Welcome to Canada

Just Listed in Bel-Aire!

1220 Bel-Aire Drive SW – $1,750,000

An exquisite home in one of Calgary’s most desirable inner city neighbourhoods. Special features are countless in this well maintained property: Floor to ceiling windows, private Den off of front foyer, stunning gourmet open concept kitchen (Miele applainces:built in espresso/coffee machine, gas stove, steamer oven, warmer, etc.) separate kitchen noon/dining area and 2 cozy fireplaces, built in sound system & lovely family and living rm to relax or entertain. Both bedrooms include ensuite’s on upper level and the master includes your DREAM closet (a spacious room) with sky lighting and vaulted ceilings. Multi-Functional Lower Level with 3rd fireplace, plenty of storage, bathroom w/ steam shower, 2nd Den and currently includes a gym in the rec rm area. Your yard is outdoor living at its finest with a fantastic deck, fabulous Lynx BBQ and beautiful landscaping. Minutes to downtown, shopping, Rocky View hospital, schools, Glenmore reservoir pathways. A superbly designed property to call home!
CLICK HERE to view the virtual tour.

216A8250_1_2_3_4 copy

City of Calgary and Regional Monthly Statistics

Home prices down, but not out…
Calgary home prices continue to slide in most areas of the market, but not at the rate that many might expect. This is partly due to June’s resiliency in the detached and semi-detached sectors of the market, where sales compared to new listings and standing inventory started returning to more balanced levels.
“The detached market has been gradually moving towards more balanced conditions, helping to prevent price levels from declining at the faster rates we saw in the previous two quarters,” said CREB® chief economist Ann-Marie Lurie. “While this is welcomed news for sellers, it’s very likely that pricing challenges will persist in the housing market until economic conditions start to improve.”
Detached benchmark prices totaled $502,400, which is 0.4 per cent higher than last month, but 3.4 per cent lower than last year’s levels. This is the first time in eight months that detached prices recorded a monthly gain, helping ease the quarterly decline from 2.2 per cent in the first quarter to 0.7 per cent in the second quarter.
Overall sales activity remained relatively weak in June, falling by seven per cent to 2,028 units. Inventory levels went in the other direction and continued to climb in June to 5,973 units, 16 per cent higher than last year. Both the attached and apartment segments of the market have recorded inventory gains around 30 per cent, far greater than the year-over-year increase of five per cent in the detached sector.
Higher inventories and weaker demand continue to have a larger impact on pricing in the apartment and row sectors. June apartment prices slid by another 0.1 per cent over last month, pushing the average year-to-date benchmark price down 5.3 per cent below last year. Attached product experienced a monthly slide of 0.3 per cent, mostly due to steeper price declines in row style product.
“The price adjustments that we’ve seen in the past year have allowed some buyers to get into homes that were previously unattainable,” said CREB® president Cliff Stevenson. “This is especially true for homeowners with financial stability and a good amount of equity in their home. With so much choice out there, it’s giving consumers an opportunity to find their ideal home at a price they can afford.”

Click Here to view the full .pdf of the June 2016 City of Calgary Monthly Housing Statistics

city

Click Here to view the full .pdf of the June 2016 Regional Monthly Stats Package

regional.jpg

Just Listed in the sought-after neighborhood, Sunnyside!

928 4A STREET NW – $749,000
Sunnyside is one of Calgary’s most desirable and sought-after neighborhoods. Pride of ownership is evident in this well maintained and upgraded home. Special features and renovations are numerous: open concept kitchen w/ granite, dual fuel stove/oven, several built in’s throughout the home allowing plenty of storage, West Bay window (overlooking adorable front porch) & East spacious balcony make this a bright sunny home, both bathrooms on upper level totally renovated (ensuite with sky lighting), comfortable master w/ vaulted ceilings & sliding doors to 2nd balcony w/ gorgeous views, upper level laundry, totally renovated lower level w/ rec room, wet bar & large Den and you will appreciate your double detached garage. One of the quietest streets in Sunnyside just 3 doors from a park, walk to Downtown, LRT, River Paths, Princes Island Park, Riley Park, shops & restaurants of Kensington Village. Click Here for the virtual tour!

RECREATIONAL PROPERTY REPORT – 2016

As real estate prices rise, many Canadians are looking for alternative ways to finance their dreams of cottage or cabin ownership. In a recent survey of RE/MAX agents and brokers, more than half reported seeing an increase in buyers who planned to rent out their property full- or part-time. In a separate survey of Canadians, conducted by Leger, nearly 60 per cent agreed that due to the emergence of popular, user-driven vacation rental websites, it is easier for an owner to rent out an investment property today versus five years ago.
The Leger survey also found that millennials were most likely to have spent time at a cottage or cabin in the past year, demonstrating that young Canadians are sustaining demand for access to recreational properties. This provides an opportunity for buyers to finance their second homes, most notably in high demand areas such as Grand Bend, Ontario, Tofino, B.C., and Quebec’s Eastern Townships.
In most of the regions that reported an increase in buyers planning to rent out their properties, demand is driven primarily by families and retirees, rather than investors. Retirees were reported as being key drivers of demand in 83 per cent of regions surveyed, and 53 per cent of regions reported an increase in retiree buyers this year compared to last year.
As the large demographic of Baby Boomers retires, sellers who benefitted from significant price appreciation in cities like Vancouver and Toronto are putting that equity into recreational markets, which is causing prices to increase in those regions. Some buyers who may still be five or 10 years away from retirement are taking the opportunity to enter those markets now, renting out their property until they are ready to retire.
This effect has been especially pronounced in British Columbia, where significant price increases in the Lower Mainland are encouraging buyers to invest in regions such as the Okanagan and the Gulf Islands.
The low Canadian dollar is having a positive effect on Canada’s recreational property markets. Canadians, mainly Baby Boomers, who bought properties in the U.S. when U.S. real estate prices were comparably low are selling them at a profit and investing in Canadian recreational markets. The low dollar is also encouraging Canadians to vacation within the country rather than going abroad, putting their money into vacation rentals closer to home.
Some regions, particularly established recreational destinations with international reputations such as Whistler, the Muskokas and Mont Tremblant, are seeing foreign buyers, primarily from the U.S., return to those markets. Cape Breton Island, which recently made international news when a website “Cape Breton If Donald Trump Wins” gained the attention of high-profile news media, has seen increased interest from prospective U.S. buyers this year due to the publicity boost, combined with favourable exchange rates.
Click on the following link: 2016RecreationalPropertyReport for the full report.
Screen shot 2016-06-15 at 11.57.37 AM

Just Listed in the Beltline

#714 111 14 AV SE – $274,000

The “Richmond” – unbeatable value! A spacious and quiet 2 bedroom CORNER unit located on the TOP FLOOR of this well maintained building. Special features are numerous including: granite counter tops in kitchen and bathroom, freshly painted, tiled flooring, upgraded carpet, remodeled bath & kitchen, in suite laundry, convenient garbage chute, heated underground parking & condo fees including all utilities (there is a common party room with outdoor terrace which can be rented and is perfect for entertaining as well). You will enjoy your South facing balcony with sun room and fabulous view to the Stampede grounds and fireworks. Desirable location just steps to Stampede Park/Saddledome, 1st Street shops and restaurants, LRT, 17th Ave, Elbow river bike paths Talisman Centre and inside access to a convenience store. Inner city living at its finest with an easy and convenient lifestyle as well as an excellent investment!

CLICK HERE for a Virtual tour!

Monthly Statistics Package for the City of Calgary

Housing supply swells in cool spring market

Calgary’s housing inventory was on the rise once again in May as new listings climbed and sales slowed to 1,923 units.

Screen shot 2016-06-01 at 4.14.52 PM

“While recent oil price gains may have some feeling optimistic, weakness in the labour market continues to impact housing demand,” said CREB® chief economist Ann-Marie Lurie. “Job losses are spreading into other sectors, wages are declining and unemployment levels remain high. At the same time, we’re seeing housing supply levels rise in the rental, new home and resale markets.”
Inventory levels rose by 14 per cent in May to a total of 6,148 units. Every product type is experiencing these gains, but the largest inventory growth has occurred in the apartment and attached categories.
Together, these sectors represent half of all resale inventories in Calgary. “The resale apartment market has been the most difficult for sellers,” said CREB® president Cliff Stevenson. “They are competing with improved selection in the lower price ranges of the detached and attached markets, and facing increased competition from the new home sector, where builders are offering incentives to attract potential buyers.”
While apartment resale supply remains 22 per cent below the May high of 2,055 units in 2008, the combination of rising supply in the apartment sector and steep declines in sales activity has elevated months of supply to nearly six months.
The apartment sector of the market has experienced buyers’ conditions for more than 10 months, so the impact on pricing is more dramatic, compared to the detached and attached sectors.
In May, the apartment benchmark price totaled $278,500, a monthly and year-over-year decline of 0.7 and 5.6 per cent. In the detached and attached markets, home prices totaled $500,500 and $332,100, a year-over-year decline of 3.4 and 4.3 per cent.
Click on the following link for the May_2016 Calgary Housing Market Statistics Report

LUXURY AND SAFETY — DEEP UNDERGROUND?

So if you’re one of the few people left on Earth, can you still live in luxury? What if you’re stuck in an underground bunker? Survivalists are already answering these questions — with incredible survival bunkers built with the luxury lifestyle in mind.
There’s one luxury bunker in Tifton, GA, built more than 40 feet underground. It features seven apartments, a 15-seat movie theater for residents, and even has working internet access. For practical purposes, it includes decontamination showers and an outdoor firing range. And of course, it can withstand a nuclear blast. But none of this comes cheap — the price tag is about $17.5 million.
Screen shot 2016-05-31 at 2.30.50 PM.png
About 687 miles northwest of Tifton, there’s an underground bunker (at an undisclosed location) called Vivos Indiana. Originally a government communications facility, it’s now been repurposed as a luxurious hangout for survivors of any type of catastrophe.
With 12-and-a-half-foot ceilings in the living area, plush carpets and rows of reclining chairs, the living area is a great place to spend some quality time. 60 varieties of freeze-dried and canned foods fill the cupboards, complemented by the fresh bounty of a hydroponic garden. Units designed for four to six residents feature double-queen bunks with gorgeous bedding — the kind you’d find at a Ritz-Carlton!
Pet kennels. A gun safe. Exercise and medical facilities. Powerful generators and high-grade filters built to keep the residents warm and safe. And just a $35,000 entry fee.
Built by a former real estate entrepreneur — who sold shares of villas in luxury destinations such as Aspen and the south of France — these kinds of facilities are attracting the interest of many affluent Americans. (In the last several years, the U.S. has added more than 1.5 million new millionaires.)
And this isn’t a uniquely American phenomenon. The Vivos franchise extends to europe, where a similar-but-larger facility was built in a former munitions storage facility in Germany. This billion-dollar property can house 34 families for a full year, with swimming pools, a wine cellar and more — priced in the $3 to $5 million range.
Clearly, if you have a few million dollars to spend — and you’re a bit worried about war or meteors or nuclear plant meltdowns — you have options.
The folks at SurvivalCondo.com can help you build your own luxury bunker, with half-floor, one-level units at about 920 sq. ft. starting at $1.5 million. Full-floor units are about twice that size and price, while “penthouse” units of about 3,200 sq. ft. on two levels start at $4.5 million.
As is always the case with luxury real estate, the bigger the budget, the more options you have. Luxury survival bunkers are a growth market — and while there is a natural limit to how big it will get, there’s definitely a need.
So if you have a client who’s a bit paranoid about world-changing events — but also a predilection for the finer things — now you know what kinds of showings to schedule!

Monthly Statistics Package as of May 1, 2016

Minding the gap – Sellers continue to adjust pricing expectations
Screen shot 2016-05-02 at 1.38.25 PM
Market imbalance in Calgary’s residential resale housing market continued to weigh on citywide prices in April. Much like the previous month, year-overyear sales fell while new listings increased, resulting in inventory gains across all sectors of the market. As a result, benchmark prices in the city declined by 0.4 per cent from last month, and 3.4 per cent from last year, to $441,000.
For sellers, the reality of seven consecutive months of price declines has started to sink in, said CREB® president Cliff Stevenson. “From re-considering the listing of their home to lowering expectations on price, sellers are beginning to adjust to the current market reality,” he said. “However, some buyers in the market are still not willing to pull the trigger because they expect even bigger discounts. And so that gap between buyers’ and sellers’ expectations still persists across many product types and locations.”
Despite this, the detached sector fared better relative to the other sectors of the market. While detached sales activity has fallen by over four per cent so far in 2016 compared to last year, the sales to new listings ratio improved in April. This prevented sharper inventory gains and caused months of supply to move toward more balanced levels. The same cannot be said of other market sectors. Year-to-date apartment and attached sales declined by a respective 19 and 13 per cent compared to last year. Slower sales, combined with rising inventories, ensured that market conditions continue to favour buyers in these segments.
“While the weak economic climate is influencing demand, the apartment and attached sectors are further impacted by increased supply in the competing new home sector and rental markets,” said CREB® chief economist Ann-Marie Lurie. “This is one of the contributing factors to the steeper price declines recorded in the apartment sector.” Since the start of the price declines monthly unadjusted benchmark apartment prices have declined by 7.6 per cent, while semi, row and detached have declined by a respective 5.9, 4.6 and 4.1 per cent.
Click on the following link: April_2016 for the full report!

More Layoffs…

 TODAY’S HEADLINES
NEWS | Alberta credit downgrade | crude up⬆ | Devon sells US$200 million in assets | Enbridge pipeline traction; $7.5 billion Line 3 Replacement and Northern Gateway | Husky Energy selling interest in midstream assets for $1.7 billion | job cuts at Shell, Schlumberger & Halliburton | Mayor Nenshi shared a ride | Scotiabank selling Roynat leasing division | royalty rules clarity |TransCanada progress on Energy East + Bob Dhillon interview | upcoming events, appointments, oil sands/heavy oil + climate change + infrastructure + REIT NEWS + financings + VIEWPOINT guest article ‘Service as it once was!’ by Mark Kolke >>>>

+ Alberta’s credit rating downgrade; last week it was Standard & Poors taking us from AAA to AA, this week Moody’s have cut us from AAA to 1-notch below, whatever that means
+ Bass Pro Shops making takeover bid to acquire Cabela’s Inc.
+ confidence returned to Calgary this week; not sure how to describe it exactly, but I sense it in the marketplace, in conversation – in the instructions of clients who have spent enough time getting used to the ‘new normal’, and it is time to get re-focused. They are. I’ll stand by this prediction, this month is the turning point. Not about politics or pipelines or prices – but energy, in all of us. Now, get to work!
+ current energy prices – live link to Bloomberg energy prices;  crude prices steady as traders remain hopeful for some form of OPEC market-stabilizing actions, and U.S. gasoline demand has strengthened; yesterday’s close – WTI at US$43.07 /bbl, Brent$44.90 …
+ Devon Energy Corp. agreed sell a package of non-core Oklahoma assets to White Star Petroleum LLC for US$200 million
+ Enform’s Petroleum Labour Market Information unit published its Oil & Gas Industry outlook 2016-2020
+ FACILITYCalgary’s OP-ED page, guest article: ‘Service as it once was!’ by Mark Kolke, Realtor/small business owner, and publisher of FACILITYCalgary – click VIEWPOINT TAB
+ FirstOnSite Restoration G.P. Inc., under CCAA creditor protection, agreed to be acquired by Interstate Restoration LLC; terms not disclosed
+ GOA Royalty changes are rolling out; technical formulas for the new regime were released
+ Halliburton cut 6,000 jobs in Q1 2016
+ Husky Energy agreed to sell 65% ownership in Lloydminster area midstream assets to Cheung Kong Infrastructure Holdings Limited and Powers Assets Holdings Limited
+ Le Chateau Inc. announced it will be closing 40 stores across Canada this year
+ Magnum Hunter Resources Corporation got court approval for its Chapter 11 Bankruptcy restructuring plan
+ Mayor Naheed Nenshi facing Ethics Commissioner investigation over his Boston Lyft-shared-ride video comments about Uber Part 1 – 15 minutes – and Part 2 – 12 minutes; seems part SNL skit/part embarrassment, part indiscrete revelations (hence, the ethics investigation) along with interesting conversation on U.S. presidential politics [note to self, ‘beware the dash-cam’]
+ NEB gave a favourable ruling on Enbridge’s Line 3 Replacement project – saying the project ‘is in the Canadian public interest’ and recommending Project approval to the federal Governor in Councile; capital cost is $7.5 billion and replacing the 50-yr. old 1,660 km line will boost delivery to 760,000 barrels/day, double the current flow level
+ Notley government warming to pipelines; the Premier has been meeting with B.C. Premier advocating for Gateway and with the Federal Trudeau Cabinet who are re-thinking the earlier announced westcoast tanker moratorium
+ Paramount Resources Ltd. closed its sale of Musreau midstream sour natural gas assets to Pembina Pipeline Corporation; terms not disclosed
+ Parkland Fuel Corporation agreed to acquire the propane business of Girard Bulk Services for $4.8 million
+ PJ’s Pets and Pets Unlimited closing 27 location across Canada
+ Saudi Prince rolls out plan to end ‘addiction to oil’ in Saudi Arabia
+ Schlumberger confirmed it has cut 2,000 jobs in Q1/2016; its global headcount now 93,000
+ Scotiabank selling a Roynat division; Roynat Lease Finance is being sold to Meridian Credit Union Limited; terms not disclosed
+ Shell will close offices in Reading, Aberdeen and Manchester following takeover of BG Group; cutting 2,800 in connection with the BG Group specifically – will closed its Thames Valley Park campus by the end of 2016, as part of earlier announcements to cut 10,000 jobs worldwide this year
+ TransCanada Corporation making peace with Quebec over Energy East Pipeline plans; will acquiesce to their request for environmental oversight
+ Trez Capital Group LP forming a JV with Forman Capital LP to be called Trez Forman Capital Group LP to facilitate Trez’s expansion in the U.S. market

 
 
Check out even more news at FACILITYCalgary

The 2016 Spring Market Trends Report is out!

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
National Cover