Realty Report - Friday December 9th - Calgary Sees Increase in Home Sales, Fairly Flat Prices

Calgary is seeing a welcome increase in home sales this year, so far a 16 percent rise over 2010. Yet the actual home prices are remaining basically flat. That combination is making this Alberta city one of the most attractive real estate markets in the country and signs are that is going to be the case for foreseeable future.

The Calgary Real Estate Board, or CREB, put out their report on November stats, showing that the average price for a residential home sale was 0.4 percent less than in the same month in 2010, coming in at $402,729. The average median price was down 1.4 percent, coming in at $355,000 for this past November.

Sales this November totaled 1,731. That is 16 percent higher than the 1,495 seen in November of 2010. Looking at the first 11 months of each year, sales in 2011 are 7.5 percent higher than in 2010. CREB president Sano Stante, noted that the fairly stable pricing is encouraging sales.

But Stante is predicting that the booming Alberta economy is going to remain strong, which in time means that those house prices are going to rise, simply because of increased demand. Jobs are plentiful, salaries are going up and more people are moving in to take advantage of Calgary’s boom time.

Realty Report - Tuesday November 29th - Resale Homes See Slight Price Drop, But More Sales

The average price of a resale home in Calgary went down a bit in October, noted a report put out by the Conference Board of Canada. The average price in October came to $402,561, slightly down from the $408,466 seen in September. Prices are still higher than those seen in October of last year, which averaged $396,041.

That same report also found that the number of sales in that market did increase, going from 22,344 in September to 22,572 in October. That is also an increase over the 19,524 sales seen in October of 2010.

The ratio of sales to new listings for October came to 0.512, compared to the 0.417 seen in September and the 0.455 seen in October of 2010. The prediction, according to the board, is for Calgary to see an average annual price growth of between roughly five and seven percent.

MLS sales within the greater Calgary area are expected to increase by some 2.3 percent by the end of 2012. New listings are expected to decrease by some 1.1 percent. Translated, those numbers are respectively 22,700 sales and 43,700 listings. The MLS average sales price is expected to be $411,000 by the end of 2012, an increase of 2.2 percent.

Realty Report - Tuesday November 15th - Investors Making Deals in Calgary’s Non-Residential Property Category

The third quarter of 2011 was very profitable for Calgary’s commercial real estate. RealNet Canada Inc reported 90 transactions that went above the million dollar mark, amounting to over a billion in sales for that quarter. Compare that to the second quarter, which saw a total of $628 million in sales from 62 transactions. Translated, that is a 45 percent increase in the number of sales and a 62 percent increase in monetary investment.

For the last three consecutive quarters, there has been an increase in both sales and investment amounts. This last quarter is up there in the record books, seeing the most deals and highest volume since the pre-recession second quarter back in 2008. Paul Richter, a research manger with RealNet, notes all this means a well balanced growth pattern through all types of business real estate classes.

In the office transaction category, the third quarter saw 19 transactions compared to 10 in the second, and a monetary difference of $525.2 million compared to $388 million. On the industrial front, 21 deals totaling $160.9 million were seen in the third quarter compared to 22 deals in the second, bringing in $114.9 million. Industrial land deals totaled 16 in the third quarter, bringing in $55.9 million. Second quarter industrial numbers showed eight deals amounting to $23.7 million.

Realty Report - Friday November 4th - Calgary Expected to be Canada’s Hottest Growth Center

Residents, businesses and real estate firms are keeping an eye on how things are going for the Keystone XL pipeline. The line would deliver crude oil from Alberta’s oil sand down through the United States to the refineries on the Texas Gulf Coast. Owned by TransCanada Corporation, the $7 billion project is still being negotiated with our southern neighbours.

Why the interest? Because if that pipeline goes through, then there will be more that the energy companies prospering. Developers will be scrambling to get in on what is expected to be a very hot real estate market. Alberta will see an influx of people, both those looking for work and entrepreneurs creating their own.

A report recently published, the Emerging Trends in Real Estate for 2012 by the Urban Land Institute/Pricewaterhouse Coopers, listed the Canadian markets that would bear watching over the next year. The elements in the report took into consideration prospective development in both the industrial and residential real estate sectors. Cities in Canada were rated on a scale of one, which is terrible, to nine, considered excellent.

Toronto took top honors for investment with a 6.70, seconded by Vancouver that came in a close 6.61, then Calgary at 6.33 and Edmonton pulling a 6.24. The cities pulled the same order rankings in terms of development. As far as Calgary goes, the best way to predict how that city will fare is just to keep an eye on the energy prices, and follow the progress of the Keystone XL pipeline talks.

Realty Report - Wednesday October 24th - Secondary Suite Grant Program Offered in Calgary

Not all neighborhoods in Calgary are zoned for secondary suites in single-family housing, but those that do are about to get a break. The city has come up with the Enterprise Housing Program, Secondary Suites Grant Program. It offers landlords up to a $25,000 grant towards installing a secondary suite. The program is set to run through May of 2012.

Secondary suites are also known as granny suites, mother-in-law suites or basement suites. They have their own bathrooms and usually kitchens. Sometimes they share a kitchen on the same property. These suites are limited in size to 70 square meters, according to information on Calgary’s city information website.

This past September, Naheed Nenshi, the Mayor, tried to get a blanket bylaw passed that would allow secondary suites throughout the city, but it failed. Secondary suites provide additional income for the homeowner and often do really serve as mother-in-law suites. It is not uncommon for family members to rent out the additional space.

The suites are a plus for tenants because they can live in a quiet residential neighborhood, have access to a backyard, laundry room and have easy access to parklands and schools. It is usually a more relaxed lifestyle than living in a large condo or apartment complex.

Realty Report - Monday September 19th - Housing MLS Sales in Calgary Saw 22 Percent Gain over Last August

This past August saw a 22.1 percent rise in MLS sales when compared to the same month in 2010. That is the largest increase seen within Canada. There were 1,907 recorded MLS sales in the residential market, with an average sale price of $394,251, which is also a 2.2 percent increase from last August. Calgary saw 3,819 new listings, 11.7 percent higher than August of 2010. Comparing sales to new listings, the percentage went up to 49.9 percent, a 4.2 percent increase.

A report issued on Thursday by the Canadian Real Estate Association also noted that across Canada, sales this August were an average of 15.8 percent higher than last year. Sales numbers for August of 2011 amounted to 39,542 homes changing hands with an average of $349,916 as the average home price. The same month saw 73,126 listings, 13.4 percent more than August of 2010. Sales to new listings percentage went to 54.1 percent, a 1.1 percent increase.

Gary Morse, who is president of CREA, advised that the real estate market was holding its own in the face of the other financial markets suffering through a rough patch. The fact that people are continuing to buy homes in Canada means that the confidence in the country’s economy is holding steady. Morse also noted that this sales trend will most likely continue as long as the interest rates remain at such low numbers. That may last until the fiscal uncertainty south of the border and in Europe are on the mend.

Realty Report - Monday September 5th - Retailers in Calgary Are Indeed Happy Campers

Retailers in Calgary are looking forward to a couple of very profitable years. By the end of 2012, it is expected that more than $25 billion per year will be spent within the Calgary region. The Retail Sales Outlook Canada report, put out by Kubas Premedia, predicts that by the end of 2011 the annual growth will increase by 5.6 percent, with the area seeing some $23.8 billion in spending. In 2012 that growth is expected to increase 5.9 percent, resulting in a prediction of $25.2 billion being spent.

The reason for all that confidence is Alberta’s ever improving economy. The resurgence of the energy industry and employment in that field, as well as supporting industries, is making Alberta a desirable place to live. Calgary is expected to be more profitable, and in better economic shape this fall than any other metropolitan area within Canada.

Retailers are particularly pleased. Most are expecting sales this year to exceed, or at least meet, those of 2010. The optimism is obvious, and warranted especially when comparing local numbers to the national figures. Across Canada, a 4.2 percent growth rate is expected in 2011, with $456.8 billion dollars being spent. In 2012, that growth is predicted to be 5.1 percent, with $480.3 billion being pumped into the national economy. Calgary’s expectations exceed both of the national ones percentage-wise.

Realty Report - Wednesday August 24th - Calgary Expecting More Housing Starts For Rest of 2011

July had a strong showing as far as single family housing starts in Calgary. The Canada Mortgage and Housing Corporation showed 507 starts, the highest number since July of 2010 which had 602 starts. It is also the second month in the last twelve when the number of starts exceeded 500. Even with that, starts for the first seven months of 2011 are below that of last year by 27 percent. In 2010 there were 4,937 starts. Some of Alberta’s largest population centres did see an increase in housing starts in those first seven months. They include Red Deer, Grande Prairie and Wood Buffalo.

There were so many resale homes listed that there was no need to ramp up construction for much of this past year. But now that sales are improving and the single-family home inventories are being depleted, that construction has started up again and is expected to ramp things up during the second half of this year.

July and August are typically slow months in the real estate world. People are on vacation and not likely to be looking at property. Shane Homes, one of the major developers in the city only sold 26 homes in July. Sales were also down in the multi-family sector. But the re-energized economy and resale property sales have started the construction ball rolling once again.

Realty Report - Tuesday July 26th - Alberta Affordable Housing Awarded $90 Million in Funding

Alberta is getting $90 million in funding to go towards affordable housing, thanks to a grant from both the federal and provincial governments. The announcement was made this past Thursday in Calgary. Cities on the list include, in addition to Calgary, Edmonton, Wetaskawin, Whitecourt, Spruce Grove, Red Deer and Beaumont.

The money goes toward building new homes, creating secondary suites in private houses and renovating rentals. It will benefit some 1,600 families, including seniors and the physically challenged.

Calgary’s share will go towards a new senior complex called Lions Village. It is already under construction at Kensington Road NW and the Crowchild Trail. When finished, the four storey structure will offer 90 affordable apartment style units including some one and two bedrooms intended for seniors with moderate incomes that are able to live independently. Nine studios have been set aside for homeless seniors.

The Bethany Care Society and the Calgary Lions Club will be operating the facility. The funding is possible because of the Affordable Housing Initiative and via Canada’s Economic Action Plan. The latter has set aside $475 million to be used over the next two years for similar affordable housing projects.

Realty Report - Tuesday July 12th - Calgary Should See Stronger Real Estate Sales Second Half of 2011

The House Price and Market Survey put out by Royal LePage this past Thursday, showed that Calgary saw a two percent decrease in prices for detached bungalows when comparing the first part of 2011 with 2010. The average price came in at $411,678. Typical two-storey homes also saw a dip of 1.6 percent, coming in at an average of $415,200 per unit. Condos decreased by 1.1 percent, with an average price of $249,022.

Ted Zaharko, who owns Royal LePage Foothills, noted that sales activity was down a bit during this same period. But the market is acting a bit differently this year. In 2010, home sales started to decline after the month of May. This year June sales were stronger than May, meaning that the city’s spring house shopping season was apparently extended.

Analysts from Royal Le Page believe that sales are expected to decline by about two percent by year end. At the same time, the average price for a home in Calgary is expected to increase by roughly 3.8 percent. Zaharko notes that the second half of the year should see more sales because of the still low interest rates and an increasingly strong economy.

During the first half of 2011, Calgary saw 7,231 single family homes change hands, a 5.64 percent increase over the same period in 2010. The average sales price came in at $472,330, a one percent increase. Condo sales dropped 4.91 percent, with 2,965 properties sold. Average prices decreased 1.15 percent, coming in at $288,869.

Realty Report - Thursday June 23rd - Calgary Launches Energy Campaign to Combat Labour Shortages

Calgary knows they are facing a severe labour shortage not too far down the road. Some feel the shortage is already here. This past Tuesday, Calgary Economic Development launched a campaign nationwide to try and attract businesses and people to the province. They have partnered with over 30 of Calgary’s private sector corporations to launch what is called the “Calgary. Be Part of the Energy” campaign. The idea is not only to highlight Calgary’s energy industry, but that the city has an energy all its own.

Business sectors that will be targeted include logistics, technology and finance. Montreal, Ottawa, Halifax and Toronto will be the four main markets the campaign will be focusing on. Expected to last ten months, the total budget is $1.2 million. Roughly half of that has been raised by partners in the private sector.

Calgary doesn’t want to see a repeat of the 2006-2007 labour crunch, which was disastrous for the city. The thing to do is to increase Calgary’s profile across Canada, as noted by the Calgary Hotel Association’s Joseph Clohessy and John Masters, Innovate Canada’s president. For many Canadians, mention the word Calgary and the first, and sometimes the only thing that comes to mind is the Calgary Stampede. This dynamic city is much more than bucking broncos and chuck wagon races. The trick is to get the word out, and Calgary is working on it.

Realty Report - Friday June 17th - Calgary Comes In at Number Nine on Canada’s Priciest Home List

The city of Calgary has the ninth most expensive housing in Canada. A report from the Coldwell Banker Real Estate Home Listing service, released this past Wednesday, is responsible for the ranking. The report surveys 70 Canadian real estate markets for an extended period, in this case from September of 2010 to March of 2011. They compare the average listing price for homes having four bedrooms and two baths in these markets. Calgary’s average worked out to $534,912.

It is probably not that much of a surprise that Vancouver came in at number one, with an average price of $1.546 million. Kelowna came in second with an average home price of $1.087 million, followed by Burnaby at $797,455. Fourth place went to Fort McMurray with an average price of $652,382, fifth to West Kelowna at $640,055, sixth to Oakville at $624,914, seventh to Victoria with an average of $540,087 per home and then Surrey at $536,109. Two other Alberta cities, Sherwood Park at $534,850 and Leduc with an average of $536,109 per home, placed just below Calgary. Edmonton came in at 17th, with an average home price of $442,121. Lethbridge had the most affordable housing costs in Alberta, averaging $282,082 per home.

Vancouver not only ranked number one in Canada, but also turned out to be the third most expensive place to live in North America. Only two California cities, Newport Beach, with an average of $2.5 million (USD) per home and Pacific Palisades, coming in at $1.6 million (USD), were more expensive. The most affordable real estate market in Canada was Windsor, with an average home price of $144,456.

Realty Report - Friday May 27th - Calgary Real Estate Market Rebounding from Recession

Tim Logal has been through three recessions in his 30 year career. His experience in the home building industry is making him optimistic about Calgary’s future. Logal is already seeing signs that the city is on the road to recovery from this last recession.

First sign is that there are buyers out there wanting to spend money. Logel, who is part owner of Cardel Lifestyles, was at that company’s launch of the Panorama West condo development. He noted that there was considerable interest in the 288 unit project. Four new condo model homes were open for display.

This is only one of the five condo properties the company is working on throughout Calgary. Other developments include the Riverside Townhomes located in Chaparral Valley, Prestwick and Cranston Place in the McKenzie Towne neighborhood and Lighthouse Landing in the Country Hills district. Some condos are ready to go in all of these locations.

The increase in multi-family housing means that showings at the complexes are a lot busier. Normally about 100 groups show up in a month. Nowadays it is common to see almost 600 groups come through. That is reflected in the increased housing starts in the multi-family category. In 2010, for the first four months of the year, there were 900 starts. This year during the same time period there were 921, a 2.3 percent increase. According to another report put out by Atlus Group Housing, sales in the apartment condo market are strong. In Calgary, between January and March of 2011 there were 776 sales. During that same three months last year there were 333.

Realty Report - Wednesday May 11th - Canada’s Economic Status Reflect on Housing Market

Alberta’s home real estate market has been slow for quite few months. With the increase in employment and the general improvement in the economy, that is expected to change within the next few months. Some optimists, like Ted Zaharko from Royal LePage Foothills in Calgary, believe the home sector will become a buyer’s market sometime within the next 9 to 16 months. Zaharko believes the market has already bottomed out and that the last two years have just been one very slow recovery.

Warren Jestin, an economist with Scotiabank is equally optimistic. He believes there will be a moderate increase in home sales by the end of 2011, with prices staying about the same. Jestin does admit this is still far below the record level set in 2006 and 2007, which by all accounts were unsustainable. It will be a gradual recovery.

Interest rates on mortgages are still low, but they will see increases. Long term rates have already started to creep up, while short term rates will most likely increase sometime in the fall. On the other hand, the economy in Canada is markedly improved and Jestin expects that to continue for at least the next few years. The housing market is also starting to become more balance, not so much favouring the buyers. That also helps to keep home prices steady. Jestin also predicts condos and entry level housing to see more action than the more expensive properties.

Realty Report - Tuesday May 3rd - Home Prices in Calgary, Alberta Expected to Firm Up

In 2010, the Royal Bank of Canada, or RBC, named Alberta and Calgary the most affordable housing markets in the nation. The bank went on to say this may not last. But for 2010, thanks to lower mortgage rates and lower home prices, the bank’s affordability index for the province dropped by between one and 2.4 percent and for the city it declined by between 0.9 percent to 3.1 percent, both depending on what type of home was involved.

The index measures how much of a homeowner’s gross income would be needed to cover mortgage payments, utilities and property taxes. In the bungalow category, the index averaged about 30.9 percent. For condos, the average index was 20.3 percent. Two-storey homes came in at 34.4 percent.

But, as the bank hinted, things have indeed changed in the province of Alberta. In the city of Calgary, home resale prices have increased every month since December of 2010. Even so they are still lower than the first quarter of 2010. Single-family homes have increased over $21,000 in value in the first quarter of 2011, and condos went up over $14,000, according to the Calgary Real Estate Board.

Still, other areas in Canada are seeing similar rate changes, so Alberta, and Calgary, may hold on to its number one spot. It is possible that the benchmark prices across the nation have seen similar increases. The economy is strengthening, sales are up and prices appear to be holding firm. Other items, such as the increase in land levies, roughly $8,000 per home, may also have an effect on where the city and province end up on the affordability list.

Realty Report - Wednesday April 20th - Calgary’s Resale Market Showing Healthy Recovery

The resale housing market in Calgary is balanced at the moment, something that doesn’t usually happen this time of the year. Sano Sante, who is the Calgary Real Estate Board’s (CREB) president, notes that the inventory levels have flattened out, even though there are still listings coming in at a healthy pace. Sante is calling the late spring market a sign of recovery. Another plus is that listed homes are not on the market as long.

This March had 1,355 homes in the single family category change hands, down from the March 2010 figure of 1,396 as shown in the Multiple Listing Service (MLS). Comparing the first three months of 2011 to the same period in 2010, the service showed sales of 3,309 and 3,190 homes respectively, giving the current year a 3.73 percent increase.

Sante expects home sales to be slower, but climb at a steady pace for the remainder of the year. The CREB predicts that by the end of the year there will be a 20 percent increase in single family home sales, numbering some 14,500. Sales will be driven by the increase in jobs and the people coming into the city to fill those jobs. The Canada Mortgage and Housing Corporation predicts that by the end of 2011, some 21,500 resale properties, both condos and single-family, will be sold.

Realty Report - Wednesday March 30th - New Home Buyers Paying Taxes on Taxes

If you buy a new home in Canada, you most definitely will be paying lots and lots of taxes. Some first-time buyers find the prospect makes the purchase of a home unaffordable. Municipal governments are a big part of the problem according to the Canadian Home Builder’s Association (CHBA) that just had their national conference in Banff. They tend to practice tax pyramiding, which is a kind way to say they are taxing a tax. This practice can add $100,000 to the cost of buying a home.

At issue are the high numbers of imposed charges that governments add to the purchase price of a home. These include permit fees, costs the builder must pay for development and the requirement that a developer must set aside land for community use or help pay for a new library, park or fire hall. These costs get passed on to the home buyer. In some communities, these municipal charges can up the price tag of a new home by $40,000. Then the GST is added to the entire amount including the $40,000 in municipal fees and you have the federal government taxing a tax already being paid by the consumer.

But wait. Then the homeowner is forced to take out a larger mortgage, resulting in higher monthly payments and more interest being paid, not to mention the need for a larger down payment. This doesn’t help with home affordability. New home builders have been trying to eliminate, or at least reduce some of the fees and charges, but so far no luck. The CHBA believes the current system isn’t fair, is far from transparent and may ultimately send the market into an unbalanced state. Once people figure the system out, fewer will be willing, or able, to play the tax game.

Realty Report - Wednesday March 16th - Federal Officials Requires Oil Sands Firms to Pay for Water Monitoring System

Environment Minister Peter Kent has a new water quality monitoring system planned for the oil sands and the companies operating in the area will be expected to foot the bill. Last December John Baird, the former minster for the department, promised that the government would come up with a plan to monitor the region within 90 days.
 
Governmental involvement became necessary when independent reports noted that the industry was failing to address health and environmental concerns. Self monitoring was proving insufficient and there were serious concerns about pollution created by the oil-sands industry, particularly concerning the water supply. The panel’s report found inaccuracies in reported data and errors in interpreting that data, increasing the public’s concern and eroding trust.

The details about funding and enforcement have not been revealed as of yet, nor how they affect the still to be voted on budget. But Jim Flaherty, the Finance Minister is expected to address the issue in the next few days.

CalgRealty Report - Monday February 21st - Giant Underground Wall and Water Treatment Plant Planned Near Bow River

Residents of Lynnview Ridge might finally be getting some action on reports of high lead content in the soils in their neighbourhood. Imperial Oil and the city of Calgary are considering building an underground wall along with a water treatment plant to keep contaminants from the now closed oil refinery from leaching into the Bow River.

The wall, to be built of clay, will run down the hill from Lynnview Ridge and then run parallel to the river. It will be six metres deep and go down to the bedrock. The wall will also be roughly a metre thick. The water treatment plant will be a series of eight wells that continually suck up water and treat it to remove hydrocarbons. The water then is returned to the ground. This process is expected to continue for at least a couple of decades. Neither structure will be visible once construction is complete.

Plans have yet to be approved but should that happen construction should begin this fall in the Old Refinery Park and Beaverdam Flats Park. Only 11 families remain in Lynnview Ridge and a nine hole golf project has been put on hold because of the contaminants. The city is trying to figure out what is to be done with the land vacated by most of the Lynnview residents. The land surrounding the homes of those 11 families has already been cleared of contaminants.

Realty Report - Monday January 31st - University of Calgary Proposes Carbon Capture Project North of Millarville

The University of Calgary wants to set up a carbon capture and storage, or CSS study near Priddis to learn more about how much carbon dioxide is being stored underground. The project’s science lead, Don Lawton, wants to prove that CCS is safe. The professor will be presenting his idea to Foothills MD next Thursday in High River.

The land is already owned by the university and is already home to the Rothney Observatory, just north of Millarville off Highway 22. Studies are already being carried out on models and using theoretical analysis. This field study would take the investigation to a higher level.

In a way, his proposal is sort of a mid-way study, not quite a full scale CSS project but close enough to get a good idea of what’s going on. The amount of carbon injected into the ground, some 700 and 750 metres deep, would not be anywhere near that of an industrial situation. Chances of stray leakage would be small. Instruments would be set up in the field to detect any CO2 that makes its way to the surface.

The CSS project must still obtain approvals, not only from the MD, but from the university and the provincial regulators. Once approved, the plan is to drill a well later in the year to check the conditions of the site. If all goes as planned, the first injection of CO2 will be sometime in 2012 and continue on a regular basis for five to ten years.

Realty Report - Tuesday January 18th - Calgary Real Estate Expecting a Healthy but Slow Recovery

Calgary’s real estate market is expected to see an improvement in sales compared with those in 2010. But the recovery is expected to be on the slow side. The Calgary Real Estate Board just released its forecast and predictions are that the number of houses listed will stabilize and the market will eventually become more balanced.

Single family home transactions are expected to increase by some 19.9 percent by the end of 2011. Roughly 14,500 sales are expected with the average price on an MLS sale being $480,000, or 4.1 percent higher than in 2010. Condos are expected to see a 15.8 percent rise in sales with some 6,000 units changing hands. Average price is expected to go up by 1.8 percent to $480,000 per condo.

Outside of Calgary, the board is predicting a 13.5 percent increase in sales, translating to about 4,000 units. The average price is expected to increase some 2.6 percent or some $368,500 per sale.

The forecast of some 20 percent in sales growth may seem overly dramatic until you take into consideration that 2010 was not a high sales year. The increase in the mortgage rate and tougher lending laws slowed things down considerably. But 2011 is expected to bring more people moving into Calgary looking for work in the recovering energy industry and related trades. That and the fact that homes are still affordable and not expected to increase in price much before the latter half of the year should help to make that 20 percent prediction a reality.

Realty Report - Tuesday December 21st - Calgary Sees Slight Drop in New Home Prices

Calgary was one of four cities across Canada that saw a dip in new home prices this past October, and it saw the largest decline. The city showed a 0.6 percent decline in prices according to Statistics Canada. Also in the New Housing Price Index report were the numbers for London, Ontario at 0.3 percent, Victoria on Vancouver Island at 0.2 percent and Regina, Saskatchewan at 0.1 percent. Across Canada we saw prices rise by 0.1 percent. If we compare Calgary’s prices this year to 2008, Calgary’s prices showed an increase of 1.1 percent. Nationally, year over year the increase was 2.5 percent.

Sales since the middle of 2010 have been slower than expected and developers have put more of an effort into competing against the resale market for customers. This means starts are down, which eventually will cause inventories to decrease, likely even enough that prices will start inching up again. That is the thinking of Richard Cho, an analyst from Canada Mortgage and Housing in Canada.

The number of MLS listings is up, so that also causes prices to dip because of the lack of competition. Despite all of this, new home prices are still higher than they were in 2009. Saskatoon, showed a 0.8 percent and Thunder Bay and Greater Sudbury, showed a 0.5 percent increase between this past September and October. Regina had the highest increase in the country, recording a 6.0 percent price hike.

Realty Report - Thursday December 9th - Calgary Realtors Looking Forward to Sales in 2011

Today’s home buyer in Calgary is doing their homework and exhibiting a remarkable patience before deciding on the property that is right for them. Chris Lofgren took ten months to study the market, watching the prices level out and then start to decrease. His reward was the purchase of a home in the Tuscany development, doubly sweet because the interest rates are still remarkably low.

RE/MAX, one of Canada’s largest realtors believes this trend will continue, and predicts that this long term study of the market will result in more sales in 2011. The numbers for the 2010 real estate year are expected to top off at 22 percent lower than the 2009 sales figures. The first quarter of the current year was hot, but then there was the dramatic drop off due to the increased interest rates, tighter lending rules, and in Ontario and British Columbia, the implementation of the Harmonized Sales Tax (HRT).

Jeff Neustaedter, owner of Jeff Neustaedter and Associates, advises that the market has been sliding since last April. Roughly six weeks ago, it appears that prices and sales bottomed out. People are noticing and starting to show interest in buying. Other factors that could make 2011 a more productive year include the rising price of oil, always good for Calgary, and fewer home construction starts, meaning less available inventory.

Realty Report - Monday November 29th - Calgary Budget Proposal Released, Along With Proposed Budget Cuts

The plan for balancing Calgary’s city budget was just released by Eric Sawyer, the city’s chief financial officer. Within those pages is a suggested property tax hike of 6.7 percent, needed to keep city service levels, which include everything from snow removal to police protection, at current levels.

Part of the release is a $35 million selection of cuts that Naheed Nenshi, the mayor, has asked council to consider. Nenshi is attempting to get the property tax hike below the 6.7 percent. Also on the agenda is a possible suspension of the $3 park and ride lot fee. The only department that was not included in the cost cutting menu was police services. But the police commissioner is coming up with his own ideas to trim up to $2 million from their department budget. Those cuts will not affect the number of officers serving in Edmonton.

Other city departments will most likely have to do a lot of trimming of operational costs. Fire services, libraries, parks and recreation and transit authorities will all have to sacrifice something to trim off two percent from Calgary’s 2011 budget, currently at $2.6 billion.

Debate on the budget starts on November 29th, and the mayor and some council members are already considering at least some of the proposed budget cuts. Dale Hodges, one of the aldermen wants to see taxes only go up by three or 3.5 percent. This may or may not be possible. The key is to find balance between what taxpayers are able and willing to pay and what services they can afford to be without.

Realty Report - Thursday October 14th - Calgary Showing 25 Percent Increase In Sales of Luxury Homes For 2010

Calgary’s real estate market has a hot spot, the luxury home market. Figuratively speaking, the high end homes are flying off the lots and sales are up 25 percent over the same time period in 2009. There were 242 homes changing hands this year as opposed to 194 in the latter year.

August was especially brisk, with some realtors closing big sales every two or three days, some with several competing offers. Even though the bids are not coming in above list, they are still competitive and that gives hope to the recovering real estate market in Calgary.

The strength of those upper end sales has brought up Calgary’s average home price to $411,293. That is 5.9 percent higher than the same time period in 2009 when the average price was $388,302. It has also made up for the fact that sales for the entire real estate trade in Calgary are lower than they were during the first eight months of 2009.

In 2010, there were 12,511 sales in Calgary, down 12.6 percent from the 14,317 seen in 2009. Condos, being generally more affordable, have only seen a 10 percent drop, compared to single family homes at 14 percent. Realtors are confident that with the improving economy and the higher percentage of buyers versus lookers, sales will also improve for the lower priced real estate listings.

Realty Report - Tuesday October 5th - Garry Beres Has Had Successful Year Selling Calgary Commercial Real Estate

Garry Beres took over as the head of CB Richard Ellis’ Calgary Investment team a year ago and has had a remarkable year. Investors love Calgary, so much so that it is sometimes difficult to find something on the market to sell. In the past three to four months, the firm has made sales totaling roughly $100 million.

Some sales were sizable transactions. One was the Loughheed Building at 6th Ave and First St. S W. The downtown heritage building, which was restored to its former glory, went for $31 million. Built in 1912, the building now houses a number of commercial outfits and enjoys a 99 percent occupancy rate in its 86,478 square feet of space.

The top floor, which was once an apartment, is now an open air meeting space complete with fireplace and hardwood floors. The popular Parkerhouse Grill and Wine Bar, owned by Ron Salverda, and a Good Earth Café are two eateries at street level. They share the floor with Breslauer & Warren Jewelers. The lower level will soon be home to a sophisticated corporate watering hole called Sociale.

Other sales include an office building on Bannister Road S E called Parke at Fish Creek and five industrial buildings in Fisher Park. A shopping mall, Brae Center on 24th St S W was sold to a Vancouver syndicator and an Airways Industrial Park cold storage building, all 99,000 square feet of it, just changed hands.

Realty Report - Tuesday September 21st - New Lowe’s Store First of Many Retail Giants Finding Homes in Calgary

Rejoice Calgarians, you no longer need to take a quick, or not so quick, trip south of the border to stock up on supplies at your friendly Lowe’s Store. The retail giant opened its first store in western Canada just north of the Calgary city limits. It is in Rocky View County just off of Highway 2, or the Queen Elizabeth Highway. It is the company’s first store outside of the province of Ontario and the 17th in the nation.

Two other stores are planned for the region, scheduled to open sometime in 2011. Locations are in the MacKenzie/Shepard district and somewhere in northeast Sunridge. Calgary got the honors because it has proven to be a major consumer market.

This new store is in Crossiron Common brought 160 new jobs to the area. The two other stores will be similar in size and in staffing numbers. Eymbert Vaandering, Lowe’s Canada’s vice-president of operations, believes that one or more stores will follow if the demand is there. The grand opening for the Crossiron Common store is this Thursday and there will a sales event to promote the store.

The Calgary region is seeing a healthy increase in the number of companies seeking retail space. The area offers stable rents, high employment levels and there is a low vacancy rate in the retail market. The ring road, now completed around most of the city is sparking competition for space around the city’s edges. Costco, scheduled to open sometime in October 2011, will be joining Lowe’s at Crosiron Common. They will be the first of many.

Calgary Realty Report - Wednesday September 1st - MD of Foothills Creates New, Tougher Dog Bylaws, Obedience School Anyone?

Dog owners, it’s time to send your puppies to boot camp. The council of the Municipal District of Foothills has revamped its canine bylaws and your four legged friends, and you, will be facing a new list of thou shalt nots. Step out of line and it’s doggie jail, fines or worse.

People in rural areas won’t have as many restrictions as those in hamlets and in larger residential developments such as Silver Tip and Norris Coulee. But even those out in the country will have to control dogs that are considered vicious. The county will have the authority to remove nuisance dogs from private property and even to euthanize them if the case goes before a judge and the animal is considered too much of a danger to others.
The handling of nuisance dogs was a priority in the revamping of the dog bylaws.

Other changes affect all dogs, including those in rural areas. The animals must be kept on the owner’s property and not allowed to wander about. Prior to the new laws, that rule only applied to hamlets. The revamped barking law also applies to all areas. The clean up after your dog bylaw only applies to hamlets and residential development areas.

One concern of Larry Spilak, a council member who did vote for the new bylaws, is that enforcers will end up treating rural and hamlet dog owners the same. That is somewhat prevented by two specific sets of rules, but much of how the animal control officers handle individual situations will be up to their discretion. Officers will not be actively seeking offending animals, but will respond to complaints in all areas of the county. Spilak also hopes that the county will soon see the need for dog parks in the area and build them.

Calgary Realty Report - Monday August 16th - Study Profiles Top Ten Canadian Markets for Real Estate Investing

Some of the best real estate bargains are off the beaten path, and this is evident in the latest compilation of the top ten cities in Canada for real estate investment. This list was assembled by the Real Estate Investment Network, or REIN. Don Campbell, REIN’s president, said that research results were based upon elements including upcoming upgrades to transportation, as well as projections on whether average compensation, population increases and employment growth might be growing at a higher-than-average rate in respective provinces.

Calgary is expected to be a stellar performer, outdoing the average by a huge percentage. As such, it is ranked as the number-one city for investing. The Canada Mortgage and Housing Corporation predicts that, following a two-year decrease, average resale home prices will start a year-by-year growth period beginning in 2010. Campbell commented that Calgary’s popularity among newcomers and relative affordability makes it a strong choice for investors in the long run.

Number two on the list is the Kitchener-Waterloo-Cambridge area in Ontario, or as REIN calls it, the “economic Alberta of Ontario.” The region is envisioned as an engine that is powering the Ontario area, and is expected to perform well above other eastern Canadian regions.

Edmonton is third on the list mainly because of its potential. REIN describes Edmonton as a longtime overachiever with population growth and effective civic leadership. The market is also poised to benefit to grow from development of energy sources and enhancements in the infrastructure.

The fourth-ranked area is Surrey. Currently just behind Vancouver in population in British Columbia, it could surpass Vancouver with its rapid growth. Surrey boasts two border outlets to the U.S., linkage to five important roadways, four major railways and outstanding docks.

Coming in fifth is the Maple Ridge-Pitt Meadows area in B.C. Accessibility to the region’s infrastructure has been vastly improved. Given the significant progress made with Translink and the Gateway Project, some 400 new businesses are expected to locate in the area. There should be a concurrent increase in demand for real estate, both commercial and residential.

Sixth-ranked Hamilton, Ontario is overcoming its onetime hard-edged image, per Campbell. The city is now experiencing population growth and an increase in economic stability. For two consecutive years, Hamilton has exceeded the overall value of its building permits.

St. Albert, Alberta is the number-seven candidate, per the report. Campbell notes that St. Albert will probably benefit more than any other area from the new Ring Road in the Edmonton region. Campbell predicts that the area will attract new residents as well as new commercial activity. St. Albert has enjoyed the ability to charge relative high rental prices. Property values continue to grow.

In eighth place are Barrie and Orillia, Ontario. Campbell said the once-sleepy towns are set to grow, due to expansions of college and university campuses. Enhanced Go Train routes have resulted in the cities’ becoming viable suburbs of the Toronto area.

Although Red Deer, Alberta is not particularly close to either Edmonton or Calgary, it has its own opportunities, resulting in its ranking ninth in the study. Campbell said that the entire central region of Alberta is experiencing increases in population and jobs, and that real estate is consistently outperforming other Canadian regions. Red Deer in particular is well placed to be the beneficiary of continuing demand for fuel, food products as well as fertilizer.

Winnipeg is not usually a notable market for investing, but Campbell commented that it is remarkable for its stability during real estate boom-and-bust periods. With this in mind, it is the tenth market in the study. Campbell said that people considering investing in Winnipeg should buy the best-quality real estate they can afford.

Calgary Realty Report - Friday July 30th - Upgrader Deal For Alberta Closer To Reality

Things may be looking up for Alberta’s oil industry. Preliminary agreements have been reached between the province and North West Upgrading to build an upgrader in the Industrial Heartland. Canadian Natural Resources, Ltd. is part owner of the firm. It is possible that the deal could be finalized by this fall.

The refinery, which would be able to process 150,000 barrels per day would employ an additional 8,000 people while under construction and about 500 to operate which is good news for the economy. The plant would be built in three phases and be as green as possible. The construction would include carbon capture capabilities and a method of storage that would reduce CO2 emissions. This particular plant would be producing diesel, which is good news in a province that often runs short of that type of fuel.

Bitumen is mined in the oilsands. It is a tar like material that normally is shipped out of province for refining. The upgrader will allow the processing of the substance to be done in-house. Once signed, construction on the refinery could begin in 2011 with a targeted completion date of 2013.

Calgary Realty Report - Thursday July 8th - Calgary’s Resale Real Estate Market Predicted To Be Healthy

Despite the fact that the resale housing market in Calgary is leaning towards the buyer at present, and has been for two months straight, the industry is expected to even out quite nicely. It is expected that Calgary will see a five to seven percent growth increase in the resale market in a short term year-over-year comparison. Friday’s Metro Resale Index report put Calgary in the second highest group of cities as far as price growth predictions. The city is in the company of Newfoundland, Halifax, Regina, the Fraser Valley region, Vancouver and Victoria.

Leading cities in the review included Saguenay, Trois Riveres, Sherbrooke, Quebec City, Montreal and Gatineau, all in the province of Quebec. Edmonton, Alberta and Saskatoon, Saskatchewan were also on that list. All of these areas have predictions of at least seven percent.

There were 21,000 sales in Calgary this past May. It is less than the 25,438 from last year but still a decent figure. The really hot year was 2007, when May sales topped 41,000. This May’s average sales price in the residential resale market was $404,890. This is higher than April of this year, which showed an average of $393,775, and from May of 2009 where the average price was $370,441.

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