Monday March 28, 2011 - Canadian Home Prices Rise 8.8 Percent in February

Housing sales slowed this past February in Canada but the experts are not that concerned. The dip was only 1.6 percent compared to January, but 5.9 percent from February of 2010. The Canadian Real Estate Association (CREA) believes this is only the market returning to a more balanced state from the overly hot first quarter of 2010.

George Pahud, the president of CREA, notes that most of Canada’s local markets are balanced but there are exceptions. Another issue is price gains, which are still very unbalanced. In February the average price of a home rose to $365,192, or 8.8 percent over the same period in 2010. Those numbers are being inflated by some multi-million dollar home sales in the greater Vancouver area. If those high ticket sales were removed from the calculations, the national increase drops to 3.4 percent.

Listings are also up by 1.5 percent over January numbers. In January, listings were up 4.3 percent over December of 2010. CREA believes this is normal, since many people delayed putting their homes on the market last year due to the decrease in sales and price points. The listings are an indication of consumer confidence, despite the recent change in mortgage rules. Amortization was reduced from 35 years to a maximum of 30 and the mortgages now require a larger down payment.

Thursday March 17, 2011 - New Record Set for Canadians’ Net Worth

Coming off an all-time high, Canadian household debt fell slightly at the end of last year. Debt, as it is measured against consumers’ disposable income, posted a marginal decrease, indicating that excessive borrowing might be on the wane.

Although industry experts welcomed the drop in household debt, they stated that debt continues to be at levels sufficiently high to stifle the country’s financial growth for several years.

According to research organization Statistics Canada, during the fourth quarter of 2010, household debt shrank from 148.8 percent to 148.7 percent. Disposable income increases of 1.8 percent exceeded gains from debt producers such as home mortgages and other major loans.

The 6.5-percent hike in household-related liabilities represented the slowest rate of growth since the last three months of 2002. Borrowing among consumers started to slow down in all credit categories. The 5.8-percent increase versus year-ago in non-mortgage credit was the most sluggish growth witnessed in some 15 years.

Statistics Canada also reported a 2.2-percent uptick in the market values of the country’s households’ net worth. These values include assets such as investment portfolios, real estate and cash. This increase, measured for the fourth quarter of 2010, resulted in a total market value of $6.2 trillion. One factor that contributed to the gain was the nine-percent increase during the fourth quarter in the Toronto Stock Index.

Consequently, Canadians witnessed a record in their collective net worth during the last three months of 2010. This increase was 4.1 percent over the record set during the pre-recession months of 2008, and almost 15 percent higher than the deepest part of the global recession in early 2009.

Thursday March 10, 2011 - Calgary Homes at Most Affordable Prices Since 2004

The fourth quarter of last year represented the best opportunity to buy a home in Calgary within nearly six years. This statistic was derived from the latest RBC Housing and Affordability report. RBC senior economist Robert Hogue said that the report is to assesses home affordability as the percentage of income before taxes that is needed to pay for mortgages, utilities and property taxes. Three home types are measured, so as to distinguish between modest homes and upscale houses.

Among the three types of housing, the measure for a Calgary bungalow was 34.9 percent, representing a 4.9-percent improvement for this type of house versus the fourth quarter in 2009. A five-percent improvement was seen in the affordability of a two-storey house, registering a measure of 37 percent. In the condominium category, an improvement of 2.7 percent was registered, with a measure of 22.4 percent.

Although sales were relatively weak in the summer and in September, the Calgary market started to heat up toward the end of 2010, resulting in more of a balance between a buyer’s and seller’s market.

Hogue commented that even though the market started to balance, it was not able to do so completely, as home prices trended lower. However, those lower prices helped to make homes more affordable, thereby stimulating demand, he said.

Hogue expressed his belief that mortgage rates will ultimately increase, noting that a number of financial institutions increased their rates for the first time since November of last year. The 0.25-percent adjustment resulted in a rate of 5.44 percent for fixed-rate mortgages on a five-year basis.

Friday February 25, 2011 - East Village in Calgary Getting $300 Million Make-Over

Calgary’s East Village is going to get a $300 million face lift thanks to an Ontario investor. Located near Fort Calgary along the Bow River, the FRAM Building Group along with Slokker Real Estate plans to build 800 one and two-bedroom condo units along with buildings offering retail space.

The Calgary Municipal Land Corporation has already prepared the land for development, taking care of the sidewalks, streets, trees and putting in sidewalk bike stands that will be well used by the community. Millions of dollars have already been spent on infrastructure, putting in new water and sewer lines, streetlights and even park benches. The idea is to turn it into a pleasant, pedestrian friendly neighborhood.

Mayor Naheed Nenshi is pleased that he east end is getting some much needed TLC. Other items in the works are a possible second condo project as well as a major hotel going up in this very scenic part of Calgary.

Friday February 18, 2011 - Calgary Rethinking Secondary Suite Bylaws

The city of Calgary is looking into allowing secondary suites being built in areas that previously were zoned for single family properties. The move comes after Mayor Naheed Nenshi got wind of a case brought before council of a 50 year old woman with a declining physical condition that petitioned to build a basement suite. Her home is on a sizable lot, there was plenty of room and she needed the help in order to keep living in her home.

Susan McGoey won her petition but the procedure took $4000 and 18 months to complete. Not only that, the final step was to literally be grilled by council to convince them of the need and her motivation for the suite. After all was said and done the vote was 13 – 2 in her favour. The Mayor was appalled at the demeaning process, and at how much of council’s, and the petitioner’s time was wasted in the process.

The proposal which is set to go to council on March 7th outlines the advantages of allowing these secondary suites. As in McGoey’s case, the tenant is not only someone that is paying rent, but a helpmate, shovelling snow, carrying groceries and basically helping to keep up the property. McGoey gives her renter a discounted rate in return. This allows her to stay in her family home, keep her pets and remain independent.

Will there be opposition? Of course. John Schmal, a former alderman is one of the loudest voices and plans to pursue legal action to block the measure if it passes. But studies have been done in Edmonton and Vancouver where secondary suites are allowed. They have shown that the suites don’t have a detrimental effect on the communities.

Wednesday February 9, 2011 - Reverse Mortgages One Way to Generate Cash Flow during Senior Years

As people head towards the age of retirement thoughts of how they will spend that retirement, and how they will pay for it, come to mind. The recent downturn in the market and the cost of raising and educating children in the modern world may leave many seniors without enough cash flow to be comfortable during this part of their lives. One option that homeowners may consider is a reverse mortgage.

Rather than taking out a mortgage to pay for a home, Canadian seniors 60 and older take out a reverse mortgage so the home pays them. These loans are called the CHIP Home Income Plan and are administered by HomEquity Bank. Homeowners may borrow as much as 40 percent of the appraised value of their primary residence.

No payments, interest or principal, are due until the home is sold, the homeowners pass away, or if both parties move out of the house. Then the entire amount becomes due. There is no restriction on what the money may be used for, it is not counted as income and is non-taxable. It is one way for seniors to remain in their home even if they are no longer able to work and don’t have enough money coming in.

There are things to consider before taking out one of these loans. They do eat into the equity of your property and your family will see a reduction in their inheritance. The set up cost, including appraisals and legal fees is about $2,500. The interest rates, starting at 4.5 percent, are higher than getting a home-equity line of credit. Other options for seniors doing a bit of belt tightening are to downsize their home or finding someone to buy the property and then lease it back to the sellers.

Wednesday January 26, 2011 - Calgary Sees Downtown Penthouse Condo Sale Set New Record at $4.1 Million

The Eau Claire district in Calgary had a luxury penthouse condo for sale. The key word is had. The property just sold for a record $4.1 million this past weekend, a record for the city. The asking price was $4.497 million. Before this sale, the priciest condo that sold in Calgary was in La Caille Parke Place in 2007, for $3.7 million.

The record-breaker was listed by the Royal LePage Foothills’ agent Heather Waddell. The condo measures 4,400 square feet with panoramic views that extend for miles in each directions and includes a huge outdoor living area suitable for entertaining small or large groups. A large fountain and atrium are incorporated into the design.

This sale starts Waddell’s year off on a very good note. She is optimistic about the rest of 2011. This is a sign that the economy is improving, that there is money in the Calgary area to be spent and that prestigious places such as the Princeton, home of the record sale, will be the benefactors of that positive thinking.

Another record-breaking sale for a single family home was made in 2009. An Elbow Park home, measuring some 13,000 square feet sold for $10.3 million. The home had previously belonged to Mike Vernon, a goalie with the Calgary Flames. That broke the existing record set in 2008 with the sale of a Crescent Heights home for $7.5 million.

Tuesday January 18, 2011 - Sano Stante Optimistic About Calgary Real Estate Market In 2011

The new president of the Calgary Real Estate Board does not see a real estate bubble in Calgary’s future. This is in spite of the challenges faced in 2010, including the lowest single family home sales in a decade and condo sales the lowest since 2001. The sales decreased 16 percent and 18 percent respectively. Sano Stante, taking over from Diane Scott will release his full 2011 real estate forecast this coming Tuesday.

Stante noted that 2010 had a bit of a false start. Buyers started off the year by watching the market and waiting for prices to fall. After a spell of sitting on their dollars, the news of the mortgage rates being increased and lending laws being toughened got those buyers moving. This caused a very active spring sales season.

The second half of the year saw the inevitable slow down. Most people who wanted to buy already had. Instead of the sales being spread out through October, which is more the norm, the summer and fall market cooled. Another issue was the number of people moving out of Calgary at the time. There were more homes on the market, less competition meant lower prices.

Stante predicts that 2011 will show improvement in the market, but he isn’t sure how fast that improvement will come. The economic factors for the Calgary region look positive. Our real estate market is in better shape than that of the United States. These are both positive factors that point to a stable real estate environment.

Thursday December 23, 2010 - Calgary’s Home Sales Slow in 2010, But Average Home Prices See Increases

You can look at Calgary’s residential sales figures for 2010 and just see what appears to be a staggeringly bad year, or you can put the whole thing in perspective by realizing that you are comparing those figures with two of the hottest real estate years in recent memory. As they say, what goes up must come down. As far as 2011, signs indicate that Calgary’s residential market will show a gradual improvement.

2010 was pretty much a correction year. Low prices and astoundingly low interest rates had more people jumping into the real estate market in the latter part of 2009 and very early in 2010. They all wanted to get into a home before the lending rules got tighter and before the Bank of Canada decided to start hiking mortgage lending rates. Think of it as a swimming coach that says “everybody into the pool before I make you do twice the laps”. Most people are going to scramble to hit the water to avoid the punishment laps. Aside from maybe a few stragglers, everyone is already in.

If we look at the numbers, in 2010 there were 12,095 sales of single family homes, averaging $461,144 per MLS sale price. The median prices worked out to $406,000 per unit. Even though sales dropped by 16.2 percent, the average price of a home went up 4.25 percent from that of 2009. The median price also went up by 3.57 percent. If we look at condos, 2010 saw 5,181 units changing hands at an average MLS price of $289,697. The median price for condos came in at $266,500. Condo sales were down 18.1 percent but prices increased by 2.1 percent and 2.5 percent respectively.

Monday December 13, 2010 - Calgary Expects an Average Year for MLS Sales in 2011

The average price of a home is expected to be $402,000 by the end of 2010, a three percent increase over 2009. Even so, there is concern about the real estate market, which is soft at the moment. ReMax put out its Housing Market Outlook in 2011 report and notes that what is fueling the discontent is the uncertainty in the global economy.

ReMax is predicting that by the end of this year there will be about 19,200 home sales for 2010, a 22 percent drop from the blazing hot sales year of 2009. The realtor predicts that sales numbers for 2011 will remain about the same. Interest rates are still low, and particularly in the single home market, sales are expected to remain strong.

Calgary’s oil and gas sector has improved, and that will bring more people immigrating to the province. That will increase the demand for housing in 2011, and down the line the need for more home starts, boosting the economy with more employment opportunities.

Best guess from ATB Financial’s Dan Sumner is that given the global economic situation and the slower sales this past November, 2011 will be a middle of the road year. But 2009 sales may have skewed the stats somewhat. So many people got into the housing market in the latter half of that year because of the record low interest rates and the looming possibility of those rising. So, naturally, when the interest rates did go up in 2010 and the mortgage rules got a little tougher, the buying frenzy slowed.

Friday December 3, 2010 - Acreage and Residential Sales Down in Calgary

The average price in November of this year for acreage in the Calgary region is 18.5 percent less than it was a year ago. The Calgary Real Estate Board showed 52 sales in the MLS system for the month, for an average price of $706,792. November sales numbers were also down from the same month in 2009 by 8.77 percent.

Go outside the city limits and the numbers appear to be even worse. There were 218 sales in November at an average of $339,690 per sale, creating a 25.6 percent drop. Granted, more acreage changes hands during the spring in the summer. The snowy winter months are understandably slower.

Residential sales in Calgary also took a hit. In the Calgary metro area, there were 891 single family home sales in November. That is 18.3 percent lower than October and 1.93 percent lower than November of 2009. Condos fared worse. There were 310 units changing hands at an average of $284,667, a 38.49 percent decrease in sales from October of this year and a 1.93 percent decrease from November of 2009.

Calgary’s real estate market was the first to recover from the recession and it appears to be one of the first to show a definite cooling trend. Economists like Dan Sumner from Calgary’s ATB Financial see this as a sign that 2011 will be a mediocre sales year.

Thursday November 25, 2010 - Home Prices Fall Slightly In September, First Time since April of 2009

This past September was the first month since April of 2009 that housing prices fell in Canada, according to the house price index from Teranet-National Bank. But the dip was not too alarming, coming in at 1.1 percent nationwide. In Nova Scotia the drop was 2.4 percent. Calgary dipped 2.2 percent and Toronto saw a 1.6 percent decrease.

Contributing factors include the more stringent mortgage rules imposed by the government last spring to combat the nation’s growing household debts. The Bank of Canada has also raised its lending rate three times this year, to a total of a one percent increase. The bank made a prediction in October that the growth in 2011 will decline by 0.2 percent, after already adding a 0.6 percent increase in 2010.

Despite the dip in September, Marc Pinsonneault of the National Bank does not foresee a drastic price correction in the housing market. At the same time, appreciation of homes is expected to occur at a slower rate. There is still a significant debt load being held by Canadian households.

Moderation appears to be the word of the day, at least for Jim Flaherty the Finance Minister. He believes that in the housing industry this is a good thing, which is what prompted the changing of mortgage rules and the inching up of the mortgage interest rates.

Friday November 12, 2010 - New Home Prices Across Canada Slightly Higher Than Predicted

Across Canada, buying a new home this past September probably cost you a bit more than you expected. New housing costs rose 0.2 percent from August to September, on top of the 0.1 percent increase from July to August. Most of this is due to higher land development fees. The analysts from Reuters had predicted a 0.1 percent increase overall.

Highest increases were seen in Montreal and Calgary. Builders were moving into new zones in these cities, and the need to install new services and the like increased building costs.

The Reuters report also indicated that the housing sector will not play as big a role in driving Canada’s economic growth as it has in the recent past. Bank of Canada is also expected to keep the interest rates steady since there is no worry of real estate influenced inflation. There is also the fear that the global economy may again falter.

Ten of the 21 cities covered in the survey showed a rise in new home prices. Three showed a decrease and the rest were virtually unchanged. The Canada Mortgage and Housing Corporation noted that October’s housing starts were down by 9.5 percent, the lowest in more than 12 months, and the fifth month in a row that saw a decline.

Monday November 1, 2010 - Calgary Resale Home Sales Are Improving, Prices Stabilize Across the Nation

September of 2010 showed a near 20 percent drop in the number of resale homes being sold than during the same month in 2009. Even so, when you compare that number to the sales figure from the last three years, it is only slightly below the average sales figures, according to the Canadian Real Estate Association.

The hot sales activity during the last part of 2009 and in the early part of this year is slightly skewing the numbers. MLS listings are almost the same as in August of this year, barely creeping up a full percent. The peak in MLS listings was reached last April and was 15 percent higher.

Prices are stabilizing, and that is a good sign. The average price of a resale home across the nation came in at $331,089 in September, on par with the average during the same period last year. September did mark the second month in a row where prices averaged roughly the same in both years. CREA’s president Georges Pahud says this is because the market is balanced.

In Calgary, sales of single family homes were down 24 percent from September of 2009 and condos were down 37 percent. Average price for that single family home was $460,278, while the average condo brought $284,028. The single family home price was virtually unchanged from September of 2009 and the condo prices were down by two percent.

Thursday October 21, 2010 - Calgary’s Balanced Housing Market Seeing Slow but Steady Growth

After September gave those in Calgary’s real estate business a bit of a frown, October’s numbers show signs of new life. Comparing September 2010 with the same month in 2009, MLS sales were down 28.8 percent with only 1,606 properties changing hands. This isn’t as bad as Victoria, British Columbia, down 47.9 percent and the Greater Vancouver area, where sales are 37.9 percent lower for the same time period.

MLS average sale prices in Calgary did increase slightly in spite of the slower sales. The average price of a home, across the board was $401,080, or 1.6 percent higher. The number of new listings rose by 11.4 percent, counting 3,873 homes.

Province-wide, Alberta showed a 24.6 percent decrease in sales from September of 2009 with 3,934 properties sold, yet the average per sale price went up by 0.4 percent to $349, 048. There were 8,940 new listings put on the market, an increase of 6.3 percent. September 2010 sales were higher than in August of this year.

The Canadian real estate market is considered balanced at the moment. This is the norm really and it only seem like a slow down because of the hotter than normal sales in the spring. Though no longer at record lows and with tougher rules, the mortgage lending rates have eased a bit in the last quarter, helping to put a positive slant on the market.

Monday September 27, 2010 - Lowe’s Digs in Western Roots

Calgary is now home to the first Lowe’s Home Improvement in western Canada.

The store, the 17th in Canada and the world’s second-largest home improvement store, is more than 100,000 square feet and is located at CrossIron Common.

CrossIron is part of the Ivanhoe Cambridge project on 1.2 million square feet of developed land with more big box stores to open soon; Costco is projected to open in late October near the CrossIron Mills shopping centre.

In a survey released by Canada Mortgage and Housing Corporation, Calgary households are expected to spend more than any other city in Canada in 2010. Average renovation costs in Calgary are $13,256, around $1,825 more than the Canadian average.

In 2009, the average cost of renovations in Calgary fell from $16,254 to $13,087; a report released by consulting firm Altus Group projected a 0.5 per cent decline in Alberta’s spending growth in 2011.

Eymbert Vaandering, Lowe’s Canada’s vice president of store operations, said Lowe’s wants to be a national retailer, and stores need to be in Calgary to be national.

Vaandering said the high per capital retail sales and the growing city is what initially attracted the company. Lowe’s plans to open a location in northeast Sunridge and one in southeast Shephard/Mackenzie in the first quarter of 2011.

The CrossIron store employs about 160 people, the same number the other two locations will employ.

Thursday September 16, 2010 - Modest Decline Seen in Calgary Real Estate Prices

Real estate prices, while still strong, are subject to the effects of a combination of higher inventory and softer demand. Although not yet official, data from the month of August show that prices registered a slight decrease in the single-family home and condominium markets.

Per Gary MacLean, who works with Re/Max Real Estate Central, the supply-and-demand concept is at work in the current environment. Although the number of potential buyers has not changed significantly since last December, the number of listings has increased, he said.

The listings-to-sales ratio, a key indicator of market conditions, has encountered a shift. At the end of last year, the ratio was tight, with one house selling for every 1.6 homes listed. As of July, the ratio changed to one home selling for each 6.6 listings. The inventory of homes for sale in the Calgary area increased from 3,258 December 31 to 7,982 July 31. MacLean advised that the inventory of homes is beginning to decrease due to the fact that some people have decided to remove their homes from the MLS.

Unofficial information on a website from Mike Fotiou, an agent with First Place Realty, indicates that 867 single-family homes and 364 condos sold in August. Average prices were $445,617 and $286,384, respectively. In July, 915 single-family dwellings sold at an average price of $464,655. During the same month, 396 condos sold at an average price of $291,168.

Prices for both single-family homes and condos peaked in May, with average selling prices of $483,240 and $304,662.

Real Estate Board president Diane Scott noted that sales activity in the luxury home category is a factor in the overall pricing arena. She commented that from June to August of 2009, 98 homes sold for more than $1 million, but the number has decreased during the same period of this year.

Wednesday June 30, 2010 - Experts: Predicted Housing Bubble Largely a Myth

In light of news that Canadian resale home volume is down and price hikes are slowing, it appears that any housing bubble is as real as the Loch Ness Monster. The prospect of grossly inflated housing prices hounded real estate experts for the past several months, not long after people were terrified by a suspected collapse in the market.

In hindsight, sales took a deep but temporary drop after the recession in the fall of 2008. When people realized that the lowest interest rates in years represented a spectacular buying opportunity, the market rebounded quickly. Tempered by a slight rise in rates, the housing market is reverting back to more normative levels. Sales experienced a 9.5-percent decrease in May. Although home prices increased by 8.4 percent versus May 2009, the increase leveled off from March’s peak growth of 16 percent.

Much of the success in the Canadian real estate market is due to the stability of Canada’s banks, which remained more impervious to economic damage than those of the U.S. Homebuyers reacted predictably when rates fell: They started buying homes and inventory grew. Now, that the market has slowed a bit, it is exhibiting a response that is typical following a modest rate increase.

The decrease in sales is also attributable to a soon-to-be-imposed tax on real estate sales in British Columbia and Ontario. These provinces represent some of the most active markets, with some of the most significant price increases having occurred in Toronto and Vancouver. Montreal has not been subjected to the larger price hikes, and market experts expect a modest home price decline of three to four percent.

Monday June 7, 2010 - Calgary - Great Place to Put Your Money Into Residential Real Estate

The Real Estate Investment Network just released a report that named Calgary the best place in all of Canada to put money in residential real estate. A couple of years ago Calgary was experiencing a booming economy and the resulting increase in real estate prices. Then came the recession and things seems to slow to an almost halt. During the recession, the real estate prices corrected to make housing more affordable.

The economy is improving, people are moving to Calgary and housing is still affordable, putting it at number one on the survey list. Other Canadian cities that had top rankings are Edmonton and Red Deer in Alberta, the Kitchener-Waterloo-Cambridge area in Ontario, Maple Ridge and Surrey in British Columbia, Saskatoon, Saskatchewan and Winnipeg, Manitoba.

Forecasters predict that Calgary’s favourable, stable growth should continue throughout 2010 and that the province will see its economy experiencing a growth spurt. The city should escape the over-inflated pricing seen during prior positive economic periods.

Wednesday May 19, 2010 - Bank of Montreal Fights Back Over $30 Million Mortgage Scheme

The Bank of Montreal lost more than $30 million in “strawbuyer” mortgages during Calgary’s real estate boom and is fighting back. It is suing hundreds of people, including several real estate agents, bank employees, mortgage brokers and lawyers. One of those lawyers is Devinder Shory, a local MP from Calgary Northeast.

Some politicians wanted Shory to sit on council as an independent while the investigation and/or prosecution continues. But BMO said the charges against Story were for negligence, not fraud. Even so, Shory is planning an extensive defence.

The way strawbuying works is that an unsuspecting party is asked to sign a mortgage on a property for an up front fee. Usually those working in such schemes approach immigrants that are looking to get into the housing market and usually have no credit to get a conventional mortgage. The mortgage papers are signed by the victim and the schemers take off with the money, leaving the duped signee to pay for the mortgage. These mortgages are usually taken out for much more than the property is worth, using inflated appraisals.

BMO’s blanket search warrant that allowed the search of residences of a number of Albertans allegedly involved netted some interesting finds. One children’s style back pack was filled with mortgage applications. Another briefcase was filled with cash, both US and Canadian cheques and travel documents. Cell phones, computers and suitcases full of documents were seized. Bank accounts and assets were frozen in some instances.

Saturday May 1, 2010 - Luxury Sales Recovering Steadily

Luxury home sales are making a swift and strong recovery. Vancouver, Victoria, Kelowna, Montreal, Toronto, Hamilton and Edmonton have all seen the largest gains with Edmonton placing seventh.

According to Re/Max figures released on Monday, April 26, 2010, luxury home sales in Edmonton jumped 164% in the first three months alone. Re/Max defines luxury homes in Edmonton as having a value over $850,000.

Thirty-seven homes in total sold for an increase of 14 homes over last year. Eighteen of those 37 properties were worth over $1 million. The most expensive condo sold for $1.65 million on Saskatchewan Drive’s One River Park development, and the most expensive home sold for $1.8 million dollars, a 4,500 square foot property in the west end.

Luxury home sales account for less than 1.5 per cent of the overall market, but some realtors are taking the sales as a sign of buyers’ increasing confidence.

In 2009, 149 properties worth over $800,000 sold in Edmonton, a similar number to the 149 sold in 2008, but below the 252 homes sold in 2007.

Calgary’s luxury home sales also increased in the first three months of 2010, from 35 last year to 67 this year. Re/Max defines Calgary’s luxury homes as having a value over $1 million.

Tuesday April 20, 2010 - Spring Brings Bright Colours Into Canadian Home Décor

Say goodbye to blah. Say hello to colour. The colour blue actually. Decorator Reena Sotropa, who operates out of Calgary says almost 80 percent of her clients want some shade of blue incorporated into their homes. That seems to be a mounting trend this spring.

Soft beiges and earth tones and monochromatic décor is being replaced by vibrant turquoise, reds and yellows. As the economy perks up, so does our colour palette. No more gray skies. Hello yellow sunflowers and cerulean blue skies. Van Gogh anyone?

The new neutral colour is charcoal, all the better to frame the bold pillows, vases, wallpaper and artwork that are beginning to dominate Canadian home décor. Another trend, perhaps spurred by the 2010 Olympic Games in Vancouver, is to go Canadian in home décor. A popular combination is red, white, gray and black. Para Paints, sold through outlets such as Lowes, even has a more luxurious black on the market this year.

Tropical décor is also making a comeback. Floral prints, bird patterns and leafy designs are all coming back into favour along with colours such as lime green, tangerine, fuchsia and turquoise. Think Peter Max from the 1960s. Then again you could just get hold of an authentic Hawaiian aloha shirt and use that for inspiration. You can’t get much bolder or brighter than that.

Friday April 12, 2010 - CREA President Defends MLS Against Aitken Comments

Following comments from the Canadian Competition Minister that Multiple Listing Service regulations are anti-competitive, Calgary Real Estate Board president Diane Scott is mounting a defense. Scott said she believes that Melanie Aitken lacks understanding of the real estate business. She is striving to set the record straight.

Scott said that competition is a way of life in any business, not just in real estate. With 30 years of experience in the realty profession, Scott said that Aitken is giving consumers misleading information in terms of the array of services available to realtors and their customers. She noted that there are now more options for realtors, as well as their buyers and sellers, to do business than ever before.

A fixed rate of commission no longer exists, per Scott. The typical seven-percent rate is merely a point at which negotiation can begin, she added. Scott noted the existence of companies with limited offerings that charge a low upfront fee and an array of pick-and-choose services.

A CREA survey conducted by an independent research group shows that upwards of 70 percent of people plan to hire a realtor to sell their house. More than three quarters of the survey respondents indicated that using a realtor adds significant value to the selling process. Among the main reasons for hiring a realtor were their market knowledge, as well as their skill in facilitating the buying and selling experience.

In the same survey, fewer than 30 percent of respondents mentioned the website REALTOR.ca as the locale for comprehensive residential listings. This indicates that other mechanisms beyond websites help to promote for-sale homes.

Saturday March 20, 2010 - Police in Alberta Getting New Tools To Use In The Fight Against Crime

Life just might get a little more complicated for gang members and other lawbreakers in Alberta. Three new bills are on the table in the provincial legislature that will give police officers more crime fighting options when trying to clean up troubled neighbourhoods.

One bill allows the police to provide witness protection for those who testify in criminal trials. Gangs and drug organizations often use intimidation to keep those in the know from talking. This bill will offer short term protection and supplement the long term national witness protection program.

A second bill would allow police officers to confiscate body armour from those who have no legitimate need for it. Security guards, first responders such as ambulance and fire personnel need such equipment. But others, including gang members who have taken to wearing body armour in public places including hockey games and restaurants, do not.The third would allow those who have had a crime committed against them to sue for damages. Victims can either go after the offenders directly, or in the case of seized property, seek restitution by going through the Crown after said property is returned to the owner. Municipalities can also seek compensation to cover the cost of responding to incidents caused by criminal action, such as grow op house fires.

Tuesday March 2, 2010 - Real Estate Sales Strong for Calgary in February

Real estate sales and average sales prices for February in Calgary grew significantly versus last year.  March 1 statistics from Calgary Real Estate Board indicate a 25 5 percent increase in the sales of single-family homes over 2009, to 1,035 residences.  The average selling price for a single-family dwelling, $458,254, grew 10.27 percent over last year’s average of $415,568.

Sales of condominiums took off last month, increasing an astounding 56.3 percent to 536 homes as opposed to only 343 residences a year ago.  The average condo sales price grew by 5.17 percent, to $282,880 versus $269,971.  CREB President Diane Scott said that homebuyers in Calgary are already preparing for the spring real estate market, noting that sales have gone from very weak to strong in a little more than a year.  Scott predicts vitality in the spring of 2010, as buyers attempt to take advantage of low interest rates before the government raises them.  

Scott noted that the market is experiencing more small increase in the number of multiple bids on some properties.  She discounted any talk of a housing bubble in Calgary, saying that the market is more balanced than many others in Canada.  Scott projects that both demand and inventory will increase in the next few months.  She expects prices to grow modestly during the year.  

Listings grew in key areas during February: Those for single-family homes rose by 4.7 percent, to 2,154.  Condo listings increased a significant 24.3 percent over last year.  Scott attributed some of the heightened listing activity to the status of interest rates, saying that people want to market their homes for sale before the Bank of Canada inevitably raises rates to prevent inflation.

Sales in towns surrounding Calgary rose to 335 residences, a jump of 55.8 percent over last year’s total of 215.  However, the average sales price did not keep a proportionate pace, as it declined by 4.8 percent to only $353,912.  In terms of rural real estate, sales grew a huge 84.4 percent in February to 59 versus 32 in the same month of 2009.

Monday February 15, 2010 - The Local Housing Market Is Solid

The number of home sales and the average price at which the sales are executed continue to rise in Calgary.  According to the data and figures released in early February by the Calgary Real Estate Board, the pace of sales has slowed just slightly.

One official said that the market is expected to continue its modest recovery, helped by affordable prices for housing in Calgary.  The real estate market continues to make dramatic year-on-year increases with regards to sales figures.

Many participants in the housing market believe that the Bank of Canada will begin to raise interest in the summer of 2010, as more solid signs of an economic recovery are seen.  Economists at BMO think that the government must lift relaxed policy rates and the general cost of credit from the extreme lows that have been available to help economic recovery.

Either of these two actions could put a serious damper on the home sales in late 2010, but buyers looking to lock in record-low interest rates may scramble to buy homes in the months to come.  Forecasts see job creation and migration of workers into the Calgary area, potentially driving the demand for housing through 2010.  Even the average price of a condo is up four percent from the same period a year ago.

Friday February 5, 2010 - Albertans Want to Go Green and Want a New Building Code to Prove It

Albertans are very interesting in going green.  A recent survey revealed that 87 percent of those asked were supportive of the government revamping the energy efficiency requirements for the construction of new homes.  59 percent of those surveyed considered saving energy very important and 37 percent thought it important.

That may seem odd coming from an energy rich province that makes money by supplying that energy to a number of clients, but Albertans know a good thing when they see it. There is an overwhelming understanding that energy resources are finite and that finding alternative and/or efficient ways to heat homes and power those appliances is not only admirable, but necessary.

Alberta’s current EnerGuide rating of new homes is 71.  That is below Canada’s national average of 76.  British Columbia’s rating is 77 and Ontario ranges from 78 to 80.  Almost 87 percent of Albertans support a revamping of the building code to insure that Alberta becomes more energy efficient.

Most Albertans are also aware that creating more energy efficient homes can also save them money.  Installing energy efficient appliances, low flow toilets, even low watt light bulbs can all bring down monthly energy bills. If Alberta’s building code matched those of other provinces with higher energy efficiency standards, new home owners could see a savings of up to $625 a year.

Tuesday January 26, 2010 - Economists See Modest Growth

Over the past two years, the real estate market in Calgary has been less than stable.   The prices were high then they crashed.  Now, after many people believed prices cold continue to worsen, they have rebounded back to levels near the highs seen in 2007.

The president of the Calgary Real Estate Board says that the low interest rates, combined with the affordable prices, will continue to drive solid demand and create modest growth.  Most economists agree with the prediction that the gradual recovery will grind to a halt and cause a decrease in housing prices over the course of 2010.

Many in the region believe that the recovery will be linked into oil and gas demand, saying that the real estate markets in Calgary and Alberta will depend greatly on the amount of employment migration to the area.

In 2007, there were over 18,400 home sales for single-family homes.  This year, the Calgary Real Estate Board predicts upwards of 17,000 home sales for single family homes, but they do not believe the 2010 figures will match 2007.

The board has projected an optimistic outlook, with prices rising by an average of 3.2%.  They also expect a fourteen percent increase in the number of home sales across Calgary in 2010.  Although, they say it wont be a seller's market until 2011.

Monday January 18, 2010 - Canada Is Recovering From the Economic Downturn Much Faster Than Our Southern Neighbour

Canada’s real estate market is doing surprisingly well.  It has in fact, exceeded expectation to such a degree that some economists are concerned that a housing bubble is in danger of forming.  Though the Bank of Canada is currently not concerned, the debate continues.

Housing prices have increased across the nation by an average of 19 percent comparing end of year 2009 with the dismal numbers of 2008.  Some economists are worried that since income levels are increasing at only a fraction of those numbers, houses will soon become unaffordable.  Add to that the expected increase in interest rates in the later part of 2010 and the worry increases.

It is possible that the affordability issue in the real estate market will self correct.  Due to the increased demand for housing, new construction may step in to supplement available inventory.  Mortgage lenders could tighten their rules and regulations. The increase in interest rates as well as the arrival of real estate tax bills, particularly in British Columbia and Ontario where those bills are expected to be perhaps an unpleasant surprise may also help cool the market enough that a housing bubble may not form at all.

Though Canada did go through a rough patch in its real estate industry, tighter lending rules and the relative scarcity of sub prime loans approved kept our financial market relatively healthy.  We did not go through the free fall that other countries such as the Ireland, Britain and the United States experienced.  Our lending laws may be looked upon as being stodgy, but in this case being overly cautious kept Canada’s financial system from plunging into the same abyss as our southern neighbour.

Monday January 11, 2010 - Real Estate Sales Trend Strong into Year End

Preliminary statistics show that the number of home resales in Calgary during December will easily beat the figures from last year, but it is still uncertain if the figures will meet the 2007 levels of sales.

The most recent figures show that there have been 774 single-family homes sold in December 2009 compared to just 449 in December 2008.  In December 2007, the market saw over 840 home sales.  Official figures will be released by the Calgary Real Estate Board during the first week in January

The preliminary figures also show that substantially more condos have been sold during December 2009 than in the previous year.  Local realtor, Gary LacLean, says that month-over-month figures for home sales have been stagnant, which makes it difficult to really gauge the market.

The biggest uncertainty for 2010 is ’Will there be more buyers?’  Also, another huge factor is the large amount of sellers who took their homes off the market due to the inability to sell the property.  Will these sellers return to market?  If there is a heavy influx of supply and no new demand, prices could get ugly for home owners.

In 2008, MLS data showed year-end figures that were the lowest since 1996, with the average price of a home dropping more than 25%.  Condo prices were even worse, falling an average of thirty percent through 2008.
 

Monday December 14, 2009 - Market Great Outlook by Re/Max

The ReMax Housing Market Outlook for 2010 presented good news for the entire country, especially for Calgary, where prices are projected to rise by more than five percent, and it predicts that sales activity will rise by almost eight percent.

The outlook released by ReMax predicts solid price strength throughout 2010.  They also mention that there is a solid supply of homes, but there will be limited inventory in high-demand areas, so it will create stronger pricing power for sellers since buyers are interested in the affordable deals after the correction of 2008.

The anticipation for 2010 is that the year will give the market traction for better growth in the years to come.  After the five percent increase in average home sales during 2009, Remax’s outlook points toward another five percent increase in 2010.

The outlook also predicts over 28,000 home sales during 2010.  With all of the inventory being taken off of the market through 2009 and 2010, ReMax sees the market becoming very stable and balanced in years to follow.

Wednesday December 9, 2009 - Prices Predicted To Rise 5% Next Year

The overall market is predicted to be very balanced next year in the Calgary area, according to a recent Re/Max report.  Home values are set to go up by 5% and sales are predicted to increase by 8%.  There could be a large amount of listed properties but supply could be limited in high demand parts of Calgary.

The report states that first time buyers are going to lead the way again, with those looking to move up to a bigger property taking advantage of the positive market.  With the province set to rebound from it’s current economic slump and Calgary leading the way, the economy will be in a strong position by 2011.

MLS prices are set to rebound to 2008 levels by the end of 2010.  It is predicted that the overall market prices will have dropped 5% by the end of this calendar year in the Calgary metro area.  So even though prices are meant to go up, those who bought on the bubble still could be looking at a negative equity situation for a few years to come.

Thursday November 26, 2009 - CHMC Sees Strength in 2010

Because of the recent uptick in home sale activity, it is expected that there will be higher demand for rental properties next year, which will in turn drive up rent costs in 2010.  A comprehensive report by the Canada Mortgage and Housing Corp. explained that they expect a strong rebound in Calgary housing starts during 2010.

Although the report expects a recovery in housing starts to continue through 2010, the number of homes expected to be built is down 24% from 2009.  The report explained that the region’s home builders endured a 56% decline in start-ups during 2008.

The report goes on to explain that the increase in single-family homes will be countered with a decrease in the multi-family building sector, which will weigh on overall real estate starts.  The agency does expect the 2010 numbers to show modest growth across all housing types.

They also warn that there will be pressure on sale prices because many home builders have slashed their margins in order to sell off inventory.

Overall, the CMHC expects to see modest price increases in homes throughout Canada.  They predict a 3.4% increase in overall prices through 2010.

Wednesday November 18, 2009 - Staging to Sell in Tough Real Estate Market

We are ready to sell our home but we keep hearing that the current housing market is a buyer’s market. As sellers we are concerned that we will not make the type of profit we anticipate from our home. We know it will be a great opportunity for the new homeowners purchasing our home but we are not sure how we can also fully benefit from this sale.

We started to do some research to find out how we could benefit along with the buyer. After some research we learned about staging a home or making it more appealing to buyers while being able to retain some decent profit margin for ourselves. With so many homes in foreclosures or short sales there are actually more homes on the market than there are buyers. Even though this is a buyer’s market the buyers are being very selective on the homes they select. Staging our home is suppose to make it much more attractive to a buyer than a home that is perhaps on a foreclosure sale and has been sitting on the market for some time with little or no maintenance.

Realtors are staging new homes to make them more attractive to potential buyers even though new homes costs are most often more expensive. Unless the builders of the homes are reducing the costs in order to sell them and move them from their inventory of homes available. Some realtors have been using this strategy for decades while others are just now beginning to adopt this method to make homes more appealing. Home owners are beginning to use staging strategies in today’s economy in attempts to quickly sell their homes.

Staging is primarily about first impressions. The first impression of the home can determine whether a potential buyer is interested or not, almost immediately. When you first list your home there are many people interested in what you are trying to sell. Many will immediately come to see your home. If their first impression is not what they anticipate more than likely you will not get a second chance with that particular buyer.

When we staged our home to get it ready for the first day on the market we replaced the front door, of course you could also just give it a new coat of paint. We also fertilized the front yard to give the lawn a healthy green look. We also added some flowers for that curve appeal. Our home has vinyl siding so we cleaned the siding to make it as fresh and inviting as possible. Inside we added new plants and candles, along with some new towels and throw rugs for the bathroom. We gave the inside walls a fresh coat of paint. All this brought more interest from the prospective buyers. These are very inexpensive ways to increase the appeal of your home.

Friday November 6, 2009 - Values are Climbing in Cochrane

There is good news for people who live in the Cochrane area, for two quarters in a row housing values have gone up in Cochrane. This is great news considering these number had been in a steady decline since the late part of 2007 and had steadily decreased as the months went by. The housing prices finally reached bottom in the first part of 2009 and had stayed there until the recent increase in prices.

During the first part of 2009, the sale price of a home in Cochrane had fallen to $344,189, a decline of $80,000 compared to only a few months prior. This was bad news for anyone looking to sell their home as they were left out in the cold with no real options except wait and hope that those numbers turned around.

As it turned out those that waited were rewarded with a significant price increase as that number climbed to $389,664 in the second quarter and crested the $400,000 mark for the first time in a year by posting an average sale price of $402,171. So while this was bad news for anyone that was looking to buy a home this was a goldmine for those who were trying to get rid of their home with the most profit possible. During the same period the median for home prices also increased. This again is good news for those in the housing market. Those in the industry see this increase as being a positive sign that things are starting to turn around.

The current trend shows that people are becoming more confident in purchasing a home these days. Consider that just a few months ago many homes were on the market and could not be sold no matter what the price was. Now the prices for home this is for sale is at a level that many in the industry see as a good sign.

Many people are putting their house on the market and are enjoying the fact that they are not losing as much money in the sale as they would have a few months prior. One buyer when asked about the current trend said that they were glad that the prices were going up as they hated to see their home be sold for next to nothing after all the hard work that they put into it.

Some see this as the end of a housing crash, while others are not as optimistic about the news. Many real estate experts see this as a win win situation, on one hand people who are selling are getting more for their home. On the other side those who are buying are having to be a little bit more frugal with their spending. In the end everyone wins at the end of the day. It is all about keeping the housing market up and not letting it slip down again.

Monday November 2, 2009 - Calgary Market Sales Rebound

The MLS residential sales in Calgary has seen drastic improvements in both single family homes and condominium for six consecutive months, which is an indication that the local real estate market is rebounding from its dissatisfaction earlier in the year.

Another indication of the strength can be seen in the average housing prices. As of today, a single family home is being sold around the neighborhood of $50,000. This was a significant growth from the prices found in January.
According to Kathleen LaPlante, a Re/Max realtor with Re/Max Realty Professionals, there’s a positive outlook in the housing market today when compared to what it was last October. She said that there were excited buyers in the market who have plenty of choices as well as sellers who were just as excited to make the offers.

There were about 1,015 single family homes sales around the neighborhood of $465, 125 and roughly 460 condominium sales for an average of $284,511 from a month to date basis until October 25th. In October 2008, it was reported by the Calgary Real Estate Board that 820 single family home sales were in the average price range of $449,100 as well as 399 condominium sales on average of $289,148.

The resale market of Calgary is doing just fine, according to Richard Cho, a senior marketing analyst based in Calgary for Canada Mortgage and Housing Corporation. He has determined that numerous factors remain which supports housing demands. The employment levels are becoming stabilized and there’s evidence of strength; plus there are signs of positive growth in weekly earning averages while the mortgage rate remains low. These are just a few of the things that Mr. Cho was enthusiastic about.

Mr. Cho went onto say that earlier in the year there was plenty of supply within the housing market, now with the economy having its ups and downs it tempered the housing demand and this in turn took pressure of housing prices.
Now that there are signs that the recession is almost over and the economy is beginning its recovery stage, we’ve witness the supply levels in a month or two start to diminish a bit, said Cho.

Cho was quite confident these things were improving in the economy and demand was on the rise but he was also aware the supply was going down and we would see a rise in prices. As a result of the financial meltdown during the fall, it was evident a year ago that world appear to head towards a climate of economic disaster but the climate has taken a turn for the better and the stages of real estate action in the past couple of months within this year have shown a steady increase compared to what took place in 2008.

Cho was also aware of the decline in prices during the end of 2008 and his prediction of pressure on prices had come true but according to Bonnie Wegerich, the president of the Calgary Real Board, there was exceedingly more confidence in the local real estate market and this was positive activity in her eyesight.

She went onto say that last year, there were several listings on the marking and people were somewhat reluctant to buy or not but this was because the market dropping throughout the year and the drop in commodity prices for things like oil and gas didn’t make matters any better. Wegerich went onto say these people were just very weary throughout the close of the year and we see unemployment is on the rise; however, the employment levels are considerably high and the interest rate are looking pretty good plus the market appears to be more balanced.

Monday October 19, 2009 - Calgary Prices Rise Slightly in Third Quarter

The Calgary market experienced modest growth in average home prices during the third quarter of 2009 versus the second quarter. Per the House Price Survey issued by Royal LePage, the average price of a two-story home rose to $414,556 versus $400,167. During the same time period, average prices for detached bungalows remained essentially stable, up a few hundred dollars from $401,600 to $401,944. Condo prices showed slight weakness, with an average price of $249,500 versus $252,433 in the second quarter.

Ted Zaharko, a broker with Royal LePage Foothills Realty, noted that although average bungalow prices are lower than last year, the real estate market is showing indications of a comeback.

The current recession caused an across-the-board average-price decline in all Calgary home categories. After months of greatly reduced activity, the housing market is regaining strength. Although third-quarter sales numbers give the illusion that the market is roaring back, sales are in reality at normative levels and actually a bit below year-ago numbers, according to Royal LePage.

Tuesday September 29, 2009 - Canadian Housing Market Still Healthy

The Canadian Real Estate Association is pleased with the 42,483 homes that were sold in August. This represents an 18.5% increase over the same period in 2008 and evidence that the Canadian housing market is pleasingly healthy.

There was a slight decrease from sales in July, which topped out at 42,666 homes. Realtors are optimistic but economists are reminding the industry that the significant gains seen over the last few months will not likely be repeated. Home prices are starting to increase and some feel that even with the record low mortgage interest rates sales will slow a bit for the remainder of the year as the market evens out.

The highest increases in resale market activity were in Vancouver, at an amazing 117%, followed by Toronto, 27%, Calgary at 17% and Montreal at 9%. Edmonton’s increase was 8.6%. Price increases were seen in 75% of the local real estate markets.

More interest is being seen in Canada’s more expensive housing inventory. This demand has helped to bring the national average price of homes up to $324,770, or 11.3% over August of 2008. Prices for 2009 have increased an average of 5.3% compared to the first three quarters of 2008.

Friday September 18, 2009 - West’s Economy Back on Track

This week, Bank of Canada released its economic forecast for the second half of 2009, announcing the recession technically ended and the economy rebounding more quickly than expected. Before the recession, Canada’s economic growth leaned heavily toward the West, particularly Alberta. Alberta’s real GDP growth was close to six per cent in 2006. B. C. and Saskatchewan also experienced above-average rate of growth.

Western Canada’s growth, far above the national average, became a problem and appeared to be the remaining "have" regions, creating a strain on political and economic balance nationally. With the commodity price crash, western provinces proved they were not immune to the global recession. The impact of low natural gas prices shows Alberta may regain its title as Fastest Growing Economy later, rather than sooner. British Columbia’s growth the past few years was pumped up by real estate and construction, the threshold to the 2010 Olympics. But, both remain flat. Saskatchewan is the only province to avoid an outright economic contraction in 2009. Its government continues to forecast a modest budgetary surplus. The problem with Saskatchewan is its size and three per cent GDP.

Meeting in Calgary this week, premiers of these provinces discussed the post-recession era and impact on their economies in 2010. The purpose of such meetings should be mutual understanding of economic growth, critical for Western Canada to remain the engine driving Canada’s economy in 2010. Their key focus issues should be commerce with the U. S., interprovincial trade barriers, environmental challenges, and effective co-operation and co-ordination of policy.

Monday September 3, 2009 - Real Estate Prices in 2010

Despite the global economic downturn that has occurred during the last eight months, the Canada Mortgage and Housing Corp is projecting an upswing in the housing market for not only Calgary but also the entire province in 2010. Although average home price and sales of pre-built homes have dropped in 2009, this national corporation is expecting a rise in the upcoming fiscal year.

A combination of factors is driving this upswing in the province’s housing market. Projected economic growth across all fields will meet favorable market conditions including price pressure, a rise in overall demand, and a decrease in the number of markets that are over-saturated with unwanted properties to provide for an expanded residential housing demand in 2010.

Although many economic indicators project a stronger housing market than the downturn seen in 2009, these levels will take several years to rise to 2008 levels. For instance, although housing starts decreased 58% in the last fiscal year to 4,800 units, the projected 2010 increase of 12.5% will only bring the total to 5,400 units, a fraction of their pre-recession levels.

Although this is a green shoot for the economy, it does not signal a complete turnaround of the housing market.
 

Monday July 6,2009 - High Speed Transportation Project Impacts Alberta Economy

High speed is an important aspect of whether or not the project is feasible for government to spend its money on the rail transportation system from Edmonton to Calgary. A recent report states that there is a possibility of a combination of public and private funding to advance its cause. Projections for passenger usage estimate about six million users by 2021 should the high speed transportation be effected. This is one of the considerations being addressed by the Conservative Caucus in today’s Calgary meeting discussing the need for the high speed transportation project in the report written by Alberta Transportation Minister, Luke Ouellette.

According to the report, high speed transportation will be beneficial to Alberta’s economy for a number of reasons. Among these reasons include the facts that the high speed of the transportation will encourage many more people to travel the route resulting in increased fare revenues, and the creation of a business epicenter that will increase employment with up to 7000 permanent positions. The report’s total projected revenues for the high speed transportation project are estimated at between $4.6 billion and $33.4 billion. Of this, Calgary will be the beneficiary of up to 45% of the revenues and Edmonton will benefit by up to 35% of the revenues of the high speed transportation project.

Oliver Wyman of the TEMS marketing group that prepared the assessment says that the high speed transportation project will increase pasenger usage between Edmonton and Calgary by 35% by 2019 and will increase passengers by 43% by 2039. No decisions are being made as yet, but the high speed transportation report is a major step in bringing the project to fruition. If, as the report states, that 91% of people were willing to travel the 3 hour trip by car in 2006, those same people will more than likely be willing to cut the time by two hours, making it only a one hour trip if the fastest rail type is chosen for the commute. A 500-km/h high speed train could be the very thing Alberta needs to boost its economy and create needed and valuable employment opportunities.

Saturday June 20,2009 - Real estate recovering, economists say

Some agents in western Canada are experiencing something of a welcome shift in local conditions, even bidding wars on some mls® homes.  In Vancouver, as an example, everything under 600 thousand seems to be moving very quickly.  This hasn’t quite reached the Calgary market, but there is every indication that it could reach the city over the next few months. 

The experience some have had recently is completely different from early this year, when market activity was noticably down from previous years.  Prices have gone down making it more affordable, and the Alberta economy is proving to be very resilient.  Monthly activity has gone up in previous months and it looks like a trend that is going to continue at least for the summer months.

Recent statistical analysis is showing the market is on a clear path to improving.  While people are starting to think about getting active, those actually taking the jump are still proving to be hesitant.  Most of the mls® boards in Canada are reporting strong figures from the last month, and this trend doesn’t look like it’s going to change.  Many are waiting for a national report scheduled to be released by CREA, which is expected to confirm these findings.

Sales on the Calgary MLS® have been increasing monthly since early in the year, and took a massive jump when spring arrived.  Overall, the Canadian market hasn’t seen a yearly increase, but more are convinced that will happen over the next few months.  Most are assuming that if the overall Canadian market doesn’t increase in the month of May, it probably will in the month of June. This is a pretty amazing recovery considering where the market was in January.

It seems like the peak of the recession really happened at the end of last year and filtered into early this year.  Because of the uncertainty in the global market, a lot of consumers were hesitant.  But because of low rates to borrow combined with a decrease in prices, more buyers are starting to come out.

The Calgary MLS® is experiencing a large amount of transactions under 400 thousand, which shows that the increase in market activity is largely being dictated by first time buyers.  And who came blame them, with rates lower than 4% in some cases.  Combine this with a demand that has been increasing since last year when a lot of people decided to sit and wait out the economic crisis, the only thing holding the market back a little is rising unemployment figures.  

The worst part of the crisis is over.  How will the economy and real estate market recover?  Let’s wait and see, it’s a hard one to predict.

Monday June 15,2009 - MLS® recovery largely due to more pricey areas of the country according to the Canadian Real Estate Association

The recovery in market activity through the country is being driven by a hike in the amount of transactions is some of the highest priced areas in Canada, which is altering the price average of homes upward according to CREA.

According to this report, sales of MLS® homes in the entire country amount to over 49 thousand units in the month of May - which is slightly down (under 1%) from May of 2008.  CREA said that decreases in activity have been falling since the beginning of 2009 as well.

Locally, sales have gone up by over 11% from last year to 2,624 MLS® properties while the average selling price has come down slightly.  New properties for sale in the Calgary area dropped to 4,125.

The association also noted that Canada wide the summer increase in movement continues to be about average.  So country wide, summer property sales have increased by over 8%.  This is also the 4th straight month this has happened.  Market activity is 43% higher than the start of the year.

Sales activity was up month-to-month in approximately seventy percent of Canada.  The highest monthly increases were in Toronto, Calgary, Montreal, Vancouver, and Edmonton.

Overall, the Canada-wide average listing price increase on the MLS® system, and in May it set a new national record.  The average price of a listing country wide now sits at $319,757.  The MLS® average property price has increased 16.4% from it’s low point at the beginning of the year.

Activity in local markets is now close to where it was before the beginning of the recession last year.  It continues to be mainly fueled by low interest rates, but you can also add increased affordability and market confidence to that mix.  The number of properties bought and sold has reached it’s highest point since mid July 2008.

There still is a lot to choose from on the MLS®, but decreases in new homes for sale combined with increased sales tells us that the selection may dwindle throughout the year.

Homes In Calgary