Calgary Foreclosures Report - Notes From The Market

I'm always happy to communicate my thoughts on how the market is going to my clients and others.  One of the ways that I like to show that is by putting this report together on a consistent basis.  It allows me to research what is happening in the market and to convey that information to you.  If you have an questions about anything published in this report please always feel free to touch base on (403) 510-7307 or at alan@calgarycityproperty.com

Calgary Foreclosures Report - Friday December 16th/2011 - Sire Deals Deemed Fraud by Alberta Securities Commission

The Alberta Securities Commission ruled this past Thursday that investors that lost millions in a real estate fund promoted by Calgary’s Jeanette Cleone Couch were the victims of fraud. They were duped into putting some $1.3 million into a scam called the Hawaii Fund, and another known as Bearspaw, which took in somewhere between $16 and $20 million. All projects failed and investors lost everything.

Hearings went on all last summer as Couch defended herself against charges. Now that the decision is in, that leaves those wanting to file a civil lawsuit free to proceed. Jennifer Lofgren is spearheading that effort. She, and the other investors, know that getting their money back is probably not going to happen. But Lofgren and others believe that if they file suit, other will be protected against future scams brought about by Couch. The lawsuit will also let investors lay claim to funds that may be available in the future.
 
Just exactly what penalties Couch faces won’t be known until next year. The Alberta Securities Commission will be going through submissions throughout January and February to determine what would be appropriate. Penalties could include fines and banning Couch from acting as an officer or director of another company.

Calgary Foreclosures Report - Tuesday December 6th/2011 - Credit Score Requirements on Mortgages Tighten

Another sign that the mortgage market is tightening is an upping of the credit scores required to get a loan. Reports just released by the CMHC notes that a credit score is being considered much more carefully than before. This will most likely not affect seasoned investors that are already in the game, but rather the newcomers just testing the pond waters.

In 2010, the average credit score for borrowers with a CMHC insured mortgage was 731. In the first three quarters of 2011, that number went to 735, which is the highest jump since back in 2007. True, it is a modest increase, but it does have some brokers who have new investor clients worrying whether they can actually approve a mortgage.

What it amounts to is that the recommendations made by CMHC are being followed much more closely. Guidelines require that a homebuyer have a credit score over 600 to be approved on a loan that is worth 80 percent of the value of the property. The score requirements go up with a 90 percent value loan, and down to 580 for a loan that is between 60 and 80 percent of a home’s value.

Calgary Foreclosures Report - Thursday December 1st/2011 - Calgary Office Space Getting Scarcer By the Minute

Companies looking for office space in Calgary in 2012 are not going to have an easy time of it. The Alberta city is expected to have the tightest market in Canada by the end of next year. Class A space is expected to have a vacancy rate of 1.2 percent, which is almost a sold-out situation, according to Cushman & Wakefield’s recent report.

The report notes that this is a definite boom time in Calgary’s office market. Competition for space, and skilled workers to occupy that space, is fierce. Even downtown is seeing an amazing 4.0 percent vacancy rate as of now. Large office spaces are in short supply, and things are not expected to improve for the foreseeable future.

Even the Bow, which won’t open until the second quarter of 2012, is already fully leased. That is 1.9 million feet of space off the market. Just a few short years ago there were fears that the vacancy rate in Calgary would climb to 20 percent. What a difference the resurgence in the oil sands has made.

In truth, much of the space is from oil and gas companies securing future office space in anticipation of future growth. It is likely that companies will turn to suburban markets as the demand tightens in the central core. CB Richard Ellis Ltd recently submitted a report noting this turnabout as a remarkable recovery. Calgary, and Alberta as a whole, is definitely in great shape.

Calgary Foreclosures Report - Saturday November 19th/2011 - Six Year Sentence for Man That Bilked Investors out of $37 Million

This past Thursday Murray Harold Stark was sentenced to six years in prison for operating what amounts to a ponzi scheme. The 74 year old Calgary native took investors for some $37.5 million in an investment scheme that was totally fraudulent. The Judge, Mike Dinkel, emphasized this point at the sentencing.

Because of Stark’s doings, people have had to sell vacation properties, have had issues with their marriages, are in financial binds and some are dealing with Revenue Canada. The victims have been devastated. Dinkel noted that some might be upset by the seemingly light sentence but it was done in accordance with the law. Stark had plead out, but only for one count of fraud for over $5,000.

But, at age 74, and with health issues, it is possible that the six years could be a life sentence for Stark. Little of the money, some $4 million has been recovered, but it is not likely any more will come to light. Meanwhile the victims are trying to repair their credit, their lives and restore some semblance of trust in a system that has totally left them out in the cold.

Calgary Foreclosures Report - Tuesday November 1st/2011 - Industrial Real Estate Market in Calgary Going Strong

Yes the global financial markets are iffy, as is the global economy in general. Yet Calgary is seeing nothing but improvement in its industrial real estate market. During the third quarter of 2010, the vacancy rate was 3.5 percent. During the last eight years, the highest vacancy rate was back in 2009’s forth quarter, a dismal 5.2 percent. The absolute lowest was in 2007’s fourth quarter, before the recession. That vacancy rate came in at 0.7 percent. These figures are courtesy of CB Richard Ellis Ltd.

Iain Ferguson, who is a senior VP with the firm, say some of the demand is being accentuated by the lack of supply. Large retailers are putting in mega distribution centres and space is getting tight. That lack of space is being felt across all of the asset classes.

But relief is on the way. Some 1.2 million square feet of prime industrial space is already under construction, with another 2.25 million scheduled to begin construction in 2012. Meanwhile, the CRBE predicts that Calgary’s vacancy rate will keep falling, with an expected 2.3 percent predicted by the end of 2012.

At present there is roughly 115.9 million square feet of industrial real estate in the Calgary area. Of that, 957,143 square feet have been absorbed just in 2011. Vacancy rates have been steadily falling. In July of this year, the rate was at 5.1 percent. As of October, the rate is 4.44 percent.

Calgary Foreclosures Report - Thursday October 13th/2011 - Housing Starts Still Healthy In Canada

So far things are still looking good for Canada’s housing market. Stats show that housing starts this September are 7.3 percent higher than they were during the same month in 2010, and that’s nationwide. .If you look at some of the provinces on their own, some of the increases are rather astounding.

Starts in the Atlantic Provinces showed the biggest leap, 47 percent when comparing this September to last. Quebec on its own showed a 32 percent increase, while on the other side of the country, British Columbia showed an 18.6 percent increase. Some places did see decreases, among them the urban portions of Ontario with a 2.5 percent decrease, and in the Prairie Region, which saw a 12.1 percent decrease. These figures, and related ones, helped to temper the national average somewhat.

In urban centers the average increase was eight percent. Much of Quebec’s increase occurred in Montreal, driven by a large number of condo projects underway. But these were not welcome numbers to all. Capital Economics warned that all of this is a sign that Canada is overbuilding, and that this type of growth is not sustainable. But then one of the BMO Financial Group’s economists, Robert Kavic, had a more positive outlook, seeing the housing market looking forward to a balanced period thanks to a solid job market and low mortgage rates.

Calgary Foreclosures Report - Tuesday October 4th/2011 - Resale Home Sales and Prices in Calgary on the Upswing

The Conference Board of Canada released a report about prices in the Calgary resale home market this past Friday. It showed that in August, the average price for such a home was more than $400,000, specifically $404,755. That is an increase from the average of $391,497 seen during that same month in 2010.

This past August also saw 22,092 resale homes change hands, compared to the 18,816 sold in August of 2010. New listings have also increased with 44,940 this August compared to the 43,536 seen in 2010. The board also predicts that Calgary will see a year over year price increase of between five percent and seven percent.

The Calgary Real Estate Board also reported on September sales. This year, up until September 22nd, the month saw 740 single family home sales through the MLS system, going for an average of $466,754. During the same period 307 condos changed hands, averaging $302,460 per unit. In 2010, for the same time period, the city saw 682 single family sales averaging $467,486, and 258 condos going for $280,790 on average.

Calgary Foreclosures Report - Monday September 19th/2011 - Home Real Estate Sales Remain Steady in Canada

Real estate sales in Canada are doing well, despite the current global economic climate. This year, 2011, has turned out to have a much more balanced market than 2010. Sales activity went up 15.8 percent over 2010, and home prices increased an average of 7.7 percent, translating to $349,916 per home this past August. The Canadian Real Estate Association believes this means consumer confidence, at least in real estate, remains high.

More local markets are experiencing balanced conditions in 2011. The national price average remains high, but that is calming down, thanks to fewer high-end sales in Toronto and Vancouver, which tended to skew that average upwards. Ottawa and Toronto both saw an increase in sales, on all levels, while Vancouver, Montreal and Calgary did see slight decreases.

So far in 2011, some 324,030 homes in the MLS system have changed hands throughout Canada. This is slightly ahead of where the country was at this time in 2010. The national housing balance in August of 2011 was at 51.6 percent, almost the same as July, and an indicator of a balanced market. The number of homes listed changed little between the two months as well. Continued low interest rates, expected to remain so through most of 2012, and more affordable home prices are expected to keep the Canadian real estate market balanced and healthy.

Calgary Foreclosures Report - Monday August 29th/2011 - Should You Consider Refinancing Your Home?

Interest rates are at all time lows right now. If you have an existing mortgage it may be worth it to refinance, particularly if the rate you currently are paying is considerably more. But it is best to study the situation before actually getting that new mortgage.

One item to look at is when your current mortgage is up for renewal, and what the rates will most likely be at that time. Considering that different analysts often come up with conflicting answers that may be hard to predict. But consider this, the five year fixed rates currently available have not been seen for the last 50 years. The current five-year fixed rate is the lowest it has ever been in Canada.

That means that even if you refinanced your home for 50 percentage points less than your current rate means you could save thousands of dollars. Many people don’t take an active role in watching how their particular mortgage is performing. In this economic climate it would pay to do a bit of comparison. Taking your case to an Accredited Mortgage Professional or AMP, would be the best place to start.

Other important considerations before deciding on whether to refinance include how much and what type of debts you owe. You should add up what is owed, what type of debts they are and what the minimum payments add up to. This is important, because remortgaging a home does incur certain fees. It is best to find out if you can afford the costs and penalties associated with breaking your current mortgage and taking on another. Your AMP will look into all these factors, and more.

Calgary Foreclosures Report - Tuesday August 16th/2011 - Housing Starts in Calgary Expected to Increase

The Conference Board of Canada predicts that housing starts throughout the Calgary area will show improvement in both the short and long term. This past July, the metropolitan area showed 5,977 units started according to Friday’s report from the Metropolitan Monthly Monitors. Economist Jane McIntire advised that the short term predictions were based on data for residential permits. McIntire advised that building permit numbers are increasing in Calgary.

As far as the long term predictions, demographic requirements were considered. That means looking at employment, population growth and how the economy is shaping up. So far McIntire sees all three of those items on the increase, and showing stable growth. That growth indicates that housing starts will also see an upswing for the next few years.

That news was much welcomed by the homebuilding industry. So far in 2011, housing starts have been rather lackluster. As of the end of July, the Canada Mortgage and Housing Corporation figured that housing starts in Calgary have decreased by 27.6 percent when compared to the same time period, January to July’s end, of 2010. This year there were 4,188 starts, while 2010 saw 5,783 starts. Both single family and multi-units starts fell by roughly the same percentage points.

Calgary Foreclosures Report - Wednesday August 3rd/2011 - Calgary Expected to See Slow Steady Real Estate Price and Sales Growth

It doesn’t look like there is going to be a Calgary housing boom anytime soon. But perhaps that isn’t such a bad thing. Calgary, as well as Edmonton, will be two of the few metropolitan areas in the nation that will see higher sales and increases in the average home selling price, predicts TD Economics.

Across Canada, the resale real estate market is expected to see a decrease of in activity of 15.2 and a 10.2 percent drop in average per home price. Toronto and Vancouver are expected to be the hardest hit. Calgary will go against the national grain and post slight increases in both categories.

TD Economics is expecting some 21,400 sales this year, with an increase to 22.500 sales by the last month of 2013. As far as price, it will be a moderate gain, but still a gain. The prediction is for a year end average of $403,700 this year with an increase to $410,500 by the end of 2013.

Sano Stante, who is the Calgary Real Estate Board president, advises this is not a boom, but rather a nice gradual recovery. That recovery has been spurred by the recent employment and increased output in Alberta’s energy fields. Energy prices are expected to hold steady, which will also keep the real estate market nice and steady with a slow, perhaps, but steady growth.

Calgary Foreclosures Report - Wednesday July 13th/2011 - Condos a Hot Ticket in Today’s Canada

Across Canada, condominiums have been going up with a vengeance. Most major cities have a forest of cranes dotting their skylines, each one a hint of what will one day stand in their place. Some corners of the real estate market wonder about the warnings from the country’s central bank about inventory overload. Others believe that the change in Canada’s population demographics will help to avoid that.

Currently condo sales are doing well, even better than average. But most analysts believe that the long term health in the market will be because of immigration and the lack of wide open spaces in some of the biggest condo markets. Builders can’t build out, so they will build up. In some places, like Toronto and Vancouver, condos are the only affordable way for many to get into the housing market. In these areas a fixer-upper single-family home might well cost half a million dollars.

Unlike the housing market in the United States, which, along with that country’s economy, is still struggling, Canada only took a brief hit at the beginning of the recession. The Bank of Canada moved quickly, lowering mortgage rates to record low numbers, helping to stabilize the market. That move also helped the economy recover faster.

This past June saw housing starts across Canada increase dramatically. Most were for condos. As of May there were 12,672 units across the nation that were finished yet still empty. That compares to some 4,757 single-family homes in the same situation. Developers are still building, but being smarter about it. A project doesn’t even break ground until at least 70 percent of the units have been sold, complete with secured bank financing.

Calgary Foreclosures Report - Tuesday June 21st/2011 - Calgary Housing Sales Up, Prices Dip Just a Bit

This past May the average price of a home in Calgary decreased just a bit, but at the same time sales were picking up. The Canadian Real Estate Board released a report this past Wednesday that revealed a 0.5 percent drop in the city’s average house price, coming in at $416,055 per home. There were 2,219 sales, which is a four percent increase.

In the province as a whole, Alberta saw a two percent drop in price to $357,086 per unit when comparing this May to the same month in 2010. But provincial sales increased by 8.7 percent, with 5,659 units changing hands. Broadening this to the entire nation, across Canada sales increased by 2.7 percent when comparing this May to the same month last year, with 46,616 sales. Nationally, average prices showed an increase of 8.6 percent, coming in at $376,817.

July of 2007 was Calgary’s high water mark on the price of homes. An average house would bring $436,739. May of 2011 saw a 4.7 percent decrease from that peak. But, prices are up 14.9 percent from January of 2009, the low point, when the average price of a home was $362,143.

Tanya Eklund, who is with RE/MAX, one of Canada’s major realtors, notes that there have been several million dollar plus home sales which may have helped the average price increase over the last few months. There were more sales in May, so the volume may account for the slight dip in price. For the first six months of 2010 there were 170 million dollar plus sales. For the first five months of this year there are already 250.

Calgary Foreclosures Report - Thursday June 16th/2011 - Buying a Home Near Calgary’s Downtown Becoming a Popular Trend

Perhaps it is the high cost of gas, or the lack of interest in spending so many hours behind the wheel just trying to get to work. It could also be the attraction of living in a neighborhood with mature trees that is close to shops, services and entertainment venues. More and more home buyers are deciding to move to the inner city, rather than choosing an address in the suburbs.

The Calgary Real Estate Board has seen this trend in their fair city as well, particularly with singles or young couples that are just starting out. Developers are noticing the trend and building and/or renovating properties in areas on the shoulders of the downtown core. These could be brand new condos or single-family homes that come up for sale and need a bit of TLC.

Resale homes are playing a big part in the inner city market. Between January and May of this year, sales of pre-owned inner city homes were up some four percent over the same period in 2010. Compare that to the city-wide increase in sales of just two percent. Clearly the attention is going to properties within a stone’s throw of the vibrant downtown core.

There is a lot to be said about living in a locale with easy access to transit, plenty of shopping and that has considerable urban parkland. Buying a home that is close to Calgary’s downtown is also considered a stable investment since land is considered more valuable if it is in or near the city center.

Calgary Foreclosures Report - Thursday June 2nd/2011 - Calgary Home Buyers Leaning Towards Smaller Properties

The fact that there are buyers out looking for homes is one sign that Calgary is emerging from the recent recession. But the needs, and wants, of those buyers appears to be changing somewhat. The opinion that smaller may be better is catching on because more and more people are being drawn to the condo and multi-unit housing markets.

Tim Logel, a longtime player in the home building industry, is just one to notice that trend. He is president and part owner of Cardel Lifestyles, a firm that has five multi-family projects underway in the Calgary area, all in varying stages of development. One, Panorama West, located in Gentar’s Panorama Hills, just held their grand opening. Rather than the usual 100 interested parties looking at the four model condos in the past month, there were more than 600. That is good news for a development that will eventually have four buildings and 288 units.

It is also a promising sign for the firm’s four other projects, which include Riverside Townhomes in the Chaparral Valley, McKenzie Town’s Prestwick Place, Cranston Place and the Lighthouse Landing project in Country Hills.

The increased interest in condos is also evident in the sales, which for the first quarter of 2011 numbered 776. Compare this to the 333 sold during that same time period last year. Multi-family home starts are also ahead of last year, numbering 921 this year and 900 for the first four months of 2010.

Calgary Foreclosures Report - Tuesday May 11th/2011 - Forzani Company to Be Bought Out by Canadian Tire

In 1974 John Forzani, along with his brothers and a close friend took $9,000 and created the Forzani Group. Today the company, started by former Calgary Stampeders, is about to become part of Canadian Tire. The retail giant is handing over $771 million to take over the Forzani brand. Needless to say the shareholders of the Forzani Group are most pleased. John Forzani himself owns roughly a million shares in the company, and at $26.50 per share, that is a lot of cash.

Canadian Tire has been trying to appeal to the younger consumer for a long time but just hasn’t been able to bridge the gap. The acquisition of Forzani will bring them a younger following. The brand will remain on and in the stores, so customers won’t notice much difference. It will also make Canadian Tire a bigger name than it already is, but in retail you can never be too big.

In 2002 Canadian Tire bought out another Calgary firm, Mark’s Work Wearhouse, allowing them not only to sell the workmen their tools and supplies, but to provide them proper clothing as well. It’s not sure if John Forzani will be staying on at the company when the deal is finished, anticipated to be sometime in the next three or four months. It may depend on how much time the man wants to devote to playing golf.

Calgary Foreclosures Report - Thursday May 5th/2011 - April 2011 MLS Sales in Calgary Down, Average Price Up

Home real estate sales in Calgary this past April did see a decline compared to the sales in April of 2010. The Calgary Real Estate Board (CREB) released a report this past Monday that showed that for single family home sales, the number of transactions was down 10 percent. In April 2011, 1,217 homes changed hands. But, the average price of a single family home went up to $479,575, an increase of 4.2 percent. As far as the condo market, that saw a 16.3 percent decline for the same period, with this April showing 535 sales. In this market the average price dropped to $289,158, a dip of 0.15 percent.

Sano Stante, who is the president of the CREB, notes that this year’s spring market has seen a slow start, but at last the inventory numbers are finally returning to preferred levels. He believes that with the improving job market, and more availability, Calgary’s housing picture will begin to warm up. Listings in the MLS system, for single family homes, dropped 25 percent in April of 2011, compared to the same month last year.

Stante also noted that higher end homes were selling faster, with those in the over $700,000 price point being on the market an average of 41 days. That is on par with the listing period before the recession hit. There were two single family homes sold this past April, for between $3 and $4 million, and that did manage to tweak the average price somewhat.

As far as condos, their listings decreased by 27 percent this April, which helps with the decline in sales. Ultimately this will lead to a balance in this part of the home market as well. Real estate experts are predicting a busier second half of 2011.

Calgary Foreclosures Report - Tuesday April 19th/2011 - Resale Homes Priced Well, Selling Again in Calgary

Homes in the north eastern part of Calgary are proving to be most affordable and are attracting more first time buyers. In this area, known as Zone B, 368 out of the 403 homes in the under $300,000 category came from the nine communities here. Dover showed to be the most affordable, showing 13 sales averaging $216,653 per home during the 2011’s first quarter.

Sano Sante, who is with the Calgary Real Estate Board, believes this means there is currently a balanced market, and that is a good thing particularly for those getting into the market for the first time. But the high end market is also stepping up to the plate with some impressive sales. Most sales in this category came from Zone C, which is southeast of downtown Calgary, and averaged more than $ 1 million per home.

Lakeview Village was on top of the list of pricey homes, showing an average price per home of $1.9 million. This was followed by Mount Royal, showing an average of $1,743,928 for its seven sales. Lake Bonavista Estates, in Zone D showed 13 sales with an average of $994,192 per sale and an average listing time of 11 days, showing a perfect blend of price and location. Lynnwood/Riverglen, also in Zone D, only had one sale bringing $280,000. That home was on the market 13 days. Tuscany, located in the Zone A, was the busiest neighbourhood. They showed 88 sales with an average price of $463,774. Second on that busy list was Coventry Hills, also in Zone A. That community showed 82 sales with an average price of $351,180.

Calgary Foreclosures Report - Friday April 1st/2011 - Lawsuit Defendants: BMO at Blame for Approving Fraudulent Mortgages

BMO Bank of Montreal is now at the center of large-scale civil litigation involving a huge mortgage fraud scheme. Hundreds of people named as defendants in a lawsuit are blaming the bank that issued the original loans.

The bank accused the individuals of participating as “straw buyers” to bear the liability for mortgages. For their participation, the defendants allegedly accepted payments ranging from $3,000 to $8,000.

According to BMO, some of the defendants generated false statements of employment in order to obtain the mortgages. The value of the properties they purchased was often inflated. The bank is claiming losses in the area of $30 million. Calgary MP Devinder Shory is one of the defendants, as the bank insists he was negligent in his oversight of five different property sales transactions.

Currently, the courts have not proven any of the allegations. Although the Calgary police department and RCMP are involved in a joint investigation, charges have yet to be filed.

One commonality in the defendants’ statements is that the bank should have been wary of the over-inflated home prices. Per a statement bearing the names of several of the defendants, the plaintiff (BMO) eagerly lent money in a high-flying real estate environment. The accused also claim that BMO had not supervised its employees who were responsible for approving loans. A number of former employees of BMO were personally named in the lawsuit.

In a statement released by Shory, he asserted that he performed his duties with diligence, and was never requested to ascertain the value of the properties in his transactions. He said he believed that all of the sales were legitimate, and that he never received any financial reward for participating in the transactions.

The BMO lawsuit contains in excess of 100,000 pages of documents that were assembled by its internal fraud investigation team.

Calgary Foreclosures Report - Friday March 11th/2011 - Alberta’s Housing Market Favoring Buyers, But Few Are Looking

Alberta’s housing market is favoring the buyer right now, but there are less people wanting to buy a home. Last year 35 percent of Albertans thought they’d be buying property within two years. When this years RBC Homeownership Survey came out, that number had dropped to 33 percent.

In that survey, 57 percent of responders considered Alberta’s real estate a buyer’s market. That’s more than 13 percent higher than in 2010. About a third of the province’s homeowners believed the value of their homes had decreased within the last two years. That is twice as many as any other province. Perhaps that is why Albertans are staying put and putting their energies into managing their mortgages, which many are confident they can do.

Roughly 89 percent of Albertans consider buying a home a long term investment. Almost half, 44 percent think it is wise to wait another year before buying in, a 13 percent increase over 2010. Despite this, single family home sales were up in Calgary in February for the second month in a row. The condo market is not doing nearly as well, which is in its 10th month of year-over-year sales deficits. Realtors are hoping that the improvements in employment, particularly in the energy fields will give the market a boost.

Across the nation, almost 90 percent of people had confidence in the Canadian real estate market and would be comfortable investing. Almost three-quarters of those surveyed believe they have enough financial stability to withstand a housing drop.

Calgary Foreclosures Report - Tuesday March 1st/2011 - Keep an Eye on That Most Important Investment, Your Home

Most people in North America have the biggest percentage of their net worth tied up in their homes, on average about one third of their wealth. That investment needs looking after to keep it healthy and profitable. There are specific factors that can help you keep an eye on your live-in nest egg.

The demographic make-up of a neighborhood can influence the value of your home. Demographics looks into the ages, genders, average incomes, different races, migration trends and how fast the population grows in a neighborhood. One example of a specific generation affecting housing availability and prices are the baby boomer. These are people born within the 20 years following World War II. As this group reaches retirement, they will start considering their housing options. Some will decide to purchase a vacation home. Others will sell their existing abode and buy something smaller and easier to maintain. Both decisions affect the market.

Keeping track of interest rates is also wise. If rates are low, more people can afford to buy. Mortgages are less expensive. As demand increases, inventory decreases and prices of homes generally increase. Since your home’s value is influenced by the prices of surrounding homes, this can affect the value of your property.

If the economy is healthy, the real estate market generally follows suit. An economy is considered healthy if it has low unemployment, prices for other goods are low and exports are up. All this makes for a healthy GDP, or gross national product. Other governmental policies, such as offering tax credits or other deductions for home purchases also can affect real estate demand and ultimately real estate values.

Calgary Foreclosures Report - Friday February 11th/2011 - New Homes in Calgary May See Higher Price Tags

It is possible that the cost of a new home in Calgary may be going up. This is because the city, needing to find a way to pay some $1.5 billion in utilities debt may ask the ratepayers to contribute. The debt accumulated because of the way levies are charged to the developers.

City hall has not charged developers for water or waste-water since 1999. Instead they increased the portion of the levies dealing with transportation, which increased what developers had to pay the city by 60 percent. Because the money was not funnelled into the utilities commission, there is now that huge amount of debt.

Mayor Naheed Nenshi, though he is not part of the negotiation process, noted that the levies will have to be increased considerably to cover the debt load. He is guessing roughly a $10,000 to $15,000 increase per door. That cost would be passed along to the consumer by charging an average of four percent more per home.

Negotiations are ongoing between City Hall, minus the mayor, and the group representing the developers, the Urban Development Institute. That company’s Michael Flynn, the executive director, warns that too heavy an increase will drive developers elsewhere. Mayor Nenshi hopes this can be resolved amicably.

Calgary Foreclosures Report - Monday January 31st/2011 - Resale Homes in Calgary Are Expected To See an Increase in Price

If you are planning to sell your home in Calgary during the coming year, chances are you will get more than five percent more for your trouble. Royal LePage is predicting that prices will increase 5.4 percent by the end of 2011, the second highest in Canada. Top honours go to Winnepeg, set to see a seven percent rise in resale home prices.

A two-storey home in Calgary went for an average of $404,622 at the end of last year. Detached bungalows brought on average $392,167 and condos were going for $250,311. In Winnipeg, the numbers read $296,750 for the two-storeys, $266,500 for the bungalows and $170,286 for the condos.

The real estate market in 2010 was a bit softer than in 2009. It was more of buyers market, with listings usually going below asking price. But during the last few months of the year realtors noticed a slight increase in multiple offers, most likely because the buyers realized prices weren’t going to get any lower in the New Year. Sales are expected to increase some 6.7 percent by the end of 2011.

Realtors expect a continued increase in sales while interest rates are still low and before housing prices start climbing. Mortgage rates are expected to go up, most likely in mid-year, and no doubt those on the hunt will want to get in on the market before that happens.

Calgary Foreclosures Report - Wednesday January 19th/2011 - Diane Scott’s Year as Head of Calgary Real Estate Board in 2010 A Bit Tumultuous

Diane Scott had a rather tumultuous year as the president of the Calgary Real Estate Board in 2010. The year started out on a positive note with signs that the strong real estate sales of 2009 were washing into her office term. But Scott and Calgary soon discovered that was not the case.

The beginning of the year, at least before the rumoured mortgage hikes and the implementation of tighter lending laws, could be described as hot. Then, job growth slowed and consequently, people started moving out of the city. More homes were listed with fewer people still looking to buy. The hot market soon sputtered to a lingering halt.

As for the actual numbers, in 2010 there were 12,095 single detached homes sold with an average price of $406,000. That’s the lowest since 1995 which only saw 9,534 sales. In the condo market, 5,181 units changed hands at an average of $285,500. These figures are courtesy of the Canada Mortgage and Housing Corporation.

Scott’s original forecast called for 17,000 single family home sales going for an average of $470,000 per unit. Her condo prediction was for the sale of 7,000 homes for an average price tag of $296,000. The economy, which blindsided everyone, sort of got in the way. Luckily the picture for 2011 looks rosier.

Calgary Foreclosures Report - Tuesday December 28th/2010 - Slight Growth in Store for Prices of Calgary Homes

Prices for homes in the Calgary area are expected to increase in a range between five and seven percent, per the Conference Board of Canada. According to the CBC’s Metro Resale Index, which was released December 20, average price for a home selling in the city this past November was $397,239. This represents a one-percent increase versus October. When adjusted for seasonality, November MLS sales saw a hike of 8.6 percent over the previous month to a total of 21,017 units.

Christina Hagerty, a realtor with Calgary’s Re/Max Realty Professionals, advised that in the early months of 2010, experts predicted an effect from the large number of first-time homebuyers in the market. Sales were extraordinarily strong for homes in the range between $400,000 and $500,000. Upscale homes also sold well during the third quarter of this year.

Hagerty commented that the market has been supported mainly by two types of clients: People buying for the first time, as well as those hoping to trade up from their current properties.

The CBC predicted that during the short term, the areas of Saskatoon, Montreal, Gatineau, Quebec, Saguenay, Trois-Rivieres and Sherbrooke would see growth of seven percent and more. Areas poised for growth in the range of five and seven percent include Vancouver, the Fraser Valley, Victoria, Newfoundland, Halifax, Winnipeg and Regina.

Single-family home sales totaled 891 in November, with an average price around $455,460. This represents a tiny increase versus October, in which 888 homes in this category sold at an average price of $444,744.

The number of condominiums sold in November (310) was exactly the same as October. However, the average November sale price of $284,667 was down marginally versus October’s average price of $287,793.

Calgary Foreclosures Report - Friday December 3rd/2010 - Foreclosures On The Increase In Alberta

Alberta is seeing a significant increase in the number of homes in foreclosure, with numbers more than twice the average for the rest of Canada. The average home in the urban area takes six months to sell, per Robin Spiers, a local realtor. Spiers said that homeowners who receive offers on their homes are taking them more seriously, because offers are much less frequent.

One reason for fewer offers on any given home is the amount of inventory on the market. A higher number of available homes produces more competition among sellers and, consequently, lower selling prices.

In addition to the excessive inventory, there is an increase in the quantity of homes that are being sold by the banks. Per the Canadian Bankers Association, the number of mortgaged homes in Alberta exceeds 500,000. Of that total, some 4,000, or 0.78%, of those mortgages are in arrears. This signifies an amount that is almost twice that of Canada’s average foreclosure percentage of 0.42%.

In explaining the reason for the amount of foreclosures, economists contend that since Alberta was one of the last provinces to be hit by the 2008-2009 recession, it is taking longer to recover. Lai Sing Louie, an analyst with the Canadian mortgage and Housing Corporation, said that it takes people longer to find jobs during a recessionary period. Some people begin to experience mortgage problems before they find jobs.

Louie predicted that economic conditions would improve next year, and the real estate market is poised to benefit from the recovery. However, if there are more hikes in interest rates, there will be a subsequent increase in the number of defaults. The result: even more homes for sale.

On a more positive note, the Calgary Real Estate Board noted a 15-percent increase in the number of sales of upscale homes, those with prices of $1 million or more.

Calgary Foreclosures Report - Wednesday November 24th/2010 - Calgary Real Estate Market Hitting Some Challenging Times

Calgary median prices and selling prices of detached single-family resale homes are falling according to the Calgary Real Estate Board.

Median prices are the middle prices in ranges and are considered more accurate than average prices when measuring resale markets.

October 2010’s median price was $387,900--$2,100 less than September’s median, and $23,000 less than October 2009’s.

According to Gary MacLean of Re/Max Central, the gap in numbers is even larger. MacLean has been tracking prices, listings and sales for years.

MacLean said the median price of homes in northeast Calgary fell $31,000 from its 2010 high of $320,000. In northwest Calgary, median prices fell $35,000 from a high of $440,000 and in southeast Calgary, median prices fell $28,000 from $408,000. However, southwest Calgary saw the biggest drop when the median fell $77,000 from $515,000 earlier in 2010.

Sales, listings and sales-to-listings ratios also fell.

At October 2010’s end, 8,931 condos and detached single-family homes were listed for sale. Only 1,428 of those sold, meaning only one in every 6.25 homes sold for a sales-to-listings ration of 6.25. MacLean said in October 2009, the ratio was 2.92; detached single-family listings this October sold 888 units, a 31 per cent decrease from last October’s 1,285. Condos sold 310 units this October, a 48 per cent drop from last October’s 601 sales.

Calgary Foreclosures Report - Monday November 8th/2010 - Canadian Real Estate Association Predicts Home Sales To Drop In Alberta in 2011

According to the Canadian Real Estate Association, 2011 will see a drop in prices and sales in Alberta’s real estate market. It is estimated that sales will decrease by about 5.6 percent with only 46,550 homes changing hands. This comes on the heels of a predicted 14.3 percent predicted decrease for the remainder of 2010.

Prices for MLS listings are expected to fall 0.3 percent in Alberta, translating to an average of $349,100. It is expected that the end of 2010 will see a price increase of up to 2.6 percent. These predictions are driven by the slower than anticipated third quarter sales figures.

Across the country, CREA is predicting 442,200 sales to be completed by the end of 2010, down 4.9 percent from the previous year. The organization predicts 2011 will see an additional nine percent decline with a total of 402,500 properties changing hands.

The housing market is stabilizing and for the most part remains balanced. Interest rates are expected to remain low since the Bank of Canada reconsidered its plan to keep upping the percentage points. But the economy is still on wobbly legs and consumers, though more optimistic than in more recent times, are being more cautious about committing to long time purchases and mortgages.

Calgary Foreclosures Report - Thursday October 28th/2010 - Calgary Home Sales Show Slight Increase in September, But Better In October

The Calgary real estate market was holding its breath after a bit of a sales slump this past September. The city’s MLS sales saw the third largest decline in the country according to numbers posted by the Canadian Real Estate Association. But that same real estate board noted that October was showing a bit of a rebound.

This past September 1,606 properties changed hands. That is 28.8 percent less than the number of sales in September of 2009. But Calgary fared better than Victoria, showing a 47.9 percent decrease in sales and Vancouver, showing a drop of 37.9 percent. In all three locations, as well as throughout most of Canada, September sales were better than August and October sales are up further still. CREB’s president, Diane Scott thinks this is a seasonal upswing, at least partially, but it does show that there are still people out there interested in buying homes.

In many ways September was a positive month. The month signaled a break in the five month decline of single family home sales and a similar end to the four month slump in the condo market. As far as per home prices, Calgary is faring well. Average price for a home in the region came in at $401,080 which is 1.6 percent higher than last year. New listings topped out at 3,873 units, up 11.4 percent from the same period in 2009.

Calgary Foreclosures Report - Tuesday October 19th/2010 - Downtown Office Space in Calgary Seeing More Businesses Moving In

Calgary’s office space is welcoming more tenants these days. In the real estate world, the term is “absorption.” This is the amount of occupied space that is absorbed by the market. During the recession, the absorption rate was in the negative, to the tune of 1.389 million square feet.

This year, as of September’s end, the absorption rate was a positive 2.859 million square feet, making it possible for Calgary to see an absorption rate of 3.3 million by the end of 2010. The numbers already top the banner year of 2007 when 2.658 million square feet of space welcomed tenants.

In spite of the increased tenancy, the downtown office space market is slightly overbuilt and it is not expected that the vacancy rate will go below ten percent prior to 2013. A healthy, balanced market is considered to be from six to nine percent.

More then 70 percent of Calgary’s downtown office space is leased to a company in the energy field, or related companies that support that industry. As the energy market recovers, more and more potential tenants are moving in. And with those incoming energy firms comes the possibility of new jobs. That makes city fathers, and residents, smile.

Calgary Foreclosures Report - Tuesday September 28th/2010 - Calgary Economy Poised for Impressive Growth

In the next several years, economic vitality in Calgary is expected to outpace an already optimistic forecast. The forecast, which was delivered the week of September 20 by the Conference Board of Canada, might be too cautious, according to Craig Alexander, TD Bank’s chief economist.

Alexander spoke with reporters after his speech at a Calgary Economic Development event, and offered his thoughts on the predictions. According to the Conference Board, the Canadian economy will grow by 3.5 percent during 2010, and is expected to grow an average of 4.2 percent yearly from 2011 to 2014.

Alexander said he believes that his personal forecast for Alberta carries more positive risk. He said he predicts that the Alberta economy will grow well ahead of national averages during 2011 as well in the next several years. Per TD forecasts, the Prairies region is poised to grow by about 2.7 percent next year, as well as 3.3 percent during 2012.

Alexander used the term “snapback” to describe how Canada’s economy has rebounded from the 2009 recession. He also noted that until more stability reigns in the United States, the Canadian economy would not run at full strength. He said that sluggish economic growth in the U.S. would keep interest rates low, but that rising Canadian rates would deliver more power to the Canadian dollar.

The Economic Development event attracted almost 1,000 attendees. Another presenter was the CBC’s Mario Lefebvre, who commented that following the shrinking economic indicators of the recession, Calgary will lead Canada in economic growth next year.

Calgary Foreclosures Report - Monday September 20th/2010 - Canadian City Real Estate Markets Struggling

Calgary, Vancouver and Victoria real estate sales were hit hard in August. The president of the Canadian Real Estate Association (CREA), Georges Pahud, said the market is cooling due to rising interest rates and slower job growth. While he believes mortgage regulation changes may need to be considered, CREA’s Chief Economist, Gregory Klump, said the lower sales in August were impacted by high housing sales in late 2009 and early 2010.

Klump believes that even through slow job and economic growth, those markets will still support the housing market, pointing out that the high sales rate make the normal sales rate look like a steep decline.

Victoria’s year-over-year sales in August 2010 fell 45.4 per cent. Vancouver’s year-over-year sales fell 36.0 per cent and Calgary’s fell 32.8 per cent. According to CREA, Alberta resale homes fell at a higher rate than Canada’s average. Across Canada, sales fell 19.5 per cent.

Alberta MLS sales dropped 26.9 per cent to 3,914 units from August 2009, and the average price dropped 0.5 per cent to $342,571. Meanwhile, new listings rose 0.4 per cent to 8,634 units.

Canadian sales fell 19.5 per cent to 34,169 homes sold, and the average sales price remained steady at $324,928. New listings rose 0.5 per cent to 64,457 units.

Krump expects housing sales to be slow throughout the rest of the year.

Calgary Foreclosures Report - Wednesday September 1st/2010 - Calgary’s Home Real Estate Market In A Slow Cycle

Home sales, and prices are starting to slow across Canada and that includes Calgary. What was once a sellers market with homes seeming to fly off the MLS listing page is now favoring the buyers. Last December there were 3,258 homes on the listing service. In July of 2010, there were 7,982. But is all this so surprising?

Savvy home lookers turned into quick home buyers when it became known that interest rates would creep up, mortgage lending laws would become tougher and two provinces, British Columbia and Ontario, initiated their Harmonized Sales Tax (HST). Everyone, as they say, wanted to get into the pool at once. And they did.

Calgary showed a total of 661 single family home sales this past August, for an average sale price of $441,469. In July there were 915 sales bringing in an average of $465,655 per home. In August of last year 1,277 homes changed hands. The average price ways $454,130. Price wise we are still ahead.

Similar trends are showing up in the condo market. August of this year showed 271 sales at $283,485 average per transaction. August of 2009 had 632 sales for an average price of $283,330. The gap in per unit average is practically non-existent. Everything goes in cycles; this is just part of the real estate market. We are in much better shape than our neighbours south of the border.

Calgary Foreclosures Report - Thursday August 12th/2010 - Real Estate Fraudsters Consider Calgary Easy Pickings

Not too long ago a $12 million mortgage scam was uncovered in the city of Calgary that involved 22 properties. The Bank of Montreal sustained the loss. Greg Draper, a forensic accountant and former RCMP officer, says that this could very well happen again.

Banking regulations in Calgary and Alberta in general are not as restrictive as in the rest of Canada. It is possible to obtain a mortgage in the province without being qualified by a bank. This little, or perhaps big, loophole has made it prime territory for real estate scammers.

The housing boom experienced in Calgary made it easier to inflate real estate prices with little notice. After all, prices were fluctuating and climbing so rapidly that all would seem normal. Calgary also has a relatively affluent population, something else that appeals to mortgage fraudsters. There are more people out there with money wanting to close deals.

While the local police department is making a point that this sort of thing happens across Canada, the fact remains that so many fraud reports are coming in that the commercial crime unit can’t keep up. The biggest scam is the use of “straw buyers” who are lured with a $5,000 payout if they assume a mortgage in their name. This is usually on a property with an over inflated price tag and more often than not leads to bankruptcy.

Calgary Foreclosures Report - Tuesday August 3rd/2010 - Calgary Office Vacancy Rate Declines, but Poised to Increase Next Year

New office space entering Calgary’s commercial real estate market is expected to mitigate the decrease in office vacancies that was reported for the second quarter. According to information from Avison Young, a Calgary-based commercial real estate company, vacancies declined to 10.7 percent, down slightly from the 11.0-percent supply that was recorded for the first quarter. However, the number of vacancies grew versus the 9.3-percent supply existing during the second quarter of 2009.

With a national office vacancy rate averaging ten percent, is poised to exhibit an even greater vacancy rate. It is anticipated that once construction is complete on new inventory, vacancy rates will grow faster than the market’s ability to absorb the new office space. Per the Avison Young report, vacancy rates will continue to increase through 2012. Some 2.6 million square feet of surplus office space is predicted to exist by the end of 2010.

Todd Throndson, who is the managing director of the firm’s Calgary office, said he expects stabilization, and possibly a modest improvement, in rental rates through 2010. He said that 2011 may be problematic as more inventory will become available.

According to the report, the availability of offices will be at its peak in the spring of 2012, when two large projects are ready for occupancy. The openings of Eighth Avenue Place and the Bow Tower will likely result in vacancy rates nearing 15 percent. Despite this projection, vacancy rates are still not expected to be in the 20-percent region, which were recorded during recessionary periods of the 1980s and 1990s.

Calgary Foreclosures Report - Monday July 19th/2010 - Calgary Resale Market to Regain Balance Later This Year

An intense buyers’ market has Calgary’s real estate market in a state of flux, but a turnaround could come soon. According to real estate veteran Ted Zaharko, balance will return to the market later in the year and a sellers’ market may be in place before the first quarter of 2011.

Zaharko, who owns Royal LePage Foothills Realty of Calgary, said he does not understand why, despite an upturn in upscale home sales, the entire resale market is under-performing. According to the Calgary Real Estate Board, 187 luxury residences sold in June in comparison to 132 in June 2009. Zaharko commented that expensive homes are not typically purchased in a troubled economy, and that Calgary’s financial situation is certainly not desperate.

Evidence of the market’s imbalance is that there are around 11,000 homes currently for sale in the Calgary area, with fewer than 2,000 sales transactions having occurred in June. Zaharko said that he expects a drop in excessive inventories and a rise in sales. These two factors will stimulate buying among people who have been on the fence.

Zaharko does not believe that Calgary will suffer due to economic problems existing in other parts of the world. He believes that the market will begin to heat up after July. Increases in the creation of jobs, as well as an upsurge of newcomers to the city will spur buying.

Royal LePage’s housing price survey for the second quarter of 2010 indicated that prices are stronger than they were in the same period of 2009 but a modest short-term decrease also occurred. During the second quarter of 2010, sales decreased and inventory rose. However, with the exception of condominium units, resale prices grew.

The average price of a two-storey home rose by 5.5 percent, to approximately $422,078. Prices for detached bungalows increased by 4.6 percent, with the average residence in this category selling for $419,978.

Calgary Foreclosures Report - Tuesday June 29th/2010 - CHMC Predicts 15-Percent Decrease in Sales of Mortgage Debt

In the face of increasing interest rates and new sales taxes, Canada Housing Trust, which is the financing area of Canada’s housing department, may see a 15-percent reduction in debt sales for 2010.

Year to date, the Housing Trust has issued around $13.1 billion in ten-year, five-year and floating-rate debt notes, per the Canada Mortgage and Housing Corporation. Should the activity for the first five months of 2010 remain consistent for the rest of the year, the trust is predicted to sell somewhat less than $40 billion for 2010. This figure compares to a record number ($49 billion) recorded in 2009.

Carlos Leitao, Laurentian Bank Securities’ chief economist, said that the harmonized sales tax in British Columbia and Ontario, as well as higher interest rates, may put a damper on home purchases. Leitao said that these two factors are likely to slow the country’s real estate market.

Debt is issued by Canada Housing Trust on behalf of the Canada Housing and Mortgage Corporation. Proceeds are utilized to buy bundles of securities from many lenders. The CHT currently has an outstanding debt load of some $180 billion. This number includes $162 billion in fixed-rate notes as well as $18 billion in floating-rate debt notes.

From a year-to-date high of 4.111 percent recorded April 22, the yield on 3.75 percent bonds from CHT fell to 3.773 percent on June 7, per data issued by Bloomberg. These bonds, which will mature in March 2020, currently have a AAA rating from Standard & Poor’s.

Calgary Foreclosures Report - Wednesday June 16th/2010 - Mortgage Rates And Housing Price Points Of Concern To Consumers

People are becoming increasingly concerned with the mortgage rates that have started to creep up. Though the current rates are not the rock bottom bargains seen just a few months ago, they are nowhere near as frightening as the 22 percent nightmare rates of the early 1980s.

In truth, the latest mortgage increase would amount to an additional $20 per month for every $100,000 mortgaged. That amount of increase will not likely adversely affect a great number of homeowners. Those on fixed mortgages won’t be affected at all.

The other issue is that the overall average price per home went up more than $20,000 in May compared to the previous month. The Calgary Real Estate Board agrees, yes this is true, but those numbers have been influenced by the greater number of high end properties being sold. In April of 2010 there were 29 homes sold that were valued at more than $1 million. In May that number rose to 52.

Whether the average home price increased or decreased may also depend on what part of the city you live in. As an example, in the southwest part of Calgary, the average price of a single family home was $506,000 at the end of March. In May, that average price fell to $472,500.

Calgary Foreclosures Report - Tuesday May 18th/2010 - Mortgage Fraud An Ongoing Problem in Alberta

The Bank of Montreal just filed a $120 million lawsuit alleging mortgage fraud. Though this suit, one of the largest of its types in Canadian history, is the news breaker, the province has had several smaller cases that date as far back as the 1970s. It appears the province’s boom-bust economy over the last few decades and an unusual laxity in procedures has made Alberta an easy target for mortgage fraud.

The way mortgage fraud works is that falsified documents are produced that indicate an inflated value of a home. The documents are used to take out a loan in the name of a person who is paid a fee to sign the mortgage documents. The person who actually takes out the loan, but who does not appear on the documents can then rent the property, use it for illegal activity such as a grow-op or just take the money and run. The mortgage holder is left to pay the bill, which is usually more than the property is worth.

Since the early 1990s this type of white collar crime has increased in Alberta. Even now it is not easily detected. Some banks don’t realize that they have been victims of fraud, especially in a booming economy when it is easy to cover up the inflated home values. After all, in a boom market, prices tend to rise quickly and an inflated appraisal does not raise many eyebrows. But when an economy falls on hard times, the frauds are harder to disguise. In a slower real estate market, the inflated prices raise red flags all over. Even then, not all banks will report the frauds.

Alberta may also be a target for this type of fraud because the provincial laws allow potential property owners to assume mortgages rather than apply for a new one. The fraudsters can approach people with poor credit or no credit history that may not qualify for a traditional mortgage.

Calgary Foreclosures Report - Monday May 10th/2010 - Real Estate Market Begins Responding to Tighter Mortgage Regulations, Higher Interest Rates

Geoff Chene is the first to admit that rising interest rates and tightening lending procedures provided strong motivation for him to buy a residence. With the help of Claudia Walz, a realtor with Re/Max House of Real Estate, Chene bought a bungalow on Elbow Drive. The three-bedroom home, which includes a basement suite, will be used as a rental property.

Chene said that the April 19 date, in which tougher lending rules became active, definitely played a role in his buy. He said he also wanted to lock in a lower rate of interest before all Canadian banks begin to raise their key rates.

MLS data, though unofficial, show that as of April 29, 1,295 single-family dwellings sold in Calgary, with an average selling price of $459,682, on a month-to-date basis. This compares to average sale prices of $471,269 in March, and $426,311 for April 2009. The same data indicate that the for the condominium sector, 596 units sold in April with an average sale price of $290,535. This price is down somewhat from the March average selling price of $296,660, but nicely ahead of the April 2009 average sales price of $277,953.

Canadian Real Estate Association chief economist Gregory Klump advised that he expects the real estate market will be affected strongly by current and future mortgage rate hikes. He anticipates that because homes will be less affordable because of higher interest rates, some erosion in sales activity will be inevitable.

However, Klump said that the revised mortgage rules should not have a large effect on the market, since first-time buyers use five-year mortgages. The new regulations stipulate that all borrowers must meet the criteria to qualify for a five-year, fixed rate loan, even if those borrowers opt for a variable-rate mortgage with a shorter term or lower interest rate.

Calgary Foreclosures Report - Thursday April 29th/2010 - Calgary’s Office Space Vacancy Rate Not As High As Predicted

Vacancy rates in downtown Calgary’s office space are still rising, but thankfully not as fast as predicted. Six months ago, real estate market forecasters were predicting the vacancy rate to hit 20 percent when the new tower, The Bow, came online. Since the economy has picked up, that vacancy rate is expected to be closer to 17 percent. This still means it is a slow and difficult market for the moment, yet it is not as drastic as the over 20 percent vacancy numbers seen in the 1980s and 1990s when the economy was struggling.

In the first quarter of 2010, vacancy rates were at 11 percent, which is down from 11.6 percent seen in the last three months of 2009. The first quarter of 2009 showed a vacancy rate of 7.6 percent. Taking the city’s submarkets separately, the Suburban South was the highest at 15 percent, followed by the Suburban North at 11.5 percent. The Beltline had a 12.4 percent vacancy rate and the downtown core’s numbers were at 9.7 percent.

The peak in vacancy numbers is expected in the spring of 2012. Downtown is expected to have a vacancy rate of 17.2 percent. The Suburban South is predicted to peak at 16.7 percent. Both the Beltline and the Suburban North are already considered to be at their highest expected vacancy rates. Throughout the greater Calgary area, the combined vacancy rate is expected to peak at 15.2 percent.

Calgary Foreclosures Report - Monday April 19th/2010 - Calgary Home Sale Prices on Upward Swing in First Quarter

Information from the newly released House Price Survey from Royal LePage shows that the Calgary real estate market is maintaining momentum in 2010. Appreciation in home prices continues in all types of housing, at least throughout the first quarter of this year.

The average price of a Calgary single-family home ($432,178) showed the biggest gain (10.6 percent) versus a year ago. The average condominium price grew by 7.2 percent during the same time period, to $263,533. Detached bungalow prices increased by seven percent, to $419,411.

Rob Blaker, a broker with Royal LePage’s Foothills Realty office, said that he is observing marked improvement over the first quarter of 2009. He noted that buyers are becoming much more active as they leverage low interest rates and begin to become more confident in the marketplace.

Some areas enjoyed more vitality than others: The average price of a single-family home in the North Inner City grew by 4.2 percent to $513,400. The average price for the same type of dwelling in the South West rose 26.6 percent to $427,900. Condo prices also appreciated in these neighbourhoods, exhibiting gains of 18 percent and 1.2 percent in the West and North Inner City, respectively.

Neighbourhoods that posted modest single-family home price declines were the North, in which ($386,100 versus 391,500) and the South East ($372,200 versus 378,600). Average condo prices dipped in the North East ($188,500 versus $225,500). Average condo prices dipped to $188,500 versus $225,200 in the North East, $295,000 versus $308,800 in the North Inner City and $243,900 versus $246,600 in the South East.

Blaker commented even though inventory declined to 2,900 housing units at the end of last year, it has grown to 3,800 homes at the end of March.

Calgary Foreclosures Report - Thursday April 8th/2010 - Listings On The Rise In The Calgary Area

Residential real estate reports released Monday show that both MLS sales and average prices in Calgary have improved over last year.

An improvement that has lead to more homes listed for sale. As of this week, listed single-family homes have risen by 1,500 since December, while condo listings are up over 50 per cent.

While an improving economy is responsible for some of the increase, Calgary normally sees its largest inventory of for-sale homes during the spring months.

The good news for sellers is that average prices for both condominiums and houses have risen this year. Single-family homes have increased approximately $44,000 to a March average of $464,000. The price rise for Condominiums has been less dramatic, coming in at 4.4 per cent.

The largest price gain in the Calgary market has been for townhouses according to a report by RBC Economics, also released Monday. The report noted that the housings market here remains relatively affordable when compared to long-term averages. Though, with more money in the economy an increase in buyers should continue to push home prices upward slightly.

Provincially, a large surplus of homes on the market has kept prices outside of Calgary down. While nationally, sales in February were up 44 per cent from 2009 with an average sale price of $335,655, an 18.2 per cent rise.

Calgary Foreclosures Report - Monday March 29th/2010 - Commercial Real Estate Still Struggling But Shows Signs Of Rebounding

Calgary will remain the focus of Alberta and Canada’s commercial real estate market for the next 12 to 18 months.

Commercial real estate vacancies have continued to rise in Calgary from 7.9 per cent to 14.9 per cent in the first quarter, even with its slight decrease compared to 2009’s fourth quarter rates. The construction of Eighth Avenue Place and Bow Tower will only add to the rising vacancy in 2011 with a total contribution of 2.7 million square feet in downtown office space.

Calgary’s sublet space percentage of vacancy in its downtown office market is still the nation’s highest at 38.1 per cent.

For most of 2009, Canada’s suburban and downtown office markets were burdened with a surplus, and first quarter vacancy rates rose to 10.1 per cent, up from 7.5 per cent. Despite these rises, CB Richard Ellis (CBRE) first quarter report stated that modest signs of the economy improving are beginning to shape Canada’s 2010 commercial real estate market.

This quarter’s vacancy rate only rose 20 basis points in comparison to 2009’s fourth quarter vacancy rate overall of 9.9 per cent. Canada’s national sublet space as a percentage of vacant office space rose only to 21.9 per cent in the first quarter, up from 20.8 per cent.

CBRE predicts a slow but progressive recovery in 2010, and that, with a few exceptions, the majority of Canada’s markets may be over the hump.

Calgary Foreclosures Report - Saturday March 20th/2010 - No Housing Bubble in Sight for Calgary: CREB President

When the president of the Calgary Real Estate Board uses a word that begins with the letter “B,” she is not referring to a bubble, as in a real estate bubble. Instead, she is speaking of “balance,” a much more desirable term when it comes to housing.

The February sales results could represent the onset of spring sales that are more representative of a traditionally strong market. The CREB announced that Calgary’s resale market increased a significant 36 percent versus January, with sales of 1,035 single-family homes. The average single-family home sold for $458,254 last month, showing a four-percent increase since January and a ten-percent hike over year-ago. The median sales price of $411,000 increased almost ten percent versus the figure of $375,000 for the same time last year.

Condominium resales showed a 43-percent hike over January, with an average sales price of $282,880. The sales price remained virtually the same as that for January, yet increased five percent versus the same time in 2009.

The average market time of 34 days represented a decrease of more than 33 percent versus February 2009.

Despite a five-percent increase in the number of newly listed properties in February, the combined total for January and February decreased by almost four percent in comparison to the number recorded for January and February of 2009.

Scott said that the real estate market has tightened somewhat, and that there are increases in multiple bids for certain homes. However, she noted, the Calgary market continues to be stable. She anticipates heightened sales activity during the spring as home buyers utilize lower interest rates and affordable prices.

Calgary Foreclosures Report - Tuesday March 16th/2010 - New Home Real Estate Market Not As Prolific as the Resale Home Sector

Though not as prolific as the current Canadian resale housing market, the new home housing sector is showing a steady increase in prices. They showed a 0.4 percent gain in January from December of 2009. Such modest gains in the real estate market add to the debates of whether or not a housing bubble is forming throughout the industry. The numbers support those on the “no there isn’t” side of the argument.

January 2010 also showed the first year over year sales percentage increase since that seen in December of 2008, another positive sign. This was aided by price decreases in western Canada that were less drastic than in prior months.

Numbers favour the argument that the new home housing market has recovered and prices and sales are now making a slow but steady climb in a positive direction. Quebec City is leading the pack, with a 6.2 percent increase in new home prices. This is followed by St. John’s, Newfoundland at 1.7 percent, Winnipeg, Manitoba at 0.7 percent and then Ottawa-Gatineau, Calgary and Saskatoon coming in with 0.5 percent increases.

Decreases were seen in some parts of Canada. St. Catherine’s-Niagara, a region in Ontario saw the largest decrease at 0.4 percent, followed by Charlottetown at 0.2 percent. That figure was shared with Saint John, Moncton and Fredericton, New Brunswick.
The resale market has recovered on a much faster scale, showing a 20 percent increase in property values over January of 2009. Average resale home values were listed at $328,537 per unit.

Calgary Foreclosures Report - Thursday March 11th/2010 - Alberta Confident About Its Economic Turn Around

Alberta is starting to feel more confident about its economic status.  New homes are being started, more people are getting hired and prices on oil products are going up. The retail, wholesale and manufacturing sectors are also improving.

The province’s real estate market is also on the upswing.  In February of 2009 only 206 homes were started.  Due to the increased demand for housing inventory 743 homes got their start this past February, more than tripling the year to year numbers. Single family homes made up the bigger portion of the numbers but condominium starts are also healthy.

Province wide, 25,200 homes got their start this past February, more than double the provincial numbers from the same month in 2009.  An RBC nationwide study shows that people in Alberta were most likely to buy homes within the next year. 

On the business front, more Calgary firms plan on hiring during the coming spring, almost 18 percent.  Almost 75% of businesses will maintain their staff numbers as they have done for the last three quarters, a hopeful sign that most of the employee layoffs are over.

A stronger loonie along with higher oil prices pushed the Toronto stock exchange past the 12,000 point mark in day trading.  It did close at below that figure, but the market has not been at such levels since September of 2008.  You could say things are looking up.

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