Signs, Signs, Everywhere a Sign

Real estate market bears signs city is emerging from recession
By Mario Toneguzzi
Calgary Herald May 26, 2011

During his career in the homebuilding industry, Tim Logel has seen three recessions in close to 30 years.

And Wednesday he said signs that Calgary is coming out of the recession are present today like they were in past recessions.

"Those signs are very consistent and you can put your finger on them. No. 1, there are buyers out there," said Logel, president and partner of Cardel Lifestyles, which held a grand opening of four new condo models and launch of Panorama West in Genstar's Panorama Hills.

Logel said interest in the fourbuilding, 288-unit condo project has been strong.

Cardel Lifestyles is in the process of working on five multi-family developments in the city comprising between 1,200 to 1,400 units, a mixture of townhouses and condos.

The projects include Panorama West in Panorama Hills, Lighthouse Landing in Country Hills, Cranston Place, Prestwick Place in McKenzie Towne and Riverside Townhomes in Chaparral Valley.

"Some units within those projects are ready for immediate occupancy. We carry standing ready-to-moveinto inventory in every project," said Logel.

"Homebuilding success is all about listening to the customers and if you listen they'll tell you what they want. No. 1 they want a location. . . . Is there an opportunity? You bet there's an opportunity because customers flock to quality. They focus in on the top locations available within Calgary and they will take the time to find those locations. They're not in a hurry. They've become very educated and wise about their buying decisions."

In a recession there is always way more fear in the buyer's buying decision than there is when the market is booming, said Logel.

The interest in the new multifamily market in Calgary is evident by the traffic through show homes. Logel said at Panorama West in three weeks about 600 groups visited the models "which is amazing."

"Normal traffic that we're happy with is 100 groups a month," he said, adding that price, floor plan and community amenities are also important for potential buyers.

Lai Sing Louie, a regional economist with Canada Mortgage and Housing Corp. in Calgary, said year-to-date until the end of April there have been 921 multi-family starts in the Calgary census metropolitan area, up 2.3 per cent from the 900 for the same period a year ago.

According to a recent Altus Group Housing Report, condominium apartment sales in Calgary from January to March this year were 776, compared with 333 for the same period in 2010.

The economic consulting firm said Calgary has seen "steady" new condominium apartment sales in the suburban markets, "which has eroded the available supply to the point of spurring increased starts activity for 2011."