Calgary Luxury Home Sales Set Another Record in December

Calgary luxury home sales set another record in December

Mario Toneguzzi, Calgary HeraldMore from Mario Toneguzzi, Calgary Herald

Published on: December 29, 2014Last Updated: December 29, 2014 9:55 AM MST

Calgary’s luxury home sector continued to soar in December, setting another record in the resale MLS market, despite the recent collapse in energy prices.
According to Mike Fotiou, associate broker with First Place Realty, there were 40 MLS sales of over $1 million in Calgary as of December 28, eclipsing the previous December record of 39, established in 2012.
In 2014, every month set a new sales record for luxury home sales and June hit the all-time high of 104 transactions.
Fotiou’s data indicates that there have been 852 luxury home sales year-to-date as of December 28, up 17 per cent from the 2013 year-end total of 726, which was the previous annual record.
“The market for luxury homes has been so strong in Calgary in 2014 due to the lack of inventory of quality product therefore increasing demand, expansion of the energy sector into Calgary from other cities, and average prices of homes moving into the category of luxury homes. Average is now the new luxury,” said Rachelle Starnes, realtor with Royal LePage Foothills in Calgary. “The cost to build a new home in 2014 has escalated as well with many of the luxury builders being overloaded with renovations from the floods and the average length of time to move from conception to completion of a new home being between 18 months and 24 months.
“Our team feels this is one of the largest contributing factors to the record in sales for luxury homes whereby buyers are making the decision to buy versus build due to the cost of building far exceeding the value to purchase a resale luxury home that is move-in ready. The volatility of the market has also been incredible for the buyers in the luxury home market.  The more volatile the market, the more money is made every day on day trading.  The saying goes the rich get richer and we have seen a stable luxury market for over five years now with the changes in the economy virtually having very little impact on sales.”
According to the Calgary Real Estate Board, luxury home sales have been on an upward swing in the past few years. The number of sales in that market for each year: 2005, 138; 2006, 334; 2007, 458; 2008, 369; 2009, 337; 2010, 365; 2011, 446; 2012, 544; and 2013, 726.
“Calgary’s strong luxury real estate market this past year has primarily been driven by long-term confidence in our local economy and stability in our market.  With low interest rates and net migration still positive contributing factors, Calgary’s luxury market also benefited from a more balanced market this year. Even in December, a typically slower month in real estate, we continue to receive interest from qualified buyers in several of our high-end listings,” said Corinne Poffenroth and Wynn Alex Carr, realtors with Sotheby’s International Realty Canada, in a statement.
Ann-Marie Lurie, chief economist with CREB, said one of the reasons for the hike in sales in that sector is that overall housing price increases have pushed more homes into the luxury market category.
“It really is consistent with what we have seen over the past years. It represents a larger share of the market,” said Lurie.
“There’s also been improved listings in this area . . . This year it’s kind of showing just under four per cent of the market, that million-plus sector. So it is a shift up. Part of that has been due to the price increases. It’s also been due to the fact that we had fairly strong economic activity over the past several years. So we had strong net migration. We had employment growth. We had wage gains. All that contributed to that rise.”
The question mark is how the luxury market will respond in 2015, considering the recent dip in oil prices and the forecast slow down in the city’s economy next year.
mtoneguzzi@calgaryherald.com

Calgary Resale Housing Market Indicates a Healthy December

 

Calgary resale housing market indicates a healthy December

Mario Toneguzzi, Calgary HeraldMore from Mario Toneguzzi, Calgary Herald

Published on: December 18, 2014Last Updated: December 18, 2014 4:05 PM    

 

Calgary’s resale housing market was in ‘balanced’ territory in November as sales and prices dropped from the previous month, but it has rebounded this month with the pace of activity picking up.
In a report released Thursday, the Conference Board of Canada said the seasonally-adjusted rate of annual MLS sales in the city dropped 1.5 per cent from October to 35,292 units in November while listings rose by 5.1 per cent to 52,236.
The average price was also down by 0.4 per cent to $466,255.
So far in December, Calgary’s housing market continues to shine compared with December 2013.
“I’m not sure if the reality (of lower oil prices) has set in,” said Todd Hirsch, chief economist with ATB Financial. “Everyone’s watching these oil prices and it kind of means something to them on one level. But I think it will start to have a broader impact on the housing market in 2015 when we do start to see some of those layoffs coming. Some of those bonuses are going to be scaled back. All of the things where it really starts to affect people’s budget and even their ability to purchase homes.
“It just hasn’t shown up yet but I think it will.”
According to the Calgary Real Estate Board, month-to-date up to and including Wednesday, there have been 776 MLS sales in the city, up 2.78 per cent from the same period a year ago. New listings have risen by 42.75 per cent to 985 and active listings of 3,621 are up by 33.86 per cent.
The median price of $419,200 has increased by 4.93 per cent while the average sale price has risen by 5.15 per cent to $476,425.
The conference board report said the short-term year-over-year MLS price expectation for Calgary is in the range of a three to 4.9 per cent hike.
On a year-over-year basis compared with November 2013, sales were up by 11.2 per cent; listings rose by 21 per cent; and the average price increased by 3.8 per cent.
“The impact of economic shifts, such as the price of oil, take approximately six months to really be felt in the real estate market,” said Don Campbell, senior analyst with the Real Estate Investment Network.  “The current market numbers are a reflection of the in-migration we have witnessed over the last 12 months combined with a very low vacancy rate, pushing potential renters into the purchase market sooner than would normally occur.
“The on the street reality is that the higher end homes are having fewer showings than at this time last year, which signals a market that is being a bit more cautious. These fewer showings will lead to fewer sales in the new year, unless the oil price finds a stable bottom in the next couple of months.”
mtoneguzzi@calgaryherald.com

Alberta Price Growth Forecast to Lead Country

Alberta MLS sales expected to remain flat in 2015, but price growth forecast to lead country

Mario Toneguzzi, Calgary HeraldMore from Mario Toneguzzi, Calgary Herald

Published on: December 15, 2014Last Updated: December 15, 2014 10:05 AM MST

 

Sales volume in the Alberta housing market are expected to remain flat in 2015, but price growth will continue to lead the nation, according to a new report from the Canadian Real Estate Association.
According to the CREA’s resale housing forecast, MLS sales in the province are expected to rise just 0.1 per cent in 2015, after posting gains of more than nine per cent in each of the past two years. For Canada as a whole, the CREA upwardly revised its forecast, to 0.8 per cent growth.
While sales are expected to remain steady, however, price growth is still expected to be among the strongest in the country, at 1.9 per cent — sharing the lead with Manitoba. The national average is forecast to be 0.9 per cent.
“The big drop in oil prices will be a significant challenge for the Alberta housing market even as supply remains tight,” said Benjamin Reitzes, senior economist with BMO Capital Markets.
Also on Monday, the CREA released its MLS Home Price Index, which showed the Calgary market led the nation in price growth for the month of November. The CREA reported that for November, Calgary led Canada with an 8.5 per cent hike from a year ago. The aggregate of 12 major centres across the country was 5.2 per cent.
But the association’s chief economist, Gregory Klump, noted oil prices’ effects on the housing markets are “something of a wildcard at the moment.”
“It’s not clear how far oil prices may drop or for how long they’ll stay down,” he said. “How that plays may affect the outlook for interest rates, job growth, consumer confidence and sentiment about making major purchases.”
It is the third report in less than week showing the strength of Calgary’s housing market. Last week, the Teranet-National Bank Composite House Price Index, of repeat home sales, said Calgary prices were up 9.2 per cent year-over-year in November. Statistics Canada’s New Housing Price Index said prices for new homes in the city rose by 6.6 per cent in October from a year ago.
In November, Calgary reported MLS sales of 2,292, up 5.5 per cent from last year while they rose by three per cent in Alberta to 4,699 transactions and by 2.7 per cent across the country to 33,229.
The average MLS sale price in November rose by 5.7 per cent in Canada to $413,649. It was up by 3.8 per cent in Calgary to $462,031 and by 5.7 per cent in Alberta to $407,071.

Robert Kavcic, senior economist with BMO Capital Markets, said the slide in oil prices is going to take some, if not all, of the steam out of Calgary and Edmonton — and it may be doing so already.

“Sales in Calgary grew a tame 5.5 per cent year-over-year in November, while new listings jumped 15 per cent year-over-year,” he said. “Early-December results from the city are more glaring, with sales flat and new listings popping more than 35 per cent year-over-year.

“December is a slow month with a small sample, but that, combined with November’s result, is a decent hint that Calgary’s market could be rolling over.”

Jonathan Bendiner, economist with TD Economics, said the recent plunge in oil prices is likely to temper activity in housing next year.

Before the slide in oil prices, Calgary and Edmonton were considered front-runners in Canada’s housing market, he said. However, they are now expected to soften.

“Outside of these markets, a stable unemployment rate and still low interest rates will remain supportive of housing. That said, a change in sentiment regarding Canada’s economic prospects given the recent drop in oil prices may push some homebuyers onto the sidelines.”

CREA Sales forecasts

MLS Sales Growth
Canada: 5.1% in 2014 (481,300 total sales), 0.8% in 2015 (485,200 total sales)
Alberta: 8.3% in 2014 (72,200 total sales), 0.1% in 2015 (72,300 total sales)
MLS Price Growth
Canada: 6.0% in 2014 ($405,500 average price), 0.9% in 2015 ($409,300 average price)
Alberta: 5.2% in 2014 ($400,100 average price), 1.9% in 2015 ($407,900 average price)
mtoneguzzi@calgaryherald.com

Calgary House Prices Climb at Fastest Rate in Canada

Calgary house prices climb at fastest rate in Canada

Mario Toneguzzi, Calgary HeraldMore from Mario Toneguzzi, Calgary Herald

Published on: December 12, 2014Last Updated: December 12, 2014 3:46 PM MST

Calgary again posted the country’s biggest annual price growth for repeat home sales in November, the latest Teranet-National Bank house price index shows.
It found prices in the city rose 9.2 per cent from a year ago, compared with the national average of 5.2 per cent from the 11 major centres surveyed. Dwellings that have been sold at least twice are considered in the calculation of the index.
“Statistically this time of year has started to slow down, and we are still going strong,” said Tanya Eklund, a realtor with RE/MAX Real Estate (Central). “I do not believe we can sustain the large amount of inflation we have seen over the last two years.”
Calgary Real Estate Board data, through Wednesday, show 533 MLS sales for December, a 7 per cent increase from the same 2013 period.
The Teranet-National Bank report found four other centres — 7.3 per cent in Toronto, 7 per cent in Hamilton, 6.2 per cent in Edmonton and 5.9 per cent in Vancouver — also had annual price increases that exceeded the national average.
More moderate increases were seen in Winnipeg (1.5 per cent), Victoria (1.4 per cent) and Montreal (0.6 per cent). Prices were down in Ottawa-Gatineau (0.2 per cent), Quebec City (0.3 per cent) and Halifax (1.8 per cent).
On a monthly basis, the overall index was down 0.3 per cent from the previous month, the first monthly decline in a year.
“While home prices in Canada’s 11 major cities may have edged down slightly in November, they still remain quite elevated, hovering near record highs.  Moreover, while the decline was fairly broad based, prices in several key cities are well up from year-ago levels,” said Dina Ignjatovic, economist with TD Economics.
“Going forward, solid momentum in the job market over the past few months, combined with an ultra-low interest rate environment should continue to support the housing market in the near term.  However, as interest rates creep up in the latter half of next year and into 2016, affordability will erode, resulting in a moderation in home price growth.”
David Madani, economist with Capital Economics, said national house price inflation is easily outpacing growth in household incomes.
“Accordingly, this only adds to our concern about a housing bubble and a potentially severe market correction down the road,” he said.
“The slump in world oil prices will hit Western Canada hard, and it will only be a matter of months before housing activity and prices begin to fall significantly in Calgary.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

New Listings Jump 22% - Condo Sector Reports Year-to-Date MLS Sales Up 19%

New listings jump 22%

Condo sector reports year-to-date MLS sales up 19%

By Myke Thomas, Calgary Sun

First posted: Saturday, December 06, 2014 02:00 AM MST

 

After several years of declines, active MLS listings in the City of Calgary are on the rebound, according to the monthly report from the Calgary Real Estate Board (CREB).

New listings in November outpaced sales, resulting in a 22% increase in active listings but, even with the gain, listings remain below long-term averages, says Bill Kirk, CREB president.

“Over the past year, inventories have been low in the city, limiting some of the choice for consumers,” says Kirk. “While availability in specific segments and price ranges vary, on the whole, the recent rise in inventories will be welcome news for many buyers.”

Year-to-date sales in November recorded double-digit gains in all property types, with the strongest increase coming in the condominium sector, including apartments and townhomes, with a combined growth of more than 19%, putting both housing types at record levels, says Kirk.

“Overall, buyers looking for product under $400,000 will find more options in the condominium sector because supply levels have improved,” he says. “In the single-family sector, however, declining supply in that same price range has created much tighter market conditions in that segment.”

Single-family sales last month were down 1% from last November, although year-to-date sales are up 6% compared to the first 11 months in 2013.

New listings of single-family homes year to date increased 6%, accounting for easing growth in the single-family unadjusted benchmark price of $511,300 in November, a 9% increase over the previous year, but down from double-digit increases posted earlier in the year.

Unadjusted benchmark prices for condominium apartments and townhomes were $300,700 and $338,600, respectively, with both condominium sectors seeing price growth ease from double-digit levels.

“Tight market conditions earlier in the year caused significant aggregate price gains,” says CREB chief economist Ann-Marie Lurie. “It also resulted in a rise in new listings, supporting gains in inventory levels and a push towards more balanced levels. This has helped ease the upward growth pressure on prices.

“While Calgary’s price gains have garnered a significant amount of national attention, several indicators are pointing toward more stable conditions, easing risk associated with an overheating market.”

 

Calgary Resale Housing Market Prices and Sales Continue to Climb

Calgary resale housing market prices and sales continue to climb

Mario Toneguzzi, Calgary HeraldMore from Mario Toneguzzi, Calgary Herald

Published on: December 1, 2014Last Updated: December 2, 2014 8:12 AM MST   

 

Home sales stayed strong in November, rising 3.4 per cent from a year earlier, according to Calgary Real Estate Board data.
The median MLS sale price increased 5.3 per cent to $429,000, while the average sale price was up 6.1 per cent to $485,962, it said.
“It was a relatively strong month when we look at sales, listings, inventories. But definitely one that’s moderating,” said Ann-Marie Lurie, CREB’s chief economist. “We’re seeing a return to more balanced conditions and that’s easing some of the pressure on price growth, which is actually a good sign for Calgary’s market.”
In the single-family market, MLS sales last month dropped one per cent to 1,181 transactions, although the average price gained 8.7 per cent to $560,117. The median price rose by 5 per cent to $478,000. Condo apartment sales increased 6.9 per cent to 324. The median price was up by 7.4 per cent to $290,000 and the average price rose 4.9 per cent to $322,486.
Sales in the condo townhouse market increased 21.5 per cent, while the median price was up by 6.4 per cent to $331,000 and the average price rose by 0.7 per cent to $361,013.
Towns surrounding Calgary saw sales jump 15.5 per cent. The median price was up by 3.8 per cent to $383,000 but the average price dropped by 0.4 per cent to $391,155.

Stadium Shopping Centre redevelopment to include hotel, office space

 

By Mario Toneguzzi, Calgary Herald November 19, 2014

 

 

An artist's rendering of the stadium shopping centre.

Photograph by: Handout , Handout

A northwest Calgary strip mall is set to grow taller, transforming into a multi-use property including residential, retail, hotel and office space.
But concerns are being raised about future traffic problems and the disposition of municipal reserve land as part of the development.
Western Securities, owner and developer of the land currently occupied by Stadium Shopping Centre, announced Wednesday it has concluded the master planning process for the 6.1-acre (2.5-hectare) site on the corner of 16th Avenue and Uxbridge Drive N.W. The plan includes a pedestrian bridge for connecting the community to the Foothills Hospital and planned new cancer centre, as well as a central plaza.
A final master plan has been presented through a series of open houses and exhibits at the shopping centre during November.
“The master plan for the Stadium site reflects an organic evolution of the single-use retail site to one that will serve a mix of existing and future demographics in the area,” said Mike Brescia, vice-president of Western Securities Ltd.
“It was important to invest in a thorough planning process with hopes that all stakeholders will see their imprint on the final plan and built product. We’ve come a long way since beginning this master planning process in 2010, and I am very proud of what we have all collectively created for the city.”
The Stadium Shopping Centre Area Redevelopment Plan was approved by city council in July 2013.
Councillor Ward Sutherland said the master plan for proposal “looks good.”
“The main concern obviously from everybody is transportation: how the traffic is going to move. And originally in this controversial development, there’s 14 conditions of traffic that have to be satisfied,” Sutherland said.
“I want to re-assure people that as this build-out occurs these conditions have to be met. So it’s not like this whole thing is going to get built and then we’re going to deal with transportation issues later. Not going to happen. The infrastructure has to be there … there is some controversy of the selling of the land on the corner. That will come up at council.”
On Dec. 8, city council will meet to discuss the municipal reserve disposition and land use for the corner of 29th Street and 16th Avenue N.W.
Peter Khu, president of the University Heights Community Association, said the proposal is a “very, very big development.”
“I think what concerns a lot of people isn’t so much the development itself but the fact that part of the development is being proposed to be built on what currently is public land,” said Khu. “It seems like a small issue, but it’s a very, very important issue because that corridor of 16th Avenue from Banff Trail all the way to the western edge of the city is currently intact. There’s free flow and the potential for other mitigation in the future.
“Our point is that this development can actually with some modifications be developed the way they envision it. But why take that municipal reserve this time? The issue is going before city council on December 8 and the recommendation is to sell it for less than $250,000. Is that good value for the city? That corner is busy now and it is the main entrance to Foothills Hospital. It is the main entrance to the cancer centre. And it is the main entrance a huge number of medical services that will only increase as that site develops. So we think the disposition of that municipal reserve is far, far premature.”

Brescia said the conversation over the municipal reserve land has been going on since 2010. The concept was to create a larger open space by taking land that is being under-utilized and re-purpose it. He said the developer has also been working on addressing traffic concerns in the neighbourhood, adding that the ARP has some very specific outlines in terms of significant transportation infrastructure upgrades that will be required by the developer.
The entire project is about 800,000 square feet, comprising 85,000 square feet of retail, nearly 300,000 square feet of office, 300,000 square feet of residential and 120,000 square feet of hospitality. The hotel will contain about 150 to 200 rooms. There will be about 300 to 350 residential units in various formats.
Brescia said the company is just starting its development permit drawings with more detailed design for the project. That is expected to be submitted by next spring. He said the hope is to be under construction in the first part of 2016. If the project was to be built at once, it would take about five years to be completed.
“We think we have an extraordinarily unique location in Calgary. I don’t think any developers could re-produce what we have here given the proximity to the University of Calgary, McMahon Stadium, Foothills Hospital. The new cancer project has been announced to go across the street from us here,” Brescia said.
‘We think (the site) provides a very unique opportunity to actually put all of these uses with underground parking in this location.”
The Stadium district will feature upgraded transportation infrastructure; tree-lined streets with wide sidewalks and bicycle lanes for access for all modes of transportation; ground floor amenities such as restaurants and retailers and a transit plaza; and a connected network for automobiles, transit, bicycles and pedestrians.
Western Securities said it developed the Stadium Shopping Centre on former farmlands in 1962, and has since remained the primary landowner. Currently, the property is comprised of approximately 60,000 square feet of single-storey retail strip mall and retail pads with a large surface parking lot.
“The redevelopment of the Stadium Shopping Centre site is an important component in the densification and gentrification of this mature trade area in northwest Calgary that is shadow-anchored by the massive Foothills Medical Centre,” said Michael Kehoe, an Alberta-based retail specialist with Fairfield Commercial Real Estate Inc., in Calgary.
The Stadium mall was one of the first purpose-built shopping plazas in Calgary, he noted.
Kehoe said the owners of the property have an “impressive vision” for the site that will “add much needed amenities for this evolving neighbourhood.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

 
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Immigrants play bigger role in supporting housing market

 

By Mario Toneguzzi, Calgary Herald November 19, 2014 12:49 PM

 

 

View of Okotoks housing that could boom if they swing a deal with Calgary for more water rights, in Okotoks on September 21, 2014.

Photograph by: Christina Ryan , Calgary Herald

Immigration plays a bigger role in the nation’s housing market more than many Canadians believe, according to a new report from CIBC World Markets.
“Ask any real estate developer in any of Canada’s major cities about the risk of overbuilding, and the first line of defence would be immigration and its critical role in supporting demand,” said Benjamin Tal, CIBC World Markets’ deputy chief economist, who co-authored the report with Nick Exarhos. “It turns out that at least for now, this claim is more valid than widely believed.
“Not only has the rising share of young immigrants lifted demand for housing, but also, official population projections understate the actual number of non-permanent residents in the country by close to 100,000.”
The report said new immigrants account for 70 per cent of the increase in Canada’s population. With half of the new immigrants between the ages of 25 and 44, they represent the country’s economic engine, the age demographic having the highest employment levels and the most likely to start families, it said.
The number of Canadians aged 20-44 rose by 1.1 per cent in 2013. Over the past decade, the number of Canadians in this age group has risen 75 per cent faster than in the U.S., said the report.
“Healthier demographics are benefiting trends in household formation,” said Tal.
He said the ratio of housing starts to household formation in Canada is not far from its long-run average of 1.03, showing no signs of “froth.”
Only in Calgary do starts continue to show upward momentum, he said.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123

© Copyright (c) The Calgary Herald

Calgary’s condo market booming as average price for single-family homes tops half a million

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Garry Marr | November 3, 2014 | Last Updated: Nov 3 4:11 PM ET
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Postmedia NewsCondo sales shot up for the sixth straight month in Calgary as buyers look for cheaper options to single-family homes now going for over half a million .

Affordability issues are helping fuel the local condominium market which saw sales climb 14% in October from a year ago, the Calgary Real Estate Board said Monday.

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Condo sale increases from a year ago have reached double digits for six straight months and last month’s gains were credited for the city’s overall sales numbers being up 10% from October, 2013. The board’s benchmark index price for a single-family home reached $513,500 in October compared to $299,800 for a condo.
“While buyers can still find single-family product priced under this threshold in Calgary, the selection has consistently declined over the past four years,” said Bill Kirk, president of the board, in a release.  “As our market moves into more balanced conditions, there has been a notable shift in the composition of the market. Not only do condominiums represent a larger share of total activity, but product availability by price range and property type has shifted.”
The board notes half of new listings in the condo market are priced at under $300,000, a level attracting consumers. “Tight rental market conditions combined with low mortgage rates have supported demand growth for condominium product in Calgary,” said Mr. Kirk, pointing to apartment sales setting a year-to-date record of 4,202. “Much of this demand is coming from both first-time homebuyers and investors.”
Condo listings are also on the rise, up 30% over the first 10 months of the year compared to a year ago. That pace, which is outstripping sales, has allowed inventory to rise and ultimately kept condo prices down.
Only the flip side, single family homes are becoming more expensive with only 18% of new single-family-home listings under $400,000 in October. By the end of the month, Calgary had only 387 single-family homes priced under $400,000.
“As our market moves into more balanced conditions, there has been a notable shift in the composition of the market. Not only do condominiums represent a larger share of total activity, but product availability by price range and property type has shifted,” said Mr. Kirk.
 

Calgary and Edmonton top investment markets for real estate in Alberta

Airdrie places fourth overall

By Mario Toneguzzi, Calgary Herald November 4, 2014                                                                           

 

 

Calgary housing market is very strong this year.

Photograph by: Christina Ryan , Calgary Herald

CALGARY - Calgary and Edmonton top the list of residential real estate investment markets in Alberta, according to a new report released Tuesday.
The new REIN (Real Estate Investment Network) Score measures each city or town on five different categories for a total of 50 points including: Economic Risk (possible 12 points); Yield Growth Potential (possible 12 points); Investors’ Insights (possible 10 points), Political Climate (possible 8 points), and Accessibility (possible 8 points).
Calgary and Edmonton topped the rankings with 50 points followed by Fort Saskatchewan (43), Airdrie (41), St. Albert (39), Red Deer (39), Lloydminster (38), Fort McMurray(36), Grande Prairie (36), and Leduc (34).
Melanie Reuter, director of research with REIN, said “the two most important criteria are the economic risk with a big focus on existing and future jobs and job growth, and the growth potential of yield. Will the going-rent rates mean your cashflow is good in relation to the house prices and is there potential for more and larger growth as the local economy improves?
“It is also important to take into consideration the political climate of a community and whether it has a solid growth plan, cashflow squashing taxes, and whether it has restrictive rental policies. If you can raise rents to match demand or your property taxes are expensive compared to other communities, your current and existing cashflow is compromised.”
Calgary received 12 out of 12 in the economic risk category, 10 out of 12 in yield growth potential, six of eight in local politics conducive to business, eight of eight in access to transportation and nine of 10 in investor’s insights.
The report said the formula of job creation creating an influx of people, leading to higher housing values is evident in Calgary.
“The market is hot! Real estate agents serving investors have noted that good inventory is very hard to come by,” said the report.
“The Calgary Real Estate Board believes that following a prolonged period of Calgary being a seller’s market, the city is once again beginning to move toward more balanced market conditions. Price gains will continue for every housing type, but at a more sustainable pace.”
According to CREB, as of Monday, year-to-date MLS sales in Calgary were 22,941, up 10.67 per cent from the same period a year ago. The median price has risen by 6.88 per cent to $427,500 while the average sale price has increased by 5.78 per cent to $483,115.
mtoneguzzi@calgaryherald.com
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© Copyright (c) The Calgary Herald

Calgary and Edmonton Top Two Real Estate Markets in Canada

Calgary and Edmonton top two real estate markets in Canada

Urbanization the ‘new normal’

By Mario Toneguzzi, Calgary Herald October 28, 2014                                                                             

 

CALGARY - A new report released Tuesday by PwC and the Urban Land Institute says Calgary and Edmonton are the top two real estate markets in Canada.
Both Calgary and Edmonton scored well for investment, development and housing, said the Emerging Trends in Real Estate 2015 study.
For the second year in a row Calgary is the number one rated market by survey respondents connected with the real estate industry.
“Calgary marches to a different drum. It’s tied to energy, so it keeps building,” one interviewee was quoted as saying.
The report said the Calgary economy continues to post solid gains.
The report also noted that Calgary, Edmonton and Vancouver, will see the most residential growth in 2015, a trend that has been helped by more jobs becoming available in the West than in Central Canada, while Calgary and the Greater Toronto Area will hold the most potential for retail growth.
The report said urbanization in Canada is now considered the ‘new normal’ rather than an emerging trend itself.
“Looking ahead into 2015, a common trend among all industry players will be the search for opportunities in and around the city cores. With more people moving into city centres for work and lifestyle purposes, companies and retailers are following them and driving new office and commercial developments,” said the report.
Don Campbell, senior analyst with the Real Estate Investment Network, said urbanization is a trend that is growing again given the fact that 27 per cent of our population is in the GenY/Millenial demographic.
“And their housing requirements are beginning to change the way housing demand trends are occurring,” he said. “As a comparison, 27 per cent of our population in Canada are Baby Boomers. The Baby Boomers changed the real estate market towards suburbs. Millenials are leaning towards greener choices. More village local feel, less reliability on automobile, more want of community feel are just some of the changes this next population cohort is demanding.
“And the important fact to consider is that this age group is just entering housing market - the rental and purchase markets - and will drive demand patterns for at least the next decade. Alberta will especially be affected by this trend as we are attracting a large cohort of this age group to the province with the mass inmigration we are experiencing. In fact, Alberta’s average age is actually getting younger while most other regions age.”
The report said urbanization is blurring industry lines as commercial and residential developers discover the opportunities that mixed-use properties bring. The convergence of commercial and residential development is driven by developers’ desire to control more aspects of a project and to add value to their property holdings.
“Urbanization is creating greater demand for offices in downtown cores – thanks to younger workers in particular. While the move to the core is more visible, selecting the proper location is critical for any suburban redevelopment, especially around transportation nodes,” said the report.
“The continuing urbanization trend and the high cost of single-family homes have fuelled the condo boom in Toronto and other cities like Calgary’s west end. However, the next phase involves young urban condo dwellers starting families and seeking affordable housing. Purpose-built multi-residential rental developments are starting to address this market need.”
It said urban retail will see strong growth with the influx of residents to city cores driving demand for amenities. Mixed-used properties will become increasingly common.
“Retail always follows the rooftops and with the surge in inner-city residential development retail is following the condo towers,” said Michael Kehoe, an Alberta-based retail specialist with Fairfield Commercial Real Estate Inc. in Calgary. “The retail rush downtown in Calgary is led by most of the major and niche grocery chains seeking a foothold close to the downtown core.
“Mixed-use towers that combine residential with retail and sometimes office space are the new development normal in most Canadian cities and quite evident in Calgary. The soon-to-be constructed Telus Sky project is a prime example of this trend. Residents and office tenants will enjoy shopping, dining and amenity retail choices right in their building.”
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With a file from Canadian Press

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Fourteen-storey luxury condo planned along Elbow River

12 suites in 14-storey Mission tower

 

By Mario Toneguzzi, Calgary Herald October 21, 2014

 

 

Rendering of The XII residential condo development planned for the Mission district along the Elbow River.

CALGARY - A unique luxury condo development planned for Calgary’s Mission neighbourhood is aiming at making an easy transition from the single-family lifestyle to highrise living.
The XII, a 12-suite, 14-storey landmark, to be built at 304 26th Avenue S.W., along the Elbow River, will feature one home per floor for 10 units and two units consisting of two floors each, the Herald has learned.
Stanley Yasin, managing partner of The XII, said construction of the project is expected to begin next spring with occupancy scheduled for the beginning of 2017.
He said units will range in size from 2,200 square feet to 3,300 square feet with prices ranging from $2.95 million to $5.8 million.
The development will also include a unique underground automated parking system.
“We spent a fair amount of time researching the marketplace and understanding what some of the other luxury buildings were offering and we came to the conclusion that this site best called for what I call a transition between single-family home living and condominium living,” said Yasin.
“By having single-level living we’re able to achieve the privacy and the comforts of a single-family home.”
Yasin said the automated parking system is a way to park cars that is safe, secure and easy. Homeowners will be able to drive their vehicles into the garage, exit the car and walk straight into the lobby, and the car will automatically drop below and essentially park itself. Prior to doing that, it will rotate so that when the car is retrieved it comes back up to the garage facing out.
Yasin said the company’s research indicated there is a strong demand in Calgary for luxury residential product.
“Once we decided that we were going to build a luxury way to live, it became obvious that we needed to create a building that called for that,” he said. “So the design was to achieve that luxury kind of living and the quality of the interiors will be very high. In fact, part of our mantra is to give our purchasers the opportunity to be able to finish the space to their liking, to their comfort.”
Architect Jeremy Sturgess said the features of the building come together to present a structure that is “light years” beyond anything currently available on the market and it will be iconic for many years to come.
“The XII is a jewel of urban elegance and will be a legacy. Residents will be living in some of the best space in Canada,” he said.
“The site is probably the last piece along the river in a set of buildings that had been building over time and creating in particular an important urban edge between the river and the single-family development to the south of the river and kind of downtown and the urban condition that really is sort of between the Elbow River and the Bow River moving northward.”
Sturgess said the site is one of the last key opportunities to do “something remarkable” there.
Other amenities include large storage spaces, high-tech and smart appliances, a full-time concierge in the lobby, digital video security surveillance, emergency backup of critical building systems in the event of power failure, large terraces, high-speed residential elevator with smart individual access control system, individually-restricted floor access, individually-controlled heating and air conditioning, and column-free living.

To customize their home, owners will have private consultations with Sturgess, interior designer Douglas Cridland and travel to Vancouver to meet with the bulthaup kitchens team.
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In 10 months, Calgary sets full-year record for luxury home sales

$1-million-plus MLS sales already top 2013 

By Mario Toneguzzi, Calgary Herald October 20, 2014 8:53 AM

 

 

Luxury home sales in Calgary have already eclipsed the annual record set in 2013.

CALGARY - Calgary’s booming luxury home market has already set an annual record for MLS sales with more than two months left this year.
According to Mike Fotiou, associate broker with First Place Realty, as of Oct. 18, there were 732 properties in the city that sold for $1 million or more. That surpassed the annual record of 726 which was established in 2013. The previous record before last year was 544 in 2012.
Fotiou said that luxury sales year-to-date represent 3.3 per cent of homes sold through MLS in the city, up from 3.1 per cent last year and 2.4 per cent in 2012.
Monthly records have been set in the luxury home market for every month this year including the all-time high, for any month, of 104 in June.
Fotiou said that the booming luxury market records have been set this year “despite two direct measures” taken by Canada Mortgage and Housing Corp. at buyers of $1-million-plus properties.
The first was two years ago, he said, when the CMHC stopped insuring mortgages on homes worth $1 million plus if the buyer didn’t have at least a 20 per cent downpayment. The second was enacted at the end of July when the CMHC stopped offering mortgage insurance for homes that cost $1-million plus altogether, even if the buyer made a deposit of 20 per cent or more.
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Cochrane reaches all-time MLS sales high

Annual peak established after only three quarters

 

By Mario Toneguzzi, Calgary Herald October 9, 2014                          

 

Cochrane’s resale housing market has set a record this year for activity.

Photograph by: Christina Ryan , Calgary Herald

CALGARY - Cochrane has joined Airdrie and Chestermere for reaching an annual sales record in the resale housing market after just three quarters of the year.
According to Mike Fotiou, associate broker with First Place Realty, MLS sales in Cochrane year-to-date until the end of September hit the 610 mark, up 38.32 per cent from the same period last year.
The annual peak for sales was established in 2013 with 554 transactions.
The average MLS sale price in Cochrane so far this year is $433,537, up 4.34 per cent from last year, while the median price has risen by 4.99 per cent to $426,250.
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September another record month for Calgary luxury home sales

All 9 months this year establish new peak levels

By Mario Toneguzzi, Calgary Herald September 26, 2014

                         

 

 

Calgary’s luxury home market is experiencing a record year in 2014.

Photograph by: Courtesy Sotheby's , Calgary Herald

CALGARY - Each month this year has established a record for luxury home sales in Calgary’s resale market.
September is the latest.
According to Mike Fotiou, associate broker with First Place Realty, as of Thursday, a total of 61 MLS properties in the city have sold for $1 million or more, eclipsing the previous record of 59 for the month set last year.
The most expensive sale so far this month was for a home in Briar Hill at $4.6 million, he said.
Fotiou also said the neighborhoods of Altadore/River Park and Elbow Park/Glencoe lead the way in sales in September with six and five transactions respectively as of Thursday.
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Calgary Resale Housing Market Poised for Record September

Calgary resale housing market poised for record September

On pace to break MLS sales peak of 2005

By Mario Toneguzzi, Calgary Herald September 22, 2014

 

CALGARY - Calgary’s resale housing market is on pace to break the record for MLS sales during the month of September - a peak that has been in place since 2005.
According to the Calgary Real Estate Board, month-to-date from September 1-21, there have been 1,500 sales in the city, which is up 11.61 per cent from the same period a year ago.
The September monthly record was established in 2005 with 2,197 transactions. Last year for the entire month of September there were 1,919 sales, which was the second best September on record.
“Whenever a market sees record growth one should ask what is going on behind the scenes to cause this? Many factors propel a strong real estate market,” said Tanya Eklund, realtor with RE/MAX Real Estate (Central) in Calgary. “Buyer confidence is influenced by low unemployment rates, continued low interest rates, low vacancy and high migration into Calgary all of which are driven by strength in the oil and gas sector. Calgarians are in a good place and are feeling confident in the real estate market.”
The average MLS sale price this month of $482,113 is up 5.73 per cent from a year ago while the median price has risen by 3.58 per cent to $420,000.
New listings in September have increased by 14.03 per cent to 2,390 while active listings as of Sunday were 4,785, up 16.37 per cent from last year.
“The dramatic population growth we experienced in 2013 is now being felt in the Calgary real estate market. It usually takes 18 months for the population growth to impact a real estate sales market, but due to the very low vacancy and the continued influx of new residents, this has pushed this to a much shorter time line,” said Don Campbell, senior analyst with the Real Estate Investment Network.
“Yes, the market will eventually slow when winter hits. However what we are witnessing here in Calgary . . . is a widening of the busiest months. It used to peak in April and May, but now due to the growth in jobs and population, the busy season is now encompassing April to October. A new trend has formed and real estate professionals must adjust their businesses accordingly.”
According to Mike Fotiou, associate broker with First Place Realty, overall September prices are at their highest September level ever.
Those prices are also being boosted by 49 luxury home sales so far this month, which surpasses every previous September month-end total except last year which set the peak at 59 transactions at the million-dollar plus level, said Fotiou.
After two straight months of year-over-year sales declines, the single-family market is poised to break the string this month as transactions so far are 962, up 1.69 per cent from a year ago. The average sale price of $564,017 has increased by 10.1 per cent and the median price has jumped by 6.94 per cent to $481,250.
In August, Calgary recorded its 17th consecutive month of year-over-year gain in MLS sales and 31st consecutive month of annual price hikes.
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Calgary's Prosperity Driving Demand for High-End Housing

Simply the best

by Cody Stuart on Sep 22, 2014

*CREB®Now real estate news luxury feature*

Calgary’s prosperity driving demand for high-end housing

While the final tally won’t be in for a few more months, it appears Calgary’s luxury homes market is on the verge of the best year in the city’s history.

According to CREB®, 611 homes priced at $1 million or more have sold through the first eight months of 2013. That number includes a record-setting 69 properties sold in August alone, which broke the previous record of 64 .

Set just last year, the all-time record for luxury sales in the city is 726. With four months left before the arrival of the new year, Calgary would need just 115 more sales – in a city averaging 76 a month – to break the record.

“Low lending rates, improving wages, rising prices and solid economic fundamentals have supported the growth in this segment of the market,” said CREB® chief economist Ann-Marie Lurie.

Another factor motivating the substantial rise in luxury sales in the city is the increasing number of homes surpassing the million-dollar mark.

“Sales price over $1 million have been representing a larger share of our market,” said Lurie. “Year-to-date, 611 million plus sales occurred within city limits, representing 3.3 per cent of total share of sales. On a year-to-date basis this represents a steady annual climb since 2009 when the share of sales dropped to 1.46 per cent.”

While Lurie also noted the majority of Calgary’s luxury MLS® homes up for grabs are the single-family market (90 per cent in August), the same prosperity has shown up in other sectors, as well. Highlighted by the announcement that Holt Renfrew would be adding a private “shopping apartment” to their downtown store, Calgary is quickly developing a reputation as a hot spot for luxury in Canada.

According to a report from Sotheby’s, over the first six months of 2014, Calgary’s 17 per cent increase in $1-million plus sales in Canada trailed only Vancouver and Toronto’s 34 per cent increase for the top spot in the country.

“Bolstered by the city’s thriving economy, the strength of its oil and gas sectors, low unemployment rates, high average net incomes and strong net migration, the market for high-end homes continued its upward trajectory with single-family home sales up 19 per cent and attached home sales up 21 per cent year-over-year,” said the report.

One area that saw a decline in luxury sales during the year was Calgary’s condo sector, where $1-million-plus sales dropped from 57 to 51 through the first eight months of 2014. Despite the decline, an upswing in the number of high-end condos under construction and slated for completion in Calgary means an increase could be in the cards in the coming months.

Highlighting the level of luxury found in Calgary’s resale condo sector, a $4.4-million penthouse in Eau Claire’s Princeton Hall earlier this year set the record for the priciest condominium ever sold in the city. Other high-end developments are also expected to come on steam soon, such as The River in Mission, Concorde and Waterfront in Eau Claire and Overture at Currie Barracks.

“What we here at Sotheby’s Calgary have noticed is the actual new segment of the ultra-luxury product – those family estates that are coming on the market,” said Mary-Ann Mears of Sotheby’s International Realty Canada.

“Why? Calgary is a wonderful city and we’re attracting top ranking executives [from] across the country. We have seen a lot of international influence coming to Calgary. All the key factors are there.”

Earlier this year, a 64-hectare property in the Calgary area was listed for a record $30 million. The property, which contains an 11,000 square-foot home along with a 3,800 square-foot guest house was actually one of a pair of listings that cracked the $30-million mark. Kettle Lake Ranch – a 98-hectare property near Priddis containing two houses, a barn, a hay storage building, a gas station and staff accommodations – was listed for the princely sum of $37.8 million.

- See more at: http://www.crebnow.com/simply-the-best/#sthash.DzPeXuO3.dpuf

Calgary resale housing price growth highest in Canada

National sales highest since January 2010

By Mario Toneguzzi, Calgary Herald September 15, 2014 12:06 PM

 

Calgary’s resale housing has the best annual price growth in the country.

Sales in Canada's resale housing market are approaching pre-recession highs seen in 2007, while rising prices in Calgary continue to outpace the nation - prompting an economist to warn the country's hottest markets may be susceptible to a "shock."

The Canadian Real Estate Association reported Monday that sales in August were up 1.8 per cent month over month, due to strong sales in major centres. It was the seventh consecutive month of growth for the country's housing market.

“Although activity rose in fewer than half of all local housing markets in August, the national tally was fuelled by monthly sales increases in Greater Vancouver, Calgary and Greater Toronto,” said CREA.

Sales rose the most in Vancouver, up 10.3 per cent, at 2,820 units. Calgary sales were up 5.2 per cent, at 2,976 units. CREA's data for Calgary includes the city's surrounding areas.

Doug Porter, chief economist with BMO Capital Markets, said the overall level of sales in Canada is closing in on the pre-recession highs reached in 2007.

He said markets are balanced in most regions, but Alberta is an exception, “where sellers retain the upper hand over the ongoing tide of newcomers to the province.”

“Canada’s housing market remains healthy and well balanced overall, albeit with sizeable disparities across regions. The major potential flashpoint is that prices in the three hottest cities — Calgary, Toronto and Vancouver — are rising faster than family income, further straining affordability,” he said. “The continued rapid price gains in these cities will increase their vulnerability to a shock — whether economic, interest rate, or something else.

“The persistent strength in these cities is no doubt what prompted the Bank of Canada to stop talking about the inevitably of a soft landing for Canadian housing, and to suggest that the sector has been stronger than they expected. But we would reinforce the message that talk about the hot housing market is really only a three-city story.”

The CREA reported Monday that Calgary's annual price growth of 9.83 per cent in the MLS Home Price Index was much steeper than the national aggregate of 5.33 per cent.

Gregory Klump, CREA’s chief economist, said listings and sales this spring were deferred due to unseasonably harsh weather, which subsequently supported activity once the delayed spring homebuying season got into gear.

“This trend was reinforced by a decline in mortgage interest rates,” he said.

“The boost from deferred sales is still expected to prove transitory. While national activity has yet to cool, sales were down from the previous month in the majority of Canada’s local markets, which may be early evidence that the transitory boost is fading. That said, low interest rates will continue to support housing affordability and sales activity.”

The national average price for homes sold in August was $398,618, up 5.3 per cent from the same month last year while the average in Calgary rose by 5.2 per cent to $454,994.

In Alberta, the average price rose by 4.2 per cent to $397,701 as sales were 3.8 per cent higher to 6,354 transactions.

A report by TD Economics said the obvious risk with a housing boom is that it may be fueled by unsustainable increases in debt. Despite rising housing activity, mortgage credit growth remains modest. This is largely a function of households paying back principal more aggressively than in the past, as well as moderation in home equity withdrawals, it said.

“There is, however, clear cause for caution. While households have moderated their credit growth, household debt remains near record highs,” wrote Brian DePratto, economist with TD Economics. “The ratio of household debt to disposable income reached 163.6 per cent in the second quarter, near the peak of 164.1 per cent seen in (third quarter of 2013).

“To sum up the current state of the housing market and household finances, it would appear that the party is still going, but households are nearing their limit. Real risks exist that bear close monitoring. Interest rates remain low, and their lure may prove too strong for households, fuelling a further acceleration in household debt. At the same time, net worth has been buoyed by gains in house prices, and a dramatic slowing, or even decline, in prices would have a damaging effect on net worth.”

The report said the housing party is likely to wind down in an orderly fashion. Rates can’t remain low forever, and TD expects a gradual rise as we approach 2015, leading to a natural deceleration in the demand for housing.

In an updated forecast also released Monday, CREA said sales nationally will reach 475,000 units in 2014, representing an annual increase of 3.8 per cent. Sales are expected to dip by 0.4 per cent in 2015 to 473,100 units.

CREA is forecasting Alberta sales to jump by 7.7 per cent to 71,200 transactions and 1.0 per cent to 71,900 units.

The average sale price in Alberta is forecast to rise by 5.0 per cent this year to $400,200 and by another 1.9 per cent next year to $408,000 while nationally the price will increase 5.9 per cent this year to $405,000 and by 0.7 per cent in 2015 to $407,900.

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Calgary Resale Housing Market on Pace to Eclipse $11.3B Sales Record

Calgary resale housing market on pace to eclipse $11.3B sales record

 

By Mario Toneguzzi, Calgary Herald September 9, 2014 9:35 AM

                                                                     

CALGARY - Calgary’s resale housing market is on pace to set a record for total dollar volume in MLS sales in a year, eclipsing the $11.3 billion peak established during the housing boom of 2007.

Year-to-date until the end of August, there have been 18,521 transactions at an average sale price of $482,185 for a total dollar volume of $8.9 billion, according to the Calgary Real Estate Board. Last year, during the same period, there were 16,712 sales with an average price of $456,629 and a total dollar volume of $7.6 billion.
During the record year of 2007, there were 26,611 total sales all year with an average sale price of $423,770. Last year was the second highest dollar volume on record at $10.7 billion with 23,474 sales and an average sale price of $456,595.
Julie Dempsey, a realtor with Sotheby’s International Realty Canada, said the number of new people moving to Calgary is the main factor behind such strong sales activity in the city and the continued elevation of prices.
“The listings that I am currently working on have a common theme: they are owned by savvy investors who see the strength in Calgary’s market and they are choosing to cash in,” said Dempsey.
Average sale prices in Calgary have jumped by more than $225,000 since 2005.
Calgary’s latest housing boom is being fuelled by net migration. According to Canada Mortgage and Housing Corp., net migration to the Calgary census metropolitan area was 45,168 in 2013 and 31,996 in 2012. During the housing boom of 2006-2007, net migration peaked at 25,120 in 2006.
“The higher dollar volume is a reflection of the composition of sales,” said Ann-Marie Lurie, CREB’s chief economist. “When we look at what at this year compared to 2007, of all residential sales activity a greater share of the sales have been occurring in the $500,000 plus price ranges. Meanwhile, the share of sales has dropped for the under $400,000 sales.
“With a greater number of sales occurring in the higher price ranges, it is not a surprise that the dollar volume of sales has increased at a faster pace than the growth in number of transactions.”
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Calgary Luxury Homes Sales on Record Pace

Calgary luxury home sales on record pace

Every month this year has set a new peak for MLS transactions

By Mario Toneguzzi, Calgary Herald September 4, 2014                            

 

CALGARY - The appetite for luxury homes in Calgary continues to be very strong as another MLS sales record was established in August.
According to the Calgary Real Estate Board, there were 69 properties that sold for $1-million or more during the month, eclipsing the previous monthly high of 64 set last year.
Each month this year has established a record for luxury home sales.
Year-to-date, there have been 611 luxury home sales until the end of August compared with 522 for the same period last year. The all-time peak for annual sales at the $1-million plus level was in 2013 with 726 MLS transactions.
“Bolstered by the city’s thriving economy, the strength of its oil and gas sectors, low unemployment rates, high average net incomes and strong net migration, the market for high-end homes continued its upward trajectory with single-family home sales up 19 per cent and attached home sales up 21 per cent year-over-year,” said Sotheby’s International Realty Canada’s Top-Tier Real Estate Report for the first half of the year, which was released on Thursday.
“Due to limited inventory in Calgary’s condo market, sales decreased 25 per cent compared to the same time last year. With a number of new high-end condo projects recently announced in Calgary’s downtown core, it is expected that the volume of luxury condo sales above $1 million will increase in the second half of 2014.”
Ross McCredie, president and chief executive of Sotheby’s International Realty Canada, said the Calgary housing market is still relatively inexpensive for many people who have moved to the city from other parts of Canada.
“There’s a ton of different factors (to the luxury home boom) but overall there’s a ton of confidence,” he said.
“Low interest rates, a lot of confidence specifically in Calgary where you have a lot of investment, very, very low unemployment and you have huge demand for jobs . . . Overall we don’t see anything that’s going to change in the horizon right now for us.”
The Sotheby’s report said low inventory in the beginning of the year drove bidding wars and price increases in a market that favoured sellers.
“Over the summer months, new inventory over $1 million emerged to meet strong consumer demand, particularly in the condominium market, a trend which is expected to continue into the fall,” it said. “At the same time, Calgary’s robust economy is expected to sustain demand for luxury real estate, and notable growth is expected in the $4 million single-family home market throughout the fall and into 2015 as this category has already outpaced 2013 sales numbers.”
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Single-family Sales Down, but Housting Prices Continue to Climb in Calgary

 

Single-family sales down, but housing prices continue to climb in Calgary

Second highest level of sales ever for the month

By Mario Toneguzzi, Calgary Herald September 2, 2014 1:37 PM

Prices and activity continue to climb in Calgary’s resale housing market.

CALGARY - Calgary’s hot resale housing market showed no signs of cooling off in August as sales and prices continued to climb.
According to the Calgary Real Estate Board, August was the 17th consecutive month of year-over-year gains in MLS sales and the 31st consecutive month of year-over-year annual price growth.
There were 2,267 sales in August, up 3.42 per cent from last year. The median price rose by 6.02 per cent to $423,000 and the average sale price increased by 5.27 per cent to $477,783. New listings were up by 13.6 per cent to 3,150 and active listings at the end of the month climbed by 17.91 per cent to 4,596.
The benchmark price, which CREB says is the cost of a typical home, was up 10.18 per cent to $459,800.
Total sales were the second highest ever for August behind only the 2,326 sales level set in August 2005.
Calgary sales this month were buoyed by strong activity in the condo market as single-famly home sales actually dropped from a year ago. The single-family market saw activity decline by 2.38 per cent to 1,477 sales but the median price rose by 6.47 per cent to $479,000 while the average price was up by 5.42 per cent to $545,238. The benchmark price rose by 10.24 per cent to $512,300.
“Sales activity has continued to improve but it’s due to the condo sector,” said Ann-Marie Lurie, CREB’s chief economist.
It was the second consecutive month that single-family sales have declined year-over-year.
“This is all coming down to the affordability of product. This has been a trend that we’ve continued to see happen. With less and less product being available in the single-family price range at that lower end (below $400,000) we’ve seen that pick up in demand in the condo side,” said Lurie, adding the decline in single-family sales is taking place in the lower end of that market while sales above that price point have risen.
Lurie said more than 76 per cent of new condo listings are priced below $400,000 and represent more than 68 per cent of the total inventory within city limits.
Sales for condo apartments were up by 13.85 per cent to 452 units as the median price rose by 10.58 per cent to $287,500 and the average price was up by 11.48 per cent to $332,006. The benchmark price increased by 10.2 per cent to $298,200.
In the condo townhouse sector, sales increased by 19.86 per cent to 338 units as the median price jumped by 9.86 per cent to $339,894 and the average price rose by 13.27 per cent to $377,958. The benchmark price of $328,300 was up by 9.98 per cent.
The market that includes towns outside the city also saw a spike in activity with sales up 12.3 per cent to 484. The median price grew by 5.34 per cent to $375,000 while the average price was up by 7.29 per cent to $391,595. The benchmark price rose by 7.9 per cent to $375,600.
“Sales activity is still strong relative to long-term averages,” said Lurie. “And prices are still improving. Listings are increasing. So with inventory rising as it pushes to more balanced levels, we’re seeing prices start to level off. This is what we would expect . . . But we’re still going to see strong year-over-year price gains.”
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Calgary repeat home sale price growth best in Canada

8.2% hike from last year

By Mario Toneguzzi, Calgary Herald August 13, 2014                    

 

Calgary home price growth year-over-year is the best in Canada.

Photograph by: Ted Rhodes , Calgary Herald

CALGARY - Calgary led the nation in July in annual price growth for repeat home sales.
The Teranet–National Bank National Composite House Price Index, released Wednesday, said Calgary prices were up by 8.2 per cent year-year-year while the national composite of 11 major centres in the country rose by 4.9 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 of the index.
On a monthly basis, prices in Calgary rose by 0.6 per cent and they were up by 1.1 per cent nationally, which was the first time in five months that the monthly change in the composite index exceeded the historical average for the month in question. Prices were up on the month in 10 of the 11 metropolitan markets surveyed.
The report said the gain exceeded the countrywide average in five markets: Victoria (3.5 per cent), Ottawa-Gatineau (2.0 per cent), Toronto (1.8 per cent) and Quebec City and Hamilton (1.6 per cent). It lagged the average in Edmonton (1.0 per cent), Halifax (0.7 per cent), Calgary, Montreal (0.5 per cent) and Vancouver (0.2 per cent). For a third consecutive month, Winnipeg prices were down from the previous month (0.1 per cent ).
“July was the eighth month in a row in which the composite index did not fall. This countrywide performance was equalled in only one market, Edmonton, though Calgary came close with a seventh straight monthly increase,” it said.
The report said the countrywide average year-over-year was greatly exceeded in Calgary, Hamilton (7.1 per cent), Toronto (6.6 per cent) and Vancouver (6.1 per cent). The 12-month increase was more moderate in Edmonton (3.7 per cent), Victoria (2.5 per cent) and Montreal (1.5 per cent). Year-over-year prices were down in Winnipeg (0.1 per cent), Quebec City and Halifax (1.2 per cent) and in Ottawa-Gatineau (0.1 per cent).
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