Brady Layton, BComm, CFP

CALGARY — Calgary’s real estate market has seen a tightening of supply in the first quarter of this year with sales increasing and new listings declining.

According to the Calgary Real Estate Board, the first quarter of this year has seen 4,970 MLS residential sales in the city, up 7.32 per cent from the same period last year. New listings have dropped by 7.24 per cent to 8,765 and the average sale price for the first three months increased by 1.79 per cent to $416,679.

The sales-to-new listings ratio of 0.57 per cent in the first quarter was up 15.7 per cent from last year.

“While the number of listings for the first quarter of 2012 remains low compared to last year, the level of decline has lessened, therefore pointing to the fact that those people who have been on the fence are starting to list their homes, and this trend is expected to continue,” said Bob Jablonski, CREB’s president.

CREB said the year-over-year decline in new listings, combined with improving sales, has pushed down inventory levels to 5,092 units from 5,866 last year, as well as months of supply.

“It is not uncommon for the months of supply to decline in March as we transition from the winter season to the spring season,” said Jablonski.

The real estate board said the tightening of supply has led to some cases of multiple offers on houses.

“It is important to note that multiple offers can happen during any market with a well-priced listing or a unique property,” said Jablonski. “New listings coming onto the market at a good price are generating a lot of activity … Also, the sales-price to list-price ratio does not reflect levels recorded during the peak of the market, when there were supply shortages.”

In a report released Tuesday, the Conference Board of Canada said Calgary’s housing market can expect short-term year-over-year price growth of between five to seven per cent.

It said Calgary’s market is classified as balanced. In February, the seasonally-adjusted annual rate of sales was 24,024, up from 23,532 in February 2011 while the seasonally-adjusted annual rate of new listings had dipped to 42,168 from 47,664 a year ago.

mtoneguzzi@calgaryherald.com

© Copyright (c) The Calgary Herald

Read more: http://www.calgaryherald.com/homes/Tightening+supply+Calgary+real+estate+market/6402706/story.html#ixzz1qzwVh9px

Updated: Wed Dec. 14 2011 11:37:27

ctvcalgary.ca

Reports and economic indicators are pointing to a massive surge in the economy and job market in Alberta in 2012.

Thousands of jobs are expected to be added in the province over the next year and, with that, new communities as well.

It was the main topic at a city meeting held on Wednesday where a land use planning commission asked the Chamber of Commerce for input on a better plan for building future communities.

It marks the first time that the city has asked for advice on the topic.

Chief Economist Ben Brunnen says the Chamber has suggested criteria it hopes will provide the basis for making municipal development decisions.

They include looking at the development of community service and long term fiscal sustainability.

The Chamber is also urging the city to consider transit, land supply, and innovations in design.

CALGARY — Alberta will be the only province next year to buck the national trend for housing starts across the country.

According to an October 2011 Housing Forecast report released Tuesday by Altus Group, only Alberta is expected to see an increase in housing starts in 2012.

Subdued economic growth will take the “sizzle” out of Canadian housing starts in 2012 and deteriorating global economic conditions leading to lower Canadian growth expectations will constrain housing demand across the country, said the report.

“Based on recent data, the Canadian housing sector is performing at a very high level, with elevated housing starts, steady prices, and steady resale markets. Interest rates are also no longer expected to increase over the next year,” said Peter Norman, chief economist, Altus Group. “But at the same time a number of risk factors are emerging, especially deteriorating economic conditions and tighter mortgage rules. Canadians can expect lower levels of housing construction in most areas of the country next year.”

But the report said Alberta has seen job conditions and interprovincial migration rise sharply this year at the expense of Ontario and British Columbia, positively affecting housing demand next year.

Alberta will see housing starts in 2012 rise to 27,800 units from 24,881 this year. In 2010, there were 27,088 housing starts in the province.

Across Canada, housing starts will hit 192,000 units this year and dip to 181,600 units in 2012. There were 189,930 starts in 2010.

The Altus Group report said only Calgary and Edmonton, among major markets in Canada, will see a rise in housing starts next year. Calgary will jump to 9,400 units from 8,400 in 2011 while Edmonton will see a rise to 9,400 units as well from 8,900 this year.

In 2010, Calgary had 9,300 housing starts while Edmonton had 10,000.

mtoneguzzi@calgaryherald.com

© Copyright (c) The Calgary Herald

A report listed Calgary third, after Toronto and Vancouver, among the most attractive real estate markets in Canada.Photograph by: Grant Black, Calgary Herald, For Postmedia NewsVolatile stock markets and minuscule returns from fixed income have investors looking at global real estate. But rather than single-family residential property, the hot ticket these days is multiplefamily dwellings.

At a luncheon for financial analysts with the Edmonton CFA Society, Eric Bonnor, senior vice-president with Brookfield Asset Management in Toronto, quoted from the publication Emerging Trends in Real Estate 2012, a survey of 950 real estate executives by the accounting firm PricewaterhouseCoopers and the Urban Land Institute.

“Canadian real estate remains the most stable in North America,” Bonner said. “Canadian investors fed up with disappointing stocks and low-yielding bonds sit on lots of funds, looking for long-term cash flowing assets like real estate, and are having trouble placing the funds that they have. Investors condition themselves to accept lower domestic returns, or go outside the country and chase higher yields.”

The booklet lists Toronto and Vancouver as the most attractive real estate markets in Canada, being 24-hour destination points for businessmen and other visitors. Calgary is rated third and Edmonton fourth.

It is written that Edmonton and Calgary are oilsands markets, but Edmonton “quietly prospers in less of a see-saw mode, historically cushioned by the presence of the provincial government.” And the commercial tenancies differ, in that Edmonton features “more stable engineering companies and not so many wildcatters.”

The research adds that Edmonton has a tight industrial real estate market with low vacancy rates, that retail building is strong as people “earn big bucks in the oilsands country and spend in local malls and power centres, including one of the world’s largest in west Edmonton.” Homebuilders do well due to appetites from people with ample salaries. And local governments hike development assessments because “it’s good political optics versus raising property taxes.”

But there are problems with residential real estate in North America. The S&P Case-Shiller index shows house prices in 20 U.S. cities are down 3.8 per cent in the 12 months ending Aug. 31, and have fallen 31 per cent since their 2006 peak. With three or four years of unsold inventory in the country, there are no signs of immediate reversal in prices. In Canada, there are concerns that a housing bubble in certain parts of the country could cause homes in those areas to fall 20 per cent in value.

To avoid the risk of buying additional residential homes, people are looking at investing in commercial and industrial properties. And presenters at the luncheon said multiple-family dwellings have become treasures, filled by people leaving their homes because they can’t keep up mortgage payments, plus those unable to afford buying a house at all.

Seamus Foran, a senior vice-president with Brookfield Asset Management, said the U.S. real estate market has $180 billion of known distressed assets, and that “the shining star for U.S. real estate today has been the multi-family market; as U.S. home ownership continues to decline, the multi-family market has been there to reap the benefits. However we need to be cautious as new development has started in this sector.”

He noted that in most U.S. apartment buildings, the turnover ratio of tenants on a year-to-year basis is at least 50 per cent, considerably higher than in Canada.

“There’s a reluctance to make a long-term commitment to buy residential houses” in the U.S., Foran said. “And the multi-family market really benefits from short-term leases, because it gives the owners opportunities to bring rents up, each time those leases fold.”

As for Canada, the Emerging Trends booklet says:

“The multi-family residential sector will stay tight as continuing immigrant flows sustain demand in the major cities. Even if job growth declines and home-buying cools, apartments should be ‘a safe haven.’ When people have less, they rent.

An increasing number of younger adults delay buying houses; they simply cannot afford them after recent price spikes. Aging demographics also favour more apartment demand; empty nesters and seniors move out of suburban homes into smaller, easier-to-maintain units with urban conveniences.”

In summary: “Investors can never get their hands on enough apartments. And everybody has the same idea. When you get some, hold onto them.”

David Glicksman, a partner with PwC, said that foreign investors in U.S. property should be aware of whether they have to file U.S. income tax returns, or whether it’s done through a firm or fund. They also need to know how to declare income or losses on their Canadian tax returns, if there are withholding taxes, if there are U.S. taxes on the sale of the investment, and whether you get a foreign tax credit in Canada.

© Copyright (c) The Calgary Herald

Read more: http://www.calgaryherald.com/business/Calgary+listed+third+most+attractive+real+estate+market+Canada/5740149/story.html#ixzz1eOut6FXW

Tuesday, November 8, 2011
Sharon Singleton | Money
NewsCommentsSend | Print | Size : A A A Share :
Facebook Digg Del.icio.us Google Stumble Upon Furl Newsvine Reddit Technorati Blinklist Yahoo Ma.gnolia Simpy Squidoo Blogmarks Netvouz Scuttle Comment Tailrank Sitejot Those costly home-reno projects may be paying off, according to RE/MAX.

The billions Canadians have spent on upgrading properties and building new houses over the past decade have improved the quality of real estate and helped almost double prices during the period.

The value of a Canadian home has risen from $163,951 in 2000 to $339,030 last year, the real estate giant said. It found that in 10 out of 16 major markets studied, prices have more than doubled.

Over the past 10 years, about $340 billion worth of new housing permits have been issued, while Canadians have spent an estimated $450 billion on renovations. RE/MAX estimates that Canadians spend about $60 billion annually on home improvements.

“Revitalization, renovation and new construction have been largely underestimated in terms of overall impact on rising average price,” said Elton Ash, regional executive vice president, RE/MAX of Western Canada.

“Yet, outside of supply and demand, these have been among the foremost variables influencing real estate values. The overall result is tremendously positive for real estate and our major centres — and there’s much more to come.”

Canada’s housing market has so far remained solid despite the global economic turmoil. A report by the Canada Mortgage and Housing Corporation last week predicted that sales will continue to rise next year. Prices will also increase, though at a slower pace.

The new construction has expanded the boundaries of Canada’s cities, creating new sought-after suburban pockets, while in urban centres old structures are being rebuilt to maximize values, RE/MAX said.

The real estate chain said often properties haven’t kept pace with the value of the land they have been built on in inner cities. So plots of land with a bungalow on them are now highly sought after for their redevelopment potential.

The other main game changer in the Canadian property market has been condo construction, RE/MAX said. In B.C. and Alberta, condos now account for about 25 to 50% of residential sales.

“As the product has gained widespread acceptance, it’s upside effect on the housing mix stands out, keeping homeownership within reach for first-time buyers, creating trendy urban pockets coveted by young professionals and offering aging baby boomers exciting advantages from low-maintenance living, to an active lifestyle and even luxury, with some suites now commanding prices in the millions,” Ash said.

by Amy Fontinelle, Investopedia

Are you making upgrades to your home with an eye toward improving your home’s resale value? If so, consider these suggestions before you get started.

Check out the Competition
When selling is your end game, the golden rule of home remodeling is to make your home comparable to others in the neighborhood. If you over improve, you have no chance of recouping your investment. If you under improve, the other homes on the market will sell before yours does.

Look at online real estate listings, attend open houses and talk to real estate agents to find out what features are considered to be the standard in your neighborhood. If everyone else has scraped their popcorn ceilings and turned that cramped shower stall into a soaker tub, you should consider making these changes to your home too. If no one has an outdoor kitchen, adding one to your backyard probably won’t pay off.

Smart buyers are looking to buy either the worst house on the best block or a turnkey home, but they aren’t looking to buy a house that’s nicer than its neighbors. For the extra money, they would usually rather move up to the next nicest neighborhood.

Pick Your Projects Wisely
Avoid expensive, difficult and time-consuming projects like adding more square footage to your house. You may not recoup the money you spend, let alone the time and frustration. You don’t want to over improve for the neighborhood. If all the surrounding homes have 1,600 square feet, there’s no reason for yours to have 2,000 square feet. Buyers looking for 2,000 square foot houses will be shopping in other neighborhoods.

There are also some big mistakes you can make in trying to make your home seem larger than it is. The biggest one is to knock down a wall that decreases the number of bedrooms or bathrooms. As a purely practical matter, two small bathrooms are better than one large one and a third bedroom is more useful than a master suite.

Another bad improvement is a swimming pool. While pools are a must have for some buyers, they also increase the ongoing costs of owning a home significantly. Homeowners insurance premiums will be higher because of the potential liability and maintenance costs are ongoing. Pools also take up a lot of the yard, and many people would rather have grass that their dogs or kids can run around on.

Appeal to a Wide Audience
With any improvement you make with an eye toward selling, think beyond your personal taste. Neutral, classic colors and textures will have broader appeal than bold or unusual ones. They are also easier to change and personalize if the buyer doesn’t like them. Also, make sure to choose colors and finishes that are currently in fashion. When buyers see outdated decor, they see dollar signs.

Don’t Overlook the Basics
If your home has a beautiful kitchen but a home inspection reveals that the roof needs to be replaced and the furnace is on its last legs, price-conscious buyers are likely to ask you to make these repairs or to drop the sale price. If you can’t afford either of these options because you’ve spent the money elsewhere, you could have trouble selling the home.

In today’s economic climate, a home that isn’t a money pit is the best selling feature for the ordinary buyer.

Also, there’s no sense in shelling out big bucks for remodeling projects if your house is so cluttered and dirty that buyers can’t see them. If you have too much stuff, a rental storage unit can be a great investment in getting your home sold. Your first instinct might be to cram everything in the garage, the basement and the closets, but buyers will look in all of these places. You want to convey the idea that your home has plenty of storage space.

The Bottom Line
It’s important to consider the housing market, economic climate and buyer’s perspective when upgrading your home in order to sell it. Before you spend your time or money on any improvements, make sure you understand what today’s buyers want.

Canada’s housing market will cool off in coming months, but a U.S.-style housing crash won’t happen, one of the country’s biggest real estate firms said.

Housing prices jumped between 5.7% and 7.8% in the third quarter of the year compared with the same period in 2010, Royal LePage said. Buyers were tempted by low interest rates and the relative stability of the Canadian economy despite global gloom, it said.

“The third quarter saw a return to a normal seasonal business cycle as price appreciation slowed in many areas – with some average values even falling slightly – after the busy spring trading season,” said Phil Soper, Royal LePage president and chief executive. “A broader slowdown is expected in the months ahead but fears of a U.S.-style correction are completely unfounded.”

Royal LePage did say prices in some markets are over blown, but the Canadian economy is structured differently from that of the U.S., making a collapse unlikely. Some commentators have predicted Canada’s housing market is set for a major correction, as record low interest rates have spurred buyers to take on more debt than they can afford.

Finance Minister Jim Flaherty also said on Wednesday that Canada is not facing a housing bubble that requires government action.

Asked at a news conference in New York what it would take for Canada to act again to cool the market, he said: “It will take clear evidence of a bubble in the housing market in Canada, which we have not seen.”

He added that measures to tighten mortgage lending that came into effect earlier this year had helped dampen demand.

In the third quarter of 2011, the national average price of a detached

bungalow rose 7.8% year-over-year to $349,974, while standard two-storey homes rose 7.7% to $388,218 and standard condominiums rose 5.7% to $239,300.

The price rises in the third quarter are skewed by the fact the third

quarter of last year was particularly weak, the company said.

The biggest gain was in Vancouver, where two-storey home prices rose 16.9%, as the city continued to benefit from strong demand from foreign investors.

The Toronto market also reported big gains, with the average price rising 9.4% to $518,433, helped by a lack of supply.

Two-storey homes in Calgary and Edmonton were relatively flat, while

Montreal saw a gain of 4.4%, according to the survey.

– With files from Reuters.

CALGARY — Calgary’s residential real estate market saw an upswing in activity in September despite continued global economic turmoil, according to the Calgary Real Estate Board.

Data released by the board Monday indicated sales and prices increased during the month compared with a year ago.

There were 1,036 single-family MLS sales in September, up 8.25 per cent from September 2010. The average sale price was $466,167, an increase of 1.27 per cent from last year.

The condominium market saw 429 sales, up 17.21 per cent from September 2010, with an average price of $299,508, which was a year-over-year hike of 5.45 per cent.

“Despite recent turmoil in the global economy, Calgarians are showing confidence in the long-term prospects for the city and are taking advantage of affordable and stable home prices,” said Bob Jablonski, president-elect of CREB.

“Undoubtedly, there are a lot of unknowns in the world’s current financial situation, but Calgary and Alberta may be relatively safe havens amidst this uncertainty. Granted, gains in the housing market have been very gradual — but we are seeing signs of improvements. Our province’s growth is expected to outperform the national average, and this will help buoy consumer confidence in Calgary and Alberta.”

Year-to-date after nine months, there have been 10,518 single-family home sales, up 9.78 per cent compared with the same period a year ago.

After the first three-quarters of this year, condominium sales totalled 4,314, a 1.72 per cent rise over the same period last year.

Tamara Pilipchuk, a realtor with Re/Max in Calgary, said the first half of 2011 saw a rise in MLS sales compared with 2010 and this caused a decline in listings, bringing down inventories to levels consistent with a balanced market.

“However, there is no doubt that the turmoil in the U.S economy will have an impact on Alberta,” she said. “Downward pressure on commodities will limit some of the expected economic and employment growth in Alberta. We expect to see the housing market remain stable at or above levels recorded last year.

“Sale numbers are expected to level off for the remainder of the year as inventories … creep up adding some downward pressure on house prices. Consumers no longer have a sense of urgency and are looking for value, spending more time looking and exploring their options.”

The positive stimulus in the overall market is being fuelled by relatively low interest rates, she added.

“We are also seeing an improved range of single-family homes on the market, combined with relatively stable pricing, giving buyers opportunities to purchase in areas not open to them before,” said Pilipchuk. “More activity in the condominium market will also have a positive impact this fall in the market place.”

In the towns outside of Calgary MLS market, there were 314 sales in September, up 15.87 per cent from last year, and the average sale price jumped by 0.58 per cent to $365,612.

The country residential market, which includes acreages, had 70 MLS sales in September, an increase of 45.83 per cent from September 2010, while the average sale price rose by 4.04 per cent to $770,822.

“It’s steady as she goes,” said Jablonski. “I think there’s a lot more building consumer confidence in Calgary . . . Calgary and Alberta are leading the way as far as the rest of the country goes and I think it’s going to be fine.

“Calgary continues to add full-time jobs to the economy, and migration is moving in the right direction. These are positive factors that will give momentum to our housing market and give winds to the sails of Calgary’s economy.”

There were also 22 rural land sales in Calgary’s MLS market in September, up 29.41 per cent from last year. The average sale price dipped by 2.75 per cent to $413,568.

mtoneguzzi@calgaryherald.com

© Copyright (c) The Calgary Herald