HIGH IN THE SKY APPLE PIE

Calgary condo market booming with high sales growth

New condo sales at strongest levels since 2006

BY MARIO TONEGUZZI

CALGARY HERALD OCTOBER 11, 2013

CALGARY — The pace of year-over-year sales growth in the resale condo market is much higher than the single-family home market this year in Calgary.

And new condo sales are also moving in an upward trend towards the strongest levels since 2006.

“Calgary’s condominium market remains resilient and in high demand with new construction being well supported demographically, exhibiting steady sales throughout the inner city and the downtown core,” said Kaitlyn Gottlieb, a realtor with Century 21 Bamber Realty Ltd. in Calgary.

“Calgary’s luxury condominium market remains immensely sought after. As Calgarians’ incomes continue to rise and our business sector attracts relocations, high-end buyers are taking advantage of the luxury condos that Calgary has to offer, boasting high-end finishes and their close proximity to the downtown core.”

According to the Calgary Real Estate Board, year-to-date until October 10, MLS sales in the condo apartment category in the city were 3,253, up 14.58 per cent from the same period a year ago and the average sale price has jumped by 6.14 per cent to $298,050. In the condo townhouse category, sales of 2,600 are up 22.18 per cent from last year and the average sale price has risen by 6.60 per cent to $338,809.

The single-family home market in the city has seen sales rise by 7.36 per cent to 13,482 with the average price moving up by 8.18 per cent to $517,730.

“While the recent floods have undoubtedly impacted all sectors of Calgary’s housing market inclusive of the condominium market, as demonstrated by the increased demand for affordable housing, the overall market remains stable,” said Gottlieb.

“Steady migration, employment and population growth are major contributors as we move into the fourth quarter of the year. The relative affordability of our city’s housing market remains one of the best in Canada and we can expect to see Calgary’s condominium market continue to rise at a moderate, sustainable pace.”

A report by Altus Group says new condo sales in Calgary are at the strongest levels since 2006.

It said the new multi-family condo market has seen impressive sales in the first half of 2013 with almost 3,000 sales to start the year, an increase of 400 sales compared with the same period in 2012.

The sales pace this year is 16 per cent ahead of 2012 at mid-year and 74 per cent better than in 2011 for the same period.

“New suburban apartment and townhouse projects entering the market are primarily responsible for the strong sales results, with mid-year sales up sharply in the north and south quadrants of the city following the launch of several new projects during the Spring,” said the report. “In the downtown region, sales are generally consistent with last year’s pace, although sales activity has been more focused at projects with superior locations and faster possession timing.”

The report said the strong sales so far this year are expected to push the annual sales volume to about 5,000 units, potentially making 2013 the second strongest sales year in the past decade.

“Developers will begin to see cost pressures from higher land prices, construction cost escalations and a declining land supply in the suburban regions, while consumer activity could be impacted by the recent price growth, higher interest rates and more restrictive lending practices,” said the report.

“While home ownership will remain the goal for most consumers, the higher prices and interest rates may force some consumers to delay their purchase decision while they save for a larger down payment.”

LOOKING NORTH

Demand increases for resale homes
By Josh Skapin 
Calgary Herald October 4, 2013  

Sales of single-family resale homes climbed 20 per cent in September compared to sales a year earlier, with tight market conditions creating higher prices, says the Calgary Real Estate Board.

“The impact of the floods likely boosted sales throughout July and August, and it appears as though some of that additional demand is starting to ease,” says chief economist Ann-Marie Lurie of CREB.

“Nonetheless, sales growth remains strong, in part because net migration has been stronger than anticipated and rental product is in short supply.”

Net migration describes the inflow of people to the city minus the outflow.

During September, 1,354 homes changed hands, up 20 per cent from 1,126 during the same time in 2012, says CREB.

The benchmark price of single-family homes in Calgary was $463,700 in September, a seven per cent upswing from $432,900 during the same month last year. The benchmark price is that of a typical home based on a formula that uses various factors to ensure accurate comparisons.

“While prices show strong year-over-year gains, if the level of new listings continues to improve relative to sales activity, prices should level off for the remainder of the year,” says Lurie.

Homebuyers have seen about the same selection this year compared to a year ago. There were 18,949 new listings between Jan. 1 and the end of September, a slight decline of 0.2 per cent from 18,881 during the same span in 2012.

However, the market saw a turnaround for new listings in September.

Last month, 1,975 single-family resale homes were added to the market, five per cent more than the 1,887 during this time last year.

From Jan. 1 to the end of September, 13,006 single-family homes were sold on Calgary’s resale market, a seven per cent improvement over the 12,186 transactions during the same period last year.

The quadrant with the most single-family house sales in the city during September was the northwest.

The board’s Zone A, which roughly consists of the northwest, finished the month with 467 transactions.

The next busiest quadrant was the board’s Zone C with 357 homes changing hands during September. This zone roughly consists of southwest Calgary.

At the same time, the board’s Zone D had 299 deals, while 231 homes sold in the board’s Zone B. Zone D roughly covers the southeast quadrant and Zone B is mostly the northeast side.

NORTHWEST LEADS REST

The two communities that saw the highest single-family home sales in the city in September were both in northwest Calgary.

Tuscany led the city in sales with 34 deals at an average sale price of $535,688, says the Calgary Real Estate Board. Panorama Hills had the second highest sales with 31 transactions at an average price of $487,477.

For information, visit creb.com

RISE AND SHINE

Low inventory, high demand pushing Calgary house prices upward
Royal LePage forecasts prices to continue to rise

By Mario Toneguzzi 

Calgary Herald July 9, 2013

A combination of low inventory and strong demand has driven prices of all housing types in Calgary higher, according to a report released Tuesday by Royal LePage.

The real estate firm, in its House Price Survey and Market Survey Forecast, said that year-over-year in the second quarter detached bungalows increased by 5.9 per cent to $457,889, condominiums were up six per cent, to $261,933, and standard two-storey homes rose by 6.7 per cent to $453,789.

“Inventory is low across all categories right now, and this is driving prices up,” said Ted Zaharko, broker and owner of Royal LePage Foothills, in a news release. “When a listing comes up, there is a swarm of potential buyers, and multiple offers are common. Condominiums are profiting from the spillover effect — buyers who are having difficulty breaking into the tight bungalow market are moving to the condominium market, to the point where inventory is tightening there as well.”

Zaharko said the recent flooding in Calgary may cause some “irregular activity” in the short-term but it won’t have a long-term impact on sales or prices.

He said prices are expected to continue to rise in Calgary as are overall sales.

“Unit sales would be greater if more inventory were available, but until additional inventory comes onto the market, growth in unit sales will be somewhat tempered,” he said.

Nationally, in the second quarter, standard two-storey homes and detached bungalows both showed a year-over-year average price increase of 2.7 per cent to $419,614 and $386,547, respectively. Average prices for standard condominiums rose 1.2 per cent to $248,750.

Royal LePage is forecasting average house prices in Calgary to rise year-over-year by 6.5 per cent this year to $439,000 while sales will increase by 3.3 per cent to 27,500 transactions.

Across the country, the real estate firm is forecasting a three per cent jump in prices to $374,650 with a decline of 5.0 per cent in sales to 430,500 units.

According to the Calgary Real Estate Board, year-to-date until July 8, there have been 12,763 MLS sales in the city, up 4.71 per cent from the same period last year. The median price has increased by 4.99 per cent to $400,000 while the average price has risen by 6.75 per cent to $458,371.

BLOOM & BOOM

Calgary housing market booming
Calgary Herald April 23, 2012

Just over three weeks into April and it appears Calgary’s housing market has seen a resurgence of activity this spring.

A boom perhaps?

According to the Calgary Real Estate Board, MLS sales in all housing categories are noticeably up compared with last year.

From April 1-22, single-family sales of 1,108 transactions are up 26.05 per cent from the same period a year ago but the average sale price has dipped by 0.43 per cent to $481,423.

The condo apartment category has seen sales grow year-over-year by 14.91 per cent to 262 units while the average price has dropped by 2.83 per cent to $269,046.

And in the condo townhouse sector, sales of 198 are up 15.79 per cent from last year and the average price has risen by 6.46 per cent to $319,140.

NORTHWEST ON TOP

Resale pace soars in Calgary
Northwest leads city in terms of sales
By Josh Skapin
Calgary Herald March 10, 2012

Sales of single-family resale homes climbed 11 per cent in February compared to the same month last year, says the Calgary Real Estate Board.

The city saw 1,284 single-family homes change hands last month, up from 1,169 last year, says the board.

The largest increase came in homes priced $500,000 to $549,000, with sales in this range soaring from 65 in February 2011 to 106 last month.

Zone A - which roughly consists of northwest Calgary - led the city in sales last month, with 465 homes changing hands.

The zone also led the city in resale activity in January, but with only 271 transactions.

Tuscany led Zone A with 40 sales of single-family homes in February at an average price of $504,347.

At 1,128 homes, Zone A also led the way in inventory last month.

Calgary's slowest resale activity last month was in Zone B - which roughly corresponds to northeast Calgary - which finished the month with only 164 sales.

At $293,714, Zone B also finished with the lowest average single-family resale price.

The lowest average resale price in the zone was $195,333 in Dover, which ended the month with three sales.

At $589.106, Zone C - which roughly covers southwest Calgary - had the highest average single-family resale price among the four zones.

Within Zone C, Bel Aire had the highest average resale price at $ 2.1 million for one sale.

Zone D, which roughly consists of southeast Calgary, was third in average resale price at $422,582.

COMPARATIVE DATA

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.

A PLEASANT FORECAST IN CALGARY?

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

MARKET BLOOMS

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.

CELEBRATE GOOD TIMES

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

MOTIVATING MOVES

Making the switch to condo living
Financial security a major motivator behind the move
By Denise Deveau
For Postmedia News March 30, 2011

For Sara Kinnear, an investment firm lawyer in Winnipeg, moving from her house to a condo was the perfect way to simplify her life.

After three years of owning a detached home, she realized that the maintenance chores were more than this busy professional wanted to handle.

"There weren't any big problems, just the normal stuff around the house," she says.

"But having to arrange time to be at home to have people fix things and getting estimates .. It was too much of a drain on my time."

Condo living suits her lifestyle much better, she says.

"I like the fact everything is on one floor, it's on a better bus route and I don't have to have people look at the roof when it needs fixing," says Kinnear.

"Someone else will do that for me now. And I don't have to shovel snow when it's -40 C or mow the lawn when it's 30 C."

Kinnear is not alone in preferring the maintenance-free lifestyle that condominium living has to offer after experiencing the ups and downs of home ownership.

Jack Courtney, assistant vicepresident of advanced financial planning for Investors Group in Winnipeg, says he's seen the trend happening within many families, including his own.

"My in-laws sold their house to move to a condominium, not because it meant a cost savings but because it could give them more freedom to go to the lake and other things."

They made the move despite the fact they had a home with a pool that overlooked a golf course.

"He liked to golf, but didn't want to have to cut the grass or look after the pool anymore to do it," Courtney says.

Urban centres are seeing a growing influx of people moving back to condominiums after going through the life cycle of home ownership, confirms Andrew Bodnar, a sales representative with Re/Max Condos Plus in Toronto.

"Maintenance is a big reason or they simply kept a house to accommodate a family that has moved out. With condominiums, there's a lot of comfort, less stress and enough room and amenities for people to enjoy themselves."

Financial security is also a major motivator, he adds.

"We see people in different financial stages of savings who want to use the equity in their home to increase their cash flow later in life."

Courtney agrees the transition is often motivated by a need to free up capital for retirement.

If this is the intent however, he advises that prospective buyers make sure they understand all the expenses involved when making the move, from closing costs and commissions, to acquisition and maintenance fees.

A major consideration in making the switch from house to condominium is the nature and extent of the capital repair funding for the property you're considering.

"Sometimes capital repairs on a condominium property can be significant if there isn't a sinking fund in place," Courtney says.

"In fact, if you're looking at a property and the condo fees seem out of whack or too low, I would be suspicious and start asking questions."

Otherwise, you may get hit with a big assessment for a major repair to a parkade, for example.

"I knew of one property that was a converted highrise apartment block, where the tenants were stuck with a huge foundation repair issue and there was no fund put aside," he says.

The best defence for prospective owners is to examine the condominium owner's agreement carefully, Courtney advises.

"I would hope that a real estate agent dealing in condo sales would be familiar with the process," he says.

"A lawyer definitely should be. Have them review the terms and explain them so you have a better understanding of what you are getting into. Don't be afraid to ask, where is that $400 a month fee going and how is it used?"

When it comes to fees, Bodnar says it's relatively easy to manage them based on the available amenities.

"Most recognize there's a correlation between fees and amenities. You might have a couple looking to streamline expenses, so if they are concerned about costs, they may look at properties that have a smaller gym or don't have a pool."

He advises restraint for people on tight budgets who need to secure financing.

"A $100-a-month reduction could be the difference between getting that approval or not."

REBOUND REAL ESTATE

Get ready for rebound
Realtors say market in 2010 under-performed
By Marty Hope, Calgary Herald
February 5, 2011

"Under-performed" was the phrase used by both the outgoing and incoming presidents of the Calgary Real Estate Board to describe last year's resale market.

But both current president Sano Stante and his 2010 counterpart, Diane Scott, are calling for a revival in sales activity this year based on stronger job and migration growth.

Single-family housing underwent some interesting trends last year, says CREB:

- Annual sales in Calgary's four quadrants totalled 12,094, down from 14,438 in 2009. "Undoubtedly, housing markets in Alberta and Calgary under-performed in 2010 as sales did not materialize as forecast," Scott said in her final news release last year.

- The board's Zone A, which roughly corresponds to northwest Calgary, was the busiest of the four zones in 2010 at 4,300 sales, down from 5,270 the previous year.

- The two most active communities in the city -- for the second year in a row -- were Tuscany and Coventry Hills in the northwest.

In 2010, Tuscany had 359 sales, with Coventry Hills 278. A year earlier, Coventry Hills had 426 sales, while Tuscany had 422.

- The most affordable community in Calgary last year was Falconridge in the northeast, where the average price for homes was $238,586. A year earlier, West Dover, in the southeast held that honour with an average of $221,125.

- At the other end of the price scale, BelAire had the highest average price at $1.79 million last year -- replacing Roxboro, which topped the list in 2009 at $1.8 million.

- In 2010, there were 13 communities across the city in which the average price was more than $1 million. In 2009, there were nine.

Calgary resale homes
2010 2009

Sales P rice Sales Price

- Zone A (N. W.) 4,300 $468,969 5,270 $449,057

- ZoneB(N. E.) 1,912 $296,231 2,184 $297,428

- Zone C (S. W.) 3,480 $570,649 4,163 $530,305

- ZoneD(S. E.) 2,402 $419,819 2,821 $412,072

AN UPHILL CLIMB!

CALGARY - Activity in Calgary’s residential MLS market picked up in September after a number of months where demand for housing was cooling.

But year-over-year sales remain down.

According to the Calgary Real Estate Board, which released official MLS data today, MLS sales on a year-over-year basis were down in September for the fifth consecutive month.

However, the board also reported that single-family home sales during the month broke a string of five consecutive month-over-month declines and the condo market ended a streak of four straight monthly declines.

In September, there were 958 MLS single-family home sales in Calgary for an average price of $460,278, up from 867 sales and an average price of $445,617 in August. In September 2009, there were 1,257 sales at an average of $459,085.

There were 366 condos sales in September, up from 364 in August, but down from 580 in September 2009. The average sale price in September was $284,028, down from $286,384 the previous month and $290,253 a year ago.

“There are signs that September may mark a gradual, if not slight, uptick for Calgary’s housing market - we are seeing modest improvement since the market’s decline, that really started in April of this year,” said CREB president Diane Scott.

MEASURING THE MARKET!

Sales decline within city
Where have first-timers gone?
By Marty Hope, Calgary Herald
September 25, 2010

Calgary appears to be bucking the national real estate trend -- and not in a good way.

On a seasonally-adjusted basis, sales across Canada in August were up slightly more than four per cent, says the Canadian Real Estate Association.

Sales in Calgary declined 32 per cent in August compared to the same month last year -- and for January to August, down almost 14 per cent compared to the same period in 2009, says the Calgary Real Estate Board.

"Calgary's housing market has been undergoing a measured correction over the past four or five months," says CREB president Diane Scott. "Sales are trending lower as a result of a decrease in first-time home buyers entering the market and a decline in pent-up demand following a strong post-recession recovery."

From January to August, the number of sales were up 2.2 per cent compared to the first eight months of last year.

Transactions rose sharply during the second half of 2009, reaching levels unlikely to be matched in the home stretch of 2010,

"High sales activity late last year and earlier this year borrowed from sales this summer and will continue do so over the coming months," says chief economist Gregory Klump of CREA. "This makes the return to more normal levels of sales activity look like a steep downward trend."

What he termed the "hangover from accelerated home purchases" is likely to continue for rest of 2010, he says -- adding that while economic figures and job growth are expected to be "tepid, they will continue to support housing markets."

Activity was cooking, though, in Ontario and B.C., with monthly gains in these two provinces accounting for most of the improvement in national sales activity in August -- and that's despite the introduction of the harmonized sales tax.

Seasonally adjusted sales activity either increased or remained stable in over half of all local markets across Canada, says CREA.

In Calgary, the listings story is mixed.

They increased for detached single-family homes, but pulled back in the condominium area. Provincially, though, listings were on the decline.

The number of new listings brought to the Canadian market edged up 1.9 per cent in August compared to the previous month.

Despite having edged slightly higher in all provinces except Alberta, new listings remain 16 per cent below the peak reached last April on a national basis.

The average price of homes sold via Canadian MLS systems in August was $324,928, which is on par with the same month last year ($324,843).

Average home prices eased slightly in Alberta and New Brunswick in August, but gains in every other province exceeded the national increase.

Average prices rose or were stable in nearly two-thirds of all local markets on a year-over-year basis, but increases were shrinking in Canada's most active and priciest markets.

Again in Calgary, the direction of prices was dependent on what was being bought.

Detached homes fetched an average of $445,617 last month, down about $8,500 from a year ago, while the condo average went up slightly more than $3,000.

"Rising interest rates and a projected slowdown in job growth mean that the Canadian housing market is expected to continue to cool," says CREA president Georges Pahud.

"This is overlooked in recent commentary that suggests further changes to mortgage regulations may be needed. A further tightening of regulations could negatively impact Canada's softening housing market and consumer confidence."

Photo by: Jek in the Box

LIVING UNDER JUNE

Construction of new homes in Calgary soared in June
By Mario Toneguzzi,
Calgary Herald July 9, 2010

CALGARY - Housing starts in the Calgary census metropolitan area soared in June compared with a year ago.

According to preliminary data released today by Canada Mortgage and Housing Corp., total starts during the month were 685, up by 57.8 per cent from June 2009.

Single-detached starts jumped to 531 from 374 last year, a 42 per cent hike while multiple-family starts rose by nearly 157 per cent from 60 in June 2009 to 154 last month.

To the end of June housing starts have increased in both categories year-to-date. There have been 4,617 total starts in the first half of this year compared wtih 1,981 for the same period a year ago. In the single-detached category, starts have increased from 1,549 last year to 3,335 this year while the multi-family category has seen a rise from 432 last year to 1,282 this year.

"This marks the 12th consecutive month where single-detached starts have increased on a year-over-year basis," said Richard Cho, senior market analyst for Calgary for the CMHC. "Builders in the last several months have taken the opportunity to replenish their inventory levels."

But Cho added that the year-over-year gains have started to moderate.

He said that despite the rise in multi-family production activity so far this year is behind last year's level.

"Elevated apartment inventories have contributed to fewer apartment projects breaking ground, keeping multi-family production below historial averages," said Cho.

In Alberta's seven largest cities, housing starts increased 33 per cent in June from 1,446 units in 2009 to 1,926 last month.

COMING UP ROSES IN FEBRUARY

Housing market shows 'momentum' in February
Real Estate Sales, Prices Firm Up
By Mario Toneguzzi, Calgary Herald
March 2, 2010

The local housing market showed signs of balance, not a bubble, in February, according to the Calgary Real Estate Board.

In releasing its official MLS numbers for the month, the board said sales and average prices increased in both the single-family home and condominium markets compared with year-ago levels.

"We're just pretty steady and we're getting some momentum, but that's fairly typical in a normal year and I don't even compare it to last year because last year wasn't a normal year," said board president Diane Scott.

"Right now, where we sit in February, it's pretty stable. It's a comfortable market and we're almost close to equal buyers and sellers."

Single-family home sales for February were 1,035 units, up 25.5 per cent from February 2009's 825 units. The average sale price hit $458,254, an increase of 10.3 per cent from last year's $415,568.

Also, condo sales were up a whopping 56.3 per cent to 536 units compared with 343 sales in February 2009. The average price also increased by 5.2 per cent, to $282,880 from $268,971.

Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp., said market watchers have to be careful when comparing February numbers with a year ago.

"In many ways it would be like comparing apples to oranges," Cho said.

"Market conditions now are stronger compared to this time last year, when conditions were more uncertain. We are still seeing steady demand for homes, especially for the entry-level product. Low mortgage rates continue to support demand for home ownership.

"The selection of homes for prospective buyers has also improved, with active listings trending up. The resale market has settled into balanced conditions, putting modest pressure on prices."

A year ago, Cho said, people were losing their jobs. They were waiting on the sidelines to see where the economy was going and where house prices were headed.

Now, with things improving and the economy and housing market stabilizing, prospective buyers are more comfortable with making larger purchases such as homes, added Cho.

Scott agreed the economic situation last year had an impact.

"We were in such a slump and there was no consumer confidence," she said. "It looked like we were going downhill for a long period of time.

"This year, the consumer confidence is up, the interest rates are low still and hopefully that will stay for a little while longer and afford-ability is there. A lot of people who were sitting on the fence last year are coming off."

She said the Calgary housing market has shifted from fragile to fervent in just over 12 months. The city is also seeing a moderate rise in the number of competing offers on homes.

For towns just outside Calgary, sales were up 55.8 per cent to 335 units from 215 a year ago but the average sale price dropped by 4.82 per cent to $353,912 from $371,829.

In the country residential market, which includes acreages, sales increased by 84.38 per cent, going from 32 last year to 59 last month, with the average price remaining virtually the same at $748,506.

Scott said many first-time buyers are seeing this as the time to take advantage of record-low interest rates.

"We will see a rise in both our inventory and demand this spring -- and we expect both to stay in a healthy balance. Prices will edge up as the year progresses, but the rise in prices will be moderate," added Scott.

Single-family listings in Calgary added for the month of February totalled 2,154, a 4.72 per cent jump from a year ago.

New listings for condominiums for February were 1,109, up 24.3 per cent from last year.

"The story of the housing market is all about interest rates at the moment," said Scott. "When the rates will rise is the wild card. Canada's economic recovery showed marked improvement in the final quarter of last year. This will put pressure on the Bank of Canada to begin raising rates sooner than planned to curb inflation."


Calgary Home Sales In February

Single-family homes 2009 2010 Change

Sales 825 1,035 25.5%

Average Price $415,568 $458,254 10.3%

Median Price $375,000 $411,000 9.6%

Condominiums 2009 2010 Change

Sales 343 536 56.3%

Average Price $268,971 $282,880 5.2%

Median Price $249,900 $265,900 6.4%

Source: Calgary Real Estate Board

NEWS KIDS BUYING THE BLOCK

'New kids' fuelling recovery
Average resale price set to rise to $470,000
Marty Hope, Calgary Herald
Published: Saturday, January 23, 2010

Pent-up demand for resale housing that bubbled to the surface midway through 2009 will continue to be a factor this year, says the new president of the Calgary Real Estate Board.

In her inaugural address to the city's real estate industry, Diane Scott said sales, prices and listings will continue to increase as the local economy and consumer confidence rebounds from the recession.

It's the "new kids on the block" -- the 25-to 34-year-olds who helped fuel the recovery in the latter half of last year -- that will continue to fuel the 2010 market, she said.

Scott, who is broker/owner of Royal LePage Solutions Inc., said the average price of detached homes within Calgary's city limits will likely move up slightly more than six per cent this year to $470,000.

At the same time, Scott predicted there will be 17,000 resale homes changing hands, an increase of 17 per cent -- while the number of new listings will likely rise to 25,0000, up from nearly 22,500 in 2009.

The average price of condos will also likely climb this year, going to $296,000 from a year-end average of $283,734 in 2009, said Scott.

Sales will likely grow by 10.6 per cent to 7,000, she said, predicting that listings will likely increase to 10,750 this year, up from 10,323 last year.

"Single-family resale prices will again outpace condos in 2010, as equity gains from pre-2006 will enable move-up buyers to afford more," said Scott, a 30-year veteran of Calgary's real estate industry. "Consequently, the price gap between single-family homes and condominiums will continue to widen for the short term."

For young buyers, low mortgage rates and relatively low prices provided the impetus to get into home ownership, said Scott, who opened her real estate business last February.

"Affordability has been the silver lining in last year's housing market, even in the face of slowing wage growth," she said.

For the previous two years, first-timers had been pretty much shunted to the sidelines until the market turnaround in 2009.

From having a maximum buying power of about $250,000, families found that with the mortgage rates slipping to 50-year lows, their buying power went as high as $375,000, said Scott.

"In two years, (the market) has gone from sizzle to fizzle to simmer -- and today, the market has entered a more balanced and stable condition," she said.

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RESALE HOUSING MARKET

2009 2010
Single-detached homes*
-Sales 14,440 17,000
-Listings 22,459 25,000
-Average price $442,327 $470,000
Condominiums*
-Sales 6,328 7,000
-Listings 10,323 10,750
-Average price $283,734 $296,000
Towns
-Sales 3,943 4,500
-Listings 8,502 8,000
-Average price $352,704 $364,000
- Metro