PREDICTING TRENDS

Don't forget to consider a new condo's palette
BY MARILYN WILSON
POSTMEDIA NEWSSEPTEMBER 7, 2013

There are many factors to consider when choosing a new condo. Competing for attention are details concerning location, site orientation, views, size, potential for resale and, often most important, cost. There is, however, another set of factors that buyers may not fully consider. These are the interior design features that come with the condo. Specifically, I want to discuss condo palettes - the hues of walls, fixtures, cabinetry and window treatments.

Let's assume you are not one of those lucky individuals who is starting with a bare-bones unit for which you will choose all spatial arrangements, appliances and finishes. In reality, most new buyers cannot boast of extensive experience in condo design and an absence of budget restrictions. Rather, they rely on pre-designed packages that include specific colour palettes and decor choices.

One way developers attract buyers is through interior design. They offer a variety of samples of flooring, cabinetry and counter-tops. Builders are always thinking forward in the rapid-paced environment of condo development, so predicting potential colour and texture trends when a condo is ready to be sold can help differentiate a builder's offerings from those of the competition.

Not only that, but as condo showrooms come out months - sometimes years - before construction, colour trends are often chosen in advance. For instance, 2014's must-have features and colours have already been established.

Builders usually enlist the expertise of the best interior designers in the country to develop their interior design palettes. Since many of these designers' fees are beyond what most individuals are willing to pay, a buyer can benefit indirectly from a designer's skills by purchasing a condo whose palette is a result of careful consideration.

In general, builders try to supply prospective purchasers with the hottest and most desirable designs, thereby outdoing their competition.

Model suites will give you your first taste of a condo's palette offerings. On show are a spectrum of colours, textures and design features that can be selected at no extra cost. The more you relate to the basic palettes offered, the more you get your money's worth.

If you have trouble picturing yourself living among this decor, it may be time to consider another development with a different designer. This will prevent you from struggling to accommodate someone else's taste. To complicate matters, the builder will offer a wide selection of extra-cost upgrades - flooring, appliances, built-ins, counter-tops and backsplashes - the list goes on and on. If you don't see an upgrade you want, just ask, as most requests can be accommodated.

If you have a clear sense of what works for you, the selection process can be relatively straightforward. Remember that a reputed designer has been working in the background on your behalf, and now the builder will supply an experienced consultant to help with the decision-making.

Despite this, you may also want to enlist the services of your own designer to help organize the palette and options to create your own unique space. If you go this route, make sure to pick a designer with similar tastes to your own. This is best done by viewing examples of their work, something most designers will be happy to arrange.

You may be wondering what the current trends are.

There is movement away from the beige-on-beige theme to more sophisticated taupes, greys, pewters, creams, almonds and cappuccinos. These rich tones add variety and interest to spaces while maintaining the virtue of not being statements in and of themselves.

Textures are evolving rapidly with many designers forgoing classic granite and tile themes in favour of composites and polished concrete set off by smooth or sandblasted glass or stainless-steel backsplashes.

It's important not to forget that seasonal views may have a strong influence on your colour palette. For instance, you may want to opt out of an all-white palette, as the decor will suffer when the city is blanketed in snow. Whatever you choose, try not to go too bold with your palette, as you may get sick of it or suffer during resale.

Otherwise, follow the instincts of your taste, and happy condo hunting.

Marilyn Wilson has been selling real estate for more than 24 years and owns Marilyn Wilson Dream Properties Inc.

MOMENTUM IN 13

Strong momentum forecast for Calgary housing market into 2013
RE/MAX report says Calgary sales to continue strong
By Mario Toneguzzi
Calgary Herald November 14, 2012

CALGARY — Calgary’s housing market is forecast to remain strong in 2013 following increased sales activity this year, according to real estate firm RE/MAX.

In its Housing Market Outlook 2013, released Wednesday, the company said MLS sales in Calgary are expected to finish this year at 25,500 transactions, up 13.5 per cent from the previous year and the forecast is for sales to grow by another 10 per cent in 2013 to 28,100.

Meanwhile, the average MLS sales price this year is estimated to increase by 2.5 per cent to $413,000 and rise by another two per cent in 2013 to $423,000.

“Calgary is expected to head into 2013 with a level of momentum not seen in years. Solid economic performance and strong consumer confidence are forecast to propel the residential housing market forward,” said RE/MAX.

It said Canadian real estate markets demonstrated remarkable resilience in 2012 — with home sales up or on par in 65 per cent of major centres — despite considerable headwinds in terms of tighter financing and economic uncertainty abroad. The trend is expected to continue, with homebuying activity propped-up by low interest rates and an improved economic picture in 2013, according to the report.

Nationally, an estimated 454,000 homes will change hands in 2012, falling one per cent short of the 2011 level of 456,749. Canadian home sales are expected to almost mirror the 2012 performance next year, holding steady at 454,000 units. The average price of a Canadian home is expected to remain stable at $364,000 in 2012 — on par with the figure reported in 2011. Values are expected to appreciate nominally in 2013, rising to $366,500, one per cent above year-end 2012 levels.

“Looking forward, there are a number of factors on the horizon that will serve to bolster residential activity in 2013,” said Elton Ash, regional executive vice-president for RE/MAX of Western Canada. “Canada’s economic performance is expected to show signs of improvement, particularly in the latter half of the year, which should bode well for housing markets across the country. Historically low interest rates will also continue to drive healthy homebuying activity.”

The RE/MAX report said Calgary’s residential real estate market appears poised for growth.

This year’s level of sales activity will be the highest since 2007 when 31,897 sales were recorded.

“Recovery is underway in the city, with some areas reporting greater strength than others,” said the report. “Calgary’s inner core has been particularly robust, in large part due to the proximity to the downtown. Activity surged this spring in neighbourhoods such as Killarney, Hillhurst, Marda Loop, Mount Royal, and the Foothills, pushing up values to heights not seen in recent years.

“Peripheral areas also experienced stronger demand, but price increases were less pronounced. By mid-year, however, purchasers had settled into a more normal buying pattern. Balanced market conditions emerged, with first-time buyers working in tandem with moveup purchasers.”

The report said single-family homes were most sought after, especially under the $450,000 price point, where 67.5 per cent of overall residential sales occurred.

Condos represented about 16 per cent of total residential sales in the city.

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.