Calgary home price growth doubles national average: CREA

Year-over-year hike of 8.82% best in Canada

By Mario Toneguzzi, Calgary Herald December 16, 2013

 

  

 

 

Home prices in Calgary continue to rise.

Photograph by: Ted Rhodes Ted Rhodes , Calgary Herald

CALGARY - Calgary year-over-year home price growth was the best in Canada in November and more than doubled the national average, according to the Canadian Real Estate Association.
The association’s MLS Home Price Index, released on Monday, said prices in Calgary have risen by 8.82 per cent from a year ago while in Canada, for 11 major centres surveyed, they were up by 4.11 per cent.
The index tracks benchmark prices in Canada’s housing markets.
CREA said MLS sales across Canada in November rose by 5.9 per cent to 32,411 units. They were up by 18.7 per cent in Calgary to 2,173 units and increased by 13.1 per cent in Alberta to 4,563 sales.
Related: Canadian home sales, prices stronger than expected
The average sale price in Canada was up by 9.8 per cent to $391,085 and increased by 7.5 per cent in Calgary to $445,114 and by 5.3 per cent in Alberta to $385,217.
CREA also released a revised residential market forecast on Monday. It said sales in Alberta this year are projected to reach 66,300 units, which is a 9.8 per cent hike from the previous year and the best growth rate in the country. Sales will rise an additional 3.5 per cent in 2014 to 68,600 units.
Across Canada, the association is forecasting 0.8 per cent growth this year to 458,200 sales and 3.7 per cent growth in 2014 to 475,000.
As for the average sale price, CREA is projecting it to rise by 4.9 per cent this year in Alberta to $381,100 followed by 3.4 per cent growth, the best in Canada, in 2014 to $393,900.
Across Canada, the association is forecasting 5.2 per cent price growth this year to $382,200 and 2.3 per cent growth in 2014 to $391,100.
“In staggering contrast to the dire forecasts early this year, precisely one of the 26 largest cities in the country has reported a drop in average prices so far this year — Victoria, with a minuscule 0.6 per cent sag,” said Doug Porter, chief economist with BMO Capital Markets. “All of the other 25 cities have recorded single-digit price gains, with the median city posting a non-threatening 3.6 per cent rise.
“When judged by total sales volumes, a measure that combines both price changes and the number of units sold, the hottest markets this year have been Calgary, Edmonton, and, against all expectations Vancouver. All three reported double-digit volume increases, the only cities in that category.”

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Calgary tops Canada for repeat home sale price growth

Increase of 5.9% from last year

 

By Mario Toneguzzi, Calgary Herald December 12, 2013

 

 

 

Prices for repeat home sales in Calgary saw the highest year-over-year hike in Canada in November.

Photograph by: Steven Senne , AP

CALGARY - Calgary had the nation’s best year-over-year price growth in November for repeat home sales, according to the latest Teranet-National Bank National Composite House Price Index released Thursday.
Prices in Calgary rose by 5.9 per cent from October 2012 while they were up 3.4 per cent in the 11 metropolitan markets surveyed for the index.
The rise from a year earlier exceeded the cross-country average in five of the 11 markets: Calgary, Hamilton (5.2 per cent), Toronto (4.2 per cent), Vancouver (3.9 per cent) and Quebec City (3.7 per cent). The report said the 12-month gain lagged the average in Edmonton (3.0 per cent), Winnipeg (2.8 per cent), Ottawa-Gatineau (1.2 per cent), Halifax and Montreal (0.8 per cent). Prices were down in Victoria (1.4 per cent).
The index is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation.
On a monthly basis, prices in Calgary fell by 0.3 per cent from October and by 0.1 per cent across the country.
Prices were up on the month in four of the 11 metropolitan areas: Vancouver and Halifax (0.6 per cent), Hamilton (0.3 per cent) and Winnipeg (0.1 per cent). Prices were down from the month before in Victoria (1.8 per cent), Montreal (0.6 per cent), Calgary (0.3 per cent) and Edmonton, Quebec City, Ottawa-Gatineau and Toronto (0.2 per cent).

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Calgary housing prices forecast to grow in 2014

4.3% gain predicted for next year

By Mario Toneguzzi, Calgary Herald December 10, 2013 2:00 PM

 

 

 

Calgary’s housing market saw strong gains in sales and prices in 2013.

Photograph by: Ted Rhodes , Calgary Herald

CALGARY - The Calgary Real Estate Board is forecasting house prices and sales to continue to climb in the resale market in 2014.
On Tuesday, the board released its preliminary forecast, saying prices are expected to rise by 4.3 per cent next year and MLS sales are expected to climb by 3.6 per cent from 2013.
Ann-Marie Lurie, CREB’s chief economist, said strong migration levels over the past two years have combined with strong employment, wage growth, and a tight rental market to support further gains in 2014.
“2013 has been a year that has exceeded expectations on all levels,” said Lurie. “This is the second year in a row that we’ve had double-digit increases in sales. Very strong activity. And this year that sales activity pushed above those long-term averages.
“Migration is expected to actually ease off from the levels we saw this year. So that 19,000 new migrants that came to Calgary this year, well two years in a row, is forecasted to drop to 15,000. So that is still a significant pullback. That’s one of those factors that eases off demand.”
According to the board, year-to-date up to Monday, there have been 22,710 MLS sales in the city which is a 10.97 per cent hike from the same period a year ago. The median price has risen by 5.30 per cent to $400,150 while the average sale price is up by 6.51 per cent to $456,762.
CREB’s full annual forecast takes place January 15.
Lurie said supply levels this year didn’t keep pace with rising demand which pushed the market to favour sellers. She said tight market conditions will continue in the near future but rising listings and increased competition from the new home sector will alleviate supply pressure and push the market to more balanced conditions in the latter part of the year.
Lurie also said potential increases in long-term lending rates should take the steam off the exceptionally strong price growth of this year.
Don Campbell, senior analyst with the Real Estate Investment Network, said it looks like another year of strength in 2014 for the city’s real estate market.
“The big story will be the average age of the new population that is moving here from outside the province. We will witness a new type of demand begin to emerge as two and three bedroom units will begin to see increase in demand as housing and rents become less affordable thus forcing this new and younger population to share accommodations,” he said. “In addition, the lack of affordable basement suite options will also drive rents up more quickly than they should be, and should hit a new record price in 2014.”
He said the lack of supply and high rents will move people more quickly into the home purchase mode.
“In other words, not having these affordable rental options will, ironically, push purchase demand and thus purchase prices up more quickly than expected,” explained Campbell. “The longer this important issue is shuffled around, the higher the price of property will become in Calgary and region.
“With all of the factors lining up as they are, we should be witnessing the Calgary housing market out-perform most others in the country and frankly out-perform its underlying economic fundamentals as the pendulum swings solidly into seller’s market territory later in the year.”

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Calgary strongest major housing market in Canada: BMO

Sellers have upper hand on prices 

By Mario ToneguZzi, Calgary Herald December 5, 2013

 

 

                 

CALGARY - Calgary has reclaimed its title as the strongest major housing market in the country after correcting several years ago, says a new report released Thursday by BMO Economics.
The report, Canadian Housing Update: Tale of Four Cities, examined the state of the housing markets in Canada’s four largest cities: Vancouver, Calgary, Toronto and Montreal.
Sal Guatieri, senior economist with BMO Capital Markets, said listings are lean in the city, giving sellers the upper hand right now on prices.
“Three main factors. Strong economy. Strong population growth. And good affordability. Those are all driving Calgary’s housing market now and likely in the future,” said Guatieri.
“We don’t see bad things happening to Calgary’s economy any time soon, barring a big drop in oil prices for example. And we think Alberta for one will definitely lead economic growth perhaps for the next couple of years riding the energy boom. As a result, Canadians from across the country will likely continue to migrate to Alberta and Calgary looking for work. That can always support the housing market.”
According to the Calgary Real Estate Board, year-to-date up to Wednesday, there have been 22,489 MLS sales in the city, up 10.85 per cent from a year ago. New listings of 31,366 are up by 0.75 per cent but active listings of 3,034 are down 19.27 per cent. So far this year, the median selling price of $400,000 has increased by 5.26 per cent while the average sale price of $456,680 has risen by 6.60 per cent.
“Calgary’s resale housing market has been strong this year,” said Ben Brunnen, an economic consultant in the city. “A lot of people are moving to our city and finding that rents are high but the economy is good. Under these conditions, homeownership makes sense.
“Unlike the last housing market expansion a lot of current homeowners are staying put, which keeps inventories low. Strong confidence in Alberta’s economic prospects and the threat of higher housing costs in the future could also be pushing more people into the market.”
The BMO report said new home construction has picked up but housing starts have barely kept pace with an exploding population.
“Inventories of new homes are very low, while benchmark prices are climbing the fastest among major cities and have now all but retraced the 16 per cent collapse from 2007 to 2009, said BMO.
Guatieri said that despite “heady price gains” they remain reasonable at about four times the median family income and mortgage costs “consuming a manageable” 23 per cent of earnings.
“About half of the increase in prices is supported by rising income. Hourly wages in Alberta are up 4.4 per cent year over year in the first 10 months of the year, double the national rate,” he said.
BMO said immigrants and young Canadians are flocking to the city, drawn by better job prospects, faster wage growth, and healthier housing affordability than in Vancouver and Toronto.
“Strong economic and population growth will encourage an upward trend in Calgary’s house prices, though higher borrowing costs will moderate the gains,” added Guatieri.

The report listed Calgary’s median family income at $100,500. The other three cities surveyed had median family incomes of $72,400 in Toronto, $72,800 in Vancouver and $73,200 in Montreal.
The ratio of house prices to annual family income in Calgary was 4.1. It was also 4.1 in Montreal, 6.6 in Toronto and 8.3 in Vancouver.
The mortgage service costs as a percentage of family income were: 23.1 in Calgary, 39.3 in Toronto, 50.2 in Vancouver and 23.1 in Montreal.
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Low Inventory Pushes up Calgary House Prices in November

Low inventory pushes up Calgary house prices in November (with graphic)

 

By Mario Toneguzzi, Calgary Herald December 2, 2013

 

 

 

CALGARY - A low inventory of active listings combined with increased sales has pushed Calgary home prices once again in an upward direction to a record high in November.
Statistics from the Calgary Real Estate Board indicate MLS sales in November rose by 18.74 per cent year-over-year to 1,730 transactions with the average sale price increasing by 5.56 per cent to $458,053 and the median price climbing by 8.50 per cent to $406,875.
The average sale price is a record for the month, eclipsing the $433,931 set in November 2012. The all-time high for any month is $466,495 in June this year.
Although new listings rose by 11.70 per cent to 1,823, active listings at the end of the month of 3,156 were down 17.62 per cent from a year ago. And days on the market to sell a home fell by 22 per cent to 39.
"Throughout the fall we have seen the market stay consistently strong as it has for the rest of 2013, with quick sales turnover and a low inventory of homes actively on the market. Coming into the winter months and even into the new year it doesn’t look like the market’s going to slow down backed by Calgary’s striving economy," said Megan McCormick, realtor with Century 21 Bamber Realty Ltd.

Calgary single-family homes Calgary condo apartments Calgary condo townhouses | Infographics

"Prices and sales have continued to quickly rise with a large majority of new homeowners joining the marketplace, many leaving the tight rental market sooner than anticipated. A booming economy, record high employment rates, and homeowners being displaced by the flood are also pushing this high demand of Calgary homebuyers."
According to Mike Fotiou, associate broker with First Place Realty, November set another record for luxury home sales as 50 properties sold in the $1-million plus price range, breaking the monthly record of 48 set last year. It’s the 10th straight month of a new monthly peak.
Fotiou said there have been 689 luxury home sales this year until the end of November, up 36.4 per cent from the 505 recorded for the same period in 2012. The previous annual record was 544 set last year.
In November, CREB’s stats show single-family home sales were up 18.99 per cent to 1,197 with the median price rising by 8.33 per cent to $455,000 and the average sale price increasing by 5.76 per cent to $516,447.
The condo apartment category saw sales of 305 during the month, up 20.55 per cent from last year. The median price rose by 3.85 per cent to $270,000 but the average sale price dropped by 1.1 per cent to $307,078.
In the condo townhouse category, sales increased 15.15 per cent from last year to 228. The median price was up 7.15 per cent to $310,150 and the average sale price rose by 12.07 per cent to $353,445.
Sales in the towns outside of Calgary rose by 17.78 per cent to 318 with the median price up by 8.64 per cent to $368,250 and the average sale price up by 15.61 per cent to $392,022.
CREB tracks what it calls benchmark prices for typical properties sold in the market. The benchmark prices in November with their year-over-year change were: total MLS city, $424,600, 9.21 per cent; towns, $347,900, 5.62 per cent; single-family, $470,600; 8.53 per cent; condo apartment, $279,600, 12.74 per cent; and condo townhouse, $305,700, 8.10 per cent.
Ann-Marie Lurie, CREB’s chief economist, said the low inventory in the Calgary residential market is a result of continued strong sales.
"It’s continued to push down inventory," she said. "The level of new listings adds to supply and it hasn’t kept pace . . . Basically demand hasn’t let up.
"Another factor is also what’s happening in the new home sector. When you do tend to see inventory start to increase significantly sometimes it’s because there’s just too much in the new home market too . . . But because we’ve had such a strong influx of people and there’s been enough demand, even what they’re doing in the new home sector isn’t enough to push up inventory levels."
Scott Bollinger, broker with the ComFree Commonsense Network, said what’s really striking about this month’s numbers is the big drop in inventory.
"New listings are up, for sure, but not enough to close the gap," he said.
"Fall - well, let’s be honest, winter - timing is partly what’s at play here. It’s a low-volume time for Calgary real estate and even the bullish numbers can’t coax homeowners by the thousands into selling when it’s cold and snowy, especially when they’re confident the market will be just as strong in the spring. Most homeowners don’t want to sell and move during the winter, and that’s as good a reason as any that low inventory will persist till the snow melts." mtoneguzzi@calgaryherald.com
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Calgary homebuyer demand ‘supercharged,’ says RBC report

Booming economy sparking housing market

By Mario Toneguzzi, Calgary Herald November 27, 2013

 

 

 

 

Calgary’s housing market is being described as “supercharged” due to the booming economy.

Photograph by: Darren Calabrese , THE CANADIAN PRESS

Homebuyer demand in Calgary has been “supercharged” by a booming economy, says the latest Housing Trends and Affordability Report released Wednesday by RBC Economics Research.
The report said modest deterioration in housing affordability in the Calgary area in the third quarter “is likely to be taken in stride by local homebuyers, because they still benefit from some of the lower ownership costs as a share of household income in Canada.”
The report said RBC’s affordability measures increased for all housing categories — between 0.2 percentage points and 0.7 percentage points. But it said the levels continue to be below the national and historical averages.
Related: Rising prices, mortgage rates hit home affordability in Canada
“Favourable affordability conditions primarily reflect high household income in Calgary rather than low home prices given that home prices in the area are among the more expensive in the country,” said the report. “While affordability is constructive for homebuyer demand, the more powerful factors driving it, no doubt, are Calgary’s hot labour market and fast-rising population, both supercharged by a booming provincial economy.
“Home resales surged to their highest level in six years in the area. The fact that this occurred despite the worst floods in memory at the end of June is quite telling of the market’s strength at this stage.”
The report said affordability levels in Alberta remained relatively attractive in the third quarter, with measures standing below their historical averages and the national averages.
“Alberta’s strong provincial economy and rapidly rising population continue to fuel housing market activity – third quarter home resales increased by 7.8 per cent from the second quarter, the fastest pace in nearly three years,” said Craig Wright, senior vice-president and chief economist of RBC, in a statement. “The province’s unrelenting economic boom bodes well for continued solid housing market conditions next year.”
RBC’s housing affordability measures capture the proportion of pre-tax household income needed to service the costs of owning a home at market values.
In Alberta, RBC’s measure for bungalows rose by 0.6 percentage points to 32.5 per cent, and the measure for two-storey homes rose 0.2 percentage points to 34.6 per cent. The measure for condominiums increased slightly by 0.1 percentage points to 19.6 per cent.
In Calgary, the measure rose by 0.7 percentage points to 33.7 per cent points for bungalows, 0.4 percentage points to 34 per cent for two-storey homes, and 0.2 percentage points to 19.6 per cent for condominiums.
In Canada, RBC’s measure for detached bungalows rose 0.7 percentage points to 43.3 per cent, while the measure for two-storey homes climbed 0.6 percentage points to 48.9 per cent. The measure for standard condominiums edged only slightly higher by 0.1 percentage points to 28.0 per cent.

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Calgary resale home average prices to balloon to more than half a million dollars

 

Report says average to hit $517,016 in 2017

 

By Mario Toneguzzi, Calgary Herald November 19, 2013 9:41 AM

 

 

 

CALGARY - The average price for a resale home in Calgary will balloon to more than half a million dollars by 2017, according to a new real estate report released Tuesday.
The Conference Board of Canada’s Autumn Metropolitan Housing Outlook, commissioned by Genworth Canada, said the average price for all residential property in Calgary will grow from $431,760 this year to $517,016 in 2017.
“Calgary is facing a lack of inventory in particular areas,” said Tanya Eklund, a realtor with RE/MAX Real Estate (Central) in Calgary.
“Buyers looking for land for redevelopment and homes for renovation have been in very short supply and have driven up pricing due to multiple offers and low inventory. Low interest rates, strong unemployment rates, low vacancy rates and an overall strong economy have also added to strength in the Calgary market.”
Calgary’s economy and housing demand continue to thrive as energy sector activity remains healthy. Rising GDP is spurring employment growth,” said the report.
“On the resale housing market front, solid sales will lead to sound price gains this year and next. The new housing market is benefitting from strong absorptions, which are trimming unsold stocks of new units and fostering new construction. The medium term also looks decent.
“Ongoing economic growth will continue to produce gains in resale sales and prices and keep housing starts above their 20-year average. Good housing affordability, measured against local incomes, is an ongoing benefit to this market and allows single-family starts to maintain a high market share compared with other cities covered in this report.”
The report said summertime flooding in Calgary will limit Calgary’s GDP to 3.3 per cent growth in 2013, modest by recent standards. Output will rise a slightly faster 3.4 per cent in 2014, spurred by government-funded rebuilding efforts.
The job market will continue to expand, with annual growth of 2.4 per cent this year and 2.8 per cent in 2014 cutting the unemployment rate from 4.9 per cent this year to 4.6 per cent in 2014. Economic health should continue between 2015 and 2017, with GDP expanding roughly three per cent and employment rising about two per cent each year, it said.
“Calgary’s strong economic fundamentals allowed its resale market to largely shrug off the floods. Seasonally-adjusted sales and the average resale price actually rose during June, the flood month, and have subsequently advanced,” said the report.
“Price growth is accelerating, although increases remain far below boom-era advances. We expect the market to remain balanced and price growth to stay healthy in 2014 and over the following few years.”
The report’s forecast for average prices over the next few years and annual growth rate are:

    2013: $431,760, 4.7%
    2014: $451,798, 4.6%
    2015: $473,470, 4.8%
    2016: $497,139, 5.0%
    2017, $517,016, 4.0%

Forecast for sales in the resale market for the next few years and annual growth rate are:

    2013, 28,111, 5.5%
    2014, 28,793, 2.4%
    2015, 29,418, 2.2%
    2016, 30,027, 2.1%
    2017, 30,620, 2.0%

“Unsurprisingly, Calgary’s resale prices are rising briskly. Year-over-year growth has averaged a solid 4.6 per cent in the latest four quarters, including a first quarter jump near eight per cent,” said the report. “These increases will lift Calgary’s average price 4.7 per cent in 2013, the largest gain since 2007 and finally exceeding that year’s peak value. Similar price growth is expected between 2014 and 2016, with a slight tapering in growth to four per cent in 2017.
“These increases will slightly erode local housing affordability. Principle and interest charges on Calgary’s average resale home were under 16 per cent of average household income the last two years and are expected to remain there in 2013. But house prices will rise faster than incomes, pushing the ratio to roughly 20 per cent by 2017. This remains decent, as affordability is better only in Edmonton, Ottawa, and Winnipeg among the cities in this report.”
The report said buoyant housing demand is also energizing the new home market. Absorption of new units averaged 11,200 units in the four quarters to the second quarter of 2013, up 25 per cent from a year earlier. This included a surge to an annualized 15,000 units in the second quarter, the most since 2008. This strength will lift absorptions to a full-year total of 12,140 units in 2013, up 25 per cent from 2012. Another increase of nearly six per cent in absorptions is expected for 2014, but still trailing the peak of 13,700 units reached in 2008.
“Healthy new-unit take-up fuelled a big jump in housing starts to 13,186 units in 2012, more than double the recessionary trough in 2009, but well off peak levels of the last decade,” it said. “We expect starts to ease a modest 2.7 per cent in 2013 as an 11 per cent dip in multiple starts slightly outweighs a seven per cent gain in single-detached starts. For 2014, rebounding multiple starts will fuel a five per cent increase in total starts despite relatively unchanged single-detached construction.
“In the medium term, we expect housing starts to ease slightly, as both single-family and multiple construction dip. By 2017, we expect 11,400 units to get under way; this would slightly outpace the 20-year average of housing starts. While multiple starts are expected to increase their market share, they are forecast to make up only 52 per cent of total starts between 2013 and 2017.”

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Calgary housing boom pushing prices to all-time high

Single-family homes average more than half a million dollars

By Mario toneguzzi, Calgary Herald November 15, 2013 10:00 AM

 

 

 

CALGARY - Calgary’s booming housing market is pushing average prices to record levels as single-family home sales so far this year are averaging well above half a million dollars.
“The residential real estate market is holding strong for sellers,” said Grace Yan, a Calgary realtor with RE/MAX Real Estate (Central).
“It usually slows down for Christmas season but we are realizing that it remains at a steady rise. We are still finding a shortage of listings, lots of activity with shorter days on the market. We are finding from fixer uppers, inner-city properties to turnkey luxury high-end homes in demand. We anticipate the steady market to continue to heat up for the new year.”
As of Thursday, according to the Calgary Real Estate Board, the average MLS sale price for all residential property in the city so far this year has been $457,123. The annual record is $428,649 set last year. In 2004, average sale prices in the city were $227,269.
So far this year, the average MLS sale price for a single-family home is $517,598. The annual record price of $481,259 was set last year. In 2004, the average was $251,558.
On Friday the Canadian Real Estate Association released its latest MLS data for October showing that Calgary had the best year-over-year gain in the country in the MLS Home Price Index.
CREA said prices in Calgary, for homes tracked by the index, rose by 8.17 per cent from last year while the national average of 11 markets surveyed was up by 3.52 per cent.
Scott Bollinger, broker with the ComFree Commonsense Network, said there was a little softness in the market last year because of the introduction of tighter mortgage rules.
“But the Calgary numbers we’re seeing today show this is the strongest and healthiest housing market since the 2006 boom,” he said. “That said, this isn’t the boom — and that’s a good thing. 2006 was marked by some things we’re not seeing today — a massive inventory crunch, irrational exuberance and confidence that the market would stay strong indefinitely, and almost unthinkable economic growth. We saw six and seven per cent growth in 2006.
“Our economy today is growing at a nice, measured, healthy rate — three, three-and-a-half per cent. So we’re still seeing confidence, but it’s not the same extreme. There’s a collective memory in this city of the boom, so I think this strength we’re seeing is more sustainable. Houses are still selling quicker, but they’re nowhere near the frenzied pace we saw in 2006, when the average time on market dipped to 20 days.”
In October, Calgary had 2,510 MLS sales, up 19.3 per cent from last year. Alberta registered 5,588 sales, up 16.1 per cent, and Canada had 39,039 MLS sales for an annual hike of 8.3 per cent.
Average sale prices in October and their year-over-year increase were: Calgary, $436,216, 4.2 per cent; Alberta, $377,084, 3.8 per cent; and Canada, $391,820, 8.5 per cent.
Calgary’s real estate market is showing no signs of slowing down in November. Month-to-date including Thursday, there have been 830 MLS sales in the city, up 34.30 per cent from the same period a year ago, according to CREB. The average sale price has also climbed by 7.47 per cent to $463,126.

Doug Porter, chief economist with BMO Capital Markets, said there are two notable splits developing in Canada’ housing market - larger cities are hot, while smaller cities are generally not, and sales in the West are strong, but are weakening in much of the East.
“When judged by total sales volumes, a measure that combines both price changes and the number of units sold, the hottest markets this year are Calgary, Edmonton, and, against all expectations, Vancouver,” he said. “All three have reported double-digit volume increases, the only cities in that category.”
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By Karin Olafson
The City Blog   

6 Things You Didn't Know About Development in Calgary

Which communities are growing the fastest and which is the biggest overall

Everyone knows that Calgary is booming. But do you know the details? Kevin Froese, the coordinator of Calgary’s New Community Planning, shares some statistics from the 2013 Civic Census.

1. Overall Community Growth

The five communities that saw the biggest population growth are all in developing areas. Evanston tops the list, followed by Auburn Bay, Cranston, Skyview Ranch and Panorama Hills.

Evanston  +1,680

Auburn Bay  +1,632

Cranston  +1,578

Skyview Ranch  +1,519

Panorama Hills  +1,358

2. Growth in Developed Communities

Coventry Hills saw the biggest population growth out of Calgary’s developed areas. Bridlewood and Beltline were second and third in terms of population growth, followed by the downtown commercial core and Martindale.

Coventry Hills  +611

Bridlewood  +518

Beltline  +513

Downtown Commercial Core  +411

Martindale  +410

3. Calgary's Biggest Community

Panorama Hills is still Calgary’s most populous community. This community is home to 23,605 people.

4. Population Growth in Calgary

So far in 2013, Calgary has grown by 29,327 people. This is a 2.62 per cent increase from last year and 36 per cent above the annual average from the past decade.

5. The Rate of Housing Growth

The rate of housing growth (7.5 per cent) was more than double the rate of population growth (2.6 per cent).

6. Calgary's Developing Areas

“Suburban Residential Growth 2013-2017” identifies 27 communities in Calgary’s developing areas. These communities grew by 19,635 people, which accounts for 67 per cent of the total population growth for the city.

 

Five Good Reasons to Buy a Home

Five good reasons to buy a home                

Laura Parsons, BMO Bank of Montreal

First posted: Wednesday, November 06, 2013 02:00 AM MST

Experts say the “right” time to buy should primarily reflect your personal and financial readiness.

 

 

While tighter lending policies and economic uncertainty may be keeping some prospective first-time home buyers on the wait-and-see list, there are factors that make today an attractive time to take the plunge.
Keep in mind that the “right” time to buy should reflect your personal and financial readiness — not an attempt to time the market.
Consider these five factors that could make this the time to buy:
1. Financing rates and terms are attractive. Not only are interest rates near the lowest they’ve been in decades, but low rates are available over longer terms.
2. Affordability is improving. Real estate prices have been levelling off in many markets and for certain types of properties, keeping affordability in check.
3. Less pressured buying process. Cooling markets mean fewer bidding wars — a huge relief to first-time buyers who find the process intimidating.
This can mean more opportunity to inspect properties, view comparables, or add conditions to an offer.
4. More to choose from. For certain types of housing, there may be more listings to look at. This greater choice may improve the chances of finding a property that has the features you want in a location that suits you.
5. You feel ready. Your personal situation should be the ultimate trigger: Do you want to put down roots, make space for a growing family, or fulfil a life goal? If you have already set aside a down payment, are prepared to make a long-term financial commitment and know what you want, these can be reasons enough to find a house to call your own.
I can walk you through the mortgage and financing side of the home-buying process ahead of time, so you’ll know what you can afford and can search for a home with confidence.
(The information in this publication was prepared by Ariad Communications and the views expressed are those of Ariad Communications and do not necessarily reflect the policy or views of Bank of Montreal.)
Laura Parsons is an area manager of mortgage specialists at BMO Bank of Montreal. If you have a question about home financing, reach her at laura.parsons@bmo.com

Calgary Housing Market Soaring with Sales and Price Hikes

Calgary housing market soaring with sales and price hikes (with graphic) 

Strong sellers’ conditions as listings down

 

By mario toneguzzi, Calgary Herald November 1, 2013 10:22 AM

 

 

                 

Calgary’s resale housing market continued to soar in October with strong year-over-year hikes in both sales and prices.
According to preliminary data from the Calgary Real Estate Board, MLS sales of 1,953 for the month were up 17.72 per cent from a year ago as the average sale price rose five per cent to $458,876 while the median price saw an increase of 5.96 per cent to $409,000.
“The October Calgary real estate market kept a consistent absorption rate between two to 2.2 months worth of inventory. This places us in a strong sellers’ market,” said Robyn Moser, a realtor with CIR Realty in the city.
“Attributes of a sellers’ market are, competing offers, listed home selling in the first two weeks or sooner, sellers being able to dictate the terms of the negotiations and not having to settle for much less than realistic asking prices. All consistent with our October experiences.”
Although new listings for the month were up 9.08 per cent to 2,522, active listings at the end of the month were down 16.18 per cent to 3,840.

Calgary single-family homes Calgary condo apartments Calgary condo townhouses | Infographics

The average days on the market to sell a property dropped from 45 a year ago to 40 in October.
Moser said housing activity in Calgary may be fuelled by a number of factors: seasonal fall peak activities with people wanting to purchase and move into homes before winter sets in; investor speculators coming into the market due to the flood impact in June; corporations reorganizing and centralizing back to Calgary and Edmonton; and rental rates increasing.
“Buyers had to react to this market by acting quickly when homes came available for sale, being prepared to pay asking price or above and ensuring they were prequalified and prepared for condition days of seven days or less in order to get their offers accepted,” said Moser.
Sales and prices were up across all housing categories in the city during the month.
In the single-family home market, there were 1,336 MLS sales, up 14.29 per cent from last year with the average sale price increasing by 4.76 per cent to $516,244 and the median price rising by 5.12 per cent to $452,000.
The condo apartment category saw sales rise by 24.35 per cent to 337. The average sale price was up 6.76 per cent to $309,414 and the median price rose by 8.80 per cent to $272,000.
In the condo townhouse market, sales of 280 were up 27.85 per cent with the average price rising by 13.49 per cent to $365,036 and the median price up by 8.29 per cent to $319,450.
The towns surrounding Calgary saw sales jump by 23.64 per cent to 387 with the average price increasing by 13.51 per cent to $390,580 and the median price up 8.11 per cent to $360,000.
mtoneguzzi@calgaryherald.com
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Calgary housing affordability easing 

Sharp rise in household income helping

By mario toneguzzi, Calgary Herald October 29, 2013

 

 

 

CALGARY - A sharp rise in average household income is keeping Calgary house price affordability in check, says a new report released Tuesday by Desjardins Group Economic Studies.
The report’s affordability index showed that it is only slightly under the historical average in Calgary, despite relatively high home prices of $438,793 in the third quarter.
It said the average household income of $110,000 “makes home purchases easier” in Calgary.
But the report said the Canadian housing market is now less affordable than it has been on average for the last 25 years.
“This decline stems from average home prices outpacing household income in the third quarter as well as a small hike in mortgage rates,” said the report.
mtoneguzzi@calgaryherald.com
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Housing Market Surrounding Calgary is Booming

Housing market surrounding Calgary is booming: CREB

Airdrie, Cochrane and Okotoks record highest third quarter sales activity

By Mario Toneguzzi, Calgary Herald October 8, 2013

 

 

 

 

Housing sales in the markets outside of Calgary are booming this year.

Photograph by: Grant Black , Calgary Herald

CALGARY — The resale housing market outside of Calgary is booming these days.
The Calgary Real Estate Board reported Tuesday that Airdrie, Cochrane and Okotoks all recorded the highest third-quarter sales activity on record, mostly as a result of gains in the single-family homes sector.
“Affordability and lifestyle preference play a significant role for consumers considering surrounding communities,” said Becky Walters, CREB’s president. “These areas tend to provide single-family homes that offer more features at a lower cost than what can be found in the city.”
The board said weaker activity in High River following the June floods did not outweigh the aggregate gains recorded in the surrounding towns. Sales in surrounding towns totalled 1,288 units, 22 per cent higher than third-quarter sales in 2012.
CREB said tight rental market conditions, combined with declining supply of affordable single-family homes in Calgary, supported growth in surrounding communities. The additional demand occurred as a result of the flood, further boosting growth in the typically more affordable bedroom communities.
“The entire region has benefited from the economic prosperity, as employment gains and stronger than expected net migration has supported housing demand,” said Ann-Marie Lurie, CREB’s chief economist. “In surrounding areas, sales growth has outpaced the level of new listings and this has placed downward pressure on inventories, while supporting price gains. However, price levels remain significantly lower than those in the city and are growing at a slower pace.”
In Airdrie, year-to-date there have been 1,058 MLS sales as of the end of September, up 13.52 per cent from the same period last year. The average price for a single-family home is $386,883, up 3.72 per cent year-over-year.
MLS sales in Okotoks of 537 so far this year represent a 12.58 per cent hike from last year while the single-family average sale price has jumped by 5.40 per cent to $437,519.
And in Cochrane, year-to-date sales of 441 are up 6.52 per cent from 2012 and the single-family average sale price has risen by 5.89 per cent to $448,257.
Year-to-date, the towns outside Calgary market has had 3,540 sales, up 10.25 per cent from last year and the single-family average sale price is up 3.53 per cent to $389,167.
In the city of Calgary, year-to-date MLS sales as of Monday were 19,091, up 9.82 per cent from last year and the single-family average sale price has jumped by 8.19 per cent to $517,860.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

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Update: Calgary housing market sizzles in September (with graphic)

MLS sales and prices continue to climb

By Mario Toneguzzi, Calgary Herald October 1, 2013

 

 

 

CALGARY — Calgary’s red-hot housing market continued to sizzle in September as MLS sales and prices followed an upward trend.
According to the Calgary Real Estate Board, total MLS sales in the city of 1,923 during the month were up 19.44 per cent from a year ago.
The average sale price rose by 8.27 per cent to $454,352 while the median price was up 8.78 per cent to $402,500.
Calvin Buss, involved in real estate marketing and sales, said job creation and in-migration are fuelling the current market.
"The international in-migration is getting stronger and stronger. And if you look at the number of people that came out of Ontario over the last six months into Alberta, it’s just staggering," said Buss who has his home for sale in Edworthy Park at $4.49 million. The home is situated in the middle of a forest overlooking the Bow River and the downtown.
"In Calgary we have a tight market. We’ve had good markets over the last two years. And that’s tightened everything up. And then you get all that in-migration coming based on jobs. You start to get things really tightening up. Like the vacancy rate downtown doesn’t have any elasticity to help absorb these people so they’re forced into the marketplace. And the marketplace only has a certain capacity."
Calgary is in a sellers’ market which is good news for people like Buss who have their homes for sale.
In September, there were 2,796 new listings in the Calgary market, up 4.33 per cent from a year ago but active listings at the end of the month were down by 23.08 per cent to 3,922.

Calgary single-family homes Calgary condo apartments Calgary condo townhouses | Infographics

Scott Bollinger, broker for the ComFree Commensense Network, said the jump in prices isn’t too surprising when you look at the underlying factors, which include a tight inventory, a close-to-zero-vacancy rental market converting many would-be renters into potential buyers, and the fact the economy’s humming along.
"What is a little surprising is that the numbers of new listings aren’t keeping pace with big jumps in prices and sales," said Bollinger. "I think Calgarians know this is a seller’s market. It has been for months. So that tells me that population growth and demand are simply outpacing supply. Speculators who sat for years on second and third properties, waiting for a hot market, have already sold."
Days on the market to sell in September fell from 45 a year ago to 36, which represented a 20 per cent decline.
"The economy continues to support factors that are driving housing demand forward," said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. "Employment in Calgary has trended up, with many full-time jobs also created.
"Latest reports also show that net migration to Alberta has been strong as well. After two quarters, net migration in Alberta has increased over 40 per cent from last year. Sales thus far are up compared to 2012 levels, and that is not expected to change by the end of the year."
Ben Brunnen, a Calgary economic consultant, said the local real estate market should perform well this fall with a favourable economic outlook, a tight rental market and strong population growth the key factors.
"Alberta has been one of the most resiliant economies in Canada, and this gives buyers confidence," said Brunnen.
"At the same time, supply remains tight with limited inventory to meet demand and builders trying to catch up. For the economy as a whole, strong real estate prices give homeowners confidence, and this could help boost consumer spending in Alberta."
CREB said single-family home sales in September of 1,354 were up 20.25 per cent from last year while the average price rose by 9.25 per cent to $512,359. Condo apartment sales increased by 17.39 per cent to 324 with the average price up by 4.38 per cent to $298,765. Condo townhouse sales were up 17.79 per cent to 245 while the average sale price increased by 2.95 per cent to $339,534.
"Tight market conditions have supported price growth in the Calgary market," said Ann-Marie Lurie, CREB’s chief economist. "But the pace of unadjusted monthly growth has eased in September.
"While prices show strong year-over-year gains, if the level of new listings continues to improve relative to sales activity, prices should level off for the remainder of the year."

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