Sustained price appreciation in Vancouver and Toronto is revitalizing surrounding areas, according to the Spring Market Trends 2016 Final Report
National Summary: Vancouver and Toronto continued to see significant price appreciation in the first quarter of the year. Greater Vancouver’s average residential sale price in the first quarter of 2016 compared with the same period in 2015 rose 24 per cent, while single-family homes in the city of Vancouver crossed the $2 million threshold. In the Greater Toronto Area, the average residential sale price during the first quarter rose 14 per cent to $675,492.
The competition in both Vancouver and Toronto among buyers has discouraged sellers from listing their properties, thus further reducing inventory. While sellers know their homes would be quick to sell, many are reluctant to become buyers themselves and enter the highly competitive market.
Also, some potential sellers are hesitant to list their homes believing that home prices could appreciate further. However, not all Canadians can wait out the housing market as many are relying on their homes as a source of retirement income. According to a recent RE/MAX poll conducted by Leger, 56 per cent of Canadians 55-64 who are considering selling their homes are doing so to release equity for retirement.
Outside of Vancouver and Toronto, surrounding regions continue to experience a spillover effect as buyers move farther out in search of affordable single-family homes. This has led to significant price appreciation in regions such as Victoria (+10%), Hamilton-Burlington (+10%) and Barrie (+14%). The population growth in these regions, driven by housing demand, is growing local economies as restaurants, shops and services expand…
Calgary Summary: Calgary had a slow start to the spring real estate season as oil prices dipped in January, making buyers and sellers hesitant to enter the market. Once oil prices showed signs of beginning to recover, there was a corresponding uptick in real estate activity as well. Sales were down slightly in the first quarter of the year while listings were up.
There were 6,084 active listings at the end of March, compared with 5,704 the same time last year. With more inventory on the market compared with previous years, the properties that sell are those that are priced correctly and show well. While continued uncertainty in the oil industry has made some buyers hesitant, there is interest in the market and open houses are busy.
Other findings in this year’s report:
– Diversified economies and capital projects mitigate short-term effects of low price of oil in Calgary, Edmonton and St. John’s
– Millennials, especially in Ontario and BC, are counting on their parents’ help to purchase their homes
click on the following link for a .pdf of the Spring Market Trends 2016 Final Report
Canadian Real Estate
Alberta credit downgrade
+ Alberta got a credit-rating downgrade following its budget; Finance Minister Ceci explained it as something to be expected; DBRS dropped its AAA rating to AA (pronounced double-eh)
+ Alberta Investor Tax Credit (AITC) was announced to encourage small business investment
+ April land sale in Saskatchewan netted $3.1 million, pretty pale compared to same period last year ($22.8 million)
+ Bank of Canada maintained its overnight rate target of ½ of 1%
+ Calgary property taxes for 2016 expected to rise 6.1%; while City Council had planned on a 3.5% increase, the increased education tax portion required by the province will push rates up …
+ current energy prices – live link to Bloomberg energy prices; some decline in U.S. supply, Kuwait says Iran isn’t essential to production freeze strategy – WTI crude above US$40/barrel last week has dropped 5% but later recovered to finish 1.4% off in New York on news from Doha meetings that a production freeze agreement was not reached by OPEC members; all of this posturing with Iran looks bizarre from here, especially when a Deputy Saudi Prince threatened to boost production 1 million barrels/day, which seems rather an empty threat after Iran skipped the meeting – good news, crude prices rebounding this morning: Brent US$43/bbl, WTI US$40/bbl …
+ FACILITYCalgary – NEW e-mail NEWSLETTER format is HERE! … new format, a more mobile-device friendly format we hope you enjoy – feedback encouraged, let me know your thoughts please …
+ FACILITYCalgary’s OP-ED page, guest article: ‘Put away the crystal ball’, by Alan Tennant, CEO @ Calgary Real Estate Board – click VIEWPOINT TAB
+ Husky Energy Inc.’s asset sale has reported interest from Teine Energy Ltd. and Raging River Exploration Inc. with other firms interested in small portions of the $2.1 billion portfolio … tic toc …
+ Northern Frontier Corp formed a board committed to review strategic alternatives
+ Notley Government Budget; Finance Minister Ceci delivered his budget speech; Budget 2016 and a Jobs Plan with contemplates a $10 billion deficit this year – and which includes a 2016-2019/$34.8 billion Capital Plan ; no plan at all for paying down a deficit, or when
+ Notley Government is cutting small business tax rate; from three (3%) to two (2%); billed as part of theClimate Leadership Plan, which is supposed to offset increased carbon taxes born by small business while, apparently, big business will just to have to pay. Though the program promises $90 million in tax relief, for small businesses facing large losses, it will be of little comfort …
+ OPEC meeting in Doha, Qatar – ended without agreement after Saudi Arabia made it clear they would not agree to a freeze on output without Iran being part of an OPEC-wide freeze; next meeting is in June/16
+ Packers Plus Energy Services Inc. and Schlumberger formed a ‘global alliance’, whatever that means – but their press release sounds like they want to sell things to each other
+ Penn West Petroleum Ltd. closed $148 million sale of its Salve Point area assets
+ Penn West Petroleum Ltd. closed $50 million sale of non-core assets
+ Penn West Petroleum Ltd. reached agreement to sell $30 million sale of non-core assets
+ Prime Minister Justin Trudeau spoke positively about Energy East and Trans Mountain Expansion pipeline projects; just talk. No promises of actual action – hard to glean whether he is motivated to get out his approval pen or just making political hay after the NDP floated their ‘ostrich head in the sand LEAP proposal’ against any new pipelines anywhere in the country. Ironically, these new pipelines will be the safest ever built anywhere. Perhaps the NDP are in favour of the ‘car-less driver’ concept …
+ RioCan REIT broke ground on its East Village development (on the former Calgary Police Association property); RioCan will retain 100% ownership of 180,000 sq. ft. retail component (Loblaws will food-anchor with an 82,000 sq. ft. City Market), while Embasy Bosa will take on a $300 million high rise condo development (500 condos).
+ SilverBirch Hotels and Resorts broke group on their Beltline project (former Alberta Boot property); scheduled for completion by 2019, 34-storey extended stay hotel (300 rooms( and conference centre) will be flagged as ‘Residence Inn by Marriott
+ Stantec Inc. agreed to acquire MHW Global for US$793 million
+ UBS AG, the Swiss bank, closed its Calgary offices
+ U of C School of Public Policy published a paper on carbon taxation
+ U.S. regulatory change; requirements for onshore electronic monitoring of offshore wells and accompanying regulations in response to the Deepwater Horizon disaster have industry players reeling, protesting the costs would be prohibitive to new development, claiming increased costs to industry will be more than US$31.8 billion in the first decade
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THIS WEEK IN FINANCINGS
– proposed & closed
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+ Brookfield Asset Management Inc. closed it’s Brookfield Strategic Real Estate Partners II fund, a US$9.0 billion equity financing
+ Brookfield Office Properties Inc. is on the market to raise $150 million by a preferred share issue + Cara Operations Limited closed $230 million equity financing + GFL Environmental Inc. closed US$200 million senior unsecured debt financing + Innergex Renewable Energy Inc. closed $50 million equity financing + New West Energy Services Inc. closed $623,313 equity financing + Pembina Pipeline Corporation is on the market to raise $250 million by a preferred share issue + Sienna Senior Living Inc. is on the market to raise $138 million in equity + Stantec Inc. closed $604 million equity financing + Synergy Resources Corporation closed US$164.8 million equity financing + TransCanada Corporation is on the market to raise $500 million by a preferred share issue + US Oil Sands Inc. is on the market to raise $12.8 million by a rights offering |
Source: http://facilitycalgary.com/facilitycalgaryapr1916.html
Just Listed: Bridgeland townhouse 2 bed 2.5 bath double garage!
#114 28 MCDOUGALL CO NE – $529,000
Live in the historic inner city community of Bridgeland! Pride of ownership is evident in this well maintained home perfect for the urban professional. A well thought out floor plan perfect for entertaining and a convenient “dual” master bedroom layout. You will appreciate numerous special features such as: hardwood flooring, quartz counter tops throughout, stone backsplash, gas range, central air-conditioning, heated flooring in BOTH bathrooms, built-in custom shelving in both bedroom closets, upper level laundry, spacious South facing balcony with natural gas for BBQ, Espresso 2″ Faux Blinds throughout & the lower level includes an attached tandem-style double garage with plenty of extra storage. A stylish home in a fabulous location! Bridgeland offers some of Calgary’s best restaurants, diners, shops, cafes ,Bow River Pathway system steps away & just minutes from downtown with easy access from Memorial drive. Click Here for more photos and inf0.
RE/MAX Top Producers!
Helping Calgarians buy and sell Real Estate!
Team Penley McNaughton is proud to announce being part of the Top 3 Real Estate teams in RE/MAX Central, #1 Office Worldwide for 17 consecutive years!!!
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Housing prices trend down in March
Home prices declined further in March as economic conditions weigh on Calgary’s housing market.
Calgary’s benchmark price totaled $442,800 in March, a 0.49 per cent decline over February and 3.51 per cent lower than levels recorded last year.
“With no improvement in the labour market, it’s no surprise that we continue to face downward pressure on housing sales activity and prices,” said CREB® chief economist Ann- Marie Lurie.
“Provincial unemployment rates are at the highest level recorded since the early ‘90s,” said Lurie, adding that Calgary’s unemployment rate in February rose to 8.4 per cent, which is higher than the provincial average of 7.9 per cent.
March home sales in Calgary totaled 1,588 units, 11 per cent below the same time last year and 28 per cent lower than long-term averages for the month.
Calgary also saw housing supply gains in most price ranges.
Inventory levels rose by seven per cent to 6,084 units in March.
Overall, months of supply has averaged five months in the first quarter of 2016.
“As we move into spring, we are starting to see more foot traffic at open houses and showings from potential buyers,” said CREB® president Cliff Stevenson. “For now, this activity hasn’t translated into improved sales in most segments of the market.” The apartment sector has been the hardest hit by the recent downturn.
After the first quarter of the year, apartment sales totaled 554 units, a 17 per cent decline over the same period last year. Apartment benchmark prices have been trending down since late 2014.
In March, benchmark apartment prices totaled $281,300, seven per cent lower than levels recorded prior to the slide and 4.93 per cent lower than levels recorded last year.
The detached and attached sector has also felt the brunt of Calgary’s weakening economy. Detached and attached home prices have dropped by four per cent from the recent peak.
“Homebuyers continue to wait and see if there are going to be further declines in home prices before making an offer,” said Stevenson.
“Timing the bottom of the market is proving to be quite a challenge in the housing market we are faced with now.”
Beginning next month, the monthly statistics will be separated into two packages in order to provide a more comprehensive analysis of the housing market.
One package will contain Calgary housing statistics and district information to show the activity within areas throughout the city.
The other package will show housing activity in areas surrounding Calgary and provide a more regional perspective.
Click on the link: March_2016 to view the full report.
Just Listed in Haysboro!
$228,500 – #1103 9800 SW HORTON RD SW
Two bedroom condo in a fabulous location! Enjoy entertaining in this well thought out floor plan. Galley kitchen, dining area and living room which opens onto your massive SOUTH facing balcony complete with stunning views. You will appreciate the abundance of natural sunlight, 2 spacious bedrooms and in-suite storage/laundry room. Concrete construction makes this a quiet home in this well managed 18+ Building. Condo Fees include extras such as: fitness room, sauna, social room, electricity, heat & water & underground heated parking stall. Walk to all amenities: Southland Crossing, restaurants, Safeway, TD Bank, shops, hair salon, bus & LRT.
Do not miss this outstanding opportunity!
Renovated killarney condo yard & patio underground parking
#105 2218 30 ST SW – $199,000
A well thought out floor plan makes this one bedroom renovated unit a wonderful home to relax or entertain. The open concept in this guest friendly condo has hosted gatherings of up to 15 people. Enjoy your cozy wood burning fireplace in the winter months or your spacious WEST facing patio in the summer. A well managed and quiet building makes inner city living comfortable and peaceful. Fabulous location in walking distance to LRT, lovely community garden out back, Killarney swimming pool & green spaces, numerous restaurants and cafes, golf course (snow shoe in the winter!) & river pathways system to name of few of the near by amenities! Click Here to see the virtual tour!
Just Listed in Millrise
1408 MILLRISE PT SW – $249,900
This well maintained 2 bedroom unit in the lovely community of Millrise is an affordable property not to be missed. Notable special features include: Air conditioning, titled parking and separate storage area, WEST facing and desirable TOP FLOOR location, quiet & peaceful building, 3pc ensuite in spacious master (ample closet space) & cozy gas fireplace. You will appreciate the numerous amenities this 45+ complex has to offer such as: exercise room, library, entertainment rm, ample visitor parking. Fabulous location – Just a 4min walk to the LRT, close to Public Transit- Shopping- (Sobey’s, Starbucks). CLICK HERE for a virtual tour!
Just listed in Bridgeland!
Superbly well maintained inner city home – everything the discerning buyer is looking for! Pride of ownership is clearly evident. Upgrades are numerous: air conditioning, a chefs kitchen w/ Pro-grade Viking & Miele appliances, updated maple cabinetry & expansive island, newer 60 gallon hot water tank, state of the art security system, remodeled landscaping & entry, heated double garage w/ custom storage, 2 fireplaces to relax & enjoy in the winter months, Italian porcelain tiles & marble vanities in both upper level ensuite bathrooms & MUCH more! Enjoy your private aggregate patio/courtyard w/ cedar wood pergola completely fenced as well as your deck & balconies on 2 levels (both w/ city views). You will appreciate the low condo fees & this sought after location within walking distance to downtown, restaurants & all of the amenities Bridgeland has to offer. Please view additional documentation for the extensive work that has been completed on this mint condition property. Click Here to see the virtual tour! Click on the following link to see Renovations and Upgrades-R1 and a floor plan and extras!!
