Our Calgary Realtor® Blog

We try to keep on top on local trends and reports for our clients (as much as our real estate business allows).  If you’d like to comment on any of these postings, please feel free to either phone us directly on (403) 619-6864 or send us an e-mail at realtors@showmeproperty.net.

Daniel Kepka and Marlene Alcon
 

Calgary Realtor® Blog - Wednesday, March 10, 2010 - Calgary Real Estate Board Says There is No Housing Bubble

There is no housing bubble.  That is the opinion of the Calgary Real Estate Board.  In fact, their assessment is that the housing market was nicely balanced in February.  Sales and prices in both the condo and single family home markets and were much healthier than February of 2009.

February sales for single family properties numbered 1,035 units, an increase of 25.5 percent over February of 2009.  Last year’s average home price was $415,568.  This year that figure showed a ten percent increase to $458,254 per unit.  Condo sales did remarkably well, showing a 56.3 percent over last year, 536 units sold as compared to the prior year’s 343 sales. Average prices increased as well with the $268,971 from 2009 being bested by this year’s $282,880 figure.

Senior market analyst for Canada Mortgage and Housing Corporation, Richard Cho urges caution when comparing one year to another because the economic climates were at such opposite ends. Things have bounced back so well because of the economic recovery and the still available low mortgage rates.

All that aside, the housing market in Calgary is heating up, with some homes receiving competing offers. In neighbouring towns, sales showed increases of 55.8 percent on average and acreages showed an 84.38 percent in sales.  Last year only 32 acreage properties changed hands.  In February of this year alone, 59 properties were sold.
Inventory and demand are expected to increase this spring and to balance each other out nicely.  This is good for those looking to buy before the anticipated interest increase during the summer.

Calgary Realtor® Blog - Tuesday, March 2, 2010 - Whistler Averts Auction Block, Anticipates Post-Olympics Gains

The Olympic party in Whistler has ended, but there may or may not be a hangover of the good kind.  On March 1, the Whistler-Blackcomb resort, one of the prized venues of the Vancouver games, was rescued from being auctioned.  Intrawest, its owner, landed an agreement with its creditors to a debt restructure.  

Intrawest’s corporate parent, Fortress Investment Group LLC of New York, fended off foreclosure proceedings on Intrawest during the course of the Olympics.  The resort is the largest employer in the Whistler community, with some 3,600 people working during the ski season.  

Despite the status of the companies that own the resort, the resorts and skiing hills continue to be profitable, according to Ken Melamed, Whistler’s mayor.  Melamed said that he does not worry about the resort closing, as it continues to exhibit vitality as a business. 

Anticipating a modest surplus on its Olympics budget of $9 million, the town of Whistler is exiting the Olympics in solid shape, as compared to Vancouver.  Whistler also now possesses legacy real estate.  The athletic village will be converted largely into low or moderate-income housing, and the plaza will be a family-friendly park.

Olympics organizers have been attempting to erase the elements of tragedy at the
Sliding Center, at which a luge competitor from Georgia died in a February 12 accident on the Games’ first day.  The course was ultimately given a vote of confidence as a future athletic venue by two international organizations.

Although post-Olympics prospects appear solid, Melamed commented that he hopes that the resort will achieve economic stability soon.  When Fortress incurred $2.8 million in debt to purchase Intrawest, it did so at the height of the real estate market in 2006.

Calgary Realtor® Blog - Monday, February 15, 2010 - New Development, Currie Banks, Gets Old Name and Shows Respect

Currie Banks is the latest brainchild of Mark McCullough of the Canada Lands Co. He is the man behind the creation of Garrison Woods and Garrison Green, all successfully developed neighbourhoods built on land once occupied by the Canadian military.  Armed forces personnel, along with their families and assorted military equipment have long since been moved to Edmonton.  They left behind generous parcels of land dotted with empty houses and military installations, some of which have been gathering dust for over a decade.

This newest development, Currie Banks, would be located just north of the Mount Royal Gate.  The plans, unveiled by McCullough and his director of planning and urban design, Linda Hackman, showcased new floor plans and generated just as much excitement as Garrison Woods, the original development.

Years ago it wasn’t all that easy to gain acceptance of such sweeping change, turning a thriving military installation, which was a big source of local revenue and jobs, into a private housing development.  Many thought it was just Ottawa flexing its muscles, something never taken lightly in Calgary.  The two locales have a history of not seeing eye to eye on a number of issues.

But now McCullough has a proven track record. The fact that he includes memorials dedicated to members of the armed forces in his development layouts is a plus. Street names in the prior two developments, such as Passchendaele Road in Garrison Woods, also give a nod to the military services.  He is indeed bringing new development to Calgary, along with the employment that naturally follows, yet shows respect for the prior tenants of the land he is using.  Currie Barracks is, after all, named for the army camp that was a part of this area for a very long time.

Calgary Realtor® Blog - Friday, February 5, 2010 - Calgary Home Sales for January 2010 Much Improved Over January 2009

Home prices and sales in the Calgary real estate market continued to rise in January, even with the slightly lower start to the year. The city is expecting the still low mortgage rates and affordable home prices to keep sales at a healthy pace at least through the first part of the year.  Calgary is still attracting job seekers, creating more sales opportunities. Compared to last year’s dismal predictions, this is indeed a pleasant forecast.

Once the economic recovery is on firmer footing, the Bank of Canada is expected to increase the record low interest rates.  This might further generate sales during the first part of the year as buyers try to get in under the mortgage rate wire. Depending on how high the hike is, sales in the second half of the year could be affected.

The Calgary Real Estate Board predicts a 6 percent increase in single family home prices, averaging $470,000 per unit.  Condos are expected to increase by just over 4 percent to an average of $296,000.  Single family home prices are up 7 percent from last January and condo prices have increased by 4 percent for the same time period.  Both housing products were down slightly, roughly 2 percent from the December 2009 average prices.

Single family home sales increased by 39 percent from January 2009 and condo sales jumped an impressive 67 percent over last year. Listings are steadily increasing, giving those buyers looking for property more choice and keeping price points on those listings steady.

Calgary Realtor® Blog - Tuesday, January 26, 2010 - Calgary Homes and whats' next

Christmas and the New Year like usual were a slow time in Real Estate for Calgary and Canada as a whole. Average pricing went down for the first time in many months and inventory is low. Is this a sign of things to come? Not at all. Calgary like other places in Canada always slow down in December and even January. Home sales languish and inventory drops.

Do not fret fellow Real Estate buyers and sellers. Spring is around the corner. On average spring is the time of year where Real Estate takes off again after the winter slumber. Look for a good increase in prices and a pick up in inventory. So if you're buying do it NOW. If you're selling then list in a couple weeks to get the most bang for your buck. But only if you're not buying. Why? Well if you buy AND sell then the market does not affect you as you are the seller AND the buyer.

So I hope everyone had a great Christmas and New Year. Whether you will be a client or not. Hopefully we will see you in the Calgary Real Estate arena soon.

Calgary Realtor® Blog - Monday, January 18, 2010 - Calgary’s Commercial Real Estate Market Still Struggling as Vacancy Levels Climb

Calgary’s residential real estate market may be in a healthy state, but the business lease division is still struggling.  At the end of 2009 the vacancy rate of offices in Calgary was 15.7 per cent.  In September that figure was 13.1 percent. The report, compiled by CB Richard Ellis and Avison Young (both commercial real estate firms) listed Calgary as having the highest vacancy rate of the 10 cities surveyed.  This means that it is still a renters market, with substantial rent cuts and incentives expected to continue through 2010.

The downturn in the economy is the major factor in the downfall but the fact that new inventory continues to be added to the lease market doesn’t help. Sublet properties are not helping either.  Predictions are that vacancy rates could hit between 16 and 18 percent by the end of 2010.

No less than 19 buildings offering roughly seven million more square feet of rental space are under construction. Though rental rates have decreased by 50 percent since the high water mark in 2007, per square rental rates in Calgary are the highest in the 10 cities surveyed.  Prime class A rental space will cost you $24.85 per square foot.

Industrial rental rates, highly influenced by the economic downturn in the energy industry have taken a hit as well, though not quite as substantial.  At the end of 2009’s third quarter, the vacancy rate was at 5.2 percent compared to 3.8 percent at 2008’s year end. The prediction is for the vacancy rate to top 7.5 percent by the end off 2010’s fourth quarter.

Calgary Realtor® Blog - Monday, January 11, 2010 - Home Prices Continue to Rise Across Canada

According to a report released Wednesday, the country's real estate market has continued its recovery as resale home prices rose for the sixth consecutive month in October.  Calgary saw the largest rise, with prices rising nearly a whole percent from the previous month's figures.

The resale house price index of Teranet-National Bank for all major markets rose 1.27% during October.  Year-over-year figures were up over a half percent, first rise in nearly ten months.

Home prices have risen one percent or greater each of the past five months.  Toronto and Vancouver saw modest monthly gains, with each city's home prices up one and a half percent.

Although prices continue to push higher, the average price of a home in Vancouver is still more than 4% lower than its peak in June 2008.  Prices in Calgary are still down nearly 11% since the peak in 2007.

Economics strategist, Millan Mulraine, says that rise is not entirely surprising, and it represents a sharp uptick in housing sales activity.