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.
by Cody Stuart on Nov 20, 2013, CREBNow
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CALGARY REGIONAL HOUSING MARKET STATISTICS for October 2013
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.
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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)
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
Calgary and Edmonton buck national housing market trend of declining sales
Only two major markets to see growth in existing home sales
A soft landing is underway in the Canadian housing market and should continue but Calgary and Edmonton are bucking the trend with sales rising compared with a year ago, says a new report released Tuesday by BMO Capital Markets.The report, by Sal Guatieri, senior economist for BMO, said the Canadian housing market is “calming not crashing.”
“In most regions, sales have fallen at double-digit rates this year from high levels last year,” said Guatieri. “But the rate of decline has slowed recently.
“By contrast, Alberta enjoys decent sales growth.”
As of April, the three month moving average of sales in the existing home market was down 10.9 per cent across the country. However, Calgary and Edmonton were the only two major markets to see growth at three per cent and 1.2 per cent, respectively.
Also, while the average sale price across Canada rose by only 1.0 per cent, Calgary led the nation with a 7.5 per cent hike. Edmonton was up 3.2 per cent.
Guatieri said Calgary’s resale prices are “supported by good valuations, following the 2008 correction, and strong job growth.”
“The upward trend should continue, as Alberta is expected to lead the nation’s economic performance in 2014,” he said.
According to the Calgary RealEstate Board, year-to-date until May 27, there have been 9,541 MLS sales in the city, up 3.89 per cent compared with the same period a year ago. The average sale price has risen by 6.6 per cent while the median price has increased by 5.51 per cent to $399,900.
At the national level. Guatieri said tighter mortgage ruls have slowed credit growth, helping to cool the housing market in an orderly fashion.
“Lack of pent-up demand, with homeownership rates near 70 per cent, and elevated household debt have abetted the slowing,” he said.
“Nationwide, sales are expected to stabilize this year amid steady job growth. Although long-term interest rates are likely to rise moderately next year, they should remain relatively low for some time.”
“In most regions, sales have fallen at double-digit rates this year from high levels last year,” said Guatieri. “But the rate of decline has slowed recently.
“By contrast, Alberta enjoys decent sales growth.”
As of April, the three month moving average of sales in the existing home market was down 10.9 per cent across the country. However, Calgary and Edmonton were the only two major markets to see growth at three per cent and 1.2 per cent, respectively.
Also, while the average sale price across Canada rose by only 1.0 per cent, Calgary led the nation with a 7.5 per cent hike. Edmonton was up 3.2 per cent.
Guatieri said Calgary’s resale prices are “supported by good valuations, following the 2008 correction, and strong job growth.”
“The upward trend should continue, as Alberta is expected to lead the nation’s economic performance in 2014,” he said.
According to the Calgary RealEstate Board, year-to-date until May 27, there have been 9,541 MLS sales in the city, up 3.89 per cent compared with the same period a year ago. The average sale price has risen by 6.6 per cent while the median price has increased by 5.51 per cent to $399,900.
At the national level. Guatieri said tighter mortgage ruls have slowed credit growth, helping to cool the housing market in an orderly fashion.
“Lack of pent-up demand, with homeownership rates near 70 per cent, and elevated household debt have abetted the slowing,” he said.
“Nationwide, sales are expected to stabilize this year amid steady job growth. Although long-term interest rates are likely to rise moderately next year, they should remain relatively low for some time.”
By Mario Toneguzzi, Calgary Herald May 28, 20
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CALGARY REGIONAL HOUSING MARKET STATISTICS – May 1, 2013
April 2013 Monthly Housing Statistics
Click Here to download the full .pdf of the housing market statistics report!
The benchmark price of single- family homes reached a new high of $452,900 in April, as market conditions that favour the seller finally drove prices above the unadjusted peak in 2007.
“It’s really encouraging to see that the Calgary market remains strong,” said Becky Walters, CREB® President. “It’s reassuring to both buyers and sellers to see that this area is outperforming many parts of the country.”
Single-family sales totaled 1,611 in April, nearly two per cent higher than the previous year, but year-to-date figures are similar to levels recorded in 2012. Sales growth in the first part of the year was stifled by a shortage of new listings and inventory. However, the year-over-year increase in new listings of 5.4 per cent helped support sales growth in April.
“Declining selection in the lower price range and market conditions that favour the seller in the overall single-family market has resulted in a boost in demand in the condominium market and surrounding towns,” said CREB® Chief Economist Ann-Marie Lurie. “Inventory levels declined across all of these segments. However, surrounding towns remain in balanced territory, as they experienced the effect of previously elevated inventory levels.”
Click Here to download the full .pdf of the housing market statistics report!
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Albertans are big spenders on home renovations…
Alberta homeowners plan to spend the most on their home renovations this year, according to a new poll released Monday by the CIBC.The poll, conducted by Harris/Decima, said Albertans plan to spend on average $22,900, much more than the national average of $15,300.
The poll found that 39 per cent of Canadian homeowners say they plan to renovate their home in the next 12 months.
Regionally, Alberta residents are among the most likely (52 per cent) to say they plan to renovate their home in the next 12 months, while British Columbians are among the least likely with only 25 per cent of homeowners saying they plan to renovate.
“Renovation spending is linked to resale transactions and income, which is rising in Alberta,” said Lai Sing Louie, regional economist for the Prairies and Territories for Canada Mortgage and Housing Corp.
“MLS sales increased by over 12 per cent in Alberta last year and this will translate to a higher level of renovation spending this year. Many resale homebuyers budget for renovations after taking possession. Our last forecast is projecting about four per cent growth in 2013.”
The poll also found that Canadians aged 45-54 plan to spend among the most on their home renovations this year ($18,300 on average), nearly $3,000 more than the national average.
“Whether it’s replacing an old roof or updating a kitchen, home renovations can help you get more out of your property, but you do need to consider how the costs will fit with your overall financial plan,” said Colette Delaney, Executive Vice President of Mortgage, Lending, Insurance and Deposit Products, CIBC.
Scott McGillivray, host of HGTV’s Income Property, said “kitchens and bathrooms are always value-adds, so if you’re prioritizing your renovations and looking to make your dollars go further, plan on doing those rooms first.”
The poll found that 39 per cent of Canadian homeowners say they plan to renovate their home in the next 12 months.
Regionally, Alberta residents are among the most likely (52 per cent) to say they plan to renovate their home in the next 12 months, while British Columbians are among the least likely with only 25 per cent of homeowners saying they plan to renovate.
“Renovation spending is linked to resale transactions and income, which is rising in Alberta,” said Lai Sing Louie, regional economist for the Prairies and Territories for Canada Mortgage and Housing Corp.
“MLS sales increased by over 12 per cent in Alberta last year and this will translate to a higher level of renovation spending this year. Many resale homebuyers budget for renovations after taking possession. Our last forecast is projecting about four per cent growth in 2013.”
The poll also found that Canadians aged 45-54 plan to spend among the most on their home renovations this year ($18,300 on average), nearly $3,000 more than the national average.
“Whether it’s replacing an old roof or updating a kitchen, home renovations can help you get more out of your property, but you do need to consider how the costs will fit with your overall financial plan,” said Colette Delaney, Executive Vice President of Mortgage, Lending, Insurance and Deposit Products, CIBC.
Scott McGillivray, host of HGTV’s Income Property, said “kitchens and bathrooms are always value-adds, so if you’re prioritizing your renovations and looking to make your dollars go further, plan on doing those rooms first.”
By Mario Toneguzzi, Calgary Herald April 22, 2013
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