced by economics to smaller accommodation.”

Mr. Lawby notes if you’ve made the decision not to have children, as the statistics show some have, that means you are living a very different life and your housing needs are not the same.

“Of course, this all plays into the condo’s hand,” he says. “But there still will be people who desire to have a single family detached home where they are the king of the castle.”

The evidence already points to huge demand for high-rise units, both from buyers who want to live in the units and investors who rent them out. Canada Mortgage and Housing Corp. said it expects 207,200 new housing starts with 123,700 in the multiple-unit category, predominantly made up of condominiums.

And while there are forecasts that the housing market is slowing, the Crown corporation is still predicting 193,100 starts next year with 109,000 coming from the multiple category. Condominium projects in Vancouver, Montreal and Toronto have driven the demand, CMHC says.

Brian Johnston, chief operating officer of Mattamy Corp., said the industry has been responding rather than leading. “I think there has been demand for smaller housing,” he said.

All of this might just confirm what the real estate industry has been saying all along — they were just giving the people what they want. “I see these comments that builders are building too many houses — builders don’t create new houses because it’s a good idea, they do it because there is demand,” says Mr. Johnston, noting bank financing requires high pre-sale levels.

Doug Norris, chief demographer at Environics Analytics, predicts the impact on real estate of the country’s changing demographics is just starting. “Part of the condo boom is driven by Boomers starting to downsize and move into new types of housing,” he said. “[Living in] the single family [home] starts to dwindle after 50.”

Though the impact of the Baby Boomers has yet to be seen, Mr. Norris said they will probably downsize more than their predecessors.

Craig Alexander, chief economist with Toronto-Dominion Bank, says while there definitely is more demand for condo-style living, the overall amount of housing stock being built is still above household formation.

“We can tell from the census numbers that we are building too many houses,” says Mr. Alexander, noting there were 189,000 net new households per year from 2006 to 2011. “Yet when we look at the pace of home construction it has been well over 200,000 and in fact it was 218,000 annualized starts so far in 2012.”

He says you can build past demographic requirements for a short period, perhaps catching up with a previous lag, but it has to stop at some point.

“On the one hand I am concerned about the condo market because when we look at the current pace of construction and compare it to a generally sustainable rate, it’s way too fast but over the long haul there is long-term strong demand for condos,” says Mr. Alexander.

MARKET CONFIDENCE

Resale condo pace reflects 'confidence'
By Josh Skapin
Calgary Herald September 7, 2012

Total sales of resale condos in Calgary continued to climb in August, rising 19 per cent compared to the same month last year, says the Calgary Real Estate Board.

There were 556 sales of apartments and townhouses last month, up from 468 transactions in August 2011, says the board.

The biggest increase came in townhouses, which saw a 31 per cent hike in resale activity last month compared to the same month last year.

But the average resale price for townhouses in Calgary in August was $281,941, 3.45 per cent lower than the same period last year.

“Some continue to foresee a scenario where price declines are looming in the local housing market, especially given national trends,” says chief economist Ann-Marie Lurie in a news release.

“There is no question economic concerns can threaten our housing recovery. However, to date, Calgary housing market consumers are exhibiting confidence evidenced through the pick-up in sales activity across all housing types.”

While townhouse prices are down, the average resale price of condo apartments was 7.22-per-cent higher last month than in 2011, rising to $281,941 per unit.

The area in Calgary with the highest condo apartment and townhouse resale activity in the city last month was in Zone C, which roughly corresponds to the city’s southwest.

Not only did the area have 288 deals, it also had the highest average resale price at $314,467.

Zone A, which roughly corresponds to the city’s northwest, saw the second highest sales totals and average price.

The average price in Zone A was $294,867 for 155 sales last month.

Zone D, which translates to southeast Calgary, had 66 transactions last month at an average rate of $287,340.

At the same time, Zone B, which covers northeast, Calgary saw 47 units change hands at an average price of $172,234.

DID YOU KNOW?

The biggest increase in condo apartment resale activity in Calgary has come in the $200,000 to $299,999 price range, says the Calgary Real Estate Board.

To Aug.1, 1,132 units in this price range changed hands in Calgary, up from only 949 sales during the same month last year.

The $200,000 to $299,999 price range led all condo sales in the city in August, alone, at 151.

THE SEVEN BEST

Canada among 7 best housing markets in the world
Mamta Badkar
Business Insider Sep 5, 2012

While much of the world is seeing home prices depreciate, there are a few countries where home prices are on the rise.Canada ranked among Germany, Switzerland and Hong Kong in the top 7 housing markets.

Global Property Guide’s latest report shows, however, that even the strongest housing markets are losing momentum as the economy falters.

Of the 39 countries tracked by GPG quarterly house prices fell in 25 countries and climbed in just 13.

We published the worst housing markets Tuesday, and today we’ve highlighted the 7 best housing markets in the world, based on year-over-year home price changes.

Canada ranked among Switzerland, Germany, Hong Kong in the top 7.

Home prices in Hong Kong were up 3.01 percent year-over-year (YoY) and 6.85 percent quarter-over-quarter (QoQ) in Q2 2012

Home prices in Canada were up 4.06% YoY and 1.59% QoQ in Q2 2012

Home prices in Switzerland were up 4.86 percent YoY but down 0.54 percent QoQ in Q2 2012

Home prices in Germany were up 5.24 percent YoY but down 2.02 percent QoQ in Q2 2012



Home prices in Delhi, India were up 6.23 percent YoY nut down 1.09 percent QoQ in Q2 2012

Home prices in Norway were up 6.26 percent YoY and up 2.98 percent QoQ in Q2 2012



Home prices in Sao Paulo, Brazil were up 15.56 percent YoY and 2.38 percent QoQ in Q2 2012

Photo By: cityNnature

SUNNY DAYS

Calgary housing market showed strong sales activity in July
Sales and average price gain top national averages
By Mario Toneguzzi
Calgary Herald August 15, 2012

Calgary residential MLS sales in July experienced one of the highest year-over-year rates of growth in the country, according to data released Wednesday by the Canadian Real Estate Association.

Also on Wednesday, the Calgary Real Estate Board released its 2012 housing market forecast update saying the city has outperformed expectations this year after the first seven months.

The national real estate association said sales in Calgary of 2,502 transactions were up 26.7 per cent from July 2011. In contrast, MLS sales across Canada rose by only 3.3 per cent to 40,863 units.

And while the national average sale price dipped by 2.0 per cent to $353,147, in Calgary the average rose by 3.0 per cent to $409,670.

In July, new listings in Calgary dropped by 5.1 per cent to 3,573 while at the national level they rose by 1.4 per cent to 74,685.

CREB’s report said the Calgary area is still short of the peak pricing of 2007 and sales are returning to typical levels of activity.

CREB president Bob Jablonski said tight conditions in the single-family market have boosted sales in the condominium market and surrounding towns. And he said more new home starts have occurred because of the lower than expected resale inventory.

“Expectations are relatively bullish in the city despite overhanging global uncertainty. However, concerns in the oil sector and continued weakness in the natural gas sector are issues that will keep consumers wary. While consumers are aware of the economic risk when it comes to housing, many are thinking about job security and long-term potential,” said the CREB report.

“Based on activity this year, consumers are comfortable purchasing in a city where the long-term outlook is prosperous and the housing industry has yet to fully recover. While the pace of growth will likely cool over the second half of the year, the resale housing market will stay on the path to recovery into 2013.”

The local board is forecasting single-family home sales this year to jump to 14,800 transactions from 13,120 in 2011 and the annual benchmark price to move to $410,123 from $398,225 last year.

It is also forecasting condo sales to increase to 5,675 this year from 5,377 in 2011 and the annual benchmark price to jump to $240,585 from $239,676.

Ann-Marie Lurie, CREB’s chief economist, said Calgary is sensitive to significant changes in the oil sector and that has a “domino effect on employment, migration, consumer confidence and ultimately the housing sector.”

“Our fundamentals on the economic side are very strong . . . We have very strong GDP growth. We’ve got investments into our province and our city and this is creating full-time employment growth. Significant full-time employment growth. All of these factors are contributing to that growth in the housing market.”

At the national level, some first-time home buyers may have difficulty qualifying for mortgage financing due to shortened amortization periods included in recent changes to mortgage regulations, said Gregory Klump, chief economist for CREA.

“As the linchpin of the housing market, lower first-time buying activity will have knock-on effects over the rest of the market. It will likely take more time for move-up buyers to sell their current home,” he said.

The MLS Home Price Index, which tracks home price trends in five of Canada’s most active markets, rose 4.5 per cent year-over-year in July. The largest increase was in Greater Toronto at 7.1 per cent followed by Calgary (6.0 per cent), the Fraser Valley (2.5 per cent), Montreal (2.1 per cent) and Greater Vancouver (0.6 per cent).

CREA says these five markets comprise about 45 per cent of all home sales activity in Canada.

In Alberta in July, MLS sales of 5,819 were up 16.5 per cent from a year ago, the average sale price rose by 2.7 per cent to $363,924 and new listings fell by 3.3 per cent to 9,315.

Francis Fong, economist with TD Economics, said the recent slowdown in housing activity at the national level is a reflection of a Canadian household that is increasingly wary of taking on more debt.

“Job growth has effectively stalled over the last few months, owing to an uncertain outlook for the global economy,” said Fong. “Meanwhile, new mortgage lending rules are making it more difficult for Canadians to access credit, despite interest rates still at historic lows.

“TD Economics has been calling for a modest correction in housing activity to the tune of 10-15 per cent for some time. (Wednesday’s) report provides some evidence that that correction is now beginning to take place.”

Photo By: Kevin Mullett

THE UPSWING

Resale market on the upswing
By Josh Skapin
Calgary Herald August 3, 2012

The upswing on resale activity of single-family homes in Calgary continued in July.

Last month, 1,386 single-family homes changed hands in Calgary, a 21.37 per cent increase on the 1,142 units sold in July of last year, says the Calgary Real Estate Board (CREB).

Changes to Canada’s mortgage rules earlier this year fuelled talks of a national housing correction, which has yet to be seen in Calgary says CREB chief economist Ann-Marie Lurie. These changes include shortening the maximum amortization period from 30 years to 25 years.

“While the two largest cities (Vancouver and Toronto) have started to witness declines in home sales activity, Calgary continues to record improving sales and prices,” says Lurie in a news release.

To date, the city’s single-family resale activity is up 18.9 per cent over the same span in 2012.

That pace is fuelled by the region’s economic growth, adds Lurie.

“Last year, Alberta led the country in economic growth and, with Calgary being the energy capital of the country, the city has benefited from growth in full-time employment, migration and overall improved confidence.”

The average price of single-family homes sold in Calgary’s resale market is also on the rise.

Last month, the average price was $485,528, marking an 4.85 per cent climb over $456,374, the average price from July 2011.

The average resale price on single-family homes since the start of 2012 is 2.11 per cent higher than the same period one year ago.

Zone A, which roughly translates to northwest Calgary, had the highest sales totals in the city last month at 504 units moved.

Coventry Hills led the zone and the city in resale activity last month with 47 houses changing hands.

Zone C, which roughly covers southwest Calgary had the second highest resale activity in July with 405 units moved. The highest average resale price in the city last month also came from Zone C at $599,565.

The third highest sales totals came in Zone D, which roughly translates to southeast Calgary, with 295 sales.

The slowest section in the city for single-family homes last month was Zone B’s 189 sales.

This zone roughly covers northeast Calgary. Zone B also had the least average resale price at $301,602.

RISE IN LUXURY HOMES

Resale of luxury homes in Calgary soared in the first seven months of this year compared to the same time in 2011.

There have been 318 transactions of single-family homes priced $1 million or more since the start of 2012 compared to only 266 during the same span last year, according to numbers from the Calgary Real Estate Board.

The biggest rise was in the $1 million to $1.249 million price category, with 152 units sold since the start of the year after only 102 transactions during the same period in 2011.

Photo By: Thomas Hawk

SOME GREAT HEIGHTS!

Calgary luxury real estate market soars to new heights
Sales climb in million-dollar plus category
By Mario Toneguzzi
Calgary Herald July 20, 2012

CALGARY — The demand for luxury real estate in Calgary has soared to new heights this year, fuelled by strong economic fundamentals, says a report by Sotheby’s International Realty Canada.

For the first six months of this year, there have been 301 homes sold for over $1 million in Calgary, up 19 per cent from the same period last year, said the report.

From January 1 to June 30, 2011, there were 253 homes sold for over $1 million and another 194 luxury homes sold between July 1 and December 31 that year.

The number of homes listed on the market for over $1 million was 474 between January 1 and June 30, 2011 and 473 homes between July 1 and December 31 in 2011. From January 1 to June 30 this year, there have been 908 homes listed at that price point.

The Sotheby’s report said six per cent of homes over $1 million this year have sold for over the asking price. The first half of last year also had six per cent selling for more than the list price while for the second half of last year it was eight per cent.

As for days on the market, the first half of this year was 53 days while for both halves of last year it was 49 days.

Corinne Poffenroth, a realtor in the Calgary office of Sotheby’s International Realty Canada, said a number of factors have contributed to the demand for luxury homes in the local market.

“We’re seeing a bit of a lifestyle change for some of the Baby Boomers here and that sometimes involves downsizing when they’re planning for retirement and it sometimes involves perhaps purchasing a second property either down south or B.C., and because of that there’s a bit of a trend moving, re-locating from some of the suburban areas back to the urban centres with some of the amenities closer by,” she said.

“I also think there’s some new optimism in the next generation of young professionals here. They’re seeking these exclusive, higher-end properties like both single-family and condo in some of the most sought-after areas of the city. And that can involve both urban and suburban areas as long as there’s amenities and transportation close by.”

Also, there is growing confidence and optimism in the province’s energy sector and all the industries that benefit from that.

“These higher-end buyers if they’re showing the confidence in buying these still multi-million dollar properties and second properties that’s a good thing for everyone else because that confidence just kind of goes on down the line in the market overall. There’s a huge sector of high-end buyers and I think that’s what’s increased the listings because these sellers are wanting to take advantage of this demand for higher-end homes and condos,” added Poffenroth.

According to the Calgary Real Estate Board, MLS sales for properties in Calgary of $1-million or more were: 2011, 446; 2010, 365; 2009, 337; 2008, 369; 2007, 458; 2006, 334; and 2005, 138.

The biannual report of Canada’s four largest urban markets — Calgary, Toronto, Vancouver and Montreal — showed a steady upward trend in the first half of 2012 with Toronto, Calgary and Montreal all reporting double-digit sales growth in homes over $1 million.

In Vancouver, the 2011 to 2012 comparison of properties over $1 million, showed that the reigning hot spot for million-dollar listings is experiencing a similar correction to conventional properties in the area, said Sotheby’s. Sales in that price category of 1,291 properties so far this year are down 35 per cent from the same period last year, which had 1,996 transactions. The inventory of properties asking $1 million or more also rose 11 per cent in 2012, increasing to 3,912 from 3,518.

In the first half of 2012, the Greater Toronto Area reported a 29 per cent increase in sales, generating 3,113 transactions of million dollar-plus properties, compared with 2,405 in the first half of 2011. The inventory of listings in the GTA also rose 31 per cent from 6,193 homes listed over the $1 million price point to 8,105 listings, said the report.

Montreal experienced similar growth in both the sales and inventory of million-dollar real estate. This year, Montreal reported a 15 per cent sales increase with the first six months reporting 227 transactions exceeding $1 million compared with 196 in 2011. The volume of top-tier listings also increased 11 per cent from 590 in 2011 to 656 in 2012.

“Given the transition occurring in international economies like Europe and Asia, the value and stability of luxury property in Canada has become an increasingly recommended asset,” said Ross McCredie, Sotheby’s International Realty Canada chief executive.

RISE UP!

New-home prices in Calgary region on the rise
By Mario Toneguzzi
Calgary Herald July 13, 2012

Real estate . New-home prices in the Calgary region continued to rise in May.

Statistics Canada said Thursday that prices in the Calgary area were up 0.3 per cent from April and 0.8 per cent from a year ago.

Nationally, the index rose by 0.3 per cent and prices were up 2.4 per cent from May 2011.

Gains in Toronto, Oshawa and Calgary were the top contributors to the May increase, StatsCan said. The most significant monthly price declines were recorded in Victoria (0.8 per cent) and Charlottetown (0.4 per cent).

The Royal LePage house-price survey, released earlier this week, showed varied year-over-year resale house price increases in Calgary.

In the second quarter, detached bungalows posted the largest average year-over-year price increases, rising five per cent to $432,322. Prices for two-storey homes rose 2.5 per cent year-over-year to $425,456. Condominiums declined by 0.8 per cent year-over-year to $247,056.

A"MAY"ZING MONTH!

Condo resale market climbs in May
By Josh Skapin
Calgary Herald, June 8, 2012

Calgary’s condo resale activity climbed 35 per cent in May, compared to the same time last year, says the Calgary Real Estate Board.

In fact, there were 675 apartment or townhouse sales last month after only 500 condo units changed hands in May 2011.

The average resale price for condo apartments last month was $280,030. For townhouses, the average price was $330,446.

High-end condo sales are also on the upswing in the city.

After the first five months of 2012, 10 townhouses priced from $900,000 were sold in the city — only three units in that price range changed hands during the same period in 2011.

For condo apartments, eight units have sold for at least $900,000 so far in 2012, compared to five units last year.

Zone C, which roughly covers southwest Calgary, paced the city in condo sales last month with 385. The zone also saw the highest average resale price at $322,204. It also paced the city in inventory with 1,016 available units.

Located in Zone C, Connaught topped all Calgary communities in May with 49 units sold. Also in Zone C, Springbank Hill had the highest average price at $571,200.

A distant second to Zone C’s sales totals in May was Zone A, which roughly corresponds to northwest Calgary. It saw 189 sales at an average resale value of $295,682.

Zone D, which roughly covers southeast Calgary was third in sales totals last month with 69 at an average resale value of $263,609.

The slowest area of the city for condo sales was Zone B, which roughly covers northeast Calgary. It had 32 sales at an average price of $170,893. The community with the lowest average price in the city was Forest Lawn at $88,000.

AN EXPRESSION ON VACANCY

Demand for Calgary office space remains strong
Mario Toneguzzi
Postmedia News Jun 6, 2012

CALGARY • Demand for downtown office space is expected to remain strong through 2012, even if it’s unlikely to match last year’s frenzied pace.

“At this point, all of the economic indicators are still very, very strong,” said Todd Hirsch, senior economist with ATB Financial, who spoke Tuesday at the Calgary Real Estate Leasing Conference. “We look at that office-space vacancy and how it’s come down. We look at the building permits, they’ve been picking up. Everything at this point, the momentum is all moving in the right direction.”

The one threat, he said, is a continual slide in oil prices that could soften demand.

According to Colliers International, office space absorption was a positive 2.8 million square feet in the downtown market in 2011. The Beltline and suburban office markets accounted for about one quarter of that amount. The first quarter of this year saw about 866,000 square feet of office space fill up.

In the fourth quarter of 2011, the downtown office vacancy rate was 4.5%. It fell to 4.2% for the first three months of this year.

Randy Fennessey, president of Colliers International in Calgary, said the downtown office market is expected to remain strong given the ongoing low vacancy rate overall.

“But having said that, we’re get-ting a sense that things are starting to taper off a little bit just because commodity prices, particularly oil, have fallen recently and a series of geopolitical conditions are not conducive to rising oil prices,” said Mr. Fennessey, who spoke at the conference. “So it makes one wonder how long this level of heady demand is going to continue.”

MAY it be a GREAT YEAR!

May MLS sales in Calgary up substantially
Calgary Herald
May 29, 2012

It’s been a good spring so far for the local real estate industry with sales moving ahead of last year’s pace at a good clip.

And so far in May sales have continued to be quite healthy.

According to the Calgary Real Estate Board, from May 1-28, there have been 2,104 MLS residential sales in the city, up 27.90 per cent from the same period last year and the average sale price has increased by 3.03 per cent to $445,120.

The single-family home market has seen year-over-year growth of 26.52 per cent in sales to 1,503 with the average price rising by 3.12 per cent to $503,694.

That average sale price is flirting with the all-time monthly record of $505,920 set in July 2007.

In the condo apartment category, sales of 345 are up 31.18 per cent from last year and the average price has risen by 4.03 per cent to $275,382.

Also, in the condo townhouse category, sales in May are up 31.96 per cent from last year to 256 transactions and the price has increased by 5.29 per cent to $329,969.

JUST LIKE A HEATWAVE

Condo pace picks up steam in city
By Claire Young
Calgary Herald May 18, 2012

Compared to the last three months of 2011, resale condos sold faster from Jan. 1 to the end of March in three of four quadrants of the city, says the Calgary Real Estate Board.

All of the board’s zones except for Zone A — which roughly corresponds to the city’s northwest — sold more quickly than during October to December.

In Zone A, condos took an average of 58 days to sell — three more than during the last quarter.

Condos in Zone B, which roughly consists of northeast Calgary, averaged 58 days on market, down from 64 in the first quarter.

Meanwhile, Zone C — roughly southwest Calgary — saw the hottest sales with an average of 49 days on market, down from 60.

And Zone D, which is roughly consists of southeast Calgary, saw a six-day drop to an average of 50 days on market.

The new year brought many more listings for condos.

From Jan. 1 to the end of March, there were 2,702 new listings in the city compared with 1,644 during October to December.

The bulk of the new listings were in Zone C, with 1,492 added. This zone also saw the most sales at 783, up again from last quarter’s 612.

The only neighbourhood to hit triple-digit sales in 2012’s first quarter was Connaught in Zone C, which saw a tidy 100 sales averaging $309,451.

Other neighbourhoods in Zone C that sold well were Victoria Park with 48 sales averaging $351,754, and Bankview with 32 sales averaging $262,512.

The most expensive neighbourhood from Jan. 1 to the end of March was Varsity Estates in Zone A, which had two sales averaging $598,750.

The most affordable neighbourhood was also in Zone A — Highland Park, which had one sale for $79,000.

During the first three months of 2012, the average sale price increased in all zones except Zone D — where this quarter’s average sale of $259,768 marked a decline from last quarter’s $268,998.

Zone C had the highest average sales at $307,822, an increase from $298,960.

Zone A’s average sale was $281,193, up almost $10,000, while Zone B was up a little more than $4,000, with an average sale of $173,544.

YOU'RE HOT & YOU'RE COLD!

Hot Toronto, cold Vancouver have competing effects on Canadian housing market
By Sunny Freeman
CANADIAN PRESS May 15, 2012

TORONTO – The Canadian housing market gained momentum in April as strong sales in the Toronto offset weakness in Vancouver, the Canadian Real Estate Association said Tuesday.

April seasonally adjusted home sales on CREA’s Multiple Listing Service gained 0.8 per cent compared with March.

On a year-over-year basis, the association said there were 49,480 homes sold in April, up 11.5 per cent from 44,370 a year ago, when sales slowed following a tightening of mortgage lending rules including the elimination of 35-year amortizations came into effect in March 2011.

Two of Canada’s largest markets are having opposite effects on the national average, with slowing sales and falling prices in Vancouver dragging, and soaring sales and prices in Toronto exerting upward pressure.

The average home price in Canada in April was up 0.9 per cent from a year ago at $375,810.

“It bears repeating that the national average price was skewed higher last spring by record level high-end home sales in Vancouver’s priciest neighbourhoods, and that a replay of this phenomenon was not expected this year,” said Gregory Klump, CREA’s chief economist.

The average selling price in Vancouver was down 9.8 per cent compared with a year ago at $735,315, while the average price in Toronto was up 8.4 per cent at $517,556. April sales in Vancouver slid 13.2 per cent while Toronto sales picked up 14.5 per cent compared to a year ago.

“Trends in Vancouver and Toronto continue to diverge. These two housing markets have an obvious influence on national statistics and a high profile, but Canada is a big place,” said Wayne Moen, CREA President.

Excluding Toronto and Vancouver, the average price in Canada was up 3.1 per cent from a year ago.

Gains in Montreal, Winnipeg, Edmonton, as well as London and St. Thomas, Ont., also contributed to the increased sales, offsetting declines in Ottawa, Windsor-Essex, Quebec City, the Fraser Valley, and Vancouver.

Continued strength in the housing market, largely due to the staying power of low interest rates, has led some economists to warn the market is overvalued. That could make homeowners vulnerable to a downturn, especially those who have used low interest rates to borrow more than they could otherwise afford.

TD Bank estimates Canadian home prices are 10 to 15 per cent overvalued, with the excess most evident in Toronto and Vancouver, said TD economist Diana Petramala.

“With mortgage rates still at rock bottom through the early part of this year and job creation heating up through March and April, it’s not that surprising to see continued growth in Canadian home sales,” she said.

“Still, growth in home prices and sales will likely be limited as the overvaluation has led to a deterioration in affordability. Overall, we anticipate the Canadian housing market to remain relatively flat in the coming year with home prices to rise just another two per cent this year, following gains of seven per cent in each of the last two years.”

The number of newly listed homes pared back 0.2 per cent from March to April, which, combined with slightly higher sales resulted in a tighter national housing market, but remains firmly entrenched in balanced market territory,” CREA said in a release.

A total of 157,804 homes have traded hands so far this year, up 6.4 per cent from levels reported in the first four months of 2011.

That’s also about four per cent higher than both the five- and 10-year averages for sales during the first third of the year.

Sales on CREA’s Multiple Listing Service was either up or held steady in half of all local markets, with Toronto and Calgary posting the biggest monthly increases for the second consecutive month.

Toronto home sales in 2012 have been particularly strong, up 9.5 per cent from year ago levels at 31,639 homes sold so far this year. But sales in Vancouver, a market that was bustling with high-end home purchases last year, are down 19.9 per cent so far this year at 9,935 homes sold.

“While these two cities are garnering most of the attention, Calgary is quietly becoming a market to watch,” said BMO economist Robert Kavcic, adding that sales in the city jumped 30 per cent year-over-year in April.

“If oil prices remain high enough to continue supporting strong economic growth and migration flows, Calgary could again become Canada’s real estate hot spot in short order.”

REALTOR BOWLING PARTY!

ON THE RISE...NATIONALLY

Canada’s home sales back on the rise
Postmedia News
Mar 15, 2012

Following a rough start to 2012, home sales in Canada rebounded in February with a modest increase from the previous month.

The Canadian Real Estate Association (CREA) said Thursday that home sale rose by 1.4% between January and February, which helped recover roughly one-third of the 4.5% drop recorded the previous month.

Compared with the same reporting period the previous year, activity was 8.6% higher than February 2011. Over the first two months of 2012, some 61,772 homes were sold, which represents a 6.7% hike from the same period in 2011.

“The national rise in both sales activity and the number of newly listed homes beyond the normal seasonal increase provides clear evidence that Canadians are confident in housing market prospects,” CREA president Gary Morse said in a new release.

New home listings also jumped 1.9% in February, representing the highest level since May 2010. The association said a spike in new listings in Canada’s two busiest markets — Toronto and Montreal — helped counterbalance a decrease in listings in Vancouver, which is the country’s third-largest market.

CREA said that the balance between sales and new listings remains fairly equal.

On a year-over-year basis, average home sale prices were up fully two% in February 2012. The average price of all homes sold that month was $372,763.

The association said that the increase was partly due to a rise in high-end home sales in the Vancouver area, which was not anticipated. Single detached residences in the Toronto area also continue to fuel home gains.

STEADY AS REAL ESTATE GOES!

'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."