AFFORDABILITY EASING

Calgary housing affordability easing
Sharp rise in household income helping
By Mario Toneguzzi 
Calgary Herald October 29, 2013

CALGARY - A sharp rise in average household income is keeping Calgary house price affordability in check, says a new report released Tuesday by Desjardins Group Economic Studies.

The report’s affordability index showed that it is only slightly under the historical average in Calgary, despite relatively high home prices of $438,793 in the third quarter.

It said the average household income of $110,000 “makes home purchases easier” in Calgary.

But the report said the Canadian housing market is now less affordable than it has been on average for the last 25 years.


“This decline stems from average home prices outpacing household income in the third quarter as well as a small hike in mortgage rates,” said the report.

UP OVER 18%

Calgary helps fuel strong MLS sales in Canada

National transactions up more than 18% Y/Y

BY MARIO TONEGUZZI

CALGARY HERALD OCTOBER 15, 2013

CALGARY — Led by gains in Calgary, Edmonton, Greater Vancouver and Greater Toronto, Canada’s housing market experienced soaring MLS sales in September compared with a year ago.

The Canadian Real Estate Association said Tuesday that national sales of 38,147 during the month were up 18.2 per cent from September 2012.

That is roughly on par with the 10-year average in September. The 18.2 per cent increase compared to year-ago levels reflects weakened activity at that time, said CREA.

In Calgary, sales rose by 20.5 per cent to 2,475 transactions.

“Currently it is still a strong sellers’ market wherein we are seeing properties in prime locations come on the market and within a day being sold unconditionally for above listed price when priced accordingly,” said Grace Yan, a realtor with RE/MAX Real Estate (Central) in Calgary.

“We are still experiencing vast amounts of relocations from all parts of the world as Calgary’s oil and gas economy remains strong. We are expecting the rest of the year to remain a strong, healthy resale market due to the limitation of suburban developments and the long periods of time to obtain building permits for new builds along with limited public transportation in suburban areas.”

In September, sales year-over-year sales increases were 64.3 per cent in Vancouver (2,524 sales), 26.1 per cent in Toronto (7,411), and 24.8 per cent in Edmonton (1,712).

“Year-over-year increases in the sales over the past couple of months highlights how activity softened across much of the country following the introduction of tighter mortgage rules last summer,” said Gregory Klump, CREA’s chief economist.

“While the momentum for sales activity began improving a few months ago, it may be losing steam after having only just climbed back in line with an average of the past 10 years. Even so, one can see large year-on-year changes when comparing activity to a month like September 2012, when sales dropped to the lowest level for that month in more than a decade.”

CREA also said Calgary had the highest year-over-year increase in the MLS Home Price Index at 7.28 per cent. The aggregate for the 11 centres surveyed across Canada was 3.13 per cent. The index looks at benchmark properties in those centres.

Calgary average MLS sale price rose just slightly under the national average in September. It was up 8.2 per cent year-over-year to $435,934. Across Canada, the national average sale price was up 8.8 per cent to $385,906.

CREA said MLS sales in Alberta increased by 20.8 per cent in September to 5,694 while the average sale price was up 7.4 per cent to $381,308.

Diana Petramala, economist with TD Economics, said no two major markets in the country are the same.

“Momentum may prove more lasting in markets with fewer excesses, like Calgary and Edmonton where homes appear fairly valued and sales are being supported by decent labour markets and population growth,” she said.

Robert Kavcic, senior economist with BMO Capital Markets, said sellers in Calgary still have a slight upper hand.

Photos By: Nacoki

A PATCH IN THE VILLAGE

LOOKING FOR SOMETHING TO GIVE THANKS FOR THIS WEEKEND?

CHECK OUT  FALL FOR EAST VILLAGE ON SATURDAY.

REASONS TO COME:
-A Pumpkin Patch
-Four Food Trucks On-site
-Live Music
-Twenty Vendors Selling Fresh Produce to Delicious Eats.

DETAILS INCLUDED ON IMAGE OR FOLLOW THE LINK BELOW:
http://www.evexperience.com/events/sep-6/fall-east-village

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.”

TOO FEW

Lack of inventory fuelling price growth for Calgary housing market

Strong economy and influx of professionals

BY MARIO TONEGUZZI

CALGARY HERALD OCTOBER 10, 2013

CALGARY — A continued lack of inventory is fueling house price growth in Calgary.

The Royal LePage House Price Survey, released Thursday, shows strong year-over-year price increase in all housing types in the city as competition for homes is being driven by a strong economy and the influx of professionals.

The survey said average home prices were particularly buoyant in the third quarter with detached bungalows increasing 7.2 per cent year-over-year to $465,411, standard condominiums increasing 5.6 per cent to $263,087 and standard two-storey homes increasing 3.4 per cent to $446,411.

“A sustained period of low housing inventory coupled with a healthy economy and an influx of corporate sector workers has pushed prices up further,” said Ted Zaharko, broker/owner, Royal LePage Foothills. “For some time now too many homebuyers have been chasing too few properties.”

He said inventory is low in all categories, but particularly in detached bungalows, which are much rarer in Calgary compared to cities like Edmonton.

“Buyers are acting very quickly when homes are put up for sale, which is leading to frequent multiple offer situations on all housing types,” said Zaharko. “The aggressiveness of buyers is making it very difficult for first-time buyers to break into the market.”

He said third quarter activity was the most robust the Calgary market has seen in years, with buyers eagerly making offers on the limited inventory. In addition to normal demand, there was some extra activity coming from flood victims who were looking to move to locations on higher ground.

Nationally, the average price of a home in Canada increased between 1.2 per cent and 4.1 per cent in the third quarter of 2013.

The survey showed a year-over-year average price increase of 3.7 per cent to $418,686 for standard two-storey homes, while detached bungalows rose 4.1 per cent to $381,811. During the same period, the average price for standard condominiums saw a more moderate increase, rising 1.2 per cent to $246,530. Sales volumes surged in a number of regions, as Canadians re-entered the housing market after sitting on the sidelines for more than a year — marking the end of the most significant housing market correction since the 2008-2009 global recession, said Royal LePage.

Early signs in October indicate Calgary’s housing market is continuing its trend of increased sales and prices.

According to the Calgary Real Estate Board, month-to-date up to Wednesday, there have been 624 MLS sales in the city, up 37.14 per cent from the same period last year. The average sale price has increased by 7.82 per cent to $460,509 while the median price is up 6.96 per cent to $415,000.

New listings of 850 have risen by 10.10 per cent but active listings are down by 22.73 per cent to 3,927. Average days on the market to sell have also dropped by 6.52 per cent to 43 days.

“Prices are continuing to climb because of supply and demand. We have significant demand and we have across the board limited supply regardless of the price ranges. There is not a substantial variety to choose from and in some cases, such as in the case of bungalows, there has been a short supply in Calgary and new listings often get multiple offers,” said Rachelle Starnes, a realtor with Royal LePage Foothills in Calgary.

“In support of this statement, we are seeing in the Royal LePage offices more quick sales and multiple offers in the last quarter than previous quarters. The buyers are anxious and know that once a new listing comes onto the market, they need to act quickly. Having said that, there are still good listings sitting on the market that are a puzzle as to why they are not getting the proper activity. We just listed a property in the community of Bel Aire this week that will sell for a minimum of 10 per cent more than before the flooding occurred and may even see multiple offers at the higher price. Prices in the higher ground areas are escalating with the higher demand in the central areas of the City.”

Photo By: tommaync

REST IN CONNAUGHT

City’s Beltline expanding with new development

Michael Franklin, CTV Calgary
Published Thursday, October 10, 2013 12:05PM MDT 

The skyline in Calgary’s Beltline will be getting a bit busier.

Silverbirch Hotels and Resorts have announced their plans to build a 360-room Residence Inn by Marriott on the former site of the Alberta Boot Company, at the corner of 10 Ave. and 5 St. S.W.

The development is expected to be one of the largest Residence Inns in the world.

The hotel will feature:

• full kitchens
• separate living and sleeping areas
• in-hotel business services
• 24/7 self-serve food and beverage pantry
• health and fitness options
• comfortable public areas
• terrace lounge
• roof deck for relaxation and socializing

“Calgary has quickly been moving towards being Canada’s most important business centre,” said Steve Giblin, President and CEO of SilverBirch Hotels & Resorts in a release. “Residence Inn by Marriott brings the best possible long-stay experience for business travellers to Calgary, by connecting them to their home and office and helping guests balance work and relaxation while traveling.”

In addition to a hotel, the site will also feature a 10,000 square foot conference centre which will offer a number of all-inclusive meeting packages.

The company says that the facilities will be distraction-free, ergonomically designed, and will offer high-definition video conferencing.

Construction is expected to begin in 2014 and the hotel is scheduled to open in 2016.

Read more: http://calgary.ctvnews.ca/city-s-beltline-expanding-with-new-development-1.1492358#ixzz2hLW1AmHF

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