Calgary Homes Selling Quicker

 

 

 

Calgary homes selling quicker

 

May 27, 2013. 9:10 am • Section: Business, Real Estate 

 

Posted by:
Mario Toneguzzi
 

It’s interesting to see how the age-old dynamic of supply and demand is playing itself out in today’s Calgary real estate market.
When supply is down and demand is up, that’s going to impact prices and it’s also going to impact the length of time it takes to sell a property.
Well, supply is down these days in Calgary’s housing market while sales continue to grow. That’s pushing prices upwards – near record levels. And homes are selling quicker.
Here’s the numbers.
According to the Calgary Real Estate Board, month-to-date until May 26, there have been 2,049 MLS sales in the city, up 2.71 per cent from the same period last year.
Days on the market to sell a property have dropped from 39 last year to currently 31, which is a drop of 20.51 per cent.
New listings of 3,091 so far this month are down 4.83 per cent from last year and active listings are off 18.16 per cent to 4,821.
All those numbers are sure to impact prices.
So far this month the median price is up 3.87 per cent from last year to $405,000 and the average price has risen by 3.26 per cent to $459,951 for all MLS property sales in the city.

 

            

 

Calgary listed as one of Canada's more affordable housing markets

Resale market is stabilizing with monthly gains in activity

 

By Mario Toneguzzi, Calgary Herald May 23, 2013

 

              

 

CALGARY — Calgary’s housing market renaissance has not been a steady process, as the overall improving trend in resale activity was inconsistent last year, says a report released today by RBC Economics Research.
But the city remains one of the more affordable housing markets in Canada.
The latest Housing Trends and Affordability Report said recent statistics, however, show that resales in the area stabilized in the first quarter of 2013 and that month-to-month gains were registered during the February to April period.
“Calgary-area buyers continue to benefit from a strong provincial economy, accelerating population growth and attractive affordability,” said Craig Wright, senior vice-president and chief economist, RBC. “RBC (affordability) measures for Calgary compare favourably against both historical norms and the national average, keeping it one of the more affordable housing markets in Canada.”
The RBC Housing Affordability Measure, which has been compiled since 1985, is based on the costs of owning a property. The higher the reading, the more difficult it is to afford a home at market values. For example, an affordability reading of 50 per cent means that home ownership costs, including mortgage payments, utilities and property taxes, would take up 50 per cent of a typical household’s monthly pre-tax income.
The RBC measures for Calgary in the first quarter of 2013 were:
- Bungalows: 38.7 per cent (up 0.8 points)
- Two-storey homes: 38.8 (up 0.4)
- Condominiums: 22.9 (up 0.8)
This modest deterioration in affordability was caused by higher home prices was the result of tight market conditions, said RBC.
According to the Calgary Real Estate Board, to May 22 there have been 9,170 MLS sales in the city this year, up 3.63 per cent from the same period a year ago. The median price has increased by 5.41 per cent to $399,500 while the average sale price of all properties has gone up 6.61 per cent to $453,654.
The RBC report also said Alberta’s housing market was not hindered by modestly higher home prices in the first quarter of 2013, as high household income across the province kept market conditions among the most affordable in Canada.
“Despite higher prices and, in turn, a slight erosion in affordability in the first quarter, homebuyers in Alberta enjoyed substantial buying power thanks to their elevated income. The provincial market remains among the most affordable in Canada,” said Wright. “Barring an unexpected shock to the economy, Alberta’s housing market should remain brisk in 2013.”
RBC’s housing affordability measure for the benchmark detached bungalow in Canada’s largest cities is as follows: Vancouver 82.3 per cent (up 0.1 percentage points from the previous quarter); Toronto 53.8 per cent (up 0.8  points); Montreal 40.1 per cent (up 0.6 points); Ottawa 39.1 per cent (up 0.1 points); Calgary 38.7 per cent (up 0.8 points); Edmonton 30.4 per cent (down 0.2 points).

mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

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Calgary a bright light among Canadian housing markets

 Best year-over-year sales and price growth in April

 

By MARIO TONEGUZZI, Calgary Herald May 15, 2013

Calgary’s real estate market continued to shine in April

CALGARY — Calgary’s resale housing market continued to shine in April compared with the rest of the country as the city recorded the best year-over-year price growth and the biggest annual sales increase among major markets.
The Canadian Real Estate Association, in releasing its monthly MLS data on Wednesday, said Calgary saw sales of 3,003 for the month, a jump of 10.4 per cent and the association’s MLS Home Price Index, which surveys eight major markets in the country, showed Calgary leading the way with a 6.94 per cent year-over-year hike. The index tracks benchmark property sales.
“Many other areas in Canada are not experiencing the same level of growth in full-time employment, income, and migration as Calgary,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “These factors are key drivers of housing demand, and the growth in these areas is a reason why the resale market in Calgary has outperformed the national average.”
In Canada, overall sales dipped by 3.1 per cent to 47,997 in April and the aggregate benchmark price was up 2.22 per cent.
Douglas Porter, chief economist with BMO Capital Markets, said Calgary remains an outlier on the strong side. With one of the strongest job markets in the country and a sales/listings ratio above 64 per cent the picture remains quite positive for the Calgary market, he said.
Melanie Reuter, director of research for the Real Estate Investment Network, said Calgary’s real estate market is following the employment in the city.
“The creation of jobs in the oil and gas industry . . . is bringing people into the province and into the city,” she said.
“The influx of people puts pressure on housing, driving down vacancies which increases rents. The high rents often lead many renters to take the plunge into home ownership, diminishing the supply of homes. More demand and less supply means sellers can command higher prices. Residents can afford the higher home prices because wages continue to go up due to the competition for employees. Average weekly earnings in Alberta are the highest in the country.”
But Reuter said Alberta homes are reasonably priced compared with other provinces and cities.
“Barring some unforeseen circumstance that negatively impacts the provincial economy, we feel that real estate in Calgary will continue to do well,” she added.
The average MLS sale price in Calgary was up 3.6 per cent to $429,717 while new listings rose by 6.7 per cent to 4,664.
In Canada, the average sale price increased by 1.3 per cent to $380,588 and new listings rose by 5.6 per cent to 95,065.
For Alberta, sales were up by 5.0 per cent to 6,501; new listings rose by 5.0 per cent to 11,253; and the average price increased by 3.6 per cent to $378,892.
Sonya Gulati, senior economist with TD Economics, said we are continuing to see signs of a spring thaw in the Canadian housing market, an encouraging development especially heading into the all-important spring home-buying season.
“Just last month, home sales activity were down roughly 15 per cent, year-over-year. The same statistic this month is three per cent,” she said. “Price gains are also flirting with positive territory, albeit marginally above the zero threshold. As foreshadowed by our analysis, the impacts of the mortgage-rule induced slowdown are proving to be temporary.

“While there are signs of promise in the housing market, it is important to clarify expectations so everyone is on the same page. We do not anticipate a marked revival in the Canadian housing market in the months ahead. There simply is no economic impetus for a full-fledged comeback in the cards. In turn, the 2013 spring home-buying season should be mediocre at best.”
Porter said evidence continues to mount that the Canadian housing market seems to have pulled off the fabled soft landing.
He said surprises on the sales data in recent months have consistently been on the high side of expectations, not the low side.
“While some are highlighting the fact that prices are now rising at ‘their slowest pace since the 2009 recession’ the plain facts are that: a) they are still rising, and b) faster than inflation, and c) prices are at all-time highs. Some meltdown,” he said.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

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Calgary region new home prices on the rise

Top contributor in March to national advance

 

By Mario Toneguzzi, Calgary Herald May 9, 2013 7:10 AM

 

              

 

New home prices are on the rise in the Calgary region.

CALGARY — The Calgary region was the top contributor in March to the increase in new home prices across the country, says Statistics Canada.
The federal agency reported Thursday that the New Housing Price Index for the Calgary census metropolitan area rose by 0.3 per cent in March from February. It was up 0.1 per cent nationally.
On a year-over-year basis, the NHPI in the Calgary region increased by 4.3 per cent while it went up 2.0 per cent across the country.
“Calgary was the top contributor to the advance in March, up 0.3 per cent from February. Builders indicated that increases in material and labour costs as well as market conditions were the main reasons for higher prices,” said Statistics Canada.
“In Calgary, annual prices rose 4.3 per cent, following an identical increase in February and several consecutive months of accelerating annual price increases.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

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Calgary second only to Paris in world 'Scorecard on Prosperity'

 

City also gets top ranking for 'human capital'

 

By Mario Toneguzzi, Calgary Herald May 8, 2013

 

 

 

Jeanette Sutherland, manager of workforce and productivity for Calgary Economic Development.

Photograph by: Christina Ryan , Calgary Herald

CALGARY —  Calgary is second only to Paris after posting its best ranking ever in a Scorecard on Prosperity report by the Toronto Region Board of Trade.
The report said “good, but not spectacular, results on both the Economy and Labour Attactiveness combine to lift Calgary past London.”
“Calgary’s consistent economic performance keeps it near the top on many indicators, with best results on income growth, where it outperforms all 24 metros, and on employment growth, where it is second, behind the rapidly-growing Shanghai economy,” said the BOT report.
Calgary received top ranking in a section of  the global report concerning "human capital."
The Toronto Region Board of Trade report said Calgary edges out San Francisco for top spot in that category due to “robust employment.”
“On Labour Attractiveness, Calgary ranks sixth overall ... but earns high marks for its low crime rate, relatively low commuting time, and young labour force. Calgary, while growing faster than any other metro in the 2006-2011 period, remains a livable and attractive metro region.”
The report said some of the most critical characteristics of human capital are employment, diversity, health and safety, and education.
“The whole study on the human capital lens is really significant to us. Human capital is the driver right now that’s contributing to our productivity and economic growth. So a high ranking is not only attractive to organizations thinking of relocating their business to Calgary but it also demonstrates that it’s not only a good place to make a living but to also make a life. So we see a lot of job seekers wanting to come to Calgary,” said Jeanette Sutherland, manager of workforce and productivity for Calgary Economic Development.
“With growing labour shortages and increased planned investment that’s happening in Calgary right now, we’re finding the competition for talent is really remaining heated. It is a global war for talent. It’s really essential that we maintain a good reputation for robust employment, or a strong economy has to be supported by a diverse industry sector which helps us with labour attractiveness.”
She said a high-performing economy and talent are the two strong reasons why companies choose to be in Calgary.
“To maintain this No. 1 spot, it validates that we’ve got more than just high paying jobs in Calgary. We’ve got industry growth and continued development matched by a skilled and diverse workforce,” added Sutherland. “That supports why Calgary’s Be Part of the Energy brand really is so important. It helps us to provide a platform to share kind of that Calgary story and focus on its diverse culture, its focus on family and sense of community, healthy lifestyle, education, long-term employment opportunities.”
Calgary also earned two other first-place rankings for the fewest accidental workplace deaths per 100,000 population and female participation rates.

mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

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Calgary luxury home sales growth lead Canada

50% hike in the first quarter of this year

By Mario Toneguzzi, Calgary Herald April 30, 2013

 

CALGARY — Luxury home sales in Calgary posted the strongest percentage increase of all major markets across Canada in the first quarter of 2013, with a substantial 50 per cent hike over year-ago levels, says a new report released Tuesday by RE/MAX.
The Upper-End Market Trends Report 2013 said the trend follows an uptick in the overall market and is a reflection of the renewed confidence emerging among the city’s homebuyers.
The report said 172 luxury homes changed hands in the city in the first quarter of this year on the MLS market, 150 detached houses and 22 condominiums.
“There’s been a strong upswing in the amount of sales that have taken place in the upper end of the market,” said Lowell Martens of RE/MAX Mountain View in Calgary. “I think it’s a vote of confidence. Some properties are being priced accordingly . . . That’s part of a contributing factor.
“It also speaks to the future of Alberta, the future of Calgary, that has made people feel much more confident about making a purchase even in the higher end price range.”
The report said Calgary’s inner core remains most desirable, including the city centre, Hillhurst, Elbow Park and Killarney—to name a few.
“A good mix of purchasers are active in the marketplace, including locals, out-of-province and international buyers,” said the report. “The mindset among purchasers remains cautiously optimistic, but many continue to take their time in making decisions. Despite the solid upswing in activity, few multiple offers have been recorded. Several exceptions have been noted on well-priced properties in established areas in close proximity to the inner core, such as Lakeview and Wildwood, for example.
“Improved interest in properties that once stagnated during the downturn has been a positive sign of a changing tide. In fact, Calgary’s most expensive sale ever recorded took place recently on an Aspen Woods listing that originally came on stream in July 2011. Built on speculation, the 9,300 (square foot) home, with a sticker price of $11.495 million, ultimately moved for $10.35 million — $50,000 above the previous benchmark set in 2009.”
The report said the bulk of Calgary’s luxury home sales is occurring between $1 million and $1.5 million, accounting for just over 70 per cent of activity.
“Preference seems to be equally split between newer homes and those in older, established areas. Infill activity remains strong, and plenty of properties are either knocked down, rebuilt or totally renovated,” said RE/MAX.
“If the current level of buyer enthusiasm continues in the upper end, 2013 could enter the books as a record year for luxury home sales in Calgary.”
Calgary’s luxury home market has been on fire in the past two years. According to the Calgary Real Estate Board, year-to-date until April 28, there have been 228 MLS sales in the city for properties over $1 million compared with 160 for the same period a year ago.
The top communities in the city for luxury home sales this year are: Elbow Park/Glencoe, 25; Altadore/River Park, 15; Springbank Hill, 15; West Hillhurst, 11; Aspen Woods, 9; Elboya, 8; Eau Claire, 8; Lakeview Village, 8; Discovery Ridge, 6; West Springs, 6; and Mount Royal, 6.

Last year set a record for the most luxury home sales ever in the city at 544, eclipsing the previous mark of 458 in 2007.
Just last week, the home of former Calgary Flames’ captain Jarome Iginla sold for full list price of $3.995 million in the southwest Elboya neighbourhood after being on the market for just one day.
The RE/MAX report said Edmonton was second to Calgary with a 41 per cent hike in high-end sales in the first quarter of this year followed by Regina (10 per cent), Saskatoon (six per cent), Winnipeg (five per cent), London-St. Thomas (five per cent), and Quebec City (three per cent).
“Activity in the luxury segment is quite healthy, especially when compared to years past,” said Elton Ash, regional executive vice-president of RE/MAX of Western Canada.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

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