Global Listings

Calgary home values close to boom levels, despite flood impact

CALGARY SKYLINE CROPPED 429165_10150674768322432_971485300_n
Calgary home values are nudging 2007-08 property boom levels, with sharp declines in flood-hit neighbourhoods unable to check the city’s real estate growth.

The city’s 2014 property assessments, released Friday, showed values of properties outside areas badly damaged by the June floods have risen six per cent since last year.
Citywide, the typical home is now worth $430,000, up from $410,000 in 2013.
That’s the highest level since 2008, when the boom lifted the median price to a record $447,500.
“We have certainly seen a really strong increase, and certainly a resetting of some of those values back before some of the financial crisis happened,” said city assessor Nelson Karpa.
Many communities saw assessments rise more sharply than the six-per-cent median, particularly those in northeast Calgary and those hugging Nose Hill and Fish Creek parks.
Elbow Park and Roxboro were the only neighbourhoods where assessed values dropped.
Calgary Real Estate Board (CREB) economist Ann Marie Lurie said the citywide rise was likely being led by a surge in demand for single family homes.
“A single family home under $500,000 have been selling quicker and their prices are increasing.
“We have finally pushed above those unadjusted (for inflation) levels. We’ve pushed above those peaks that we saw in 2007 (for single family homes).”
The trend was likely stronger in parts of the city which registered value increases above the six per cent average, she said.
“It could be that those areas have more homes on that lower end of the (single family) market.”
Value increases for condos and townhouses still trailed single family properties, she said, despite strong recent performance.
Price growth for single family homes in 2013 was 7.8 per cent, CREB figures showed, compared to 8.7 per cent for condos.
However, condo prices in the city took a bigger hit after the 2007 boom, Lurie said, and were yet to recover to that peak.
Calgary property taxes are based on the assessments. The city council set this year’s property tax hike at five per cent, but all homeowners whose property assessment rose by more than the six per cent average will pay a greater increase and people with lesser value rises or drops will face a lesser one.
Realtors often warn that assessments aren’t a substitute for actual market value. Assessors normally don’t visit homes, and they only consider neighbourhood home sales up to the previous June 30 — which means they’re already six months behind sales trends.
Residents and business owners can review assessments and appeal by March 4.

By Jason Markusoff and Michael Wright, Calgary Herald January 4, 2014

CALGARY REGIONAL HOUSING MARKET STATISTICS for December 2013

TIGHT MARKET CONDITIONS SUPPORT PRICE GROWTH
Sales enjoy second consecutive year of double-digit growth
Screen shot 2014-01-03 at 1.24.28 PM
Click here or on the image above to view the full report.
December’s 8 per cent year-over-year increase in sales volume in the city of Calgary capped a year that saw an 11 per cent growth in sales volume for the entire 12 months.
City residential sales totaled 1,172 units in December, bringing total sold units for 2013 to 23,489. Prices for the year were up by 8.6 per cent over 2012. “Sales growth exceeded expectations in 2013, pushing above long-term trends,” said Ann-Marie Lurie, CREB®’s chief economist.
“Two consecutive years of elevated levels of net migration, combined with an improving job outlook and confidence surrounding long-term economic prospects, supported the demand growth.”
As expected, both new listings and transactions in December eased over the previous months because it is typically a slower time of the year for sales. However, sales activity for the month was in line with long-term averages, despite poor weather conditions just before the holiday season.
“Typically, fewer sellers list their homes in December,” said Becky Walters, CREB® president. “There were more new listings this year than in 2012 because some sellers saw the continued price gains and decided it was the right time to list.”
Market conditions favoured the seller for much of 2013, causing price gains in both the single-family and condominium sectors in the city. The single family benchmark price was $472,200 in December, a 0.3 per cent increase over the previous month and an 8.6 per cent increase over the previous year. On an annual basis, unadjusted single family prices grew by more than seven per cent in 2013, exceeding previous highs.
“Prices have recovered in the single-family market, but sellers need to keep in mind there are differences between communities and types of homes,” said Walters. “Higher-end homes (priced above $500,000) have recorded slower price growth than those in the lower-price segment. And there are many communities where prices have not surpassed previous highs.”
There were 16,302 single-family homes sold in 2013, an 8 per cent increase over the previous year. Meanwhile, the 22,569 new listings were nearly one per cent higher than in 2012. Condominium apartment sales totaled 4,007 units in 2013, more than 14 per cent higher than in 2012. Condominium townhouse sales totaled 3,180 units a 22 per cent increase over 2012.
“The condominium market is more affordable than single family, and that is attractive to first-time buyers who are weighing rising rental costs against ownership costs,” said Walters. “Investors are also attracted to condos, because prices have not yet fully recovered to their previous highs.”
Condominium apartment and townhouse prices totaled $278,600 and $307,100 respectively in December. On average, annual benchmark price growth in the townhouse market totaled just more than six per cent, compared to the apartment sector increase of nearly nine per cent.
“In 2014, both sales activity and prices are expected to improve, but not at the same pace recorded this year,” said Lurie “While factors influencing demand will support growth in 2014, rising listings and increased competition from the new home sector should alleviate some of the supply pressure in the market.” Those factors, combined with potential increases in long-term lending rates, should take some of the steam off the exceptionally strong price growth recorded in 2013, said Lurie.
Click on the following link to read the full report:  CALGARY REGIONAL HOUSING MARKET STATISTICS – 2013 December

Calgary home price growth doubles national average

Year-over-year hike of 8.82% best in Canada

Calgary year-over-year home price growth was the best in Canada in November and more than doubled the national average, according to the Canadian Real Estate Association.
The association’s MLS Home Price Index, released on Monday, said prices in Calgary have risen by 8.82 per cent from a year ago while in Canada, for 11 major centres surveyed, they were up by 4.11 per cent.
The index tracks benchmark prices in Canada’s housing markets.
CREA said MLS sales across Canada in November rose by 5.9 per cent to 32,411 units. They were up by 18.7 per cent in Calgary to 2,173 units and increased by 13.1 per cent in Alberta to 4,563 sales.
Related: Canadian home sales, prices stronger than expected
The average sale price in Canada was up by 9.8 per cent to $391,085 and increased by 7.5 per cent in Calgary to $445,114 and by 5.3 per cent in Alberta to $385,217.
CREA also released a revised residential market forecast on Monday. It said sales in Alberta this year are projected to reach 66,300 units, which is a 9.8 per cent hike from the previous year and the best growth rate in the country. Sales will rise an additional 3.5 per cent in 2014 to 68,600 units.
Across Canada, the association is forecasting 0.8 per cent growth this year to 458,200 sales and 3.7 per cent growth in 2014 to 475,000.
As for the average sale price, CREA is projecting it to rise by 4.9 per cent this year in Alberta to $381,100 followed by 3.4 per cent growth, the best in Canada, in 2014 to $393,900.
Across Canada, the association is forecasting 5.2 per cent price growth this year to $382,200 and 2.3 per cent growth in 2014 to $391,100.
“In staggering contrast to the dire forecasts early this year, precisely one of the 26 largest cities in the country has reported a drop in average prices so far this year — Victoria, with a minuscule 0.6 per cent sag,” said Doug Porter, chief economist with BMO Capital Markets. “All of the other 25 cities have recorded single-digit price gains, with the median city posting a non-threatening 3.6 per cent rise.
“When judged by total sales volumes, a measure that combines both price changes and the number of units sold, the hottest markets this year have been Calgary, Edmonton, and, against all expectations Vancouver. All three reported double-digit volume increases, the only cities in that category.”
 
By Mario Toneguzzi, Calgary Herald December 16, 2013

CALGARY REGIONAL HOUSING MARKET STATISTICS – November 2013

SALES GROWTH BOOSTED BY RISE IN NEW LISTINGS…
Screen shot 2013-12-05 at 11.51.12 AM
Click here on the following link to view the full CALGARY REGIONAL HOUSING MARKET STATISTICS for November 2013
Fifth consecutive month of double-digit trend:
City residential sales totaled 1,730 units in November, a 19 per cent increase in sales volume over the previous year. Following another month of strong activity, year-to-date sales totaled 22,322 units, 11 per cent higher than long-term trends. CREB® President Becky Walters said it appears that several factors are motivating buyers.
“Many first-time homebuyers appear to be moving now to get ahead of any further increases in home prices, rent hikes, or an increase in lending rates,” she said. “And current owners are taking advantage of the recent price gains to upgrade to a home that better fits their lifestyle.” There were 1,823 new listings in the city in November. While this is an 12 per cent increase over levels recorded at the same time in 2012, listings remain below long-term trends and total inventory levels is lower than normal for this time of year.
“Tight market conditions have resulted in higher-than-expected price gains in all sectors of the Calgary market,” said Ann-Marie Lurie, Chief Economist. “However, these increases need to be
put into context.”
Citywide, only the price of single-family homes has fully recovered and started to push above unadjusted levels recorded in 2007. Meanwhile, condominium apartment and townhouse prices remain below peak, Lurie said.
Single-family benchmark prices totaled $470,600 in November, 8.5 per cent higher than one year ago. Meanwhile, condominium apartment and townhouse unadjusted benchmark prices totaled a respective $279,600 and $305,700 in November, 6 per cent below 2007 peak pricing.
Year-to-date, single-family sales totalled 15,533 units, eight per cent higher than the previous year. The higher-than-expected rise in sales activity is due to stronger activity in the second half of the year. Tightness in the condominium apartment market eased in November, as the year-over-year growth in November new listings of 23 per cent outpaced the sales growth of 20 per cent. While overall inventory levels remain 26 per cent lower than levels recorded in 2012, this is an improvement over the declines recorded throughout recent months. Year-to-date sales activity totaled 3,787 units, a 15 per cent increase over the previous year.
Condominium townhouse sales totaled 3,002 units after 11 months, a 21 per cent increase over the previous year. While this sector remains the smallest out of the Calgary housing types, it has recorded the largest gains in sales. “Overall, sales growth in surrounding communities outpaced the city,” said Walters. “They offer the family friendly attractions of small towns, and they’re more affordable.”
Lurie noted the vibrant employment market has encouraged a large number of net migrants into the city over the past two years. Click here to read more! (Or click on the following link to view the full CALGARY REGIONAL HOUSING MARKET STATISTICS for November 2013)

Calgary Apartment Construction Lagging

Casting light on Calgary’s current rental crunch, a new report shows there were fewer purpose-built apartments built in Calgary than in any other major city in Canada between 2006 and 2011.
As shown in the report released by the Altus Group, there were only 800 purpose-built rental apartments built in Calgary between 2006 and 2011. The number places Calgary last amongst the markets surveyed for rental apartment construction. During the same period, Montreal saw the highest level of purpose built apartment construction, with 16,000 units built, while the next lowest level of rental construction came in Ottawa, where 1,100 units were added.
During the five-year period in the survey, Calgary’s population went from 991,759 to 1,090,936, an increase of 99,177. In the same span, Edmonton added 1,300 purpose-built rental units while posting a population increase of 81,829.
“New units in condominium apartment projects outpaces units in purpose-built rental apartment buildings by about three to one in 2006-2011,” stated the report, which took information from the National Household Survey conducted during the 2011 Census of Canada.
Demonstrating the demand for rental units in the city, the report showed 41 per cent of the condominium apartment units built between 2006 and 2011 ended up as rental units, while 46 per cent were owner occupied.
Of the 10,700 condo apartment units constructed in Calgary during the period, only 3,800 were in buildings higher than five storeys. In Toronto, where 61,000 apartments were built, 55,000 were in buildings higher than five storeys.
Other findings in the report showed nearly one million Canadian households were in need of “major” repairs, roughly seven percent of the country’s housing stock. Defined as problems that “compromise the dwelling structure or the major systems” of the home, 17 per cent of homes built before 1920 were need of major repairs compared to just one per cent of recently built units.
Also detailing the make-up of the average Canadian household, the report showed the average household size for those living in newly built homes was 2.7 persons for owner occupied units, while the average size for those in rental units was an even 2.0 persons.
Apartment-construction-graph-web
 
 
by Cody Stuart on Nov 20, 2013, CREBNow

CALGARY REGIONAL HOUSING MARKET STATISTICS for October 2013

Screen shot 2013-11-04 at 10.55.00 AM
Click Here to download the full report of the October 2013 Calgary Housing Market Statistics Report
Residential sales activity totaled 1,953 units in October, an 18 per cent rise over 2012 and pushing year-to-date voiume increases tojust over 10 percent.
However, on a year-to-date basis, city Wide sales remain far below transactions levels recorded throughout 2005  2007.
“Some people have noticed that properties are selling quicker, and at times above list,” said Becky Walters, CREB® president.“But, in spite of very positive signs, we are not seeing a repeat of 2006.”
Year-to-date, the average residential home was on the market for 37 days before selling. Thats 16 per cent less time than last year, but much longer than the 20 days recorded in 2006. in addition, the citywide sales price-to-list price ratio has increasedl but is lower than the levels recorded seven years ago.
New listings within the city ofCaigary totaled 2,522 units in October, a nine per cent increase over the previous year.
While the rise in new listings was not large enough to result in inventory growth, it is the fourth consecutive month of year-over-year gains.
“Price growth and tighter market conditions have encouraged some of the recent rise in new listings,” said Ann-Marie Lurie, chief economist. “This is a trend worth noting as the rise is easing some of the tightness in the market. Despite some movement, sellers market conditions persist.”
A total of 14,340 single-family homes sold after the first 10 months of the year, a seven per cent increase over the previous year. Sales growth has exceeded expectations mostly due to the recent rise in new listings, which was limiting growth potential in the first haif of the
Year-to-date, 3,482 condominium apartments and 2,774 condo townhouses were sold. While condominiums remain a smaller segment of the market, year-to~date sales are 18 per cent higher than last year.
Unadjusted benchmark prices in the city of Calgary increased in October relative to both September of this year and October 2012. Singie-family prices benchmarked at $468,000, whiie the benchmark price for condominium apartment and townhouse were a respective $276,100 and $302,200 in October.

Just Listed in Bankview!!

C3590150_801_18

$389,500 – 2 bedrooms and 2 bathrooms

A Rare loft unit!!!!The perfect urban retreat for a professional couple, complete with fabulous downtown views! Enjoy close proximity to downtown and all the amenities this prime location offers – shopping, public transit,trendy 17Ave and MUCH more. Main floor has an open concept living space perfect for entertaining or relaxing by your cozy gas fireplace. The loft area is large enough for a pool table, additional guest room, private library or whatever meets your needs. Appreciate in-suite laundry, natural lighting, heated underground titled DOUBLE parking and all with reasonable condo fees.

Call today to book your private viewing!

C3590150_201_19

CALGARY REGIONAL HOUSING MARKET STATISTICS for September 2013

SEPTEMBER SALES STAY STRONG
 
Rise in new listings prevents further tightening in the resale market.
 
(click here for the full .pdf report)
 
Screen shot 2013-10-10 at 6.42.17 PM
City of Calgary residential sales totaled 1,923 units in September, 19 per cent higher than last year and 14 per cent higher than long-term averages for the month.
 
While sales activity over the past three months has been above long-term trends, it was less so in September than in July and August.
 

“The impact of the floods likely boosted sales throughout July and August, and it appears as though some of that additional demand is starting to ease,” said Ann-Marie Lurie, CREB® chief economist.
“Nonetheless, sales growth remains strong, in part because net migration has been stronger than anticipated and rental product is in short supply.”
 
As Calgary’s market remains in seller’s territory, a notable shift is occurring with new listings. While monthly levels of new listings have been declining since 2011, over the past three months the levels of new listings have improved. The growth was not enough to cause any significant changes in inventory levels, but it has helped prevent further tightening in the market.
 
For the full report, click on the link: Monthly Housing Statistics Report – September 2013

July 2013 CALGARY REGIONAL HOUSING MARKET STATISTICS

STRONG SALES GROWTH IN JULY…
Tight market conditions support upward price trend
july 2013

Click here or on the following link to download the full report: 2013 – July Monthly Housing Statistics

City of Calgary residential sales totaled 2,268 units in July, a 17 per cent increase over the previous year and up more than six per cent so far this year. The flood that devastated the Calgary area on June 20 likely contributed to pulling forward sales activity, said Ann-Marie Lurie, CREB® chief economist.
“Some of this activity is related to the displaced renters and owners seeking other accommodation,” said Lurie. “But those consumers already searching for a home may have sped up their purchase decision, in response to concerns regarding the impact tight supply levels would have on prices.”
The Calgary resale market is firmly in sellers’ territory, supporting price growth. While citywide prices are nearly seven per cent higher than levels recorded in July 2012, the unadjusted monthly gains have been easing. The benchmark price for the city of Calgary totalled $414,100 in July 2013.
“Some sellers have been waiting for prices to recover before listing their homes,” said President Becky Walters. “Current market conditions have encouraged listing growth this month, for single-family homeowners.” A total of 1,575 single-family homes sold in July, a 14 per cent increase over the previous year. Year-to-date, the growth is 2.5 per cent. While year-over-year new listings increased in July to 1,958 units, it was not enough to ease supply pressures in the market. Overall, active listings declined to 2,917 units, nearly 20 per cent lower than already declining levels recorded in 2012.
A total of 693 condominium apartments and townhouses sold in the month, a combined increase of 26 per cent over the previous year, and a year-to-date growth of 16 per cent. Stronger sales growth in the condominium market relative to the single-family market is in part related to availability in the affordable price ranges. Year-to-date, there have been more new listings priced under $400,000 in the condominium sector than in the single-family market.
“Clients looking for affordable homes are considering community, product and price,” Walters said. “While there are affordable single-family homes in some communities, some may prefer condominiums in the same price range so they can live in a preferred community or get a home that requires less
renovation.”
The growing demand for condominiums has also led to a tightening of supply. July active listings in the apartment and townhouse segment declined to 768 and 407 units respectively. Tight market conditions supported price growth for all categories in July. However, unadjusted monthly gains were strongest in the apartment sector. Apartment prices totaled $267,600 in July, a 1.4 per cent increase over the previous month and nearly eight per cent higher than the previous year.
The benchmark price for single-family and townhouses were a respective $461,600 and $294,500 for the month. “While the flooding will alter sales, listings and price trends in the affected areas, the impacts on the entire resale market will likely play out over the coming months,” said Lurie. “July sales growth has been stronger than year-to-date trends and long term averages.
However, if the level of new listings continues to rise, this could help ease tight market conditions.”

Click here or on the following link to download the full report: 2013 – July Monthly Housing Statistics

 

Calgary’s population spikes by 29,000 people in one year…

calgaryyyyCalgary’s population is now growing at the same pace as Houston — the oil capital of Texas and one of the fastest growing cities in the United States.

While Houston has nearly double the Stampede city’s population, Calgary added nearly as many people in a two-year span — 61,370 versus 58,616.
New census data released Thursday suggests Calgary is in the midst of its second-biggest spike in two decades.
Some 29,327 new residents were recorded in a civic tally conducted between April 2012 and April 2013. The city’s population has swelled to 1,149,552 — a jump of 2.6 per cent.
Statistics from the U.S. Census Bureau indicate Calgary is adding people at a faster clip than many major American cities.
A burgeoning population is good for the city economically but brings challenges as well, cautioned Mayor Naheed Nenshi.
“We’re not quite where we were in the height of the last boom, but we’re actually not that far,” he told reporters Thursday.
“So the city continues to grow and with that comes a lot of amazing benefits, but of course a lot of real pressures.”
The fastest growing community in Calgary is Evanston — a newly built neighbourhood on the northern edge of the city — followed by Auburn Bay in the deep south and nearby Cranston.
But the numbers also suggest some meaningful shifts, with several older communities seeing small upticks in population.
A “doughnut” of neighbourhoods built between 1920 and 2000 ring the inner city and historically see stagnant growth. However, many are experiencing a welcome influx of young families to replenish the population.
An interesting case in point is Tuxedo Park, a neighbourhood in the northeast that saw a jump of 7.2 per cent over the past year.
Indeed, a third of the city’s total growth occurred in established communities, with about 10,000 people choosing to call these areas home.
It’s a departure from previous years — and an encouraging trend because it allows the city to make use of existing infrastructure rather than allocate taxpayer funds for new schools, libraries and police, Nenshi said.
“We were slowly hollowing the city out and pushing people into new neighbourhoods in the fringe. It was nothing like Detroit — nothing crazy — but that trend has largely stabilized and is beginning to reverse itself,” he noted.
People are flocking to Calgary — but the mayor insists the situation is different from the boom in 2005, when businesses had trouble retaining workers and newcomers struggled to find affordable places to live.
“We are now better equipped to handle the population,” Nenshi said. “The city might have been surprised by the mid-2000 boom …(but) I think we’re at the point where the infrastructure can handle the population we have.”
University of Calgary sociology professor Kevin McQuillan agrees.
The city’s growth rate of 2.6 per cent puts it at the high end when compared to other North American urban centres, but it doesn’t raise immediate concerns, he said.
“It puts pressure on the city, but I don’t think we’re at the stage where we would call it a real ‘boom’ that could lead to a crisis in terms of the availability of housing or services,” McQuillan said.
It remains uncertain how the June flood will affect the city’s increasingly tight vacancy rates. The tough housing market is expected to intensify when students return to school in the fall. City council is now looking at ways to accelerate the rental market to accommodate displaced apartment dwellers in areas such as Mission.
“We need to prioritize housing that matches the needs of the market,” Nenshi said. “It’s been a problem for some time.”
By Tamara Gignac, Calgary Herald July 25, 2013