Calgary Real Estate in the News

Executive 2 bedroom condo for under $215,000!

2009-06-25T10:54:00.003-06:00

FINALLY, a condominium which is completely UPGRADED with everything you could ask for. This 2 bedroom eye-popping home has a rare south-facing balcony and is finished in today's colours and polished finishings. Designer hardwood and ceramic tiles throughout! The contemporary glass faced wardrobe in master bedroom exudes luxury. Large Soaker tub & the location can't be beat. Quick access to Deerfoot Trail at 16th Avenue North and shopping galore. Use of exercise Room with sauna, Games Room (pool, shuffleboard & darts)and car wash bay included in your fees. If you've been waiting for an exceptional condo to come up, then book your appointment now!

You have to check out this Virtual Tour before someone else gets their hands on it!

National resale housing continues to rise in May

2009-06-15T09:25:00.001-06:00

OTTAWA – June 15th, 2009 – National resale housing market activity returned to pre-recession levels in May 2009. The rebound in activity is being led by an increase in transactions in some of the most expensive markets in the country, which is skewing the national average price upward.

According to statistics released by The Canadian Real Estate Association (CREA), actual (not seasonally adjusted) home sales via the Multiple Listing Service® (MLS®) of Canadian real estate boards totaled 49,521 units in May 2009. This is less than one per cent below activity in the same month one year ago. Year-over-year declines have been shrinking since the beginning of the year.

The seasonal increase in activity continues to be stronger than normal. As a result, seasonally adjusted home sales rose eight per cent to 37,649 units in May compared to April. This marks the fourth consecutive monthly increase in seasonally adjusted activity. Seasonally adjusted activity in May was 43 per cent above where it stood in January 2009.

Seasonally adjusted sales were up on a monthly basis in about 70 per cent of local markets. Monthly activity gains in Toronto (nine per cent), Calgary (25 per cent), Montreal (10 per cent), Vancouver (eight per cent), and Edmonton (12 per cent) contributed most to the overall increase in monthly activity.

The national MLS® residential average sale price in May 2009 reached the highest monthly level on record. At $319,757, it was up fourth tenths of a percentage point from the previous record set in May 2008. Over the past four months, the national MLS® residential average price has recovered 16.4 per cent from the low in January. The average price for MLS® home sales climbed to new heights nationally, and in Saskatchewan, Ontario, Quebec, New Brunswick, and Nova Scotia. New records were posted in only 15 per cent of local markets in May, none of which are among the most active or expensive. The strong rebound in sales activity, not price, in Canada’s most expensive markets is driving up average prices nationally and in some provinces, just as a sharp decline in activity in these markets pushed average prices lower in late 2008.

The supply of homes coming onto the MLS® market continued to decelerate in May. Seasonally adjusted MLS® residential new listings edged lower by eight tenths of a percentage point to 65,070 units, the lowest level since December 2005. Seasonally adjusted new residential listings in May were 19 per cent below the peak reached one year ago.

With the number of sales rising strongly and new listings trending downward, the balance between supply and demand is firming up in British Columbia, Alberta, Saskatchewan, Ontario, and Quebec. This resulted in national sales activity as a percentage of new listings reaching the highest point since December 2007. Residential dollar volume for MLS® sales climbed 10 per cent from the previous month to reach $11.4 billion in May. This is more than 50 per cent above the low of $7.5 billion reported last January.

National resale housing continues to rise in May “Sales activity is now closer to the pre-recession peak than it is to the recent low point reached last January,” says Regina Broker Dale Ripplinger, President of The Canadian Real Estate Association. “Strengthening consumer confidence, low interest rates, and improved affordability are drawing buyers to the housing market across Canada,” he added.

“Fueled by a string of monthly increases in activity, the number of transactions in May reached the highest point since July 2008,” said CREA Chief Economist Gregory Klump. “Inventory levels are still high in many markets, but fewer new listings and rising sales activity suggests that the selection of homes available for sale may shrink as the year progresses. The supply of homes up for sale needs to be drawn down further before average price increases become more widespread among local markets.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately. CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale. The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 96,000 REALTORS® working through more than 100 real estate Boards and Associations.

Homeowner Assistance Program

2009-06-02T17:37:00.002-06:00

Genworth Financial Canada is now offering some mortgage protectioin which goes well beyond the initial purchase of the home. Whether in a strong market or during uncertain economic times, should you face unexpected life events that affect their ability to make mortgage payments, Genworth might be able to help.

Through their Homeowner Assistance Program homeowners who are experiencing temporary financial difficulties, which may put their mortgage at risk can evaluate their situation. This could be the result of a serious illness, marital separation, or loss of employment. If you have a Genworth-insured mortgage, you can take advantage of this program - at no extra cost.

Just follow this Link.

Balanced Market Achieved in Calgary

2009-06-02T09:24:00.002-06:00

I am happy to report that we have now officially moved into a balanced market. That means that there is a sale occurring for every 2.5 to 4 listings on the market in a given month. This is good news for us but not a reason to become complacent about our price. There are still many new homes on the market which are attractive to buyers and well below our asking price and they are competing with us along with all the other actives.

Listings have come off substantially from last month during the first 2 days of the month as is usual. They are still hovering around 8000 combined Calgary Residential listings which has been fairly consistent since January and we may soon see this number dropping off as sellers take a breather going into the fall.

Sales shot up in May making it the best month of the year. Will it continue?

The median list price is up by $5,000 since May 19th, while the price has dropped for sales during the same period, by almost $20,000 to $361,950. The average days on market for sold properties has nudged up to 60.5 from 52.25.

Northeast Stony Trail Road Project

2009-05-30T07:40:00.004-06:00

For those of you who still need to know what this is all about, please see the attached map of the project.

April 2009 Statistics package

2009-05-02T06:54:00.000-06:00

Calgary, May 1, 2009 – MLS® sales activity of single family Calgary metro homes was 1,290 in the month of April 2009, showing an increase of 19 per cent from 1,086 sales in March 2009, according to figures released by the Calgary Real Estate Board (CREB®). This was a decrease of 5 per cent from April 2008, when single family home sales were 1,363. The number of condominium sales for the month of April 2009 was 579, an increase of 30 per cent from the 446 condominium transactions recorded in March 2009, and a decrease of 0.3 per cent from April 2008, when 581 condominiums changed hands.

“Spring is giving new life to the residential real estate market,” said Calgary Real Estate Board President, Bonnie Wegerich. “Affordable pricing and low interest rates are drawing buyers back to the market.”

“In particular we are finding more and more first time home buyers taking advantage of great inventory and very low interest rates. We expect spring sales activity will also get a boost from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers’ Plan and the First Time Buyer Tax Credit,” added Wegerich.

The average price of a single family Calgary metro home in April 2009 was $426,311, showing an increase of 1 per cent from March 2009, when the average price was $420,354, and showing a decrease of 10 per cent from April 2008, when the average price was $474,564. The average price of a Calgary metro condominium was $277,953, showing a 2 per cent decrease from March 2009, when the average price was $284,056, and a decrease of 11 per cent over last year, when the average price was $312,586. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

“The average price for home sales remains below levels reached one year earlier, but year-over-year declines are contracting,” said Wegerich. “Our inventory also continued to decrease in April, which is helping to firm up the balance of supply and demand,” added Wegerich.

Single family Calgary metro new listings added for the month of April totaled 2,010, down just 1 per cent from the 2,023 new listings added in March 2009, and showing a decrease of 40 per cent from April 2008, when 3,377 new listings came to the market. Calgary metro condominium new listings added in April 2009 were 967, up 7 per cent from March 2009, when the MLS® saw 903 condo listings coming to the market. This is a decrease of 35 per cent from April 2008, when condominium listings were 1,493.

The median price of a single family Calgary metro home in April 2009 was $380,000, showing an increase of 1 per cent from March 2009, when the median price was 375,000, and down 10 per cent from April 2008, when the median price was $420,000. The median price of a condominium in April 2009 was $251,000, down 3 per cent from March 2009, when the median was $260,000, and down 13 per cent from April 2008, when the median price was $290,000. All Calgary metro MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“Undoubtedly this market has been challenging for both buyers and sellers, but the improvement in recent months is an encouraging sign,” said Wegerich. “There’s more confidence in the housing market today than at the end of 2008. Prices are stabilizing, inventory is declining and the number of new listings is leveling—these are all signs that a balanced market is on the horizon.”

CREB® is a professional body of 5,200 licensed brokers and registered associates, representing 252 member offices. The Board does not generate statistics or analysis of any individual member or company’s market share. All MLS® active listings for Calgary and area may be found here.

Bank of Canada cuts interest rates for last time in April

2009-04-22T08:55:00.000-06:00

The Bank of Canada lowered its benchmark overnight lending rate by one quarter of a percentage point to 0.25 per cent at its setting on April 21st, 2009. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, declined to 0.5 per cent.

The Bank acknowledged the global economic recession had intensified since publishing its previous economic forecast in January. “In an environment of continued high uncertainty, the global recession has intensified and become more synchronous since the Bank’s January Monetary Policy Report Update, with weaker-than-expected activity in all major economies,” said the Bank when it again lowered interest rates on April 21st.

The Bank has repeatedly lowered its policy interest rate to support economic growth. Since December 2007, the Bank has cut its overnight lending rate by a total of 4.25 per cent. Major Canadian chartered banks lowered their prime lending rate in lockstep with the Bank of Canada’ most recent interest rate cuts.

In its announcement, the Bank indicated that it was done cutting rates now that its benchmark overnight lending rate has been dropped to what it described as “the effective lower bound for that rate.” In a departure from the staus quo, it did not lower the deposit rate, which is the rate of interest paid on deposits held by financial institutions at the Bank of Canada. Leaving the deposit rate unchanged at 1/4 per cent further adds much needed liquidity into the financial system.

“The Bank was unusually explicit in its language about holding its key interest rate at its rock bottom, now that it further downgraded its inflation outlook,” said CREA Chief Economist Gregory Klump. “By saying ‘the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target,’ the Bank has removed any guesswork for projections as to how long it will be before interest rates can be expected to begin rising.”

The Bank downwardly revised its forecast for economic growth in 2009 and 2010. It also extended its forecast as to how long Canada would remain mired in an economic recession.

It also pushed the goalposts out to the third quarter of 2011 as to when it expects inflation to climb back to the two per cent midpoint of its target range between one and three per cent. The Bank targets the core rate of inflation at two per cent.

“For the second time this year, the Bank revised its economic forecast downward, making it more downbeat than the most bearish of private sector economic forecasts,” said Klump. “The Bank economic growth forecast for 2010 was also cut, but it remains rosier than the current consensus.”

The Bank’s Monetary Policy Report to be published on April 23rd will lay out the framework for additional monetary policy tools it may use to further inject liquidity into the financial system in its ongoing attack against the continuing credit crunch.

When the Bank cut interest rates on April 21st, the advertised five-year conventional mortgage rate stood at 5.45 per cent. This is down 1.54 per cent from one year earlier, and 0.34 per cent below where it stood when the Bank made its previous interest rate announcement on March 3rd.

The ongoing credit crunch has led mortgage lenders to reduce discounts on advertised mortgage interest rates, and in some cases these have been completely eliminated.

“Resale housing activity began stabilizing in the first quarter of 2009, thanks to improving affordability,” said Klump. “Lower prices and an extended stretch of low interest rates will further support sales activity this year and next. In the economic recessions of the early 1980s and 1990s, resale housing activity bottomed out before the overall economy did. As then, homebuyers this year will continue being drawn to market by improving affordability.” (CREA 21/04/2009)

MLS® resale housing market stabilizes further in March

2009-04-18T07:30:00.000-06:00

Existing MLS® home sales activity increased for the second month in a row in March 2009, according to statistics released by The Canadian Real Estate Association (CREA). The number of new listings also continued trending lower in March, which firmed up the balance of supply to demand.

A seasonally adjusted total of 31,135 homes traded hands nationally via the Multiple Listing Service® (MLS®) in March 2009. This is an increase of seven per cent from the previous month, and builds on the 10.3 per cent activity gain in February. The number of transactions in March 2009 stands 18 per cent above levels reported in

January 2009, when activity sank to the lowest level in a decade.

The monthly increase in activity was largest in British Columbia (13.6 per cent), and Ontario (10.5 per cent). Sales were also up from February levels in Manitoba, Quebec, and Newfoundland & Labrador.

Actual (not seasonally adjusted) transactions numbered 35,225 units in March 2009. While this remains 13.7 per cent below levels reported in March 2008, it is the smallest year-over-year decline in six months.

The national average price for home sales via the MLS® remains below levels reached one year earlier, but year-over-year declines are shrinking. The MLS® average residential price for homes sold in March 2009 was $288,641, down 7.7 per cent from March 2008. This is the smallest year-over-year decline in six months.

The average price for homes sold via the MLS® set a new record in March 2009 in Manitoba, and remained above year-ago levels in Saskatchewan, Quebec, New Brunswick, Prince Edward Island, and Newfoundland & Labrador.

The national average price continues to be skewed downward by lower activity in some of Canada’s more expensive housing markets and by fewer transactions at the higher end of the price spectrum. British Columbia, Alberta and Ontario, where homes are more expensive, are significant contributors to the current downward trend in national average price. MLS® home sales activity in these provinces accounted for 69 per cent of national activity in March 2008, compared to 67 per cent in March 2009.

The price trend is less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was down 4.7 per cent year-over-year in March, compared to a 5.1 per cent decline in February.

“Housing markets are starting to show signs of buyer interest because of lower prices and interest rates,” says Dale Ripplinger, President of The Canadian Real Estate Association. “We expect April sales activity will feel some effects from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers’ Plan, and the First Time Buyer Tax Credit.”

Q1 2009 Results
Seasonally MLS® adjusted MLS® sales activity in the first quarter of 2009 was little changed compared to the fourth quarter of 2008, declining by less than one-tenth of a per cent.

The number of homes for sale remains high, but continues trending downward. Seasonally adjusted national MLS® residential new listings numbered 208,755 units in the first quarter of 2009. This is down 6.4 per cent from the previous quarter, and represents the third consecutive quarter-over-quarter decline. On a seasonally adjusted basis, the number of MLS® residential new listings has dropped 11.9 per cent from the peak reached in the second quarter of 2008.

With sales activity increasing and new listings trending lower, the balance between supply and demand is firming up in British Columbia, Alberta, Ontario, and Quebec. These provinces have the largest influence on the national housing picture, so a firming housing market balance there in March 2009 caused the national housing market balance to tighten for the fourth time in as many months.

“A number of major housing markets are stabilizing, as buyers respond to improving affordability,” said CREA Chief Economist Gregory Klump. “Looking back to economic recessions in the early 1980s and 1990s, national resale housing activity bottomed out before the job market or economy did,” said Klump. “It will take time for ample supplies of new and existing homes to be drawn down, but demand appears to be stabilizing.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at www.crea.ca.

Calgary foreclosures on the rise

2009-03-25T07:37:00.000-06:00

CBC News

Calgary realtors are seeing more residential foreclosures right now than in the past decade.

There are about 550 properties currently listed in Calgary as bank sales, while about 100 are foreclosures; they account for about 10 per cent of all of the city's listings on the Canadian Real Estate Association's Multiple Listing Service (MLS).

Thirty-seven foreclosed properties were sold in the first quarter of 2009, compared to 39 for all of 2008, said Julie Vesuwalla, a real estate agent for Century 21.

"The majority of the actual foreclosures — more than 65 per cent — are single family homes, not condos, and they are owned by people," said Vesuwalla.

The majority of foreclosures are due to homeowners choosing to let their properties go rather than try to contend with mounting bills.

"Many of these people have left the city for other jobs. Also, many of them have upgraded and they've built a home perhaps and they're stuck with their old residence and they just have to get rid of one of them," she said.

Mireille McGowan invested all her savings and time on a new fourplex on Memorial Drive that she intended to sell. But she ran out of money and the bank foreclosed on the building.

"It's like owning a big, big property that we'll never see, and we're going to have to make monthly payments onto that, forever and ever," she told CBC News.

McGowan now has to make $30,000 monthly payments to the bank to cover the interest alone.

"If we don't come up to pay them, we have only six months; they will take next door, my house."

Ring Road, Plan It will go hand in hand

2009-03-23T07:46:00.001-06:00

In Transit by Chris Phalen
March 23, 2009 12:07
Metro News

Just when Calgary’s identity is bordering on becoming akin to 100 suburbs in search of a city, along comes the giant perimeter to reel in the far-reaching corporate tentacles of developers — the almost mythical Ring Road.

I will venture to say that no road in the history or future of Calgary’s transportation infrastructure will impact the city as positively as this.

The very existence of this corralling corridor should have core homeowners jumping for joy as real estate will have no where to go but up. And although transit infrastructure is often connected to real estate value, no project can boast such a targeted impact.

“When development is curbed, that generally increases the value of flanking properties because there is only so much land in which they are allowing to be developed,” said Melanie Tennant, Real Estate Investment Network research manager.

A 2007 REIN report contended Calgary transportation improvements will deliver a 10 to 20 per cent enhancement of property values in regions most affected by projects such as Ring Road.

So, reports of Calgary’s bid to halt green space development announced days after the draft agreement for the southwest leg of the Ring Road gives officials a handy scapegoat to push Transit Oriented Development investments in the wake of any perceived public outcry.

In this case, timing couldn’t be better for backers of Plan It Calgary.

Plan It’s reported capacity to sustain another 2.3 million citizens without viral development, perfectly timed with the last piece of the Ring Road puzzle, puts the writing on the wall.

The storied Ring Road and nurturing Plan It initiative will go hand in hand.

It’s a perfect irony.

– Chris Phalen has contributed to Avenue magazine, the Prince Albert Daily Herald, the Globe and Mail and various magazines;

Buyers Drawn into Real Estate Market in February

2009-03-19T08:48:00.001-06:00

Resale housing activity in Canada in February 2009 was up from seasonally adjusted levels the previous month, according to statistics released by The Canadian Real Estate Association (CREA).

A total of 28,669 homes traded hands via the Multiple Listing Service® (MLS®) nationally in February 2009 on a seasonally adjusted basis. This is 8.6 per cent above seasonally adjusted levels in January 2009, and the first monthly increase in activity since September 2008. Seasonally adjusted activity in February also surpassed levels reported in November and December of 2008.

Monthly seasonal increases in activity were largest in British Columbia (14.4 per cent), Nova Scotia (12.7 per cent), and Alberta (11.9 per cent). In Ontario and Quebec, the monthly rise was on par with the national increase.

“Typically the Spring market we’re moving into generates more activity, and this year there are the benefits from historically low mortgage rates and improved affordability in most markets,” says the President of The Canadian Real Estate Association, Calvin Lindberg. “REALTORS® are reporting increased interest especially from first time homebuyers.”

Actual (not seasonally adjusted) transactions numbered 25,373 units in February 2009. This was 31 per cent below MLS® residential sales levels a year earlier, but it is the smallest year-over-year decline since October 2008.

The supply of homes for sale remains high, but has been trending lower. National MLS® residential new listings numbered 65,060 units in February 2009, down 10.9 per cent from the same month one year ago. On a seasonally adjusted basis, MLS® residential new listings are down 11.4 per cent from their peak reached in May 2008.

“The housing supply is expected to continue easing, but it will take time before it realigns with lower demand,” said CREA Chief Economist Gregory Klump. “Economic uncertainty is keeping home buyers in a cautious mood, so homes are taking longer to sell than in recent years. Lower sales activity at the higher end of the price spectrum will keep the national MLS® residential average price under downward pressure.”

The national average price for home sales via the MLS® was $281,972 in February 2009, 9.2 per cent below February 2008. This is smaller than year-over-year declines observed in the past four months. It is also the first time that the year-over-year decline in the national average price has decelerated since first turning negative in July 2008.

The national MLS® residential average price continues to be pushed downward by lower activity in some of Canada’s more expensive housing markets and by fewer transactions in higher price ranges. The MLS® average home sale price remained up from year-ago levels in Saskatchewan, Manitoba, Quebec, New Brunswick, Prince Edward Island, and Newfoundland & Labrador in February 2009.

“Real estate is local, so it is important that buyers and sellers accurately determine pricing issues in their specific neighbourhood,” adds CREA President Calvin Lindberg, a West Vancouver REALTOR® .”Despite the doom and gloom, there are multiple offers on properties in some markets. That happens when the house is priced comparably to others in the area. Buyers are looking, but they are confused by the barrage of information they’re getting about the economy and the state of real estate. Consumer confidence remains a critical factor for the housing market.”

The downward pressure on the national MLS® residential average price is being skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most. MLS® home sales in these three provinces accounted for 66 per cent of national activity in February 2009, down from 69 per cent in 2008.

The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was down 5.3 per cent year-over-year in February, compared to a 6.1 per cent decline in January.

Seasonally adjusted residential dollar volume for MLS® sales totaled $8 billion in February 2009, an increase of 7.2 per cent from the previous month.

“Consumer confidence will continue to be depressed by a barrage of negative economic news in the months ahead,” said Klump. “Heightened job insecurity will keep many potential homebuyers on the sidelines. Those who are confident about their job situation will benefit from improving affordability in a number of housing markets.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at www.crea.ca.

Canadian housing sales stronger

2009-03-18T07:23:00.000-06:00

Monthly stats climb; annual results weaker

By Mario Toneguzzi, Calgary Herald - March 17, 2009

There were more preliminary signs Monday that the residential real estate market may be starting to pick up.

The Canadian Real Estate Association in releasing its monthly MLS numbers said housing activity in Canada was up in February from seasonally adjusted levels the previous month.

In Calgary, combined residential sales (including single-family homes and condominiums) numbered 1,392 units in February compared with 928 units in January. The average sale price last month was$370,198, up slightly from $362,143 in January. New listings for February were 3,662 units compared with 3,767 units in January.

However, when compared with year-ago levels, the number of sales in February here fell by 35.6 per cent while the average sale price was down by 10.8 per cent and new listings were off by 29.3 per cent.

"The change from the January to February period (showed) there was some strengthening in the marketplace," said Lai Sing Louie, senior market analyst in Calgary for Canada Mortgage and Housing Corp. "But I would say it would be a little too early to say that the market has bottomed and is turning up now. There have been some positive developments, though, with a pick up in sales here in Calgary. And prices appear to be a little more stable. But it's only a month of data."

Louie said CMHC expects the market to expand at some point, but it's early to make that call now.

"There are positive signs in the marketplace now. In Calgary, for example, it was only a month ago that we had 10 months' of supply (in houses for sale).Now it's been cut to between five and six months. It has improved. But still the supply levels are elevated and we're still seeing demand reduced compared to the past."

Louie said the CMHC projections are for the market to turn this year and 2010 will be a recovery year.

In February, MLS sales in Alberta were down 29.8 per cent from a year ago to 3,231 units and the average sale price fell by 9.2 per cent to $326,785.

CREA, which represents real estate agents, said 28,669 homes traded hands across the country on a seasonally adjusted basis--8.6 per cent above seasonally adjusted levels in January, and the first monthly increase in activity since September 2008. Seasonally adjusted activity in February also surpassed levels reported in November and December of 2008.

Monthly seasonal increases in activity were largest in British Columbia (14.4 per cent), Nova Scotia (12.7 per cent),and Alberta (11.9 per cent).

Actual (not seasonally adjusted) transactions numbered 25,373 units in February. This was 31 per cent below MLS sales levels a year earlier, but it is the smallest year-over-year decline since October 2008.

In a research note, Sal Guatieri, a senior economist with BMO Capital Markets, said the Canadian housing downturn is more than a year old, with sales dropping by over 40 per cent and average sale prices off by 13 per cent.

"A comparison of recent trends in housing indicators with historical benchmarks suggests the year-long correction in Canada's housing market is around the halfway mark,"said Guatieri. "Growing job losses and an overhang of unsold homes will continue to depress activity and prices this year.

"However, barring a long recession, the improvement in affordability will support demand, which in turn should stabilize prices and anchor a modest recovery in home-building next year."

CREA said the supply of homes for sale nationally remains high, but has been trending lower.

The housing supply is expected to continue easing, but it will take time before it realigns with lower demand, said CREA chief economist Gregory Klump. "Economic uncertainty is keeping home buyers in a cautious mood, so homes are taking longer to sell than in recent years."

The national average sales price was $281,972 in February, 9.2 per cent below February 2008.That's smaller than yearover-year declines observed in the past four months. It is also the first time that the year-over-year decline in the national average price has decelerated since July.

The national average price continues to be pushed down-ward by lower activity in some of Canada's more expensive housing markets and by fewer transactions in higher price ranges.

"Consumer confidence will continue to be depressed by a barrage of negative economic news in the months ahead," said Klump. "Heightened job insecurity will keep many potential homebuyers on the sidelines. Those who are confident about their job situation will benefit from improving affordability in a number of housing markets."

Housing activity in Canada, Calgary sees uptick: CREA

2009-03-17T07:18:00.000-06:00

By Mario Toneguzzi, Calgary HeraldMarch 16,

The Canadian Real Estate Association, in releasing its monthly MLS numbers, said housing activity in Canada was up in February from seasonally-adjusted levels the previous month.Photograph by: Christina Ryan, Calgary HeraldMore signs today that the residential real estate market is starting to pick up.

The Canadian Real Estate Association, in releasing its monthly MLS numbers, said housing activity in Canada was up in February from seasonally-adjusted levels the previous month.

In Calgary, combined residential sales numbered 1,392 units in February compared with 928 units in January. The average sale price last month was $370,198, up slightly from $362,143 in January. New listings for February were 3,662 units compared with 3,767 units in January.

However, when compared with year-ago levels the number of sales in February fell by 35.6 per cent in Calgary while the average sale price was down by 10.8 per cent and new listings were off by 29.3 per cent.

CREA, which represents realtors, said 28,669 homes traded hands across the country on a seasonally-adjusted basis — 8.6 per cent above seasonally-adjusted levels in January, and the first monthly increase in activity since September 2008. Seasonally-adjusted activity in February also surpassed levels reported in November and December of 2008.

Monthly seasonal increases in activity were largest in British Columbia (14.4 per cent), Nova Scotia (12.7 per cent), and Alberta (11.9 per cent).

Actual (not seasonally-adjusted) transactions numbered 25,373 units in February. This was 31 per cent below MLS sales levels a year earlier, but it is the smallest year-over-year decline since October 2008.

CREA also said the supply of homes for sale remains high but has been trending lower. National MLS residential new listings numbered 65,060 units in February 2009, down 10.9 per cent from the same month one year ago. On a seasonally-adjusted basis, new listings are down 11.4 per cent from their peak reached in May 2008.

“The housing supply is expected to continue easing, but it will take time before it realigns with lower demand,” said CREA chief economist Gregory Klump. “Economic uncertainty is keeping home buyers in a cautious mood, so homes are taking longer to sell than in recent years. Lower sales activity at the higher end of the price spectrum will keep the national MLS residential average price under downward pressure.”

The national average price for home sales was $281,972 in February, 9.2 per cent below February 2008. CREA said this is smaller than year-over-year declines observed in the past four months. It is also the first time that the year-over-year decline in the national average price has decelerated since first turning negative inJuly 2008.

The national average price continues to be pushed downward by lower activity in some of Canada’s more expensive housing markets and by fewer transactions in higher price ranges.

“Consumer confidence will continue to be depressed by a barrage of negative economic news in the months ahead,” said Klump. “Heightened job insecurity will keep many potential homebuyers on the sidelines. Those who are confident about their job situation will benefit from improving affordability in a number of housing markets.”

The Canadian housing market sprung to life in February, said Millan L. B. Mulraine, economics strategist with TD Securities.

“The report does offer some hope that the decline in Canadian home prices may have stabilized somewhat in February after appearing to have accelerated in the latter months of 2008. And the increase in sales is certainly a welcome development, though possibly influenced by the weather,” he said.

Calgary real estate wakes up from long winter slumber

2009-03-17T07:16:00.000-06:00

By MARKUS ERMISCH, Sun Media - March 16, 2009

Spring is in the air in Calgary, as the city’s real estate market appears to have come out of hibernation.

Calgary realtors sold 1,392 homes in the resale market last month, compared to 928 units sold in January, says data released Monday by the Canadian Real Estate Association.

Sales were also more brisk across the entire country, as 28,669 homes changed hands in February, an increase of approximately 9% over January levels.

However, CREA president Calvin Lindberg pointed out that it’s normal for sales to pick up as spring approaches.

Bonnie Wegerich echoed these comments.

The president of the Calgary Real Estate Board said sales tend to pick up after January and to gradually increase until June and the start of the summer holiday season.

“So far, so good,” Wegerich said about sales during the first two weeks of March. She said the attitude in Calgary’s real estate market appears to now be “more positive.”

Low mortgage rates could also help explain at least some of the increase in sales, Wegerich said, noting she’s heard of five-year rates well below 4%.

But despite the seasonal uptick, sales are still significantly lower than one year ago, even though mortgage rates are decreasing and homes are cheaper than in 2008.

In Calgary, the number of unit sales was trailing year-ago levels by 36% in February, while the average MLS residential price of $370,198 was 11% lower than one year ago.

This means Calgary is still is among those cities that are continuing to see the most rapid deflation in the real estate market in Canada.

Nationally, unit sales dropped 30% in February compared to one year ago, and average prices were 8% lower at $308,142.

Unit sales in Greater Vancouver plunged by 45% in February compared to one year ago, the steepest of any Canadian city, followed closely by Saskatoon, which saw sales fall by 43%.

Commenting on the national numbers, BMO Capital Markets economist Douglas Porter said that “it looks like the category 5 hurricane, which had been pounding the home resale market, has been downgraded to ‘just’ a category 4.”

Porter said buyer’s market conditions won’t vanish any time soon.

Increases in foreclosure rates create buying opportunities

2009-03-16T07:33:00.000-06:00

DAWN WALTON - National

March 16, 2009

CALGARY -- There may be an upside to Canada's emerging subprime-mortgage problem as lenders increasingly move in to foreclose on overextended homeowners: New-found investment opportunities for real-estate speculators.

And it's not just the narrow but ballooning pool of subprime-mortgage foreclosures, but the overall boom in the foreclosure business that could get investors in a buying mood and desperate homeowners more willing to sell fast.

"A lot more properties will be sitting for longer and some of the properties are going to be vacant for sure," said Kap Hiroti, who tracks foreclosure proceedings in British Columbia and operates Foreclosurelist.ca, which links sellers with potential buyers.

Although nationwide data are scare, foreclosure rates are soaring in Alberta and British Columbia. And about half of those affected received mortgages they couldn't really afford from lenders who were willing to finance people with lousy credit histories - borrowers who would be considered too risky by mainstream lenders such as the big banks and credit unions.

The rate of foreclosure proceedings has doubled in Alberta in the past two years to about 5,300 in 2008-09 and subprime lenders made up 56 per cent of foreclosures last year. In B.C., subprime lenders were responsible for 42 per cent of foreclosures last year.

The mortgage crisis in the United States saw a growing mountain of foreclosures thanks in large measure to subprime lenders, who held a whopping 22 per cent of the market.

Canada, officials crowed, had much more stringent financial rules, with subprime lenders making up just 7 per cent of the market.

Federal Finance Minister Jim Flaherty pointed out this weekend that the government has already taken steps to tighten regulations around lending, such as limiting mortgages to 35 years and requiring a 5-per-cent down payment. He shrugged off the latest subprime data as no cause for concern.

"We knew we had some of these mortgages," he told CTV Newsnet. "They are mortgages that were made to people generally who were not credit-worthy. But we did not have in Canada the kind of exotic subprime mortgages - bubble payments, low payments for 12 months and then your payments tripled - those kinds of mortgages that caused a great deal of trouble in the United States. That's not the situation in Canada."

One economist estimated that 85,000 Canadians in 2006 had subprime loans and added that subprime was becoming the fastest growing segment of the mortgage market.

Glen Mabbott easily picked up several foreclosed properties in the U.S. south and plans to flip them for a profit. But when the Calgary real-estate investor turned his attention to the Canadian market he barely got a nibble after sending out 100 letters to owners in the early stages of the foreclosure process.

"They were still wanting market price, so we just finally quit," Mr. Mabbott said.

But Mr. Hiroti said that the attitude of sellers will likely change with real-estate prices sliding amid a recession.

Gone are the days of bidding wars for properties. Using a realtor means real-estate fees eat into the amount of money recouped. That's why homeowners may increasingly opt for a private sale in the early stage of the foreclosure process, he said.

"It'll get to the point where people will be walking away from their properties."

Housing starts decline in Calgary

2009-03-09T10:11:00.000-06:00

Calgary, March 9, 2009 – Total housing starts in the Calgary Census Metropolitan Area (CMA) declined from 877 units in February 2008 to 206 units in February 2009, according to preliminary figures released today by Canada Mortgage and Housing Corporation (CMHC).

After two months, total housing starts have reached 449 units, lower by 1,139 units as compared to year-to-date production in 2008. Multi-family starts, which include semi-detached, row, and apartment starts amounted to 22 units in February 2009 compared to 589 units started in February 2008. “Multi-family starts are forecasted to be lower this year as compared to last year,” said Lai Sing Louie, CMHC’s Senior Market Analyst. “A lower level of demand and rising inventory levels has prompted developers to rapidly adjust new construction activity.

It will likely take until 2010 before we see higher year-over year activity,” he added. Year-to-date February, there have been a total of 61 multi-family starts, down almost 94 per cent from the same period in 2008.

Meanwhile, there were 184 single-detached starts in February 2009, down 36 per cent from the 288 units started in February 2008. This year’s two month total of 388 single-detached starts is down by about 40 per cent as compared to the same period last year. “Once the inventory of completed and unabsorbed units declines to manageable levels, we expect to see the housing market expand again in 2010,” added Louie.

Housing starts across Alberta’s seven largest centres totalled 574 units in February compared to 1,867 units a year earlier. Lower levels of activity were reported across six of Alberta’s seven largest centres. Grande Prairie reported an increase in year-over-year activity.

As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country. For more information, visit www.cmhc.ca or call 1-800-668-2642.

Survey Says Alberta homebuyers' sentiments rebound to '07 levels

2009-03-05T09:31:00.001-07:00

By Mario Toneguzzi, Calgary Herald March 4, 2009

Homebuying intentions in Alberta have rebounded and are back to 2007 levels, according to the 16th Annual RBC Homeownership Survey which was released today.

The survey found that 35 per cent of Albertans were likely to purchase a home within the next two years, well above the national average of 27 per cent and up from 29 per cent in 2008.

"Home purchase intentions in Alberta have not only shown big gains over last year, they also remain higher than any other region in the country," said Don Peard, vice-president, Mortgage Specialists, RBC. "More favourable mortgage rates and home prices may in part explain this increase, and Albertans still believe firmly in the long-term value of a home."

The survey, conducted by Ipsos Reid, found that a large majority (72 per cent) believe it is a buyer's market right now. Given current housing prices and economic conditions, most Albertans (57 per cent) believe it makes more sense to wait until next year to buy.

According to the survey, 86 per cent of those polled in Alberta said that buying a home is a good or very good investment - the largest percentage in Canada.

Among those who plan to purchase this year or next, 39 per cent said they will do so because housing prices look attractive. Seventeen per cent cited the need for a larger home, and another 16 per cent said they will purchase because their current home does not meet their needs.

Seventy-one per cent said they plan to purchase resale and most (63 per cent) will opt for a detached house.

Property investors in Canada likely to see sliding property sales and prices

2009-03-05T07:46:00.000-07:00

Property Wire - May 4, 2009

Property investors in Canada should brace themselves for a year of sliding real estate sales and prices, according to a leading economist.

Adrienne Warren, senior economist at Bank of Nova Scotia is forecasting a drop of 15 to 20% in the volume of existing property sales in 2009 from 2008 and a fall of 10% in the average resale price.

Last year average real estate home prices fell 1%. The decline marked a reversal from the 10% annual increase that gave property owners a feeling of increasing wealth during the long running boom between 2002 and 2007.

But the situation worsened dramatically in 2008 and in January, the national average price tumbled 11% from the same month last year.

In 2009 Vancouver, Sudbury and Calgary could see an even worse decline than the national average this year, because those cities have the greatest imbalance between supply and demand, Warren said.

Meanwhile, she added that the federal government's recently announced renovation tax credit for households should help the renovation industry in 2009. The growth in renovation spending slowed to about 4% in Canada in 2008 from about 8% annually in previous years this decade.

While the tax credit should encourage property owners to spend on renovations and repairs, the drop in existing home sales and prices will likely weigh down overall spending, she said.

Summing up the impact of the global economic downturn she said that Canada's cyclical real estate boom began to wind down in late 2007, as several years of increases carried residential property prices out of the reach of average income earners. Also a surge in new building led to oversupply.

Then the cyclical downturn was exacerbated by the dramatic economic decline in North America caused by the sub prime crisis in the US.

The bank's chief economist, Warren Jestin, said the bare essential for economic recovery in North America is the stabilization of property prices in the US. He believes that there are many people in the US who are able to buy property right now but are just holding off because they think the timing is wrong.

But the former sub prime mortgage holders that didn't have close to enough income to carry a mortgage long term are unlikely to get back on the property ladder so an excess supply caused by overbuilding in the US will take a long time to absorb.

He also predicted that interest rates could fall further this year in Canada but looking to 2010, he said that the US and Canada could see higher bond yields and higher mortgage rates if investors currently seeking security and liquidity shift their emphasis to yield.

Bank of Canada Cuts Interest Rates Again!

2009-03-03T13:49:00.001-07:00

The Bank of Canada lowered its benchmark overnight lending rate by half of a percentage point to 0.5 per cent at its setting on March 3rd, 2009. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, declined to a record low of 0.75 per cent.

The Bank acknowledged the global economy has continued to deteriorate since it last lowered rates in January 2009. “The nature of the U.S. recession, with very weak auto and housing sectors, is particularly challenging for Canada,” said the Bank.

The Bank has repeatedly lowered its interest rate to support economic growth. Since December 2007, the Bank has cut its overnight lending rate by a total of four per cent.

“The Canadian economy is still widely expected to begin growing in the second half of 2009, as government spending and easier credit begins to lift economic growth,” said CREA Chief Economist Gregory Klump. “However, the Bank acknowledged that the decline in economic activity in the first half of 2009 could be sharper than forecast in January.”

The Bank reiterated its expectation that “the effects of the recent aggressive monetary and fiscal policy actions in Canada and other major economies will begin to be felt in the second half of this year and will build through 2010. Once the global financial system stabilizes and global growth recovers, the underlying strength of the Canadian economy and financial sector should ensure a more rapid recovery in Canada than in most other industrialized economies.”

The Bank also hinted for the first time that the recession could be longer than is currently forecast, however. Noting that there could be potential delays in stabilizing the global financial system, which it considers a precondition for the global and Canadian economic recoveries, the Bank said: “The timely implementation of ambitious plans in some major countries to address toxic assets and recapitalize financial institutions will be critical.”

As such, the forecast for economic growth in 2009 in the next Monetary Policy Report, which is slated for release in late April, will likely be revised further down. It remains to be seen whether the recovery expected by the Bank will be pushed out beyond the current forecast, in the second half of 2009.

“The Bank’s current forecast for economic growth and inflation, and likely further downward revisions, means it won’t raise interest rates anytime this year, but credit conditions have tightened, which will mute the benefit of the Bank of Canada’s recent interest rate cuts for consumers, business, and the economy,” said Klump.

When the Bank cut its overnight lending rate by 0.75 percentage points in December 2008, the prime rate fell by just 0.5 percentage points. This raised the spread to 1.75 per cent from 1.5 per cent, where it had stood for over a decade. This time, however, it appears that the Chartered Banks will cut their prime rates in step with the central bank.

Echoing previous messages about the potential for additional interest rate cuts when it next meets to set its interest rate policy, the Bank also said it “will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required to achieve the two per cent inflation target over the medium term.”

The Bank also added: “Given the low level of the target for the overnight rate, the Bank is refining the approach it would take to provide additional monetary stimulus, if required, through credit and quantitative easing.” The framework for the possible use of such measures would be outlined in the April Monetary Policy Report. In general, quantitative easing is when the Bank uses newly created money to buy assets from Chartered Banks in order to raise the money supply and stimulate the economy.

When the Bank cut interest rates on March 3rd, the advertised five-year conventional mortgage rate stood at 5.79 per cent. This is down 1.5 per cent from one year earlier, and 0.96 per cent below where it stood when the Bank made its previous interest rate announcement on January 20th, 2009.

The ongoing credit crunch has led mortgage lenders to reduce discounts on advertised mortgage interest rates, and in some cases these have been completely eliminated.

“Sales activity and prices will decline this year, as many buyers hunker down and put off buying decisions during the economic recession,” said Klump. “Housing market prospects will improve in 2010 in tandem with a rebound in economic growth.” (CREA 03/03/2009)

Calgary residential real estate market restoring balance

2009-03-03T09:03:00.000-07:00

Sales of resale homes in Calgary Metro at 825

CALGARY, March 2 /CNW/ - MLS(R) sales activity of single family Calgary
metro homes was 825 in the month of February 2009 showing an increase of 50
per cent from 550 sales in January 2009, according to figures released by the
Calgary Real Estate Board (CREB(R)). This was a decrease of 34 per cent from
February 2008 when single family home sales were 1,252. The number of
condominium sales for the month of February 2009 was 343, an increase of 52
per cent from the 225 condominium transactions recorded in January 2009 and a
decrease of 39 per cent from February 2008 when 562 condominiums changed
hands.

"Undoubtedly the global economic downturn has battered consumer
confidence. But there are promising signs we are moving towards a more
balanced and stable market," said Calgary Real Estate Board President, Bonnie
Wegerich. "Sales are making some modest gains this month, prices are
stabilizing and our inventory absorption rate is improving," adds Wegerich.

The average price of a single family Calgary metro home in February 2009
was $415,568, showing an increase of 0.6 per cent from January 2009, when the
average price was $413,049 and showing a decrease of 12 per cent from February
2008 when the average price was $471,696. The average price of a Calgary metro
condominium was $268,971, showing a 0.7 per cent decrease from January 2009
when the average price was $270,940 and showing a decrease of about 13 per
cent over last year, when the average price was $311,812. Average price
information can be useful in establishing trends over time, but does not
indicate actual prices in centres comprised of widely divergent neighbourhoods
or account for price differentials between geographical areas.

"Affordability is the silver-lining in this market. With low interest
rates, broad selection and improved affordability, buying opportunities have
not been this strong in years," said Wegerich.

"And this is good news particularly for first-time homebuyers who may
have felt pushed out of the market," adds Wegerich.

"First time homebuyers can take advantage of improved affordability along
with the federal government's First-Time Home Buyers Tax Credit and new
increases to the Home Buyers' Plan.

Single family Calgary metro new listings added for the month of February
totaled 2,057, down just 0.5 per cent from the 2,068 new listings added in
January 2009 and showing a decrease of 31 per cent from February 2008, when
new listings coming to the market were 2,981. Calgary metro condominium new
listings added in February 2009 were 892 down 5.2 per cent from January 2009
when the MLS(R) saw 941 condo listings coming to the market. This is a
decrease of 28 per cent from February 2008 when condominium listings were
1,244.

The median price of a single family Calgary metro home in February 2009
was $375,000, showing an increase of 0.1 per cent from January 2009, when the
median price was $374,700 and down 12 per cent from February 2008 when the
median price was $428,000. The median price of a condominium in February 2009
was $249,900 up 3 per cent from January when the median was $243,000 and down
15 per cent from February 2008 when the median price was $295,000. All Calgary
Metro MLS(R) statistics include properties listed and sold only within
Calgary's City limits. The median price is the price that is midway between
the least expensive and most expensive home sold in an area during a given
period of time. During that time, half the buyers bought homes that cost more
than the median price and half bought homes for less than the median price.

"Indeed the shift in the market has been challenging," said Calgary Real
Estate Board President, Bonnie Wegerich. "But I am encouraged by the improved
affordability for buyers and signs that we are slowly but surely returning to
a more balanced market," said Wegerich.

The Calgary Real Estate Board is a professional body of 5,209 licensed
brokers and registered associates, representing 252 Member offices. The Board
does not generate statistics or analysis of any individual member or company's
market share.

Know the politics of those you elect to office!

2009-03-02T08:52:00.004-07:00

Resale Homes Land Transfer Tax

I have an unconfirmed report that the following Aldermen voted FOR the proposed land transfer tax, which was a substancial and unfair tax which targeted only homeowners.

Aldermen Farrell
Fox-Mellway
Lowe
Pincott
Ceci
Colley-Urquhart
Mayor Bronconnier

Don't forget to make a note of this when it next comes time to mark your "X" on the city election balot.

Housing sales rebound

2009-03-02T07:05:00.001-07:00

February sees positive change in Calgary real estate market
By DAVE DORMER, SUN MEDIA

Housing sales in Calgary were up in February compared to the previous month, according to numbers expected to be released today by the Calgary Real Estate Board.

"It absolutely was busier than January, there's no doubt about that," said CREB president Bonnie Wegerich.

"Personally, from what I'm seeing, it's busier.

"From what I'm hearing from other people, it's busier.

"I'm down at the (Calgary Home and Garden Show) today and it's packed."

As for why sales increased, Wegerich says the slowing economy has brought prices down in some areas of the city, making buying a new home possible for many people who couldn't afford it before.

"There's affordable housing out there again and people are liking the interest rates," she said.

"There's lot of people looking right now that couldn't afford to buy last year and there's lots of product out there."

In January, Wegerich said there were 11 months of inventory available in the city, "and now we're probably down to six."

"I think it's picking up and I'm fully encouraged by what I'm seeing right now," she said.

"I think sales are happening and prices are probably levelling off."

The positive news should provide a much needed boost to the real estate industry in Calgary, which has been hit hard in recent months by the slumping economy.

"We're very happy," said Wegerich.

There were 9,225 properties for sale in the city in January, according to numbers listed on the CREB website, with 949 of them changing hands at an average price of $373,978.

January's sales numbers took a big hit compared to the same month one year before, with the number of single-family homes being sold falling nearly 50%.

Year-over-year condominium sales were also down 50% while the cost had dropped nearly 13%.

The good news for sales also follows a recent Demographia International Housing Affordability survey that pegged Canada as the second most affordable country to buy a home, ranking us just behind the U.S. and ahead of the U.K. and Ireland.

LAND TRANSFER TAX: DEFEATED

2009-02-28T04:24:00.001-07:00

The City of Calgary has dropped its plan to introduce a land transfer
tax originally proposed as an initiative to cover the costs of affordable
housing.

On Monday February 23, 2009 the council narrowly squashed the
consideration of a 1 per cent home buyers’ tax in a vote 8-7.
Just prior to the vote the Calgary Real Estate Board’s Governmental
Affairs Committee in collaboration with the Alberta Real Estate
Association sent a letter to Mayor Bronconnier and the city’s
aldermen stating their opposition to the tax.

“A land transfer tax is an unfair tax. It is essentially a home buyers’
tax and singles out a select group of individuals for taxation. It asks
home buyers to pay for municipal services which benefi t the entire
community,” wrote Calgary Real Estate Board President Bonnie
Wegerich in the letter.

“At a time when we are faced with a need for affordable housing,
this tax would only compound the problem and further burden an
economy under pressure,” added Wegerich.
Following its defeat the Board received a number of emails from city
aldermen confi rming receipt of the letter and their own opposition
to the tax.

The Calgary Real Estate Board will continue to monitor this
issue, and take further action should the need arise. The Calgary
Real Estate Board would like to thank the Governmental Affairs
Committee and the Alberta Real Estate Association for their ongoing
work on this important issue.

Source: CREB Internal Memo

Calgary real estate expected to cool

2009-02-27T06:17:00.001-07:00

By Mario Toneguzzi, Calgary Herald - February 26, 2009

Residential real estate activity should moderate further in 2009 alongside a general weakening in domestic economic conditions, says a research report released Wednesday by Scotia Economics.

Real Estate Trends, authored by senior economist Adrienne Warren, said Canada can expect a 15 to 20 per cent decline in the volume of resales this year with a further 10 per cent drop in average prices.

"Centres with the largest supply-demand imbalance, including Vancouver, Sudbury (Ont.) and Calgary, have relatively greater downside risk," said the report.

Also on Wednesday, the Canadian Teranet-National Bank composite house price index showed Calgary experienced a 7.6 per cent drop in prices in December compared to the previous year. The index said this was the sixth consecutive month of decline in Calgary.The Calgary index has shown declines in 13 of the past 16 months, since it also declined in each of the seven months from September 2007 through March 2008, said the index report.

The Scotia Economics report said that while home sales and construction in Canada seem set to turn down further this year, the outlook for renovations is somewhat mixed.

"The industry has been growing rapidly in recent years, with inflation-adjusted outlays rising an average of 8.5 per cent annually this decade," wrote Warren.

"Spending slowed progressively through 2008, but outlays are still estimated to have increased about four per cent."

She said Ottawa's recently announced renovation tax credit for households has the potential to provide a significant boost to the industry in 2009, but the initiative's overall effectiveness in filling the construction gap may be limited.

In the commercial sector, the report said office market activity in the country is expected to cool after several years of strong growth.

Vacancy rates are expected to climb in all major centres this year.

Buyers Window Wide Open

2009-02-27T06:15:00.001-07:00

Jennifer Hilliker for Metro Calgary
27 February 2009 05:56
A young Calgary couple says real estate agents wouldn’t give them the time of day a few months ago.

Now that it’s a buyer’s market, 21-year-old Lyndsay Peters and her common-law partner, Kyle, are glad they have waited to buy a house — they say that they now hold the power.

“Real estate agents didn’t even want to talk to us,” Peters said, in reference to just a few months ago when the economy was booming.

“They would just try to sell the house to us right away. It’s a lot easier now because we know the house isn’t going to sell in five hours anymore. The real estate agents are a lot more willing to sit down and talk to us, because they know we could walk out and find someone else.”

Calgary’s housing prices were down 7.6 per cent in December 2008 compared with the same month last year, according to the National Bank housing-price index.

Peters plans to wait until summer to buy a home, hoping that prices will drop even further.

“There’s a $15,000 to $20,000 difference in prices from when we first began looking. That’s really substantial, especially when you’re young and planning to buy your first house,” she said.

Calgary Real Estate Board president Bonnie Wegerich says the economic slowdown is actually a good thing for the housing market, as it has become more stable and balanced.

“A door may be closing, but a window is opening,” she said. “The window of opportunity couldn’t be better for buyers right now.”

Wegerich also predicted prices of single family homes will drop two per cent in 2009 for an average sale price of $451,120.

But she warns buyers like Peters not to wait too long — she predicts people will begin buying again by the latter part of the year.