Natasha Eden ABR® : Latest Blog Posts

Calgary Sales Wane - Town and Country Sales Hold Steady

Thu, 02 Sep 2010 13:30:00 GMT

Calgary Market Update for September 1, 2010

- courtesy of the Calgary Real Estate Board

Home sales in the city of Calgary continued to trend lower in the month of August, according to figures released today by the Calgary Real Estate Board (CREB®).

The number of single family homes sold in August 2010 in the city of Calgary was down 32 per cent from the same time a year ago, and condominium sales saw a decrease of 42 per cent from the same time a year ago.

August 2010 saw 867 single family homes sold in the city of Calgary. This is a decrease of 5 per cent

from 915 sales in July 2010. In August 2009, single family home sales totalled 1,277. The number of

condominium sales for the month of August 2010 was 364. This was a decrease of 8 per cent from the 396 condominium transactions recorded in July 2010.

In August 2009, condominium sales were 632. “Calgary’s housing market has been undergoing a

measured correction over the past 4 to 5 months. Sales are trending lower as a result of a increase in first time home buyers entering the market and a decline in pent up demand following a strong post-recession recovery,” says Diane Scott, president of CREB®.

“There has been much talk recently about the potential for a housing bubble in Canada--but the economic fundamentals at play make this scenario unlikely for Calgary. What we are seeing is an adjustment to higher levels of inventory and a shift to a buyer’s market.”

“A slower than anticipated pace of mortgage rate hikes and continued improvements in employment are more likely to bring stability rather than volatility into Calgary’s housing market as we move into 2011, ” adds Scott.

The average price of a single family home in the city of Calgary in August 2010 was $445,617, showing a 4 per cent decrease from July 2010, when the average price was $464,655, and a decrease of 2 per cent from August 2009, when the average price was $454,130.

The average price of a condominium in the city of Calgary in August 2010 was $286,384, showing a 2 per cent decrease from July 2010, when the average price was $291,168 and a 1 per cent increase over last year, when the average price was $283,330. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

“We expect a period of correction will continue into the fall of this year. Prices may sag in the short-term and level off as we move into 2011,” says Scott. “Homebuyers and sellers should keep in mind that market trends are unique even throughout the wider Calgary region.

A case in point is the relative strength of Calgary’s town and country market, where sales have remained at 2009 levels. Homebuyers and sellers should speak to a REALTOR® to better understand the opportunities in our current market,” says Scott.

The median price of a single family home in the city of Calgary for August 2010 was $395,000, showing a 1 per cent decrease from July 2010 and August 2009, when the median price was $400,000. The median price of a condominium in August 2010 was $260,000, showing a 3 per cent decrease from July 2010, when the median price was $268,000, and no change from

August 2009, when it was the same – $260,000.

All city of Calgary MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the

median price.

Single family listings in the city of Calgary added for the month of August 2010 totalled 1,960, an increase of less than 1 per cent from July 2010 when 1,942 new listings were added, and showing an increase of 3 per cent from August 2009, when 1,910 new listings came to the market.

Condominium new listings in the city of Calgary added for August 2010 were 808, down 9 per cent

from July 2010, when the MLS® saw 890 condo listings coming to the market. This is a decrease of 3 per cent from August 2009, when new condominium listings added were 832.

“Total month end inventory for the wider Calgary region is down marginally when compared to July—a trend we expect will continue in the coming months.

New listings are also likely to recede in the coming months in response to slowing sales,” adds Scott.

Home Sales Continue To Slide - Down 14% from June

Wed, 04 Aug 2010 01:45:00 GMT

Following info from the Calgary Real Estate Board

Calgary, August 3, 2010 –

The summer cool down in Calgary’s housing market continued in the month of July, according to figures released today by the Calgary Real Estate Board (CREB®).

The number of single family homes sold in July 2010 in the city of Calgary was down 42 per cent

from the same time a year ago, and condominium sales saw a decrease of 44 per cent from the same time a year ago.

July 2010 saw 915 single family homes sold in the city of Calgary. This is a decrease of 14 per cent from 1,061 sales in June 2010. In July 2009, single family home sales totalled 1,585. The number of condominium sales for the month of July 2010 was 396. This was a decrease of 11 per cent from the 445 condominium transactions recorded in June 2010.

In July 2009, condominium sales were 702. “Calgary’s housing market is cooling off after its

record-setting pace in the post-recession period. This slow-down is not all that surprising in the face of tighter mortgage regulations and rising interest rates. The post-recession rally we saw in the summer of 2009 was unique and that pace couldn’t be sustained,” says Sano Stante, CREB

® president elect.

“The sense of urgency seen last summer, fall and winter in the lead-up to tighter mortgage-lending

measures has diminished,” says Stante. “Rising mortgage rates and increased inventories will be

the primary head-wind facing Calgary’s housing market, but improving job prospects will offer some tail winds in the latter half of 2010 and into 2011.”

The average price of a single family home in the city of Calgary in July 2010 was $464,655, showing a 4 per cent decrease from June 2010, when the average price was $481,964, and showing an increase of 6 per cent from July 2009, when the average price was $436,782. The average price of a condominium in the city of Calgary was $291,168, showing no significant

change from June 2010, when the average price was $292,238 and a 2 per cent increase over last year, when the average price was $285,032. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

“We are seeing relative stability in our average and median prices for the Calgary market,” says Stante. “A gradual return to moderate interest rates will not trigger any kind of steep decline in prices in our housing market. Prices may soften in select markets where inventory has bulked up, but for the most part they will remain relatively sticky as the economy improves.”

“Nonetheless with the combination of historically low interest rates and a large inventory of homes, there are some great buys out there—particularly in areas where comparable stock is ample such as the condominium and multi-family market. This presents a great opportunity to get into the market or to trade up,” adds Stante.

The median price of a single family home in the city of Calgary for July 2010 was $400,000, showing a 5 per cent decrease from June 2010, when the median price was $418,900, and a 3 percent increase from July 2009, when the median price was $390,000.

The median price of a condominium in July 2010 was $268,000, showing a 1 per cent decrease from June 2010, when the median was $269,900. That’s up 2 per cent from July 2009, when the median price was $263,000.

median price.

There was a slowdown in the number of Calgarians putting homes up for sale in the month of July.

Single family listings in the city of Calgary added for the month of July totalled 1,942, a decrease of 29 per cent from June 2010 when 2,733 new listings were added, and showing a decrease of 7 per cent from July 2009, when 2,089 new listings came to the market.

Condominium new listings in the city of Calgary added for July 2010 were 890, down 18 per cent

from June 2010, when the MLS® saw 1,084 condo listings coming to the market. This is a decrease of 3 per cent from July 2009, when new condominium listings added were 918.

“Indeed Alberta and Calgary’s economic recovery is lagging behind the rest of the country right now. But on the bright side we see this trend reversing itself as we move into 2011. We expect Alberta to lead in economic growth and recovery—outperforming much of the country in 2011,” says Stante.

New property listed in Temple, Calgary

Fri, 23 Jul 2010 09:08:59 GMT

I have listed a new property at 6 4360 58 ST NE in CALGARY.

See details here

LOCATION!! No more stuck in traffic. 3 bedroom, 1,5 bath, 2 storey South facing END UNIT, fully finished townhouse, that is priced to sell! Easy access and close to major amenities - parks, city transit, schools and shopping. Large windows in main floor spacious living room and kitchen give this home a nice bright feel. Upstairs enjoy your good size of master bedroom with quite large closet space plus 2 extra bedroom and main bath. Developed basement. Home wired for cable/internet. Excellent closet/cupboard storage. The back door leads to the newly fenced backyard providing privacy for kids to play or BBQ. Recently re-roofed. New faucets in kitchen and bathrooms. Very stable, comfortable and affordable neighborhood. Great for those entering the market for the first time. Condos on either side owner-occupied. LOW condo fees. Good management. Well-established complex! Quick possession!

Qualified Buyer Looking For Home With Basement Suite

Thu, 22 Jul 2010 19:00:00 GMT

I have a pre-qualified buyer who is looking for a well kept home with a basement suite. I am trying to locate homes that might be close to a C-Train station or have quick bus access to a C-Train station.

My client has a preference for a residence which has large basement windows.

We are pre-qualified to $310,000.00. If anyone has any potential properties that might be of interest, please contact me.

Natasha

Current Calgary Buyers Market May Be Short Lived

Thu, 15 Jul 2010 22:00:00 GMT

Calgary's Newsradio 660 released a short article today regarding the current real estate market in Calgary that is worth making a note of. The Chief economist with the Canadian Real Estate Board states this market will change...

Real estate activity down in Canada by Kevin Usselman and Stephanie Irvine

Activity in the Canadian housing market continued to slide in June, with Calgary and Toronto leading the decline.

The Canadian Real Estate Association reports sales were off by more than eight per cent last month, compared to May.

Year over year, the drop is even more pronounced running at almost 20 per cent.

Calgary's housing market only recently became a buyer's market.

But the chief economist with the CREA says that is going to change, with people taking their homes off the market and refusing to accept low-ball offers.

Gregory Klump tells 660News while sales and prices will continue to cool in the coming months, Alberta's energy-based economy will keep luring people to this province.

Klump says declines in prices and sales aren't shocking.

He says the numbers were artificially inflated with a rush of people into the market, buying ahead of tighter mortgage rules and rising interest rates.

Article by 660 News Radio, Calgary can be found at 660 News - http://www.660news.com/news/local/article/78062--real-estate-activity-down-in-canada

New property listed in Spruce Cliff, Calgary

Thu, 08 Jul 2010 09:09:56 GMT

I have listed a new property at 103 516 CEDAR CRES SW in CALGARY.

See details here

Tasteful 2 bedroom condo on the main floor, overlooking city and golf course in quiet concrete building. This home offers open dining room with sliding glass door to the good sized balcony, living room with wood burning fireplace, laminate flooring. This unit comes complete with 2 good sized bedrooms, 4-piece bath, in suite storage, and in suite laundry. Each apartment also comes with private locker, bike storage, and assigned parking (extra laundry facility available). Building is secured with intercom. No stairs required as suite can be accessed from the main level, but the balcony is 15 feet off the ground due to the walk out basement. Close to shopping, transit, Edworthy Park, golf, hiking, biking, Bow river pathway system and public transportation.

Calgary Home Sales Show Continued Marked Decline

Sat, 03 Jul 2010 02:14:00 GMT

Courtesy Calgary Real Estate Board

Calgary, July 2, 2010 –

Calgary home sales continued to show a marked year-over-year decline in the month of June, according to figures released today by the Calgary Real Estate Board (CREB®).

The number of single family homes sold in June 2010 in the city of Calgary was down 42 per cent from the same time a year ago, and condominium

sales saw a decrease of 40 per cent from the same time a year ago.

June 2010 saw 1,061 single family homes sold in the city of Calgary. This is a decrease of 16 per cent from 1,262 sales in May 2010. In June 2009,

single family home sales totaled 1,837. The number of condominium sales for the month of June 2010 was 445. This was a decrease of 14 per cent from

the 518 condominium transactions recorded in May 2010. In June 2009, condominium sales were 738.

Conversely, sales of million-dollar-plus properties jumped by nearly 42 per cent year-to-date until the end of June, compared with the same period a year ago. “We are seeing continued moderation in Calgary’s home sales in the face of higher mortgage rates, increased inventory levels and a decreasing number of first-time homebuyers entering the market,” says Diane Scott, president of CREB®. “Our sales trends in June reflect much of what we saw in May.

Changes to mortgage rules meant a good portion of homebuyers wanted to get in before the new regulations took effect in April. This, along with rising interest rates on the horizon, pulled forward sales we might have expected in May and June.”

The average price of a single family home in the city of Calgary in June 2010 was $481,964, showing no significant change from May 2010, when the average price was $483,240, and showing an increase of 8 per cent from June 2009, when the average price was $447,142. The average price of a condominium in the city of Calgary was $292,238, showing a 4 per cent decrease from May 2010, when the average price was $304,662 and a 2 per cent increase over last year, when the average price was $285,595. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

“The one market that seems to be bucking this moderating trend is the luxury or higher-end market,” notes Scott. “Calgary home sales continue to shift to higher price points. This has resulted in our average price holding firm.

Homes in the higher price range have performed well and account for a larger portion of sales as move-up buyers enter the market. In the first six months of this year, 187 single-family homes in the city of Calgary sold for

$1 million or more, compared with 132 in 2009.”

The median price of a single family home in the city of Calgary for June 2010 was $418,900, showing no significant change from May 2010, when the median price was $420,000, and a 5 per cent increase from June 2009, when the median price was $399,000. The median price of a condominium in June 2010 was $269,900, showing a 4 per cent decrease from May 2010,

when the median was $279,900. That’s up 2 per cent from June 2009, when the median price was $265,500.

All city of Calgary MLS® statistics include properties listed and sold only within Calgary’scity limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

Single family listings in the city of Calgary added for the month of June totaled 2,733, a decrease of 8 per cent from May 2010 when 2,966 new listings were added, and showing an increase of 22 per cent from June 2009, when 2,244 new listings came to the market. Condominium new listings in the city of Calgary added for June 2010 were 1,084, down 11 per cent from May 2010, when the MLS® saw 1,221 condo listings coming to the market. This is

an increase of 17 per cent from June 2009, when new condominium listings added were 927.

“We had an impressive housing recovery in the late spring and summer of 2009. As expected this rate of recovery will moderate in the latter half of 2010

in the face of rising mortgage rates and slowing demand—keeping Calgary’s housing market in balance,” says Scott.

“Nonetheless the economic outlook for Calgary and for Canada remains upbeat and should ensure consumer confidence remains in positive territory

for the balance of 2010,” adds Scott.

To view the full report visit the CREB website at http://www.creb.com/public/documents/statistics/2010/package/res-stats-2010%20June.pdf

Canada Won't Fall Vicitm To Foreclosure Wave - Report

Tue, 15 Jun 2010 18:12:31 GMT

Story courtesy of the Financial Post

Canada’s housing market is expected to cool off this year and next, but isn’t at risk of falling victim to a U.S.-style foreclosure crisis anytime soon, according to a new report by debt-rating firm DBRS Ltd.

DBRS said in the report that Canada will continue to fare well in comparison to its neighbour to the south when the Canadian housing market corrects itself and interest rates are tightened. That is because lending practices here are much more sound than in the U.S.

“The likelihood of us having the kind of situation they had in the U.S. is extremely low,” said Jerry Marriott, managing director of structured finance at DBRS . “It’s a combination of the lending practices prior to the peak in 2007 — they were more restrained, so there were better underwriting practices in Canada. We also think there are a number of factors in the Canadian market which have lent themselves to more prudent lending.”

Those factors includes less aggressive lenders in the market, as well as systems designed to keep people paying their mortgages.

Mr. Marriott said that a cooling effect is gradually taking hold in the housing market as credit availability begins to tighten, and the HST factors into home buying decisions in Ontario and British Columbia.

That means there’s a greater likelihood this year that there will be a correction in housing prices rather than a continued increase. Mr. Marriott said the DBRS expects the market to cool throughout the year and continue to cool into 2011. That echoes analysts expectations, who also expect prices to drop as well. A recent report by TD Bank predicts prices will fall by 2.7% in 2011.

“If you add up the factors you would look at as to whether there’s going to be further price increases or the potential for a correction, we don’t see there’s a lot of factors supporting further price increases,” Mr. Marriott said. “But there are a number of factors that show there might be some moderation in housing prices.”

That may bode well for potential buyers after a report by CIBC this week said that on average, Canadian home prices are currently 14% over their “fair” value — that represents about 1.5 million homes, or 17% of all dwellings.

The report also highlights that Canadian households continue to have a particularly high level of debt, something that the DBRS notes is part of an ongoing trend. But it tempers that by adding that household debt is not as worrying as some analysts have suggested.

“We think the measurement of household leverage is subject to a fair amount of interpretation,” said Mr. Marriott.

For instance, the debt-to-disposable income shows Canadians are generally more indebted than Americans — however, the report outlines that this doesn’t reflect certain differences between the two countries that affect income, such as the fact that the U.S. has lower taxes but that Americans pay more money toward their health-care bills.

“At the end of 2009, Canadian households remained financially less leveraged by 10% to 45% compared with U.S. households,” the report said. Overall, after adjustments, Canada had a household liabilities-to-total gross income ratio of 116.8% at the end of 2009, while the United States’s ratio was 161.5%.

But Canadian household debt is growing faster. Household liabilities increased by 29.5% in Canada between 2007 and 2009. In the use, household debt grew just 5.3% during the same period.

Overall, mortgage lending in Canada reached $958.8 billion at the end of 2009. That’s more than double the $414.1 billion ten years ago. When including home equity lines of credit, outstanding mortgage-related credit was more than $1 trillion.

Financial Post

New property listed in Whitehorn, Calgary

Tue, 15 Jun 2010 09:23:40 GMT

I have listed a new property at 187 WHITAKER CLOSE NE in CALGARY.

See details here

Great revenue property that will pay for itself! Fully finished bungalow with non-confirming suite and separate entrance to the basement. Property is well kept and downstairs rented out $500/room/mth. This 5 bedroom bung (3up+2down) is a walking distance to LRT station, bus, shopping, and hospital. This home has oak kitchen cabinet, new ensuite bathroom, large bedrooms, 2 fridges and 2 stoves. 2 sheds in the backyard are incl. This home is located in a quiet close. Seller will consider renting upstairs from the new owner if purchased as a revenue property. Don't wait and call for showing :o)

New property listed in Shawnessy, Calgary

Tue, 15 Jun 2010 09:23:40 GMT

I have listed a new property at 111 290 SHAWVILLE WAY SE in CALGARY.

See details here

UNIQUE WHEELCHAIR ACCOMODATING UNIT! Bright clean unit. Main floor easy access to unit,nice private,green lawn to enjoy from your back patio.Close to shopping and across the street to the LRT station.Storage area in the unit.Master has a large walk-in closet and a 3pce ensuite which has been fully customized to accommodate the special needs of a quadriplegic person.It comes with the pool-table, track in the ceiling from the bedr through the closet to the wheelchair acces. shower.There is a urinal in this bathroom and another full bathroom for guests. The walls of the bedrooms have been opened up with folding doors for a wheelchair access,with an option to open up the door to the liv room area or close it for privacy.There is a disabled person's shower chair and battery for the electric lift.The door knobs were replaced with lever handles.A titled storage locker and a parking spot in the bsmt incl.Unit would be perfect for someone in a wheelchair with live-in nursing care or a spouse. Call for showing!

May Stats Show Increased House Inventory, Fewer Buyers

Wed, 09 Jun 2010 18:00:27 GMT

There has been a marked decline in home sales since the new rules for mortgage approvals came into play. Following are some excerpts from the most current CREB® report.

Calgary, June 1, 2010 – Calgary home sales showed a marked decline in the month of May,according to figures released today by the Calgary

Real Estate Board (CREB®).

The number of single family homes sold in May 2010 in the city of Calgary was down 20 per cent from the same time a year ago, and condominium sales saw a decrease of 21 per cent from the same time a year ago.

...

“The first quarter of 2010 was exceptionally strong with our spring sales coming early in the wake of anticipated mortgage hikes,” says Diane Scott, president of CREB®. “We believe there are a number of factors contributing to this marked slowdown including a declining number of first time homebuyers in the market, a rise in monthly carrying costs as mortgage rates rise and to some extent market jitters in the wake of Greece’s financial crisis,” says Scott.

“Consumers are feeling a little nervous about the recent instability of the stock markets—and with mortgage rate hikes behind us, it’s understandable that feelings of urgency among buyers have lessened,” adds Scott.

Click here for the full report, including statistical analysis and charts of the latest trends.

Double dip recession: What are the odds?

Wed, 09 Jun 2010 17:49:45 GMT

CNN has an excellent article on rumours that we may be in for a double dip recession. Apparently, the stats indicate otherwise.

NEW YORK (CNNMoney.com) -- Europe's debt crisis. Companies still not hiring. The Gulf oil spill. These are uncertain times to say the least. But while you might think economists would be running for the hills and looking ahead to a so-called "double dip recession," that's not necessarily the case.

In fact, some economists think a double dip is even less likely than it was earlier this year.

David Wyss, chief economist with Standard & Poor's, said that even though he thinks slower U.S. growth is practically a sure thing, the odds of a double-dip actually have shrunk to 20%, from 25% earlier this year.

Same goes for Derek Hoffman, founder and editor of The Wall Street Cheat Sheet, who also puts the odds of a double dip at 20%, when just a few months earlier he saw them at 50-50.

The term "double dip" refers to a recession followed by a short-lived recovery that then slides back into a second recession. It can be measured by fluctuations in gross domestic product, or GDP -- one of the broadest measures of economic activity.

Hoffman said he changed his mind about a potential double dip after major U.S. companies reported solid profit growth in the first quarter of 2010 and European leaders approved a $1 trillion bailout package to deal with the region's debt crisis.

Granted, the picture isn't all rosy. Unemployment is still high at 9.7%. But Wyss points out that consumers are spending again. Plus, the average person on main street doesn't seem as worried about getting laid off as they were a year ago, he said.

Wyss's comments echo those of Federal Reserve chairman Ben Bernanke, who on Monday told reporters that he expects a continued economic recovery, in part because of revived consumer spending. Bernanke also said the recovery would be slow -- it "won't feel terrific," he said.

Bernanke dodged a question about whether he fears a double-dip recession, saying "nobody knows with any certainty."

The Recovery: Where things stand

To be sure, any chance of a double dip is nothing to shrug off.

Mark Vitner, a senior economist at Wells Fargo Securities, likes to call himself an optimist, but said he can't deny that when he talks to clients, he's blunt about the risk of a double dip. He calculates the chances of one happening at about 30%, whereas a few months ago, he would have said it was as low as 15%.

"We experienced the worst crisis in a generation and now there are major problems in Europe and with the oil spill. How optimistic can you expect an optimist to be?" he said.

The winding down of government stimulus programs and inventory rebuilding, which together accounted for much of the recovery, are the major factors behind a slowdown, Vitner said.

Add in geopolitical unrest and volatile global markets, and businesses, consumers and lawmakers alike will be more hesitant to make investments that could support economic growth.

"One of the things to remember is conditions do not have to be perfect for the economy to grow," Vitner said. "But there's a limit to how much bad news this economy can take."

Search MLS from your IPhone

Mon, 31 May 2010 02:31:27 GMT

I have added a very cool IPhone/Android application that allows you to take advantage of your IPhoneor Android to search and locate homes for sale within your proximity. It's free for the download, fun and easy to use.

To obtain your Application, simply click on the link. Follow the instructions and the system will automatically send you an email and set your IPhone or Android up with the applicaiton. It's free, easy to use, and has you up and running in less than a minute.

Click here to visit the link and get the app, or to view a slideshow about the IPhone/Android App.

What Does It Do?

Here is what you will be able to do on your phone:

Automatically locate yourself via GPS and see all available listings for sale in up to 1km radius around you
Have the application "follow" you by updating your position and nearby listings as you walk or drive
Drag the map and see the nearby listings searched as you do that
Manually override your current location by entering the address of your choice
Login into your Virtual Office Website (VOW) account to see and do more
Sign up for a Virtual Office Website (VOW) account
See full details of each individual listing, including all photos
Email listings to family and friends
Inquire about the listing
"Star" the listing for later review through the Virtual Office Website (VOW) account
Call and/or send an SMS message directly

Open House Today

Sat, 15 May 2010 18:50:00 GMT

I will be having an open house from 2PM to 4PM today, May 15th and Sunday, May 16th, in Abbeydale, at 172 Aberfoyle Close NE Calgary. All are welcome!

Details can be found at http://househuntingadventures.com/mylistings.html/ListingDetails.form?listingId=12311122

Bank of Montreal alleges huge mortgage fraud

Wed, 05 May 2010 15:58:37 GMT

Story by CBC Calgary - May 5, 2010

The Bank of Montreal is suing hundreds of people in Alberta, including lawyers, mortgage brokers and four of its own employees, in what is one of the largest alleged cases of mortgage fraud in Canadian history.

CALGARY HOUSING MARKET TO SIMMER, NOT SIZZLE

Tue, 04 May 2010 01:40:00 GMT

Calgary, May 3, 2010 –

Calgary’s housing market continues at a healthy and balanced pace according to figures released today by the Calgary Real Estate Board (CREB®).

The number of single family homes sold in April 2010 in the city of Calgary was up 5 per cent from the same time a year ago, while condominium sales saw an increase of 10 per cent from the same time a year ago.

April 2010 saw 1,352 single family homes sold in the city of Calgary. This is a decrease of 3 per cent from 1,396 sales in March 2010. In April 2009, single family home sales totaled 1,290. The number of condominium sales for the month of April 2010 was 639. This was an increase of 5 per cent from the 609 condominium transactions recorded in March 2010. In April 2009, condominium sales were 579.

“Continued economic optimism, improved choice and price stability are all contributing to a healthy and balanced housing market in Calgary,” says Diane Scott, president of CREB®. “Calgary’s housing market is set to simmer, not sizzle in 2010.

We can be grateful that we are not facing any real danger of a housing bubble here in our market.”

“There has been some talk about a bubble in some parts of Canada but the rapid price increases seen in Vancouver, Victoria and southern Ontario have not been seen in Calgary,” Scott acknowledges.

“Single family house prices are coming back nicely compared to 2009,” says Scott. The average price of a single family home in the city of Calgary in April 2010 was $460,378, showing a decrease of 2 per cent from March 2010, when the average price was $471,269, and showing an increase of 8 per cent from April 2009, when the average price was $426,311. The average price of a condominium in the city of Calgary was $289,588, showing a 2 per cent decrease from March 2010, when the average price was $296,660 and a 4 per cent increase over last year, when the average price was $277,953. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The median price of a single family home in the city of Calgary for April 2010 was $417,000, showing a 1 per cent decrease from March 2010, when the median price was $423,000, and a 10 per cent increase from April 2009, when the median price was $380,000. The median price of a condominium in April 2010 was $267,500, showing a 3 per cent decrease from March 2010, when the median was $275,000. That’s up 7 per cent from April 2009, when the median price was $251,000.

period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median

price.

“Our average price is holding relatively steady,” says Scott. “The pace of price increase has been tempered by the rate of new listings that has been

growing faster than sales. Sales levels are still well below the high demand from 2004-2008, mainly because we are still not seeing high job growth and

unemployment has remained high.”

Single family listings in the city of Calgary added for the month of April totaled 3,082, an increase of 3 per cent from March 2010 when 2,988 new listings were added, and showing an increase of 53 per cent from April 2009, when 2,010 new listings came to the market. Condominium new listings in the city of Calgary added for April 2010 were 1,335, down 3 per cent from March 2010, when the MLS® saw 1,376 condo listings coming to the market. This is an increase of 38 per cent fromApril 2009, when new condominium listings added were 967.

“Calgary didn’t see the impacts of the very low interest rates the way other areas of Canada did,” says Scott. “Calgarians are also not rushing out to

beat the rate increases as they are seeing less risk of rising prices squeezing them out of the market.” “In fact financially, Calgarians are in a very healthy

position. Just over 37 per cent of our median pretax household income was needed to service the mortgage on a typical detached bungalow in Calgary—that’s below the national average,” says Scott.

Article by Calgary Real Estate Board (CREB®).

New property listed in Abbeydale, Calgary

Sun, 02 May 2010 09:34:45 GMT

I have listed a new property at 172 ABERFOYLE CLOSE NE in CALGARY.

See details here

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Who's afraid of higher interest rates? Not Canadian home buyers, says CMHC

Mon, 26 Apr 2010 20:08:17 GMT

The Canadian Press

OTTAWA - The Bank of Canada may be concerned about the level of debt homeowners are assuming, but consumers who have recently taken out or renewed their mortgage are not.

A new online survey of Canadians active in the mortgage market, including first-time buyers, shows the vast majority are not only comfortable with their level of debt, but two thirds think they will pay their loans off sooner than required.

The annual survey by Canada Mortgage and Housing Corporation also suggests that Canadians are savvy consumers when it comes to buying a home.

On average, consumers surveyed say they took a year to think through their decision and 89 per cent said they used the Internet to research mortgage options.

"First time home buyers, they do their homework," said Pierre Serre, the CMHC's vice president of insurance product and business development.

"The key findings are that people are getting more into the Internet, people are getting informed and people are comfortable with home ownership."

According to the CMHC, nine in 10 new buyers believe ownership is a good long-term investment and that now is a good time to purchase a home.

The housing market has been one of the mainstays of the economic recovery, with prices and sales already back, and in some markets, beyond pre-recession levels.

In a separate report Monday, the real estate brokerage firm Re/Max said luxury home sales had soared in the first quarter of 2010, with nine of 13 markets shattering records for the winter months.

Kelowna, B.C. led the way in terms of percentage increase at 700 per cent, followed by Montreal at 300 per cent and Victoria at 275 per cent. Canada's most populous city, Toronto, was not far behind with a 263 per cent advance.

"Recovery in the upper end has been nothing short of remarkable," said Elton Ash, the regional vice-president for Re/Max in western Canada.

It's been such home-buying enthusiasm that has raised concerns at the Bank of Canada about super-low interest rates luring some into taking on more debt than they can afford. Although affordability remains high, given the low rates, household debt has risen to a record $1.47 per $1 of disposable income.

Bank governor Mark Carney and his deputies have warned that buyers should make sure when they purchase a home, they can afford not only the current mortgage but payments when interest rates rise.

The central bank has hinted it may start raising its policy rate as early as June 1, but already, chartered banks have increased longer-term, closed and some variable mortgages by close to a percentage point.

On Monday, Royal Bank bumped up its mortgage rates on all its lending terms by nearly a seventh of a percentage point. It was the third mortgage rate increase in recent weeks, reflecting the rising costs of borrowing on the bond market, where banks finance their mortgage lending.

The CMCH survey of 2,500 who have actually taken out a first mortgage, or renewed their mortgage in the last year, strongly suggests they are doing so with eyes wide open.

The survey found that 81 per cent are "comfortable" with their level of debt. But even the 19 per cent who did not answer in the affirmative didn't raise a red flag - 13 per cent were neutral, five per cent were somewhat not comfortable, and only one per cent said they were very uncomfortable.

Among first-time buyers, 85 per cent said they had a good understanding of how much of a mortgage they could afford.

The results are not surprising to CIBC economist Benjamin Tal, who recently researched the housing market for his bank. Tal's report tended to undercut concerns that Canadians were significantly vulnerable to rising interest rates.

"The number of people who are really, really vulnerable is a relatively small number," he said,"Clearly, when you have a situation of interest rates rising there will be defaults rising, but it will not be over the cliff like the U.S., it will not be a crisis."

Tal says Canadians traditionally adopt a variety of strategies to rising rates, including locking in to longer-term fixed mortgages, something he says is already occurring.

The other difference between the Canadian situation and that of the U.S., where the sub-prime crisis triggered a financial market meltdown, is that lower-income Canadians tend to be more conservative than higher-income buyers, said Tal. In reverse of the U.S. situation, lower-income Canadians tend to take out fixed-rate mortgages, he said.

Royal bumps up mortgage rates again as bond market rates rise

Mon, 26 Apr 2010 19:40:41 GMT

From the Canadian Press

TORONTO - Mortgage rates are headed higher again as Canada's biggest bank, the Royal, is bumping up the cost of borrowing to buy a house by nearly a seventh of a percentage point.

The increase of 15-hundredths of a point on loans ranging from six-month variable to 10-year closed loans are effective Tuesday.

The third mortgage rate increases in recent weeks reflect the rising costs of borrowing on the bond market, where banks finance their mortgage lending.

Bond investors are demanding higher interest rates to part with their money because they expect rising inflation will eat away at bond returns in future.

At the Royal, a three-year closed mortgage rises to 4.75 per cent, while a five-year rate increases to 6.25 per cent and a 10-year loan jumps to 7.2 per cent.

In the last month or so, mortgage rates tied to the bond market have risen

nearly a full point in three separate rate hikes.

Mortgage loans tied to the prime rate have held steady so far but are expected to rise this summer if the Bank of Canada as expected raises its key rate and the banks follow with prime rate increases of their own.

April 1, 2010 Calgary Real Estate Market Trend Update

Thu, 15 Apr 2010 14:09:50 GMT

Calgary, April 1, 2010 Market Update–

Calgary’s housing market enjoyed a healthy boost in March as homebuyers anticipate an earlier than expected rise in interest rates,according to figures released today by the Calgary Real

Estate Board (CREB®).

The number of single family homes sold in March 2010 in the city of Calgary was up 29 per cent from the same time a year ago, while condominium sales saw an increase of 37 per cent from the same time a year ago.

March 2010 saw 1,396 single family homes sold in the city of Calgary. This is an increase of 35 per cent from 1,035 sales in February 2010. In March 2009, single family home sales totaled 1,086. The number of condominium sales for the month of March 2010 was 609. This was an increase of 14 per cent from the 536 condominium transactions recorded in February 2010.

In March 2009, condominium sales were 446.

“The spring market has come early to Calgary,” said Diane Scott, president of CREB®.

“Improved economic conditions, better employment prospects, and an earlier

than expected rise in mortgage rates are all contributing to this early boost in sales this year.”

“Undoubtedly the recent announcements by all our major banks to raise mortgage rates are motivating buyers to take the plunge,” Scott acknowledges. “But Calgary’s market remains in a healthy position and our

sales are not outstripping supply. The rise in demand will also motivate sellers to consider listing this spring.”

“There has been some speculation that mortgage rate hikes will adversely affect housing demand in the longterm, but we should keep in mind that a rise in rates was fully expected. The Bank of Canada has been operating

at emergency rates as a response to the global recession.

While a rise in rates may tone down demand later this year, we don’t feel this adjustment will prevent the vast majority of buyers with healthy credit to enter the housing market,” said Scott.

“Ultimately improvements in employment and economic conditions will drive housing demand—Calgary’s economy has seen solid improvements in the

first quarter of 2010,” added Scott.

The average price of a single family home in the city of Calgary in March 2010 was $471,269, showing an increase of 3 per cent from February 2010, when the average price was $458,254, and showing an increase of 12 per cent from March 2009, when the average price was $420,354. The average price of a condominium in the city of Calgary was $296,660, showing a 5 per

cent increase from February 2010, when the average price was $282,880 and a 4 per cent increase over last year, when the average price was $284,056. Average price information can be useful in establishing trends

over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The median price of a single family home in the city of Calgary for March 2010 was $423,000, showing a 3 per cent increase from February 2010, when the median price was $411,000, and a 13 per cent increase from March 2009, when the median price was $375,000. The median price of a condominium in March 2010 was $275,000, showing a 3 per cent increase from February 2010, when the median was $265,900. That’s up 6 per cent from March 2009, when the median price was $260,000.

All city of Calgary MLS ® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the

median price. “Our average price has edged upwards as more move-up buyers enter the market and overall demand strengthens,” says Scott. “But this is not an unusual trend during a spring market. We expect this modest

price growth to continue, but a rise in listings will likely curb this trend,” said Scott. Single family listings in the city of Calgary added for the month of March totaled 2,988, an increase of 39 per cent from February 2010 when 2,154 new listings were added, and showing an increase of 48 per cent

from March 2009, when 2,023 new listings came to the market. Condominium new listings in the city of Calgary added for March 2010 were 1,376, up 24

per cent from February 2010, when the MLS® saw 1,109 condo listings coming to the market. This is an increase of 52 per cent from March 2009, when new condominium listings added were 903.

“Overall, Calgarians should feel positive about the housing market. Sales and price growth are in line with a more balanced and normalized market. We are

seeing a return to stability and optimism in Calgary as we shake off our recessionary blues. Mortgage rates are just one factor in the housing situation—a more positive economic outlook and improved job prospects will play a bigger role in the long-term,” added Scott.

Information courtesy of the Calgary Real Estate Board.