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

SMOKIN' HOT

Calgary real estate industry heading for $9-billion plus year

MLS sales and average prices continue to rise

BY MARIO TONEGUZZI

CALGARY HERALD AUGUST 8, 2013

CALGARY — Calgary’s residential real estate market is on pace to record one of its highest ever yearly total dollar volume for MLS sales.

As of Tuesday, the local industry reached just over $6.8 billion in year-to-date transactions. That is more than $800 million ahead of last year’s pace which was just short of $6 billion as of Aug. 6, according to the Calgary Real Estate Board.

In 2012, total dollar volume for the entire year was slightly over $9.1 billion — only the third time in history it eclipsed the $9-billion mark. The other times were in 2006 at just under $9.9 billion and the record year of 2007 at $11.3 billion.

Christina Hagerty, a realtor with Sotheby’s International Realty Canada, said it’s been a busy real estate market in Calgary this year.

“We anticipated this activity in the beginning of the year with vacancy rates as low as one per cent in the inner core. Limited rental supply and increased rental rates, continued low interest rates with a positive influx of people transferring to Calgary, have made it an extremely buoyant real estate market,” said Hagerty.

“Inner-city condo prices in newer buildings are between $500 to $600 per square foot. There are competing offers from buyers ready to make a purchase when something of quality hits the market. This has caused a ripple effect into inner-city homes from both empty nesters downsizing, transferees, and condo sellers moving up. Many of our clients are renters moving into the buying market simply due to rental prices, investors seeing an opportunity or a significant amount of people moving here from across the country.”

She said home builders are picking up lots where they can find them and there have been several situations where lots are bidding for $100,000 to $200,000 above list prices in inner-city neighbourhoods.

“Alberta fundamentals remain sound and confidence in Alberta’s economy remains strong. It’s a testament to Calgary’s spirit and resilience that the post-flood cleanup has continued at its remarkable pace. Calgary has been leading the nation for the past few years and continues to grow,” added Hagerty.

According to CREB, there were 21,326 MLS sales in Calgary in 2012 with an average sale price of $427,912. In 2007, there were 26,709 sales with an average price of $423,145.

As of Wednesday, year-to-date, there have been 15,001 MLS transactions in Calgary, up 7.06 per cent from the same period a year ago and the average sale price has risen by 6.88 per cent to $457,499.

Becky Walters, CREB’s president, said pent-up demand is contributing to the continued rise in residential real estate sales in the city.

“This past year we saw 30 some thousand net migration to the city,” she said. “We’re getting more and more people moving here ... We’ve got fabulous job availability here.”

Another factor is that Calgary consistently rates high as one of the most affordable housing markets in the country due to its high level of personal income.

“People are seeing that there’s not a ton of inventory. So they’re getting out there making sure they get what they want,” added Walters.

Calgary housing market soars to new average sale price record for January

CALGARY — Calgary’s resale housing market had its best January for sales since 2008 as average prices also climbed to their highest level ever for the month.

According to the Calgary Real Estate Board, total MLS sales in the city in January were 1,230, up 15.17 per cent from a year ago while the average sale price rose by 12.34 per cent cent to $439,671.

The previous record high for the average sale price in any January was in 2008 at $413,271.

“In today’s Calgary real estate market there are a number of significant factors that influence our housing sector. The growth within the energy sector is significant along with consumer confidence in the marketplace as well as steady economic performance,” said Kaitlyn Gottlieb, realtor with Century 21 Bamber Realty Ltd. in Calgary. “While these factors continue to increase home sales, should inventory continue to decline, pricing may continue to increase steadily, yet moderately. Although it is early in the year to make market predictions, if 2013 continues to bring good economic activity there is a great possibility that 2013 will exceed our expectations both in the Calgary real estate market and in Calgary’s outlying areas. While 2013 growth may be modest, we can still expect a positive market for this year.

“Alberta continues to fuel growth as a commodity-rich province and is expected to continue to support moderate price growth as we saw in 2012. The increased prices we have seen on single-family homes can partially be attributed to the record number of luxury homes sales we saw last year.”

In the single-family home market in Calgary, sales during January of 879 were up 15.20 per cent from last year and the average sale price rose by 12.74 per cent to $496,579.

The average sale price was the fifth highest ever for any month in the single-family market. The peak was $506,670 set in July 2007.

In the condo apartment category, sales of 204 for January were up 13.97 per cent from a year ago while the average sale price jumped by 13.09 per cent to $280,273. The condo townhouse sector saw sales increase by 16.67 per cent from a year ago to 147 transactions and the average price rise by 7.61 per cent to $320,590.

“Prices have improved in the Calgary market but as always it is important to keep some perspective on this,” said Ann-Marie Lurie, CREB’s chief economist. “While January’s year-over-year increase seems significant, price recovery occurred in the spring months of 2012 under tighter market conditions and home prices leveled off for the remainder of the year.”

CREB also tracks the prices for what it calls typical properties sold. The overall benchmark price in the city rose by 8.35 per cent to $392,000. The single-family home benchmark price jumped by 9.01 per cent to $436,900. It rose by 7.49 per cent in the condo apartment category to $251,300 and it was up by 4.85 per cent in the condo townhouse category to $283,400.

“The employment gains achieved in previous years along with rising income, low mortgage rates and robust net migration levels has sustained demand for housing,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “Many buyers have benefited from Calgary’s growing economy, giving them opportunities to move into homeownership.


“Some of the resale activity will have likely come from renters as well. As the rental market has tightened with average rents moving up, some renters may have decided to purchase a starter home and take on a mortgage instead of paying rent.”

mtoneguzzi@calgaryherald.com

LUCKY SEVEN IN NOVEMBER

Calgary resale housing market sales strong in November
Sales up nearly 7% over last year
By Mario Toneguzzi
Calgary Herald November 30, 2012

CALGARY — Calgary’s resale housing market continues to defy a national cooling trend.

With one day left in November, data from the Calgary Real Estate Board indicates total MLS sales and average prices during the month in the city are elevated from last year.

From November 1-29, there have been 1,390 total MLS sales, up 6.92 per cent compared with the same period a year ago and the average sale price has risen by 4.90 per cent to $433,590.

Every housing category in the city has seen strength in numbers this month.

In single-family homes, there have been 960 sales, up 3.56 per cent from last year, with the average sale price moving up by 3.93 per cent to $488,155.

The condo apartment category has experienced 245 transactions, an increase of 6.52 per cent, while the average price has risen by 22.14 per cent to $309,235.

In the condo townhouse sector, the average sale price has jumped by 3.15 per cent to $315,126 and sales are up 29.37 per cent to 185 transactions.

On Friday, the Conference Board of Canada released its regular monthly resale housing market report of major centres across Canada and it said the average year-over-year price growth for the latest three months in Calgary is between three to 4.9 per cent.

In October, the seasonally-adjusted annual rate of sales in the Calgary census metropolitan area was 27,312, up 22 per cent year-over-year while new listings of 39,864 were down 8.4 per cent.

The average residential sale price of $423,468 was up 5.5 per cent from last year.

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.

BEST IN SHOW

Calgary year-over-year housing sales growth best in Canada
Near 15% hike in MLS transactions
By Mario Toneguzzi
Calgary Herald October 15, 2012

CALGARY — While most of Canada’s major centres recorded year-over-year MLS sales declines in September, Calgary went against the tide with the highest annual growth rate in the country.

According to the Canadian Real Estate Association, MLS sales in Calgary rose by 14.8 per cent from September 2011 to 2,054 transactions.

In contrast, sales across the country fell by 15.1 per cent to 32,192.

But the average MLS sale price in Calgary dipped by 0.9 per cent in September to $402,756.

Nationally, the average price rose by 1.1 per cent to $355,777.

CREA said Monday that more than half of all local markets in the country posted sales declines of at least 10 per cent on an annual basis.

“New mortgage rules continue to keep a lid on national sales activity,” said Wayne Moen, CREA’s president.

The organization’s chief economist, Gregory Klump, said national activity is likely to remain down from year-ago levels over the fourth quarter of this year.

“In the shadow of the latest mortgage rule changes, activity has ratcheted down from higher levels seen during the fourth quarter last year,” he said. “While some first-time homebuyers may no longer qualify for mortgage financing under the new rules, it is likely that many others are stepping back and reassessing how much house they can realistically afford, which is one of the things new mortgage rules were designed to do.”

In Alberta, MLS sales rose by 7.7 per cent from last year to 4,714 while the average price increased slightly by 0.2 per cent to $355,127.

“While the 15 per cent year-over-year drop in sales suggests Canadian housing is making like Felix Baumgartner, falling past the speed of sound, the details are not nearly as weak, and still suggest that the housing market is simply gliding to a lower altitude,” said Douglas Porter, deputy chief economist with BMO Capital Markets.

On Monday, CREA also released its MLS Home Price Index. The national index rose 3.9 per cent year-over-year in September. This was the fifth time in as many months that the annual gain shrank and marks the slowest rate of increase since May 2011.

Regina led the country with a 14.2 per cent hike followed by Calgary at 6.5 per cent.

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

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.

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.

FUELING DEMAND

Burgeoning Calgary population to fuel demand in housing market
New home construction and MLS sales on upswing
By Mario Toneguzzi
Calgary Herald February 8, 2012

CALGARY — A burgeoning population will spark another real estate cycle in Calgary with increased demand fuelling more MLS sales and more new home construction.

But industry experts don’t expect the next cycle to mirror the boom of a couple of years ago which experienced a frenzy of activity and fast-rising house prices due to a lack of supply.

Instead, a stable, steady growth is expected in Calgary’s real estate market.

On Wednesday, Statistics Canada reported the Calgary census metropolitan area had the highest rate of population growth in the country at 12.6 per cent between 2006 and 2011 and is now more than 1.2 million for the region.

Tim Logel, president and partner of home builder Cardel Lifestyles in Calgary, said the population data supports what the industry believes is happening in the market.

“What’s positive about it is that as more people move to Calgary then more of the inventory or the supply that we’ve been working on reducing gets absorbed,” said Logel. “And it gets absorbed quicker and gets us closer to being in a higher demand environment where we’re being asked to produce more new housing products of all types for the market ... Over the next year with this in-migration, the extra supply will be absorbed.”

Logel said a new real estate cycle has been started in the city. The last one finished in the spring of 2007 in the Calgary market.

Ann-Marie Lurie, chief economist for the Calgary Real Estate Board, said the growing population will help support increased demand for housing in the resale market as well.

“In the resale market, especially moving forward, we think this will also help really take up some of that inventory that is in the market because we had some out-migration in the past few years. 2010 in particular, in-migration levels were extremely slow and so that impacted our housing market as well,” said Lurie.

CREB is forecasting single-family MLS sales activity to increase by 12.2 per cent this year from 2011 levels and condo transactions to jump by 5.9 per cent. Its forecast is also for average sale prices of single-family homes to rise by 2.1 per cent and by 1.7 per cent for condos.

“It’s much more of a stable growth than it was during the last boom. I just don’t see us moving there,” said Lurie. “We’re not moving into that scenario. It’s a much more stable growth and we have a good supply of inventory right now in the resale market and frankly on the new home market they do have some room to improve in some of their construction.

“They’ve got some room to grow and build more to help meet with those household formation numbers.”

Already in January some real estate data, released Wednesday, is indicating support for increased activity in the market as housing starts and residential building permits showed impressive increases compared with a year ago.

According to Canada Mortgage and Housing Corp., housing starts in the Calgary census metropolitan area totalled 786 units in January, up 52 per cent from 518 units a year ago.

In the region, 336 single-detached units broke ground in January, up 14.7 per cent from the 293 units started in January 2011.

“This represents the sixth consecutive month where starts have increased on a year-over-year basis,” said Richard Cho, senior market analyst in Calgary for the CMHC.

Multi-family starts, which include semi-detached units, rows and apartments, increased to 450 units in January, up from 225 units a year earlier.

“As was the case in the last several months, apartment construction continues to be elevated, averaging more than 340 starts per month since August 2011,” said Cho.

Also, the estimated construction value of building permit applications for the residential sector in Calgary rose by 42 per cent in January compared with a year ago.

In releasing its latest data on Wednesday, the City said residential values increased to $153 million compared with $108 million in January 2011. This represents 651 new residential units, a 73 per cent increase compared with the January 2011 total of 376.

“The overall gain in residential value and number of new residential units can be attributed to increases in the apartment and townhouse sectors,” said Kevin Griffiths, chief building official with the city’s department of development and building approvals.

“For the month of January we accepted six apartment applications for 193 new units compared to zero last year, and 20 townhouse applications for 122 new units, compared to only seven townhouse applications totalling 44 units for the same period last year.”

A TOAST WITH 7UP

Calgary MLS sales in 2011 beat Canadian average
Up 7.0% from the previous year
By Mario Toneguzzi
Calgary Herald January 17, 2012

Calgary MLS sales in 2011 bested the Canadian average for year-over-year growth, according to the Canadian Real Estate Association.

In releasing its year-end data on Monday, the association said sales of 22,466 units last year were up 7.0 per cent from the previous year while in Canada sales grew by 2.2 per cent to 456,749 transactions.

Sales across Alberta jumped by 6.9 per cent to 53,146 units.

However, Calgary and Alberta were behind the national average when it came to the annual price hike.

Calgary and Alberta registered 1.0 per cent year-over-year gains in the average MLS sale price to $402,851 and $355,808 respectively.

The national average was a 7.2 per cent hike to $363,346.

"The momentum in sales activity provides clear evidence that low interest rates continue to draw homebuyers to the housing market," Gary Morse, CREA's president, said in a statement. "While buyers have become increasingly cautious, the hand-off for sales activity going into the New Year suggests that Canada's housing market will continue to benefit from low interest rates in 2012, and continue making a significant contribution to Canadian economic activity."

Momentum for national sales activity and average price remains positive but is slowing, which suggests that the continuation of low interest rates is not causing the Canadian housing market to overheat, said Gregory Klump, CREA's chief economist.

"High-end home sales seem unlikely to spike again in the first quarter like they did at the beginning of 2011, so national average price momentum may wane further over the next few months," he said. "With interest rates widely expected to remain low throughout 2012, home ownership will remain affordable, and continue to support home sales activity."

Douglas Porter, deputy chief economist with BMO Capital Markets, said the Canadian housing market showed distinct signs of moderation in late 2011, with even some of the hottest of the hot cities simmering down.

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

THE SHORTEST MONTH SHOWS GROWTH

Calgary MLS sales rise in February
Prices up 3% from last year
By Mario Toneguzzi,
Calgary Herald March 15, 2011

CALGARY - Overall residential MLS sales and average prices rose in Calgary in February, according to the Canadian Real Estate Association.

In data released Tuesday, CREA said Calgary sales, which included all residential properties, were 1,917 for the month, up by 0.2 per cent from a year ago.

The average MLS sale price was $400,879, an increase of three per cent from February 2010.

Nationally, CREA said sales dropped by 5.9 per cent to 34,093 transactions but the average sale price rose 8.8 per cent year-over-year to $365,192.

"The average price has been skewed higher nationally and in British Columbia recently by a record number of multi-million dollar sales in a couple of areas in Greater Vancouver," said Gregory Klump, CREA's Chief Economist.

"When you take Vancouver out of the equation, the year-over-year increase in the national average price drops to 3.4 per cent. While that's still stronger than in the past six months or so, national average price gains may recede after tighter mortgage regulations take effect in March."