Welcome To My Calgary Realtor Blog!

It's important for me to keep up to date on market conditions, and I'm happy to relay some of that information to you through my blog.  I update this as frequently as my schedule allows.  Packed with useful tidbits on market conditions, my realtor blog will offer you news and notes that you can't find anywhere else.  My hope is always to provide my clients and prospective clients with the information they need to make a good decision when buying or selling real estate.  If you have any questions or comments about the information in my blog, or anything else, please feel free get in touch on (403) 510-7307 or e-mail me at alan@calgarycityproperty.com.

Calgary Realtor Blog - Friday December 16th/2011 - Mansion in Elbow Park Sells for More Than $5 Million

Sitting in the quiet Elbow Park/Glencoe neighborhood is a property that just sold for a whopping $5,050,000. It is the highest MLS sale in Calgary in 2011 and the fifth highest price of all time. The property was on the market for 101 days before changing hands on December 10th.

Built in 2007 by Empire Custom Homes, it offers more than 9,000 square feet of space. The top floor is made up of a loft that is 1,599 square feet. The lower floor offers a media room with theatre style seating, a wine cellar with glass panels, an exercise room and a recreation room. Five bedrooms and six full bathrooms are included. The original asking price was $5,590,000. The buyer got a half million dollar discount.

The Calgary Real Estate Board also noted that between January and November of this year, 25 condos sold through the MLS system were valued at over $1 million. In 2010, there were only 19 in that price bracket. In the single family category, 406 homes sold were in the million dollar club, compared to 326 in 2010. The record year is still 2007, when 431 single family homes and 30 condos went for over a million each.

Calgary Realtor Blog - Tuesday December 6th/2011 - Canada as a Whole Loses Jobs, Alberta Bucks Trend

The unemployment rate in Canada edged up a bit, from 7.3 to 7.4 percent in November, with a net loss of 19,000 jobs. Alberta was that exception, with its unemployment rate going from 5.1 down to 5.0. That province had a net gain of almost 3,000 jobs.

Not surprisingly, many of those jobs were in the oil and gas industry, already doing well. Other fields included construction, technical and scientific sectors. Things always get busier in the gas and oil industry in the winter. This is the time of year when the ground freezes, making it easier to transport heavy equipment into remote areas.

Edmonton was the leader in job creation. In the year between October of 2010 and October of 2011, the city had a net gain of 45,000 jobs, the most of any metro area in Canada. Even so, with the good news out of Alberta, Statistics Canada was not quite so optimistic.

Robert Kavcic, an economist with BMO Capital Markets, noted that since the middle of 2011, the country has lost about 2,000 jobs per month. He concedes that some of the November job numbers, like those in Alberta, are encouraging. Kavcic also noted the increase in full time jobs as opposed to part time positions. But the man sees a softening in the economy, after a particularly robust third quarter.

Calgary Realtor Blog - Thursday December 1st/2011 - Calgary Expecting Hot Residential Market for 2012/2013

MLS sales in Calgary were up this November compared to November of 2010. The Calgary Real Estate Board released a report this past Thursday, noting that 962 single family homes changed hands, which is an 8.09 percent increase over last November. The average sale in that category was 3.31 percent higher, or $470,665.

Condos also saw a significant jump Some 393 properties changed hands, a 26.77 percent increase over November of 2010. But unlike the single family home category, prices fell by 3.97 percent to an average of $272,356. Sano Stante, who is CREB’s president, noted that consumers are shopping wisely, looking for deals, and then actively buying.

The city did see two years of lower employment, but that is changing. Today the resurgence of the energy industry is bringing jobs not only in that industry, but to companies that are supportive of the oil sand projects. More jobs, more people, more housing, it is a simple and favorable scenario.

ReMax realtor Carmen Davison also noted that the larger number of listings is also providing buyers with more choice and the ability to negotiate. Davison advises those putting properties on the market to price their homes prudently. Something overpriced is not going to be sold, necessarily. She predicts that for 2012 and 2013, Calgary will be a very hot real estate market, and that prices will slowly edge up between two and five percent.

Calgary Realtor Blog - Saturday November 19th/2011 - West LRT Costing Much More Than Anticipated

The West LRT project is turning out to be more expensive than originally expected. Land prices are steadily going up, which is helping push the price tag to more than the latest figure of $1.46 billion. Last Wednesday, representatives of West LRT as well as city officials were questioned about the cost. They also faced questions about the $35 million shortfall discovered previously, and the fact that no money had been set aside for public art, which was against council policy.

It became clear that next year there will be a demand for additional funds because of the continued increase in property values and because 14 of the remaining claims have not been taken care off. Some of the alderman expressed frustration that the original budget, set in 2007 has seen so many changes without understanding the potential risks. Druh Farrell, one of the aldermen, noted that there is an outstanding bill with nothing to pay it with.

Also noted was that the $1.46 billion price tag was never made public. This money is to cover all related construction, the buying of the additional LRT cars, and carrying costs, which are considerable, on loans already taken out to fund the West LRT. All of this was approved by council via a number of reports that followed the original approval in 2007. One particular issue that grates is the $61 million pulled from the city’s contingency fund to pay for putting part of the line around 17th Avenue and 45th Street underground, not part of or budgeted in the original proposal.

Calgary Realtor Blog - Tuesday November 1st/2011 - Barons Estate Listed For $12.5 Million

Are you in the market for an 11,900 square foot mansion, stables and a slew of homes suitable for rental? If so you are in luck. An estate known as Canadiana Properties is up for sale in the Calgary region, at an asking price of $12.5 million. The entire estate takes up 65 acres. Ross Pavl and Ben Eby, both with ReMax, are marketing the property.

Once owned by Baron Carlo Von Maffei, an avowed horse lover, it was built in 1974 after the baron acquired several tracks of land, after moving to Calgary from Ontario during the 1960s. There were usually 35 to 40 thoroughbreds on property. Of those 15 were brood mares, bred in Kentucky. The yearlings from his estate went for a pretty penny. One yearling, sold in 1979, brought $108,000, still the highest price tag for any yearling purchased in Alberta.

The mansion itself is U-shaped, housing an elite interior filled with baroque style furnishings. A fully finished basement means that the living space is really over 24,000 square feet. As far as those rentals, there are eight three bedroom homes, each measuring 1,500 feet, and one home that was the barn managers that measures 2,500 square feet. That home has an attached apartment, coming in at 1,800 square feet. The listing is one of two in the Calgary area that are listed at more than $10 million.

Calgary Realtor Blog - Thursday October 13th/2011 - Calgary On A Mission To Preserve Its Wetlands

Calgary does give the impression that it is increasingly becoming more urban in nature. Certainly the population has increased over the last few years, enticed by good paying jobs and favorable housing costs. But the city is also doing its part to preserve part of the natural world, specifically those wetlands that are still undeveloped.

For years Calgary has required developers to pay compensation to the city if any of their projects involved taking up land that has been designated a wetland. Fees have been imposed of up to $400,000 per hectare. While at one time this might have been a deterrent, in the current climate developers are choosing to pay on the spot in order to build. Chris Manderson, who is with Calgary Parks, wants to change this system.

Manderson’s idea is a no-net-loss regulation, meaning that if a developer uses a wetland, that natural area must be recreated somewhere else, at the developer’s expense. The city is already practicing a form of this by trying to keep parts of wetlands surrounding developments in their natural state, but this doesn’t always work. Wetland areas cannot be cut off from their water source, or they are no longer wetlands.

But plans are already underway to restore wetlands west of Deerfoot Trail. Laycock Park will be built using some $7 million of the money collected from different development projects. The park will have ball diamonds and play areas, including a toboggan hill. But it will incorporate Nose Creek, a meandering waterway that runs through the area. The city will have to restore the native vegetation, which will in turn attract native animals to the area.

Calgary Realtor Blog - Tuesday October 4th/2011 - Naheed Nenshi Promotes Idea of Revamping Canada’s Tax System

Naheed Nenshi was elected as Calgary’s mayor in the fall of 2010. Since then he has been promoting his idea that the tax system for Calgary, as well as other Canadian cities, is outdated. Currently on a speaking tour outside of Alberta, he is voicing that opinion in Montreal and other areas on his visit.

His opinion is based on fact. In Calgary alone there is concern about meeting the costs of upgrading and/or replacing aging infrastructure as well as the day to day needs of running a major urban centre. Nenshi advises that unless the tax code is changed, both at the federal and provincial levels, things will only get worse, particularly in the weakening global economy.

Nenshi noted that Canada’s constitution was written when the country was mostly agriculturally based. Today more than 80 percent of the population lives near or in cities. It costs more to keep a city and environs up and running than it does acres of pasture or farmland where there are more cows than people. People need more than a field full of grass or bales of hay to survive.

Montreal, which has had its share of infrastructure woes, was a good place to deliver such a speech. In the past year the city saw several bridges closed because of emergency repairs and had one tunnel roof collapse, causing even more traffic jams. Nenshi did have kind words for Ottawa on one front. Under Paul Martin, Parliament decided to transfer gas-tax revenues to the cities, which was a smart way to go. This was a temporary measure, which the Tories have agreed to make permanent. Nenshi notes that this is a good first step. Other items that Ottawa can help with are affordable housing, clean water, public transit and road repairs.

Calgary Realtor Blog - Monday September 19th/2011 - Gary Mar Ahead In Race to Become Alberta Leader

Things are looking up for Gary Mar, Alberta’s former health minister. He is looking to become the leader of the Tories and so far has claimed victory in 52 out of the 83 ridings throughout the province. In total, he took 41 percent of the first round vote. To win, he must win over 50 percent. The final vote takes place in less than two weeks.

Running against Mar are Doug Horner and Alison Redford. Horner claimed victory in 13 ridings, mostly in the north and in Edmonton. Redford took ten, and all of Calgary except one. Both of these candidates have very slim numbers in parts of the province, and a lot of work ahead to secure more support. This means that for now Mar is in the driver’s seat.

Conservative politics in Alberta is usually split along geographical lines, in some ways the north against the south. Ed Stelmach, the current leader, won in 2006 despite loosing in all 23 Calgary ridings. Stelmach represents a northern riding. Mar appears to have more provincial wide support, and is emphasizing that fact while on the campaign trail.

Meanwhile, Horner and Redford are pressing forward, despite Mar’s taking over 24,000 votes from faithful Torries. Mar continues to spread the word about unifying the province, and it seems to be resonating well. Even so, Redford will be pressing north over the weekend to entice northern voters and Horner will be courting Calgary voters.

Calgary Realtor Blog - Monday August 29th/2011 - City of Calgary Population Growing, and Growing

Calgary’s population is not only blossoming because of all those immigrants coming into the city to get jobs, it is also experiencing a booming birth rate. If things continue as they are, Alberta Health Services is expecting 18,000 births by the end of 2011. That would break the previous record that was set in 2007. During that year, according to Heart 2 Heart’s spokesperson Rebecca Eras there was somewhere between 15,000 and 17,000 babies born in the city.

Throughout Alberta, the best guess is that 50,000 babies will be born by the end of 2011. Forty percent are expected to be in the Calgary region. Alderman Shane Keating, from the 12th Ward, notes that city officials have been preparing for the record number of births. There were indications, as far back as a couple of years ago, that Calgary was going to be growing rapidly.

Keating believes that the city needs to put up some new recreation centre to handle all those new children, as well as their parents. He has proposals for four in the works, at Great Plains, Quarry Park, Seton and an undecided location in the northwest. Keating notes that if the centres don’t go up now, it will be some time before all those kids have some place to go.

The recreation centres are only the beginning. Parents around the city have voiced opinions about also adding more parks, and more free things to do in the city. Some parents, particularly those in the northwest, are finding they have to travel quite a ways to find some open park space.

Calgary Realtor Blog - Tuesday August 16th/2011 - Outdoor Renovations Create Interest, Generate Sales

Getting potential clients to look at a property means grabbing their attention before they even step inside the front door. This is what is known as curb appeal. It is akin to window shopping. Think about it, you walk down a downtown street or along a mall corridor and check out what is in the windows. An enticing window invites you into the shop and is an effective sales tool. Shopping for a home is psychologically no different. The next time you drive down a neighborhood street, take a look at the homes and see which one you would most like to enter.

The first step in getting a home ready for sale is to give it a good wash. That means front, sides and all the windows. This may mean a coat of paint if taking off that layer of dirt reveals a less than pristine surface. Take a look at your walkways and steps and have them repaired if they are cracked or damaged. Replace your front door if needed, and if you have a screen door, make sure that is presentable, with no tears or rust. Make sure your entry light, as well as all other exterior lights, are in good working order.

A driveway that is a bit worn can be given new life with a wash and an application of a sealer that goes on like paint. Then look at your roof with a critical eye. Replace loose shingles and clean out the gutters. Finally, take a good look at the overall picture your home creates. Would a few manicured plants add colour and class? Is the lawn in good shape? Is the porch or yard cluttered? Are your trees in need of a trim? All of these improvements help you not only get a quicker sale, but a better price.

Calgary Realtor Blog - Wednesday July 13th/2011 - Rob Lennard Tells Alberta History His Way

Rob Lennard has been in the commercial real estate business for decades with his family firm, Lennard Corporation. But there is a creative side to this mover and shaker of all things built and perhaps un-built. Lennard loves to sing and to write songs. The artist plays in three bands, including one that had the honour of opening for Colin James a few years back, the Memphis Chain Gang.

Lennard also performs for the younger crowd, going to shows and performing songs that teach history in a fun way. In 2004, he decided to put his creative way of teaching history in a book. The latest result of that bright idea is his current read, “The Amazing Time Travel Adventures of the Iron Crow Brothers and Bree Saint Marie.” It is a fictional tale, but within the pages are 293 facts about Alberta history that lets early teens, his target audience, learn while not even knowing it.

The author fills his books with the “messy bits” that kids find so gross, yet so appealing. One of the attention getters in the book is the description of the sound that a skull makes when it is scalped, sort of like a very loud champagne cork being popped out of its bottle. How does he know such a thing? The 80 something author interviewed an aged Blackfoot warrior while Lennard was still a young man. The process was described to him in great detail, from personal experience.

Calgary Realtor Blog - Tuesday June 21st/2011 - Capital Power Makes Multimillion Dollar Deals

Capital Power Corporation, an Edmonton firm, has managed to work out a couple of multimillion dollar deals recently. The first is that Atlantic Power, based in Boston, will take over all of Capital Power Income LP, an affiliate company, for $320.3 million. Under that same agreement, Capital Power Income LP will take over two North Carolina power plants, one in Roxbury and the other in Southport. That firm already has 18 power plants in locales outside of the North Carolina region.

All of this has caused movement on the Toronto Stock Exchange. The shares for Capital Power were seeing a four cent decrease, coming in at $26.75 per share on a volume of roughly 33,000 shares. Atlantic Power saw an increase of five cents per share for a price of $15.01, based on its volume of 103,000 shares. Lastly, Capital Power Income LP saw their shares go to $19.28, an increase of 65 cents, with a volume seen of 138,500 shares.

The deals have already been approved by the boards and are expected to close sometime in 2011’s fourth quarter. At that time Capital Power will no longer be managing CPILP. The $320.3 million is being paid for a 29 percent interest in CPILP. The firm will also receive an additional $10 million for the termination of related management functions. Payment will be in a combination of cash, Atlantic stock and the acquiring of the North Carolina plants, which have been valued at $121 million.

Calgary Realtor Blog - Thursday June 16th/2011 - Calgary’s Bike Lane Network Plan Needs More Thought

Calgary’s city council is working on making the city more bicycle friendly. At present they are looking at a plan with a price tag of $28 million. It includes a network of cycling paths in the Beltline and in the downtown core. This network will cover almost every street and nearly half the city’s avenues. To some it seems a bit like overkill considering that the number of people that commute into the downtown core averages about 9,000 per day.

Also at issue is the fact that those downtown bike lanes are destined for low-traffic streets. Which asks the question, if there is little traffic, why have bike lanes? Doesn’t the law already require cars and cyclists to share the road equally? The streets in question already have extra signs and road markings that advise both parties to look out for each other.

The other issue is parking, which is already a thorny issue. Putting a bike lane in at the expense of parking spaces might not be the greatest idea, especially downtown. And exactly how many people live in the downtown core? Are there enough to warrant the expense and maintenance of bike lanes?

Last of all, Calgary is really spread out, with some residents on the outer edges living some 25 kilometres from downtown. Are these residents going to willingly want to commute this far, especially in the winter? Commute times would double. It would be more practical, and faster, to take public transit if seeking an alternative to driving. Perhaps the network of bike lanes needs a bit of a rethink.

Calgary Realtor Blog - Thursday June 2nd/2011 - Keystone Pipeline Oil Shipments to United States Suspended Due to Leak

TransCanada Corporation is trying to cut a deal with the United States involving exporting additional oil into that country as far south as Texas. Currently its Keystone pipeline, which carries oil to refineries in North Dakota and Kansas, is shut down. The pipeline developed two leaks in the space of a month, one May 9th at a North Dakota pumping station, the second this past week at a pumping station in Kansas. All shipments have been suspended until TransCanada gets the latter spill cleaned up. Both spills appear to be the result of failed fittings.

All this comes at a time when the oil industry is under the proverbial microscope. Though compared to some recent oil disasters the two spills, the North Dakota one at 500 barrels and the Kansas one that leaked between ten and 40 barrels, are relatively minor. But the potential for large spills is there. The Keystone pipeline normally transports between 400,000 and 450,000 barrels of crude from Alberta to a storage facility in Oklahoma and a refinery in Illinois. At maximum capacity the pipeline can handle 591,000 barrels a day.

There is already opposition to the proposed Keystone XL line which will double the amount of oil transported per day and carry that oil even farther south to Texas refineries. The spills don’t help the negotiations. Environmentalists and landowners in several states are already strongly opposed.

The U.S. State Department will have the final say about the new pipeline. While that agency will be looking at the potential spill problem, they will also be considering the appeal of having Canada supply enough oil that the Middle East will become less of a factor. The pipeline would cut oil imports from that region by about 40 percent. Also in Canada’s favor is that when there is a problem, the oil companies have been quick to respond.

Calgary Realtor Blog - Tuesday May 11th/2011 - April Housing Sales in Calgary Down From Last Year

This past April, Calgary sales of single family homes in the MLS system were down by almost ten percent from April of 2010, numbering 1,217 transactions. On the other hand the average price went up roughly 4.2 percent, or $479,575. Condos also showed a decline of 16.3 percent from April of 2010, showing 535 sales in the current year. But condo prices fell by 0.15 percent to an average of $289,158.

Sano Stante, who is the Canadian Real Estate Board’s president, allows that the market so far this spring has been slower than average, but also notes that inventories are once again decreasing, getting down to more healthy numbers. Single family listings were down 25 percent comparing this April to the same month last year. This keeps housing prices more on an even keel. Combine this positive point with the improvement in the job market and Calgary’s residential real estate market should warm up a bit in the next few months.

Condos also saw their inventories decrease on the MLS system, which will also help to keep those prices fairly steady. Condo listings went down 27 percent. That offsets an average 16 percent decrease when comparing year over year figures. The condo market is on its way to becoming a stable one.

Stante credits the economy, especially investment in the energy field with the improvement in the housing market. Prices are still low, as are interest rates and all those new workers moving into the city have to have somewhere to live. The prediction is that the second half of the year will be busier than the first part of 2011.

Calgary Realtor Blog - Thursday May 5th/2011 - Calgary’s Skyline Might Be Getting a Facelift

Does downtown Calgary need more high-end office space? Judging from the increased interest in lease space, perhaps so. Currently the class AA/A lease market sits at a 7.09 percent vacancy rate. That is a decrease from the 8.23 percent it was sitting at by the end of 2010. Developers are eyeing the skyline, perhaps plotting where, and when, to change its makeup.

One idea is a smaller office tower to complement the Bow Tower, one of Calgary’s recently finished skyscrapers. Other projects that were put on hold are being pulled out, looked at, and the market analyzed. Avison Young, one of the area’s prime management firms notes that the developers are taking a look at the growing employment numbers, the increase of energy prices and the absorption rate of downtown core office space. All signs are creating vast amounts of optimism.

Another idea being thrown about is to add a second tower to Eighth Avenue Place. The potential developer is already discussing the possibility with an interested tenant. It is possible that project could begin within the next year. Calgary Economic Development’s Susan Thompson, a business development manager, notes that breaking ground on a new office building in the downtown core will not happen unless 60 to 70 percent of the space has tenant commitment. In some business fields, all that would take is one very big tenant.

Calgary Realtor Blog - Tuesday April 19th/2011 - Calgary School Boards Have Highest Administration Costs in Alberta

All school districts within the province of Alberta are having to get by with smaller budgets these days. In Calgary, even though their budgets have also been whittled down, the public and separate school boards are spending a larger proportion of those funds on trustees and top officials than boards elsewhere in Alberta. The Calgary Catholic School Board spends 3.8 on upper management and the CBE allocates 3.7 percent for the same reason.

In Edmonton and Red Deer, only 2.7 percent of the budget goes to headquarters expenses. The provincial average is 3.4 percent and the provincial overall cap, the amount that no board may exceed, is 4.0 percent. Dave Hancock, the Education Minister notes that while he does not want to advise boards how to manage their budget, he does hope that the students are getting most of the benefits, and that those same boards are being transparent about where the money is going.

The Association for Responsible Trusteeship for the Calgary Schools is a bit frustrated because neither board had a breakdown of the monies allocated to administration. This raises questions about how funds are being spent. Pat Cochrane from the CBE dismisses this idea, noting that the performance of the students should be the measuring stick for how a board is managing its schools, not how funds are spent. John Deausy, from the Catholic School Board advises that his administration costs are higher because all staffing and financial matters are handled at headquarters, not farmed out to individual schools. Both districts are looking at staff and program cuts for next year.

Calgary Realtor Blog - Friday April 1st/2011 - Obama: Canada Continues to be a Key Source of Oil for U.S.

President Obama announced his plan for a 30-percent reduction in the amount of oil imported by the U.S. over a 14-year period. While doing this, he cited Canada as one of the few nations that the U.S. considers stable sources of reliable energy.

Obama’s initiative was announced during a time in which gas prices continue to rise and conflicts escalate in the Middle East. At present, America’s oil imports total 11 million barrels daily. Obama seeks to increase the domestic production of oil, invest in biofuels and develop heightened usage of natural gas. He also reiterated an ongoing goal to make all vehicles more fuel-efficient.

Obama stated that the U.S. could no longer continue to rely upon a finite source of energy, even when oil supplies are occasionally more plentiful. Gasoline currently costs more than $3.60 per gallon in the U.S., representing a seven-percent increase.

Although much of Obama’s rhetoric focused upon the need to invest in alternative forms of energy and curtail oil imports, it also acknowledged the need for the U.S. to partner with other countries for its oil needs. He noted that the U.S. would continue to rely upon Canada, Brazil and Mexico as oil sources for many years.

The U.S. currently imports some 20 percent of its oil from Canada, making Canada the largest provider of oil to the country. Mexico is the second-most significant supplier. One item not mentioned in Obama’s speech was the conflict in Washington over the proposed pipeline that would stretch from Alberta to Texas. The Keystone XL Project, developed by TransCanada, would transport about 500,000 barrels of crude oil from north to south. The price is estimated to be $7 billion.

Calgary Realtor Blog - Friday March 11th/2011 - Industrial Real Estate in Calgary Seeing More Demand

Calgary is leasing out more industrial real estate these days. Avison Young, an industrial marketing firm, says that companies are signing longer length leases, recently completed spaces are being snatched up much more quickly and over all the demand is steadily increasing. This has inspired developers to begin building more space which won’t be available until the latter part of 2011.

Calgary had 5.2 percent of its industrial space available at the end of last year. During the previous six months the availability percentage was a flat five percent, due mostly to the vacancy of two large industrial buildings that were each leased to one client. These were the Enerflex Systems Ltd. building at 4700 47th Street South East and the building at 10 Smed Lane South East that Haworth Ltd. was leasing. Between these two buildings those two firms held one percent of the city’s 106 million square feet of industrial space.

Avison Young did a survey of Calgary’s 21 largest landlords which manage 33 percent of that city’s industrial space and computed what they call the Industrial Vacancy Index. During the last quarter of 2010, the index was 6.8, down from the 8 percent in the prior quarter and the 11.2 percent from the fourth quarter of 2009. The decreasing numbers are a sign that Calgary’s industrial lease market is improving.

Calgary Realtor Blog - Tuesday March 1st/2011 - Alberta’s Finance Minister Says Provincial Sales Tax Not Needed

Finance Minister Lloyd Snelgrove does not believe that Alberta needs to implement a provincial sales tax until the oil sands play out. Since there is enough bitumen to last centuries, his recommendation is to let those far in the future decide on the issue. Other Canadian provinces that have the provincial taxes are not as financially sound. In general they have higher debt loads and their economies are not as robust.

Snelgrove notes that several companies have invested billions of dollars in building processing plants in the oil sands region. Even if the crude prices are all over the map the work will continue. But there are some who don’t agree with this philosophy.

Others are of the opinion that Alberta depends too much on revenues from its resources and should consider other ways to fund the government, including implementing a sales tax or increasing business or personal taxes. Rob Anderson from the Wildrose Alliance is particularly vocal, noting that the finance minister is not thinking about the future. Nor is the province saving any of that revenue for a rainy day.

Snelgrove advised that the province would return to saving money, as well as increasing the endowment funds once Alberta has a balanced budget. It is expected the province will be back in the black by budget year 2013-2014.

Calgary Realtor Blog - Friday February 11th/2011 - Heritage Hockey Classic to Be Held At McMahon Stadium February 20th

McMahon Stadium, home of the Calgary Stampeders football team, is going into the deep freeze. On February 20th the Montreal Canadiens and the Calgary Flames will be battling on ice in the National Hockey League Heritage Classic, a game played outdoors. The football greens will be covered over with a temporary floor and then a sheet of ice suitable for the game of hockey.

Over 41,000 hockey fans are expected to attend. That meant adding an additional 5,400 seats to the north end of the field. The temporary floor will be covered with a boxed platform and then that is covered with sand. The ice sheet is created over the sand. Luckily the weather forecast calls for a -6 C on game day so there should be no problem with keeping the ice solid. The days prior to game day are also predicted to be cold.

The merchandise tents have already started to appear around McMahon Stadium Promoters are also building a spectators plaza that will have the food and beverage services, live music and large video screen. The 80,000 square foot area will be open on February 19th and 20th.

Tickets are going fast but at last count there were a few left at Ticketmaster. If any more tickets will be released they will be sold through the Flames’ Last Minute Ticket Club.

Calgary Realtor Blog - Monday January 31st/2011 - Alberta’s Oil Sands on the Way to Prosperity

The oil sands are humming along quite nicely thank you. This means that Fort McMurray and the surrounding Wood Buffalo region are prospering. It is seeing major increases in housing starts, the resale housing markets and Alberta’s strongest average home price growth in the early days of 2011. This area also has the highest rate of job creation in the province and the lowest unemployment rate, four percent.

The Wood Buffalo area is the only place in Alberta that currently has a balanced real estate market. Everywhere else gives the buyers the edge, according to Richard Corriveau form Canada Mortgage and Housing Corporation’s Calgary office.

Resale home sales are set to increase by almost ten percent with an average home price of $585,000. That is a five percent increase in price from 2010. Single family home starts are expected to increase by 14 percent and multi-unit starts by 29 percent.

All of this prosperity coincides with a number of projects that have been restarted after being put on hold during the 2009 recession. As of August 2010, $97 billion worth of projects were competed, in progress or had scheduled start dates. That was enough to recover most of the jobs lost throughout 2009. As of the end of 2010, there were 71,400 workers in the area, the majority in full-time positions.

Calgary Realtor Blog - Wednesday January 19th/2011 - Canadians Favour The Enclosed Park-Once-And-You’re Warm Shopping Malls

Can the traditional enclosed shopping mall be on its way out? No more line up of quaint shops and eateries luring adults and teens to spend an afternoon wandering about chatting, texting and window shopping? Perhaps somewhere in the world, yes, but not so much in Canada. We like being able to park the car once and then head for the warmth of an indoor mall, particularly on a snow blown winter’s day.

But there is a growing trend for the construction of what is called a “power centre.” These are sort of like mega malls, with large retail outlets each having their own building and sharing a common parking area. They are convenient and do have just about everything you could want. Think Wal-Mart and Canadian Tire, two frequent retailers at power centres. But the fact that you have to leave the warmth of one store to trudge across an icy lot to another is not quite as attractive as going from shop to shop in blissful warmth.

Despite this fact, almost 30 percent of the retail shopping space is found in power centres. They have only been around for about that the last 15 years so capturing that much of the market is significant. More and more communities are favouring this type of shopping scenario because done correctly; power centres create a small-town main street atmosphere. Smaller versions, village style shopping hubs are also being created in new housing developments.

Calgary Realtor Blog - Tuesday December 28th/2010 - Calgary Enjoys a Drop in Consumer Prices

Residents and Calgary and Edmonton have a bit of a reason to celebrate this holiday season, as these two cities witnessed the largest monthly decreases in consumer prices last month. Per reporting agency Statistics Canada, these markets experienced decreases amounting to 0.2 percent versus October. Alberta was the sole province that witnessed this type of decline. Consumer prices in the whole of Canada increased by 0.1 percent over October.

ATB Financial economist Dan Sumner said that the slight Consumer Price Index decrease is mostly attributable to lower prices for energy commodities such as gasoline, natural gas and electricity. He advised that there is a concern about an onset of deflation, people should not be overly concerned, as the energy price dip is short-term in nature.

Energy prices actually rose by 6.7 percent from October 2009 to October 2010, ending with an increase of 9.1 percent during October. Gasoline prices were higher by 7.2 percent versus November 2009. Prices for electricity rose by 5.9 percent during that 12-month period, and ended with a hike of 8.1 percent this past October.

Statistics Canada reported that passenger vehicle sales prices increased by 3.9 percent versus November of last year. Replacement costs for vehicles grew by 4.6 percent, as opposed to 4.9 percent in October.

Prices rose in other essential categories during this 12-month period. Transportation prices grew by 4.6 percent, food costs rose by 1.5 percent, shelter prices increased by 2.6 percent and health care prices advanced by 2.2 percent.

In other areas: Prices for tobacco and alcoholic beverages witnessed a 2.5-percent increase. Costs in the clothing category actually declined by 3.2 percent.

Calgary Realtor Blog - Friday December 3rd/2010 - RBC: Canadian Housing Market to be Stable in 2011

Calm waters are ahead for Canada’s sometimes-turbulent housing market, according to the nation’s biggest bank. The Royal Bank of Canada predicted that the market will be stable, and that any increase in mortgage rates will be mitigated by better job prospects.

According to Robert Hogue, a senior economist with RBC, there are no major discrepancies that would need to be addressed or corrected. Hogue said that in light of the ups and downs the real estate market has seen during the past couple of years, an element of stability is a welcome change.

Hogue predicted that the market may be somewhat soft in terms of prices during the first part of 2011, but that softness would be short-lived, and a modest price increase would occur later in the year.

Although mortgage rates experienced a surge during the spring of this year, they have declined ever since. This has helped to make home ownership more of a possibility for many consumers during 2010. The Bank of Canada has not raised the prime lending rate for months.

However, rates for both fixed and variable-rate mortgages are poised to rise next year. Hogue said that even though increases are likely, they are by no means a certainty. He said that if the U.S. economy continues to be sluggish, there could be a delay in the imposition of rate hikes.

Jason Scott, who is the regional manager of Urban Mortgage Edmonton, advised that although there is a large inventory of homes for sale, the Alberta economy is strong. He commented that despite the high number of listings, people are spending money, mentioning that area restaurants are busy, even on weekdays.

Scott is currently advising his clients to obtain variable-rate mortgages. He explained that although a rate hike is quite possible, there continues to be a hefty spread between a fixed-rate and variable-rate mortgage.

Calgary Realtor Blog - Wednesday November 24th/2010 - Calgary’s New Snowplow System off to an Efficient Start

Although the first major snowstorm in Calgary produced the usual problems of power outages, slow commuting and minor traffic accidents, the city’s new plowing system made a successful debut.

Crews began their deployment after the November 16 storm in what is called the “echelon” technique, which consists of staggering snowplows along all traffic lanes moving in the same direction. In this process, snow is ultimately passed to curbs and out of the streets.

Sean Somers, spokesman for the transportation department, said that the new system has shown to be highly efficient, resulting in faster and safer commutes. He added that his department has begun to move its resources more strategically to ensure that snow is cleared at all key locations.

Somers said that as snowfalls end, and the roads designated as Priority 1 and Priority 2 are cleared of snow, the city is guaranteeing that plows will get to all pavements in Calgary. Residential neighbourhoods would be the recipients of plowing several days after the first-priority roadways are cleared.

The November 16 storm was made even more difficult by the relatively balmy temperatures that were in place the day before. When the snow started to fall later that day, the wet output began to make the roads icy. Then the temperatures got lower, resulting in even more snow. Downtown Calgary received anywhere from six to eight centimetres of snow by the afternoon of November 16. The heaviest amounts of snow fell in the Strathcona region, with as much as 15 centimetres of the white stuff on the roads.

Approximately 15,000 people lost electrical power during the storm, per Fortis Alberta. The areas which experienced the most significant power losses included Vauxhall, Taber, Duchess and Brooks. Rural communities in Bow Island, Medicine Hat and Bassano were also affected.

Calgary Realtor Blog - Monday November 8th/2010 - Alberta Health Care Plan Held Up In Political Wrangling

The Province of Alberta has been working on a new health capital plan for months now. The unveiling is already seven months late and Gene Zwozdesky, the Health Minister, is saying that the details are still being worked out. There are considerations being discussed for the construction of new health facilities in the provinces two major cities, Calgary and Edmonton. The province is making sure that there is enough in the budget to cover both the construction costs and the running of the facilities once they are open.

One project that is awaiting funds is a new cancer center in Calgary. The Tom Baker Cancer Centre has been at capacity for seven years and it is the only treatment center of its kind in Calgary. Zwozdesky won’t give any hint whether the project is on or off the table. Neither will any other government official working on the health plan.

The Liberal Party let the Stelmach led government know in its Thursday question period that they and the people of Alberta were displeased with the delay. The plan includes a $1.25 billion fund for Edmonton and Calgary to use for their much needed health centre projects.

Alberta’s ER system is also in need of funding, and soon. According to many physicians throughout the province, particularly in large cities such as Edmonton and Calgary, the system is on the brink of collapse. The wait times are extreme and ER wards as well as other hospital sections are overcrowded. Let’s just say that the sooner the new health care plan is implemented, the better.

Calgary Realtor Blog - Thursday October 28th/2010 - Calgary Seeing Less Vacancy in Large Industrial Spaces

Industrial rental properties that have large bay spaces are starting to fill up in Calgary. As the economy improves, larger companies are showing interest in moving back into the city. This includes rental units with 50,000 square feet of bay space or more. The smaller industrial spaces aren’t moving as well.

One reason for the decreased vacancy is the stop on building that occurred in early 2009 when the economy was in a definite slump. According to real estate firm Avison Young, new construction of large commercial space is not planned for the immediate future. There would have to be a consistent increase in vacancy through the rest of 2010 and into 2011, with the resulting increase of rental price points, before any new projects begin. This does fit nicely with the timeline for expected spring construction in 2011. There are some projects in the planning stage or awaiting permits.

A research manager for Avison Young in Calgary, Susan Thompson, advised that the vacancy rate for industrial property in the city dropped to 5 percent during the third quarter of this year. That is down from 5.5 percent in the second quarter of 2011 and from 2009’s third quarter which came in at 5.2 percent. Rental rates have decreased slightly from $6.98 per square foot in 2011’s second quarter to $6.88 in the third. In 2009, third quarter rates averaged $7.23 per square foot.

Calgary Realtor Blog - Tuesday October 19th/2010 - Alberta’s Energy Companies Must Remember to Be Good Neighbours

Energy rich Alberta is playing a major part in Canada’s recovery from the recession. But the bounty of gas and oil reserves has a bit of an image problem. With environmentalists at the forefront, Canadians are becoming increasingly concerned over the toll that oil processing is taking on the natural landscape.

Alberta needs to heed those concerns and continue to find ways to take what is under the earth and process it without destroying the landscape for all time. Jim Dinning, from the Canada West Foundation, stressed that Alberta is so crucial to the health of the nation that the province cannot afford to ignore public opinion and scientific fact.

Ontario’s manufacturing industry is recovering much more slowly. Add to this the high value of the Canadian dollar and the increased competition from countries around the globe and the importance of being productive, yet prudent becomes more apparent. Western Canada, particularly Alberta, just may become the fiscal leader in the country, a role that Ontario has historically played.

Alberta also must not appear to put all of its eggs in the energy basket. The province, along with the rest of Western Canada, has a strong tourist industry. Manufacturing, agricultural efforts, forestry products, construction and professional services are just some of the industries that make up Alberta’s economic base.

Calgary Realtor Blog - Tuesday September 28th/2010 - Calgary Police Chief Strikes Back at Mayoral Candidate’s Budget Remarks

A mayoral candidate and Calgary’s police chief got into a battle words September 23, as both sparred over police officer economics.

Naheed Nenshi took an indirect shot at Chief Rick Hanson in a press release criticizing Rick McIver, another mayoral candidate. Nenshi claimed that McIver did not thoroughly scrutinize the police department budget back in July. He contended that aside from Edmonton, Calgary’s cost per officer of $166,628 is the highest in Canada. He also questioned the 23-percent growth in the department’s budget over a three-year period, while there has been only an eleven-percent increase in the number of police personnel on the streets.

Upon being informed of Nenshi’s comments, Hanson quickly issued a rebuttal, in which he denied the accuracy of the candidate’s data. In his statement, Hanson replied that his department operates in a cost-efficient way, and expressed his disappointment that Nenshi would issue ill-informed information.

When questioned about the data used in his press release, Nenshi said his staff found numbers from Statistics Canada’s survey on 2009 Police Resources in Canada. He said that data also came from the Police Service’s budget approved for 2009 through 2011.

Nenshi denied that he wished to mount an attack on the police department or on Hanson. However, he noted, he sought to criticize City Council for essentially letting the police budget sail through without sufficient scrutiny before the entire city budget is up for debate in November.

In analyzing the verbal exchange, David Taras, a professor at Mount Royal University, said that civil servants, even those in high positions, should not involve themselves in political scuffles.

Calgary Realtor Blog - Monday September 20th/2010 - Alberta Schools Focus on Getting Kids Active

Alberta schools are working to change how much exercise kids are getting. In 2009, Health Canada results showed that approximately 87 per cent of children were not getting their 90 minutes of daily exercise.

The Alberta-wide Daily Physical Activity (DPA) initiative has been implemented to engage kids in activity, requiring students from grades one through nine to participate in physical activity for at least 30 minutes every day. Dr. Christine Kennedy, a paediatrician, said the program could help kids to meet their daily 90-minute goal.

Results from randomly selected private, public and charter school information are showing success; 80 per cent of schools implemented a physical education class, and 20 per cent are using recess, classroom activities and intramurals to introduce exercise.

Bev Robinson, a Calgary Board of Education learning specialist in outdoor and physical education, said Calgary students are exercising for 30 minutes a day in activities that range from dancing, gymnastics, games, swimming and outdoor activities.

The DPA initiative is based on the idea that students in good health learn better. Alberta is extending its DPA initiative to include physical, spiritual, emotional and social health for students in kindergarten through grade twelve. The program is expected to begin in 2014.

Calgary Realtor Blog - Wednesday September 1st/2010 - Calgary Homes Want To Be Pretty In Pink – Safe Too

There is no mistaking a home treated with Pinkwood. It is…pink. Very pink. Think popular stomach remedy pink. The liquid coating, manufactured by a Calgary firm called Pinkwood costs no more than other treatments, kills mould and is a fire retardant. The substance is also water repellant. So far the hot pink liquid is only available to new home manufacturers.

Calgary fire officials are delighted. So many homes in the city are lost to flames because the materials they are built with are more combustible than ordinary wood. Fire Chief Garth Rabel has high hopes for the product helping firefighters to save homes as well as keeping the respondents safe.

The product is catching on quickly with Calgary builders. Being able to purchase it locally is a big plus, cutting down on transportation costs and delivery times. Consumers get more protection for no added costs. That increases consumer confidence and ultimately sales.

Each treated home will be banded with pink. This not only tells consumers they are looking at a treated home, but also draws attention to another aspect of the “pretty in pink” trend. The Breast Cancer Foundation is getting a contribution for every “pinked” home sold from Pinkwood. James Lind, the firm’s president, has already presented the organization with a $10,000 cheque.

Calgary Realtor Blog - Thursday August 12th/2010 - Calgary, Alberta Takes The Top Spot In Real Estate Best Of List

Calgary snagged the top spot on the list of ten best places to invest in real estate in the Canadian market. According to the Real Estate Investment Network (REIN), Alberta’s home of the Calgary Stampede is predicted to provide a good return for investors as it climbs out of the recessionary doldrums. Prices now are still reasonable so getting in sooner would be better. The area around Calgary produces a sizeable amount of Canada’s meat and grains.

Number two spot on the same list goes to Kitchener-Waterloo-Cambridge in Ontario. This area, dubbed the Technology Triangle, is expected to outperform all other eastern Canadian cities. Job growth, as well as a healthy student population is expected to increase. The area is also incorporating a new light rail transit system, enhancing the area’s appeal.

Edmonton ranked third on the list. Alberta has a vast amount of untapped natural gas, oil and mineral deposits and this capitol city is expected to benefit as it to climbs out of recession mode. The population is steadily increasing and the city is on the lookout for new technology that can help it go green in the near future. Edmonton has an affordable rental market that is attracting people from across Canada.

Other Alberta cities that placed on the list are St. Albert, coming in a number seven, and Red Deer that logged spot number nine. St. Albert, long a satellite community of big brother Edmonton, is expanding into a city centre of its own. Red Deer, mid way between Calgary and Edmonton is expanding nicely, thanks to the population and job growth in the region.

Calgary Realtor Blog - Tuesday August 3rd/2010 - Developers to Start Paying for New Communities’ Water, Sewer Infrastructures

Calgary’s suburban home developers need to begin paying for sewer and water systems in their future communities. That’s the word from City Council, as the city has paid for these infrastructures for homes in Wentworth. Developers will probably be required to pay for new installations beginning next year. The cost of the installations will inevitably be passed along to the public.

Representing a group of local developers, Michael Flynn expressed disagreement with the edict, and said that consumers need to be made aware of the situations. He contended that if the levy is approved, it would add approximately $10,000 to the cost of a new-construction house.

Carole Elliott, who recently purchased a new house in Wentworth, said that she would certainly want to know if she were required to pay the equivalent of a $10,000 tax on water and sewers. She remarked that property taxes continue to increase, and she would not want the large cost to be hidden in the overall price of a home.

Typically, residential developers have contributed toward to cost of building necessities such as roads and firehouses in new subdivisions. The respective cities underwrote costs for water and sewer systems.

When questioned about the shift of responsibility to developers, Mayor Dave Bronconnier replied that those who will benefit from the systems should contribute more toward the price of suburban expansion. The costs should not be piled upon current homeowners and other utility customers.

Bronconnier said that Calgary’s expansion is ahead of revenues being generated by utilities. Instead of an overall rate hike, the city proposes that the levy would put more of an onus on developers as well as those who purchase in the new areas.

Calgary Realtor Blog - Monday July 19th/2010 - Shrinking Number of Parking Lots Fuels Fee Increases in Calgary

Even though their cars in outdoor lots risk being pelted with snow and hail, people who have a monthly parking spot in Calgary consider themselves fortunate. The number of parking lots in the city continues to decrease, as real estate developers are constructing high-rises where lots used to be.

As parking spots become scarcer, prices are rising. The median price for a non-reserved parking space on a monthly basis is $453, according to Colliers International. Calgary now commands the highest price for this type of parking spot. The median price for a comparable space in Toronto is only $336.

Although Calgary is tops in monthly fees, Toronto charges a higher daily parking rate. Parkers in that city pay a median rate of $23, one dollar more than they would pay in Calgary.

The cost for a monthly parking spot in Calgary has risen by 233 percent since 2000. Julian Jones, who is a senior vice president at lot operator Impark, said that Calgary’s situation represents a classic economic supply-and-demand situation. The supply continues to dwindle, while demand is increasing exponentially.

Monthly parking prices will likely rise in Toronto as well, as several lots in the downtown area have been bulldozed for the construction of skyscrapers. According to Matthew Slutsky, president of BuzzBuzzHome Corporation, onetime parking lots are vanishing to accommodate the city’s Trump Tower as well as the Festival Tower.

Although nobody is jumping for joy over the price of a monthly parking spot, prices in Canada are actually reasonable in comparison with those for parking the world’s major cities. The world’s most expensive place to park on a monthly basis is City Centre in London, where people must shell out $933 in U.S. dollars. London’s West End ranks second, with a monthly price tag of $874. Hong Kong, Tokyo and Zurich complete the five most expensive markets. New York City’s Midtown area is the priciest spot for monthly parking in the U.S., with a $538 fee.

Calgary Realtor Blog - Tuesday June 29th/2010 - Calgary Rental Vacancies on the Rise

“For Rent” signs are up in a few more Calgary apartments this year than last, as vacancy rates in the area grew from 4.3 percent to 5.3 percent in April versus a year ago. There was also a modest decrease in the average rental price, from $1,006 per month to $970. This data, generated from the Spring Rental Market Survey, was released June 15 by the Canada Mortgage and Housing Corporation.

According to Gerry Baxter, who is the Calgary Apartment Association’s executive director, advised that although vacancy rates remain high, the city’s rental market is beginning to stabilize. Baxter said that his association conducts turnover surveys, in which member landlords are queried about the number of their units that changed tenants within the past 12 months. Turnover rate has been high for the past few years, with respective rates of 38 and 39 percent in 2007 and 2008. This rate rocketed up to 49 percent in 2009.

Baxter said that the primary reason behind last year’s large turnover rate was the amount of people deciding to purchase homes. He also cited relocation as another reason why people are leaving their rental units. Finally, Baxter said, tenants have more options in properties than they had before, allowing them to be more selective in both units and rent prices.

With roughly 600 CAA members, some 83 percent are landlords of residential dwellings. These landlords range from huge management corporations to individuals who rent parts of their homes.

Per Richard Cho, who is a senior market analyst with CHMC, higher rates of unemployment among young people and relocation among various provinces helped to contribute to the vacancy rate increase. Cho also cited near-record low mortgage rates as another reason why vacancies spiked upward.

Calgary Realtor Blog - Wednesday June 16th/2010 - Real Estate Market Predicted to Stay Healthy Over The Next Couple Of Years

In spite of mortgage rates inching up, the real estate market in Canada is expected to keep improving. Predictions are for a 36 percent increase in single family home starts for 2010 and an additional 11 percent increase in 2011. These predictions take the mortgage increase situation into account.

The big question for many home buyers is whether to go for a fixed or variable home mortgage. Those who opt for the variable take the risk of higher payments without much notice, but can also reap benefits when the mortgage rate takes a dip. As long as you have a good mortgage broker to work with, or are savvy in this area of finance, you could save a great deal of money. But if you don’t stay on top of things, you could be in for an unwanted surprise.

Interest rates are creeping up, that is no secret. And this is starting to affect sales. In the past month sales have decreased by 20 percent, while at the same time prices have crept up. The higher per unit price is mainly due to move-up buyers looking to get into larger and more expensive homes. First time buyers may find it a little tougher to get into the market because of the more stringent qualifying rules, resulting in fewer entry level homes being sold.

Calgary Realtor Blog - Tuesday May 18th/2010 - Calgary Is A Cultural Salad Tossed In A Ten Gallon Hat

Is Calgary still a cowboy town? Underneath the layers of a diverse ethnicity promoting everything from reggae to a ballet created by well know British icon Sir Elton John, the ten gallon hat may seem hidden at times, but it is still the foundation for this city’s personality. It may only get centre stage nowadays during the ultimate rodeo and country event known as the Calgary Stampede, held each July, but it is alive and kicking just as much as those bred to buck broncos.

The cowboy hat crown isn’t selfish though. In addition to the aforementioned reggae and ballet, the wide brimmed wonder shares its spotlight with the Calgary Philharmonic, the Calgary Opera and a host of live theatres including Vertigo, Pumphouse and the Martha Bell Theatre. There are more than two dozen professional performing theatre groups in the city.

The Calgary Arts Development organization provides funding for roughly 150 art venues each year from its $3.75 million budget. Calgary was at the top of the list of Canadian cities as far as per capita monetary support for culture and the arts.

Calgary also gets monetary support from the province of Alberta through the Spirit of Alberta program. This is the exact opposite of what is happening in British Columbia, where provincial support of the arts has been cut back dramatically.

Calgary has the country’s second largest zoo and the Saddledome that hosts star studded headliners, not to mention the hometown heroes Calgary Flames. The city also has a modern light rail system that can take you from one attraction to the other comfortably and conveniently.

Dwellers of Canada’s largest city, Toronto, contend that Calgary does not quite measure up to that city’s cultural achievements. You must admit thought, the one time cow-town, famous for ten gallon hats, and more recently oil and gas reserves, is catching up.

Calgary Realtor Blog - Monday May 10th/2010 - First Quarter Resale Homes Display Encouraging Price Trend

Prices for resale homes grew in the area of seven to eleven percent for the first period of 2010 as compared to a year ago. The recently released Royal LePage House Price Survey indicates that Calgary is exhibiting an encouraging rate of pricing appreciation throughout all kinds of housing during the first few months of 2010.

Two-storey homes accumulated the largest gains versus 2009, with a 10.6 percent hike in price to an average price of $432,178. Bungalows witnessed a seven-percent rise, and condominium prices grew by 7.2 percent.

According to Royal LePage Foothills broker Rob Blaker, there is a definite improvement versus last year, as buyers have started to become more confident. Blaker said that people are taking advantage of interest rates that are still competitive.

Various locations in Calgary experienced increases and shortfalls for different housing types. For example, detached bungalow prices grew by approximately two percent to $389,000 in Calgary’s southeast quadrant, but rose as high as 16 percent in the city’s northern district.

Two-storey homes saw price growth of almost 27 percent to $427,900 in Calgary’s southwest quadrant but prices increased by only 4.2 percent to $513,400 in the inner-city area. Condo prices rose by 18 percent to $291,600 in the city’s west area, but rose a small 1.2 percent in the inner city area, to $295,000.

Per the survey, house prices saw an increase in most of Calgary’s areas during the first quarter versus the same period last year. Blaker said that only a few areas exhibited minor price decreases.

Calgary Realtor Blog - Thursday April 29th/2010 - The Blues are a Hit in Home Décor

Decorating has the blues, and that’s actually a good thing. Blue is this year’s “it” colour, with various shades of it popping up all over home interiors. As the economy gradually improves, people are losing their caution and moving toward brighter colours instead of cautious beige tones.

Jacqueline Corea and Reena Sotropa of Calgary’s Corea Sotropa Interior Design say that people are tired of being pessimistic, and that blue is being chosen by many of their clients as a color of choice. Corea said that blue works well as a main color or an accent. White, yellow and grey are now seen as attractive complementary colors. Corea also said that she is seeing more use of turquoise, red and yellow in home décor. The interplay among the colours varies by age and other demographics, but they are becoming quite popular.

Charcoal is growing in popularity, encroaching upon longtime favorite chocolate brown, per Corea. She also remarked that taupe shade would continue to be used widely among homeowners. Para Paints senior brand manager Garry Belfall said he predicts that energetic colours will be interjected with neutral shades. Belfall said that new colours provide an infusion of simple pleasure and freshness, and said that colours may influence a person’s mindset.

Agreeing with Corea, Belfall said that blue is also his top colour, adding that in bullish economic times, Canadians tend to use more adventurous colours. He also said that Canadians are experiencing a renewed sense of patriotism following the successful Vancouver Winter Olympics. With this in mind, Para Paints has introduced Canada-themed colour combinations including red, white, black and grey.

Calgary Realtor Blog - Monday April 19th/2010 - Optimism fuels sales

Optimistic. Cautiously so, but it seems Albertans are optimistic. So says a survey by Price Waterhouse Coopers.

Businesses are very confident about the job market. And their overall confidence is as high as it has been since early 2007. Consumers, while not as confident as businesses, are more upbeat than they were, and do expect to see a drop in unemployment.
This may be why two-thirds think it’s a good time to buy a house.

Calgary's housing market has rebounded from its recession-driven lows of last year. Both condo and single-family sales are up better than 30% over last March. Prices, on the other hand, have increased by about 10 per cent over the past 12 months.
If there is a problem, it’s that supply isn’t keeping up with demand. There are currently about 3,000 homes listed for sale. This is about one-quarter of the listings from early 2009.

The shortage has created some unevenness in the market – some neighbourhoods have very little supply with the result being significantly higher prices in those areas. New home builders seem to be moving to fill this gap. City numbers indicate new home permits requested by area developers have risen sharply.

It will be interesting to see if the apparent strength of the market continues in the face of expected increase in interest rates later this year.

Calgary Realtor Blog - Thursday April 8th/2010 - Rising interest rates boost Calgary housing sales

The rise in interest rates boosted Calgary’s property sales in March. Sales in towns outside of Calgary reached 423, an increase of about 63 per cent over 2009. Prices increased by 10 per cent over 2009 to reach an average of $360,805.

Acreage sales reached 66 sales, an increase of over 78 per cent, and prices increased by 28 per cent to an average of $970,295.
The Calgary Real Estate Board reported that Calgary’s MLS sales showed an increase of 29 per cent over March 2009 in single-family homes, and an increase of 37 per cent over March 2009 in condo sales.

Prices hit the highest monthly average seen since 2008. In July 2007, average MLS prices for single family homes hit $505,920 and $332,237 for condos.

Buyers were eager to capitalize on low mortgage rates and an influx of new homes, contributing to the jump in sales. Sales, however, are predicted to slow as the year progresses.

Home values are improving and carrying costs are likely to increase, and, in an ironic addition, the rising mortgage rates that boosted March sales will also help to moderate buyers’ demand for housing. Senior market analyst Richard Cho predicts that 2010’s housing market activity will align itself with boosters like income growth, employment and net migration.

Calgary Realtor Blog - Monday March 29th/2010 - Will There Ever Be A High Speed Train Between Calgary and Edmonton?

Talk of a high-speed rail link between Edmonton and Calgary has floated around the Province for years, decades even. And with the recent release of the Provincial Government's latest business plan train talk has once again moved off the back burner. Listed among the Province’s priorities is "develop high-speed rail and other transportation modes.”

Continued population growth means more pressure Alberta’s transportation corridors. A successful high speed train could significantly reduce traffic growth on Highway 2 between Edmonton and Calgary. Some projections see more than four million people riding an electric high-speed train each year.

Earlier studies commissioned by the province found that an inter-city trip could be as short as 60 minutes; though the cost could rise as high as $20 Billion.

There are some concerns that the changed traffic patterns created by a successful “bullet train” could negatively impact smaller communities along the route, and throughout the province. There are fears that people and businesses might be attracted to live, work and shop near to one of the five proposed stops.

The Alberta Association of Municipal Districts and Counties has commissioned a study to look into potential impacts. They hope to determine the impact on communities and landowners along the route.

Calgary Realtor Blog - Saturday March 20th/2010 - Melcor CEO: Recovery Ahead for U.S.

Although the U.S. is still struggling with issues such as enormous budget deficits, weak real estate markets and high unemployment rates, Melcor Developments is considering sticking its corporate toe in the water for business opportunities.

Ralph Young, Melcor’s CEO, believes that the U.S. is resilient, and is beginning to recover from the economic meltdown that began in the fall of 2008. He believes there are some great values in the U.S., and although there may not be large capital gains in the near future, opportunities are very attractive for the next five to ten years. Young commented that that the U.S. is not the powerhouse it was many years ago, but with its reductions in labour costs and housing prices, it may become much stronger in the long run. In his nearly 40 years at Melcor, Young has witnessed a significant amount of economic cycles, and forecasts long-term growth for the country south of the border.

Melcor is engaged in projects in Phoenix and in Houston, where the company is hoping to attain financing for a condominium conversion that would cost about $20 million.

Young is also enthusiastic about the housing market in Alberta, although he believes it may take some time for the energy industry-driven province to get into full gear. Young’s forecast is comparable to that of the prominent bank economists, who predict some economic stagnation before it regains full strength next year.

Melcor currently has a big supply of residential land developments in larger markets such as Edmonton and Calgary. In Red Deer, the city recently annexed 800 acres of land owned by Melcor. Other areas with a Melcor presence include Lethbridge, Kelowna and Regina. Although a few of its key projects have been stalled in regulatory purgatory, Young believes they will eventually move forward.

Calgary Realtor Blog - Tuesday March 16th/2010 - “B” Stands for Balance in Calgary’s Housing Resale Market

Despite rumours and debates over whether there is a housing bubble in Canada’s real estate market, there are those in the know that believe the market is nicely balanced. One of those places where the housing playing field is nicely leveled is in Calgary and it is expected to stay that way through the remainder of 2010.

February was a particularly strong month which could mean an active spring season. Last month 1,035 single family structures were resold within Calgary’s city borders. This is a 36 percent increase over sales in January. Condos also did well, showing a 43 percent increase in February resales.

Listings have increased by almost 5 percent from January to February. Compared to the same two month period in 2009, inventory numbers are down 4 percent. This is causing the market to tighten somewhat, resulting in more competitive offers on available homes. Average prices are up 10 percent over 2009, averaging $458,254 per single family home in February of this year.

Spring sales activity is expected to be brisk as those wanting to buy try to take advantage of the still low mortgage rates before their expected increase in mid summer. After that, sales are expected to cool off, but not by much.

Calgary Realtor Blog - Thursday March 11th/2010 - Survey: Alberta Residents Show Most Optimism About Real Estate Market

Representing an extremely positive sign of an economic recovery, a survey indicates that people in Alberta rank as the most likely in Canada to purchase a home within two years.  This good news is from the Royal Bank of Canada’s 17th annual Homeownership Survey, which was conducted by Ipsos Reid.  

The survey results also indicated that 92 percent of its respondents feel that a home purchase represents a solid investment.  Of the respondents who expressed interest in buying a home, 40 percent noted that they would do so during the coming year.

Reasonable home prices, modest interest rates and the chance to buy a second home or investment property are among the key reasons for current home purchases, according to the survey.  

Albertans are also more likely than any other Canadians to invest one of the highest down payments, comprising $85,434.  This down payment represents about 13.6 percent of the estimated value of the prospective home.

The survey also indicates that 77 percent of Albertans feel they are doing well in paying down mortgages.  This figure is the highest among all Canadian provinces.  Some 29 percent of the respondents are more likely to have made a lump-sum disbursement to decrease the overall mortgage.  Another 22 percent are likely to have paid twice the required amount of the monthly mortgage payment.  

Don Peard, Royal Bank of Canada’s Vice President, Mortgage Specialties, said that Alberta residents feel good about their real estate market.  He noted that people are wise to pay down their mortgages.

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