Buyer’s heart will lead to home: survey

Canadian homebuyers make decisions based on feeling

By Mario Toneguzzi, Calgary Herald

CALGARY — A potential homebuyer’s feelings about a home are playing a more important role in deciding whether to purchase real estate property.  A survey by Coldwell Banker Real Estate, released Tuesday, reveals that 28 per cent of women and 25 per cent of men put more emphasis on their feelings about a home than they do on the layout, square footage or price.  “A home is much more than just bricks and mortar. It truly is where the heart is and this survey shows just what an important role emotions can play when buying a home,” said Susanita de Diego, Coldwell Banker Canadian consumer specialist based in Calgary.  “Whether a buyer is located in the U.S. or Canada, the emotional considerations of buying a home are borderless. The feel of a home is a critical part of the process, no matter where you’re buying, or whether you’re a man or a woman. I’ve experienced similar responses from my own buying customers here in Canada.”  The survey also said the majority of women (62 per cent) and men (61 per cent) know within the first visit if the home is right for them.

Calgary MLS growth better than average

By Mario Toneguzzi, Calgary Herald

CALGARY — Year-over-year MLS sales growth in Calgary exceeded the Canadian average last month, the Canadian Real Estate Association said Thursday.  The organization said MLS sales of 2,113 units in Calgary was up 10 per cent from a year earlier, while Alberta sales of 4,476 units grew 13.5 per cent from 2011. Sales nationally rose by 8.6 per cent, compared with February 2011, and by 1.4 per cent over January.

“The resale market in Calgary continues to gain some momentum as we approach the spring and summer seasons,” said Richard Cho, of Calgary for Canada Mortgage and Housing Corp.  “With economic conditions improving and mortgage rates at favourable levels, prospective buyers have been active in the market.”

The average MLS sale price last month rose by 1.2 per cent, to $405,687, in Calgary and by 2.2 per cent, to $359,721, across Alberta.  Douglas Porter, deputy chief economist with BMO Capital Markets, said the Canadian housing market remains buoyant, “with an unseasonably mild winter likely adding some further juice to the mix.”

According to the Calgary Real Estate Board, MLS sales in Calgary so far this month are up 1.6 per cent compared with the same time period a year ago to 887 transactions and the average sale price has risen by 2.14 per cent to $415,093.  Ottawa-based CREA said about half of local markets recorded an increase in activity led by Calgary, Toronto and Montreal.

Steady Growth Forecast for Calgary Housing Market

MLS sales and prices to increase in next two years

By Mario Toneguzzi, Calgary Herald

CALGARY — Steady growth is forecast for Calgary’s housing market in the next two years, according to a new report released Monday by Canada Mortgage and Housing Corp.  The agency said MLS sales in the Calgary census metropolitan area will grow to 23,000 transactions in 2012 and to 23,700 in 2013 from 22,466 in 2011.  The CMHC said the average sale price will rise from $402,851 in 2011 to $409,000 in 2012 and $420,000 in 2013.  The optimistic forecast also translates into the new housing market.

The CMHC is predicting housing starts in the Calgary region to jump from 9,292 in 2011 to 10,300 in 2012 and 10,700 in 2013.  “Economic activity in Calgary will continue to support housing demand throughout the forecast period,” said Richard Cho, senior market analyst in Calgary for the CMHC. “Sustained investments in the energy sector will not only create jobs in the energy industry but also promote activity in other industries leading to more employment opportunities for job seekers. Employment levels in Calgary steadily rose in 2011 and the same is expected for 2012. As labour market conditions gradually tighten, we can expect to see higher migration flows to Calgary which is also an important driver for housing demand. In addition, favourable mortgage rates will also contribute to more sales in the new home and resale market.

“More single-detached and multi-family homes are forecast to break ground this year. In the past, elevated active listings in the competing resale market contributed to fewer single-detached starts. However, as the resale market becomes more balanced this year coupled with improving demand, we can expect to see more single-detached homes start construction. Multi-family construction will also pick up this year and next, mainly from higher apartment starts. Apartment inventories have come down from their elevated levels providing some builders an opportunity to start more projects and help satisfy demand.”

In Alberta, the CMHC forecasts housing starts to jump from 25,704 in 2011 to 29,100 in 2012 and 30,000 in 2013.  Provincially, MLS sales are forecast to jump from 53,146 in 2011 to 54,650 in 2012 and 56,550 in 2013. The average MLS sale price will rise from $355,808 in 2011 to $363,650 this year and $372,300 next year.  “Employment opportunities in the Prairies will continue to draw migrants, supporting new housing demand,” said Lai Sing Louie, the CMHC’s regional economist for the Prairie and Territories Region.

The CMHC report said net migration to Alberta is on an upward trend due to economic growth, job creation and low unemployment rates and the 2011 count will almost double 2010’s total of 19,613, which was a 15-year low. The CMHC estimates net migration in 2011 at 38,500 followed by 39,000 in 2012 and 39,500 in 2013.  “Over the forecast period, net migration will be close to the 10-year average with about 40,000 people added each year, increasing housing demand for rental and home ownership,” said the report.  It also said economic expansion is expected to continue supporting rental demand in 2012.  “Investments in the energy sector are promoting economic growth in Calgary, creating jobs and attracting migrants,” said the CMHC. “In addition, rental supply is not anticipated to see any large increases in the near future.”

It said the rental vacancy rate is expected to dip from 1.9 per cent in October 2011 to 1.8 per cent this year and to 1.6 per cent in 2013.  The average two-bedroom apartment rent is expected to rise from $1,084 in 2011 to $1,125 this year and $1,175 in 2013.  Todd Hirsch, senior economist with ATB Financial, said for over two years prices for newly-built homes in Calgary have remained basically unchanged.  He said it reflects stability in the housing market. Also, housing starts and existing home prices have shown similar patterns of stability in recent years.  “Alberta’s rising population and great labour market conditions are boosting housing demand. Yet that may be counter-balanced by the general belief that mortgage rates and prices will remain steady in the coming months. This may be reducing the urgency for potential buyers to jump into the market,” said Hirsch.  “This all suggests a fairly balanced, healthy market. The current stability eases any fears of inventory or price bubbles building — which pose much bigger problems when they burst.”

Calgary MLS sales in 2011 top previous year

Single-family and condo transactions both increase

By Mario Toneguzzi, Calgary Herald

CALGARY — Calgary single-family and condominium MLS sales in 2011 both topped levels recorded in the previous year, according to preliminary unofficial data.

On the website of Calgary realtor Mike Fotiou, of First Place Realty, it says year-end sales in the single-family market reached 13,186 in 2011, up from 12,091 in 2010. Condo sales rose to 5,382 units in 2011, up from 4,858 the previous year.

The data also indicates the average MLS sale price for a single-family home in 2011 was $466,402, increasing from $461,132 in 2010 while the condo average sale price dipped to $287,173 from $290,353 the previous year.

Fotiou’s website says the median sale price for single-family homes fell to $405,000 last year from $406,000 in 2010 and the condo median sale price dropped to $261,500 from $267,250.

For the month of December, the website says there were 722 single-family home sales, down 1.5 per cent from December 2010 and the first year-over-year decline in sales since April 2011. The average sale price in December of $453,629 was up 2.8 per cent from last year while the median price rose by 1.2 per cent to $393,750.

In the condo market, sales of 310 in December were down by only 10 units from December 2010’s level. The average sale price of $280,155 and the median sale price of $257,875 were both down 1.5 per cent compared with last year.

Calgary housing market demand strong for 2012: RE/MAX

 By Mario Toneguzzi, Calgary Herald

CALGARY — Fuelled by low interest rates and job security, demand for residential real estate in Calgary is on the upswing, says the RE/MAX Housing Market Outlook 2012 report released Tuesday.  And the real estate firm says Calgary will be a Canadian leader next year in the annual growth rate for MLS sales.  By year-end 2011, 22,500 homes are expected to change hands, an eight per cent increase over the 20,801 sales reported in 2010, it said.

And the average price in Calgary is forecast to appreciate as well, rising a “modest” one per cent to $405,000 in 2011, up from $401,186 one year ago.  The report forecasts the average MLS sale price will jump by three per cent in 2012 to $417,000 while sales will rise by five per cent to 23,600 units.  Lowell Martens, of RE/MAX Real Estate (Mountain View) in Calgary, said any hesitation on the part of some buyers in the city is more than likely a direct reflection of the uncertainty in the European economic situation.

He said commercial real estate construction taking place in Calgary “tells us the long-term feeling out there is very positive for Calgary.  “We have a very stable market over the next little while. We don’t anticipate any big upswings but at the same time we don’t anticipate any big downswings either. It’s going to be very stable,” he said.  Buyers in the city are cautiously optimistic after more than two years of recession, making their moves while interest rates are at historic lows and housing values are affordable, said the report.  “Single-family homes remain most popular with purchasers, representing close to 60 per cent of total residential sales. Demand is greatest for entry-level product, priced between $350,000 and $450,000,” it said.

“Condominium apartments and town houses have also experienced solid momentum in recent months, with the lion’s share of activity occurring from $200,000 to $300,000. Luxury home sales — priced over $1 million — have been particularly brisk, up approximately 25 per cent over 2010 levels.”  While global concerns still loom overhead, the market appears to be gaining some traction moving into the new year, added the report.  “First-time buyers are expected to continue to capitalize on low interest rates, while move-up buyers cautiously enter the market in the mid-range price points. Sales in the upper-end are expected to remain robust,” said the report.

A recent housing market outlook by Canada Mortgage and Housing Corp. forecast a 2.3 per cent increase in MLS sales in 2012 for the Calgary census metropolitan area to 22,700 transactions and a 2.2 per cent hike in the average sale price to $411,000.  “Many factors that support resale housing demand have become or remained favourable this year, including growth in full-time employment, low mortgage rates and improved net migration,” said the CMHC.  “However, competing factors such as uncertainty in the global economy has kept some prospective buyers on the fence, and will continue to temper any large increases in sales.”

RE/MAX said the Canadian residential real estate defied conventional logic and outperformed expectations in 2011, posting another solid year of housing activity virtually across the board.  The trend is expected to carry forward into 2012 as Canadians “continue to demonstrate their faith in home ownership, despite concerns over the European debt crisis and its impact on the global economy.”  By year-end, an estimated 460,000 homes are expected to change hands, up three per cent from the 447,010 units reported in 2010. Sales are expected to climb one per cent to 464,500 units in 2012. The value of a Canadian home is set to climb to $363,000 by year-end — an increase of seven per cent over the $339,030 posted one year ago. By year-end 2012, the average price in Canada is forecast to appreciate two per cent to $371,000, added RE/MAX.

“What 2011 proves is that real estate continues to have momentum,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada, in a statement. “The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further.”

Calgary resale housing market sees increased activity

 By Mario Toneguzzi, Calgary Herald

CALGARY — Calgary’s resale housing market saw sales grow in October but the average price dip, according to the Conference Board of Canada.  In a report released Tuesday, the board said the seasonally-adjusted annualized rate of sales in Calgary was 22,572 during the month, up from 22,344 in September and an increase from 19,524 in October 2010.

But the average price fell in October to $402,561 from $408,466 in September. A year ago it was $396,041.  As for new listings, the annualized rate in October decreased to 43,656 from 44,664 the previous month but up from 42,960 in October 2010.  In October, the sales-to-new listings ratio in Calgary was 0.512. It was 0.471 in September and 0.455 a year ago.

The conference board said Calgary can expect short-term year-over-year annual price growth of between five and seven per cent.  According to the latest Canada Mortgage and Housing Corp. market outlook report, MLS sales in the Calgary region are forecast to increase by 2.3 per cent in 2012 to 22,700 while new listings are expected to decrease by 1.1. per cent to 43,700.

The average MLS sales price is forecast to jump by 2.2 per cent in 2012 to $411,000 in the Calgary census metropolitan area.  The CMHC held its annual Calgary Housing Outlook Conference on Tuesday.  “Improvements will be reliant upon rising net migration, continued employment growth, lower new home inventories, and a more balanced resale market,” said Richard Cho, the CMHC’s senior market analyst in Calgary.

The CMHC housing market outlook says despite many positive factors for real estate “competing factors such as uncertainty in the global economy has kept some prospective buyers on the fence and will continue to temper any large increases in sales.”

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House prices, sales rise in September

By Mario Toneguzzi, Calgary Herald

Calgary home prices rose along with sales in September, according to the Canadian Real Estate Association.

CREA said Monday that MLS residential sales in Calgary reached 1,789 units in September, up 11 per cent from a year earlier. The average sale price rose by 1.3 per cent to $406,252 for the same period.  Sales in Alberta rose by 10 per cent to 4,316 units with the average price up three per cent to $359,637.

Calgary home sales show positive signs of recovery

By Mario Toneguzzi, Calgary Herald

 CALGARY – After eight consecutive months of year-over-year declines, MLS sales for single-family homes in Calgary showed a positive move forward in January to begin the new year.  According to preliminary and unofficial statistics on the website of realtor Mike Fotiou, of First Place Realty, there were 791 single-family sales last month, up from 762 in January 2010. Condominium sales however continued to struggle during the month posting the ninth consecutive year-over-year decline with only 302 transactions in January compared with 376 a year ago.

Average prices for both single-family homes and condos were up from January 2010.  Official MLS statistics will be released later today by the Calgary Real Estate Board.

Chad and Melissa Kroeker were an example of the people who took the plunge in January and decided to buy a house in Wood Valley Estates through their realtor Claudia Walz of Re/Max House of Real Estate.  The couple had searched for a property for about six months.  “We’re really excited about our place that we found. It’s always a challenge to kind of break apart the good financial decision mixed with the emotion. This is a house that we want to raise our children. So it wasn’t something that we were just looking at it for the next few years,” said Chad Kroeker.  The couple looked at the real estate market a year ago in January but there was plenty of turmoil still in the economic world at that time.

“I’m a business owner myself and last January it kind of felt like it was not the greatest time in business. Whereas this year it kind of felt that the buzz was a lot more positive,” said Kroeker.  “We waited. This time we felt we weren’t as concerned about what was going on with the market and more concerned about getting into a place.”

According to Fotiou’s website, the average single-family sale price in January was $454,163 and the median price was $390,000 while the condo average was $288,291 with a median of $255,000.

In December, there were 734 single-family home sales for an average MLS sale price of $441,341 and a median price of $389,000. The condo market had 320 transactions for an average price of $282,768 and a median price of $258,500.  A year ago in January 2010, the average MLS sale price for a single-family home was $441,217 and the median price was $398,000 on 762 transactions. The average condo sale price was $282,639 with a median price of $265,000 on 376 sales.

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Single-family home sales to jump 20% in 2011

By MARIO TONEGUZZI

CALGARY – The Calgary Real Estate Board is forecasting a slow recovery for the market this year, but improved sales compared with 2010.

In its annual forecast released Tuesday, the board said Calgary’s housing inventory levels are expected to stabilize, resulting in an eventual return to a more balanced and sustainable housing market.

It forecasts single-family home sales to increase by 19.9 per cent this year to 14,500 transactions while the average MLS sale price is predicted to rise 4.1 per cent to $480,000.

In the towns outside of Calgary market, the board is forecasting a 13.5 per cent increase to 4,000 with the average price increasing by 2.6 per cent to $368,500.

“We’ve been hit fairly dramatically in the last year and so 20 per cent (for single-family homes) really is relative to the drop that we’ve had in the last year,” said Sano Stante, president of the real estate board, adding his forecast wouldn’t change in light of the federal government’s announcement Monday to toughen up mortgage lending practices.

“What we’re expecting is in-migration into Calgary. So if we see the job growth that we expect to happen in Calgary then the in-migration should occur and that should drive the sales.”  The key to market recovery in 2011 will be permanent job creation sufficient to stimulate in-migration, said the forecast report. With little pent up demand from renters, recovery in the first half of the year will be more modest, picking up pace in the latter half. Recovery of sales will come to single family homes closer to the downtown core, followed by condos and single family homes in the outlying towns, said the report.

“Affordability will be key to market expansion and price increases are not likely until the latter half of 2011 when inventories have eased and demand has recovered,” added the report. “With interest rates not expected to increase, there is little urgency for buyers to move into the market in the first half of the year. Nonetheless 2011 will offer buyers unprecedented affordability, low interest rates and a large selection of inventory.”

“With more activity in the energy sector that should help support employment growth and that will strengthen demand for housing,” said Cho. “We’re expecting to see improvements from the year before but more so in the latter half of the year compared to the first half of the year.  The CMHC, in its forecast, predicted MLS sales, which includes all residential properties, in the Calgary census metropolitan area to increase by 2.0 per cent this year to 20,700 units, while the average sale price will rise by 0.5 per cent to $401,000.