Calgary, February 6, 2012 – The year-over-year value of homes in Calgary increased in January 2012 by 2.7 per cent, according to a new price measurement tool vetted by academia and financial industry experts, including the Bank of Canada.

The new MLS® Home Price Index (HPI) was introduced today by the Canadian Real Estate Association in partnership with Canada’s five largest real estate boards – Vancouver, Fraser Valley, Calgary, Toronto and Montreal.

The new tool measures how typical properties are valued in the market rather than relying on average and median prices. In January, for example, the average price declined year-over-year, but only because more homes were sold in the lower-price ranges compared to the previous year, when more luxury home sales occurred.

“By combining information from the MLS® HPI with their own knowledge, experience and skills, REALTORS® can help their clients approach one of life’s most important decisions – that of buying or selling a home – with greater confidence,” says Bob Jablonski, president of CREB®.

The MLS® HPI is calculated using a sophisticated statistical model that estimates
home prices based on their quantitative and qualitative features that are typical to that neighbourhood, such as square footage, number of rooms above the basement level, number of bathrooms and half-bathrooms, whether the property has a fireplace and/or finished basement, lot size or the age of the property, to name a few.

“The MLS® HPI is the best tool to determine true price trends in the market,” says Ann-Marie Lurie, CREB® chief economist. “The commonly used average and median prices can be misleading as they are easily affected by the composition of what is sold.”

For buyers and sellers, the MLS® HPI determines what a typical home is valued at in their neighborhood, as well as how this compares to other neighborhoods. In addition, it provides a true price trend for their community.

“We are excited to be able to offer the purest, most accurate housing data that is currently available,” Jablonski says. “The MLS® HPI can be used to not only determine pricing trends, but also to gain insight into the typical home in a specific market segment, adding value to the existing tools REALTORS® can use to value homes for both buyers and sellers.

Calgary, February 1, 2012 – Home sales in the City of Calgary are off to a slow start as buyers show continuing caution, according to figures released today by CREB®.

“Overall, the market is behaving as expected for the winter season,” says Bob Jablonski, president of CREB®.

The year-over-year volume of residential sales in the City of Calgary dropped, but the inventory of available homes declined even faster in January 2012.

The City of Calgary residential market recorded 1,078 sales in January, nearly one per cent below the same month in 2011. This is in part related to the drop in new listings, which declined by 8 per cent over January 2011, causing inventory levels to continue to contract over 2011.
“A lower number of sales is not uncommon for the month of January,” says Jablonski. “The number of sales is offset by the number of listings, ultimately pushing the housing market towards a balanced market territory.”

The single-family market recorded a one-per-cent drop in sales over last year levels, while the condominium market recorded a one-per-cent gain. However, the decline in new listings in the single-family market was much higher than the condominium market, with a year-over-year decline of 11 per cent and 6 per cent, respectively.

“As presented in our housing forecast report, a slow start to the year is anticipated, as consumers continue to be cautiously optimistic regarding purchasing and/or listing their home,” says Jablonski.

The average price of single-family homes in January 2012 was $438,683, a 3-per-cent drop over last year, and over December 2011. Meanwhile, median prices in the single-family market remain relatively stable over last month at $395,000, while posting a 1-per-cent gain over the previous year.

“The price changes are related to the composition of what was sold. The rise in the median price was likely due to the increase in the number of homes sold in the $450,000-$549,999 category, as this category recorded a significant jump in activity in January. The decline in average price is due to the rise in sales in the under-$300,000 category, as well as the decline in the number of homes sold in the upper-price ranges,” Jablonski explains.

The condominium market continues to favor the buyer; however, this market is trending towards balance. The average and median price of condominiums for the month of January 2012 were $268,526 and $245,000, respectively. This corresponds to a 7-per-cent decline in average prices and a 4-per-cent decline in median prices.

“Last January, there was a significant jump in sales in both the $600,000+ price range and the under-$200,000 price range in condominiums. For January 2012, while sales under $200,000 remain strong, there has been an increase in activity in the $200,000-$299,999 price range, mostly at the expense of the condominiums priced above $400,000. This explains the significant decline in condominium prices,” Jablonski concludes.

Please note! CREB® will change the way it reports statistics with the February 6 release of the first MLS® Home Price Index (HPI). The HPI, years in development, provides a more accurate picture of the real estate market and how prices are affected by market factors. Average and median prices often misrepresent true price trends because they are affected by factors such as the change in the mix of homes sold, and the number of sales in different price categories.

The MLS® HPI was developed by the Canadian Real Estate Association (CREA) in partnership with local boards from Calgary, Montreal, Toronto and Vancouver. Compared to all other Canadian home price measures, the MLS® HPI identifies turning points sooner, is the most current, and is the most detailed and accurate gauge for Canadian home prices.

By Doug MacCallum

Recently, we submitted a motion to the board of directors to implement changes to rule and regulation 18.02. We kept the original rule (to report all conditional sales) and expanded on it, (except where the seller has given written instruction not to report the conditional sale until conditions are waived in writing.)

Why?

The old rule was brought in to existence before there were fax machines, before http://www.mls.ca or www.realtor.ca, and even before home inspections and condo conditions. It was brought in when the buyer’s brokerage did the conveyancing and only took certified deposit cheques to protect their clients’ deposits.

Times have changed.

The old rule would not hold up in today’s court room. The seller is disadvantaged as soon as the property is marked “Pending” on MLXchange as it is removed from the MLS® website and a host of other websites. In today’s world of real estate, offers are accepted without certified checks, deposits don’t accompany the faxed offers, and buyers have conditions that are considered weak at best, with home inspection clauses and condo document reviews required to the buyer’s satisfaction.

We needed a new rule that can withstand the scrutiny of a Court of Queen’s Bench Judge to attempt to level the playing field. A rule that ensures an associate is not in contravention by delaying reporting a pending sale.

The Professional Standards Steering Committee, last year, had four past chairmen with a minimum of 10 years experience along with another seven very experienced REALTORS® at the vice chair level, to review this particular rule. We even reviewed other options that included adding a new status to compliment “Actives”, “Solds”, “Pendings”, etc. We looked at other boards that made changes and we decided to adopt a more positive change.

We anticipate that sellers and REALTORS® will continue to report the pending sale like you always have once a property is conditionally sold. However, in that very rare instance when you have a demanding seller who wants absolutely no disclosure, CREB®’s rule 18.02 can now accommodate them. You may not want to do it, but CREB® has built a form and by sending it in we can monitor and assess whether we need to make further changes to the system or not.

If we get complaints on the same associate time and time again we can do a paper trail search and reprimand if there are in contravention of any rules. How you ask? When the offer is signed and the clause 15.1 kicks in the clock, with further investigation we can determine when the sale was reported on MLXchange, when the deposit actually occurred and if the associate had a written direction from the sellers. There should be a detailed paper trail and if not questions will be asked.

Not all forms we provide are mandatory, only the listing document is. So if you wish to have a partial non-disclosure clause that a seller is willing to sign then create one. You really need to have dialogue with your seller at the time of the listing and explain how you work pending sales.

I personally believe in disclose, disclose, disclose. I will not be compromised by accepting an agency relationship where I cannot be truthful to other members or public. I will create an agreement with the seller that is “Win Win” for everyone.

You’re the professional, how are you going to handle this new challenge? Remember, the only thing you bring into this industry is your good name, it is the most important asset you have, do everything you can to protect it and to promote it in a professional manner.

Since that time a lot of residents with extensive experience in the Oil and Gas industry have come forward and expressed their concerns over the Safety of a well so close to residential communities.  There is a small but tangible risk that if an H2S layer is perforated a release of H2S would present a critical safety event requiring rapid evacuation of the whole area.

Please read the Suburban Journal in your mailbox and try to attend the information session run by RRROCA on Saturday 11th February 2012 between 1pm and 4pm at the North West Family Church on Eamon Road.

As a resident of the Cascades I feel we should all be informed and be able to express our concerns. In addition to safety concerns there are also depreciated real estate values that are at play. Please try to attend the meeting.

There is also a Royal Oak Facebook Page where residents can exchange information.

Thank you,

Nevin Van Nest

The MLS® Housing Price Index (HPI) is coming to Calgary in February, as part of a nationwide rollout involving boards in Canada’s largest cities.

This new monthly price measure will enable Realtors to better determine real price changes.

Many Realtors have experienced a scenario where the monthly average price increased by five per cent, and your clients say, “Prices increased, shouldn’t my house be worth more?”

The five-per-cent increase is often misinterpreted, and could be caused by a number of factors including a rise in luxury home sales. As average prices can be skewed by the composition of sales, it does not reflect price trends based on the type and features that a home provides.

The index will help as price trends will reflect changes caused by individual’s willingness to pay for home attributes.

What does this mean for REALTORS® and our Clients?

By using MLS® HPI, we will be able to offer more comprehensive and purer data than ever before – data you can use for property comparisons, understanding future price trends and estimating current market values. Most importantly, it brings more value to our clients.

So how does it work?

The MLS® HPI is calculated using a sophisticated statistical model that estimates home prices based on their quantitative and qualitative features, including:

•  Number of rooms above the basement level
•  Number of bathrooms and half-bathrooms
•  Square footage for main living and basement areas
•  Whether it has a fireplace and/or finished basement
•  Lot size
•  The age of the property
•  Parking
•  How the home is heated
•  Foundation, flooring, siding and roofing types
•  Whether the property has a waterfront or panoramic view
•  Whether the property has been sold previously
•  Proximity to shopping, schools, hospitals, police stations, churches, sports centres, golf
courses, parks, and transportation (including train stations, airports etc.)

Upon valuating these features or attributes the index and the benchmark price are formulated.

MLS® HPI Benchmark

A ‘benchmark home’ is one that shows a set of attributes typical to the area/sub-market where it is located. Since ‘typical’ homes are different from one area to the next, their descriptions differ between areas.

A complete set of benchmark home attributes tracked by the MLS® HPI in each area can obtained by your realtor. The typical home for each community will remain constant over time, indicating that attributes will not change.

For example, the following table outlines some of the attributes that comprise a typical home for each of the following communities:

The Board received legal opinions indicating we may be in breach of our fiduciary duties to the Seller by forcing them – through Board by-laws – to disclose what they considered to be confidential information on the status of their property sale.

Therefore, reporting of all conditional sales is at the sole discretion of the Seller and if they choose to not report that information, their REALTOR® representative is bound not to disclose any status information to any other REALTOR® asking for information on behalf of their Buyers.

We recognize this may cause some frustration and concern, and we want you to understand that this lack of information is not the result of what your representative was or was not doing. They will always attempt to get information and determine the status of the listing, but it is clear by the ACT that the other REALTOR® representing the Seller is bound by the confidentiality imposed in the non-reporting agreement.

This lack of disclosure is also in effect if you are looking at listings that your REALTOR® has listed. If, as it has happened in the past few days, you have put in an offer on a property that has been non-disclosed, your accepted or countered offer will come back with a Sellers Condition stating they accept your offer on the condition that the first offer(s) become(s) void.

This change is in harmony with changes being made across the country and are made with the Provincial Regulator supporting the Sellers’ rights for marketing their property. As this change evolves, we believe it will be less cumbersome, as it has been in effect in Edmonton and British Columbia for a few years.

We also believe many Buyers whose offers will be accepted will be writing in their offers to purchase a condition that the status of the listing be reported as conditionally sold. While this latter condition may not be acceptable to some Sellers, having this condition in writing on your offer is the only way you can insist on the status being reported.

We ask you to be patient with our industry as these new rules come into effect. If you should have any questions or concerns, you are certainly free to contact me with any questions or concerns.

I felt this information is important for Calgary home Buyers to understand. We as realtors are finding it frustrating but like any change it will become common place after the adjustment phase. If you have comments or opinions please comment below. We are always interested in hearing the publics thoughts.

The MLS® Housing Price Index (HPI) is coming to Calgary in February, as part of a nationwide rollout involving real estate boards in Canada’s largest cities. It’s an exciting new tool that the Calgary Real Estate Board has developed in cooperation with four other real estate boards and the Canadian Real Estate Association.

As you know, the average price in a market can vary widely from month to month, depending on volume shifts in various price segments. Reporting the average price can sometimes falsely exaggerate trends, causing confusion with our clients.

The MLS® HPI uses a new standard that takes into consideration such items as lot size, age of building, number of rooms and many more factors. It’s a way of comparing apples to apples, much as the Consumer Price Index uses a standard basket of goods to determine cost of living.

What does this mean to Sellers and REALTORS®? By using MLS® HPI, we will be able to offer more comprehensive and purer data than ever before – data you can use for property comparisons, understanding future price trends and estimating current market values. Most importantly, it brings more value to our clients.

The MLS® HPI is expected to become available early in February 2012. CREB® will be creating and updating a new MLS® HPI webpage on CREB®Link soon.

By Julian Beltrame, The Canadian Press
OTTAWA – Any thoughts Bank of Canada governor Mark Carney might have had about cutting interest rates further today likely flew out the window after a recent spate of relatively good economic news.

The Bank of Canada will announce its policy setting – which influences short term interest rates – at 9 a.m., and the opinion appears virtually unanimous there will be no change from the current one per cent perch.

That should keep in force a credit landscape that has seen borrowing rates across the spectrum of terms and conditions among the most generous in memory.

In fact, last week the Bank of Montreal offered the first 2.99 per cent five-year, fixed mortgage rate in modern Canadian history, forcing other banks to follow suit with similar actions.
In essence, the market is beating the central bank to the punch with credit easing, said Derek Holt, vice-president of economics with Scotiabank.
But there are other reasons analysts – with few exceptions – believe Carney will be loathe to move off one per cent, where he’s been since September 2010.

That’s because as weak as conditions are, with Europe still at risk of plunging the world into another recession, the economic indicators have been stronger than Carney thought they would be three months ago.

Then, the bank governor projected growth in the third quarter of 2011 would come in at a weak two per cent and the fourth at a barely visible 0.8 per cent. The third quarter is already in the books at 3.5 per cent and the fourth looks closer to two per cent, however.
As well, the resilience of oil prices to the global slowdown likely means inflation in 2012 will be a little stronger than the bank had been counting on.
“The combination of perhaps upward revisions to growth and inflation forecasts … might be the thing that totally takes rate cuts off the table,” said Holt.

There are some who still believe Carney’s next move will be to trim interest rates, including Carleton University economist Nicholas Rowe, a member of the C.D. Howe Institute’s monetary policy panel, and David Madani of Capital Economics.
Madani expects Carney will take the policy rate to 0.5 per cent by the end of the year. He has a darker than most view of the economy – with growth a mere 1.5 per cent this year, and the unemployment rate rising half-a-point to eight per cent by year’s end.
“Although (the bank) … will no doubt highlight that U.S. economic activity has improved somewhat, even they would admit that a sustained recovery is far from assured, particularly considering Europe’s recession and the heightened risk of another global banking crisis,” Madani wrote in a note to clients.

But Madani also said Carney is likely to wait out at least one more policy date before making his move.
The main news coming out of Tuesday’s announcement, and Wednesday’s monetary policy review – the bank’s new forecast for the global and Canadian economies – is whether Carney sees the stronger-than-expected second half of 2011 as a precursor for 2012, or simply a blip that merely delayed the onset of weaker growth.

In the previous policy review, the central bank had predicted growth would come in at 2.1 per cent in 2011, 1.9 per cent in 2012, and 2.9 per cent in 2013.

With 2011 already in the books – although all the data points are not yet known – the expectation is that growth was more likely in the moderate 2.4 per cent range. But that may not change Carney’s view that 2012 will be even weaker, with considerable downside if Europe’s debt issues metastasize.
In past policy announcements, Carney has made it clear he views the current one-per-cent setting to be sufficiently accommodative for the current, slow-growth economy. Easy credit conditions stimulate spending and expansion in the economy.

Holt said it would likely take a European implosion for Carney to cut rates further.

Calgary, November 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), Calgary residential sales totaled 16,184 after the first 10 months of the year, an increase of eight per cent over last year.

Over 61 per cent of Calgary’s established communities saw increased sales levels compared to last year. Garrison Woods, Collingwood and Mahogany saw the largest sales increase at 170 per cent combined; nearly half of all Calgary communities recorded price increases, with Shaganappi, Chinook Park and Downtown leading the way with a combined average price increase of 55 per cent.

“A boost in full time jobs throughout the year is gradually translating into improved sales in the real estate sector,” says Sano Stante, president of CREB®. “Consumers are taking advantage of price stability and a healthy variety of selection. While these gains are moderate, we are set to outpace 2010 sales.”

Single family home sales totaled 988 for the month of October 2011, an 11 per cent increase over October 2010, but continue to remain well below historical levels. Year-to-date sales totaled 11,503, a 10 per cent increase over last year.

October listings have edged upwards over last year’s levels, increasing by nearly two per cent, but year-to-date there are six per cent less listings than levels recorded last year.

“Consumers are feeling more confident about the local real estate market,” adds Stante.

The average price of single family homes for the month of October 2011 was $455,399, while the median price was $395,000, an increase of two per cent compared to last year. This is primarily due to the rise in the number of luxury homes sales. Despite the monthly price increase, however, year-to-date figures remained stable at levels comparable to the previous year.

Condominium sales for the first 10 months of the year totaled 4,681, a three per cent rise over the same period last year. Inventory levels remained at 1,935 units, resulting in months of supply pushing above five months.

“The condominium market has significantly tightened compared to last year, however, moving into winter, we expect to see a rise in months of supply,” Stante says.

Condominium year-to-date average and median prices in 2011 were $288,736 and $262,500, respectively, a slight decline over the first 10 months of 2010. The decline is mostly due to increased sales in units priced under $200,000.

“Overall, the resale housing market continues to show signs of improvement and, with no near term change in interest rates, we can expect the market will continue to see moderate and stable growth throughout the rest of the year,” Stante concludes.

Calgary, September 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), sales for upper-end homes are above the pace set a year ago. As of Wednesday August 31, there were 948 single family sales over $700,000 recorded this year, compared to 779 reported for the same period in 2010.

At the same time, sales for condos priced below $200,000 also received a boost, pointing to a growing number of first-time homebuyers taking advantage of affordability and low mortgage rates. There were 834 condo sales below $200,000 this year compared with 596 for the same period in 2010.

“We are seeing a lift in sales at both ends of the market,” says Sano Stante, president of CREB®. “Improving economic conditions coupled with affordability and price stability has given Calgary a boost in buyers for upper-end homes and entry level condos.”

According to figures released today by CREB® (Calgary Real Estate Board), the year to date average price for single family resale homes reached $468,051, a one per cent rise over last year. Condominium prices continue to remain one per cent lower than last year’s figures with an average price of $288,167 after the first eight months. The 2011 year to date median price of single family and condominium homes were a respective $410,000 and $263,000.

“When looking at Canada’s major cities, Calgary is one of the most affordable regions for homeownership in the country,” says Stante. “Buyers are benefiting from improved selection at all price ranges in the market. In fact, nearly half of all single family homes sold year to date were priced below $400,000. Well priced properties seem to be moving in this market.”

The single family market recorded 1,106 sales in the month of August 2011. This is an increase of 28 per cent when compared to August 2010 sales, which were the lowest levels of August sales since 1994. Year to date sales of 9,485 are 10 per cent higher than last year’s figures.

Single family inventory levels reached 4,573 in August, a nine per cent decline over last year’s levels. The recent rise in listings was counteracted by robust sales, keeping absorption levels at four months compared to the six months recorded in August 2010.

As in the single family market, condominium inventories of 1,997 were lower than last year’s levels. The market conditions have changed significantly as inventory levels continue to decline. Recent improvement in sales, combined with lower listings, has resulted in a year over year decline in the months of supply.

Condominium sales amounted to 468 units in August 2011, with a year to date total of 3,885 similar to levels recorded in the first eight months of 2010.

Stante states “With Calgary’s energy sector slated to grow, it is expected to lift the city’s employment, income and in-migration, and in turn help contribute to growth in the resale market. We expect price growth to improve as we approach the end of 2011 and move into 2012.”

On the condominium side, gains in the market have been slower, due to ramped up supply in the new condominium market and improved selection of single family homes in a wider price distribution. Condominium sales in the second half of 2011 will not be enough to compensate for the declines in the first half of the year, and sales will still be marginally lower than levels recorded in 2010. Average condominium prices will remain steady, matching 2010 levels.

Market improvements driven by clients looking for value

Calgary, August 4, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), residential sales continue to trend towards recovery. After the first seven months of the year, single family and condominium sales totaled 11,798, a 5 per cent increase over the previous year. While the improvements signal market recovery, overall sales levels remain 17 per cent below the 10-year average for this period.

“The recent rise in average days on market, especially in the single family sector, shows that while properly priced homes are selling quickly, over-priced listings remain on the market for a longer period of time. Improving market conditions may have signaled some sellers to be overly optimistic regarding pricing, resulting in a disconnect between seller and buyer expectations,” says Sano Stante, president of CREB®.

Single family sales for July 2011 were 1,153, with a total of 8,380 sales for the first seven months of 2011, an 8 per cent increase over the same period last year. Meanwhile, year-to-date listings continue to remain lower than last year, resulting in inventories trending lower than last year as well. Overall months of supply remain around four months within a balanced range.

“A good selection of housing inventory, combined with positive economic fundamentals, is encouraging buyers into the market,” says Stante. “Buyers are still quite value conscious, and in the current market are able to take advantage of the range of selection in a stable price environment.”

Condominium sales continued to bounce back this month. July 2011 condominium sales total 453, a 14 per cent rise over last year, while year-to-date sales remain 3 per cent lower than the same period in 2010.

“Excess supply and lower demand have negatively impacted the condominium market over the past year,” says Stante. “Nevertheless, the recent pickup in sales, combined with fewer new listings, has gradually reduced inventory levels of condominiums, lowering the month’s supply of inventory from over six months last year to just above four months in July 2011.”

The average price of single family homes in July 2011 was $455,849 and the median price $409,000, similar to levels recorded in July of last year. Condominium prices also remained at levels similar to the previous year.

“Interest rates will likely remain low for the remainder of the year. This factor, combined with relatively stable housing prices and wage growth, will help support affordability levels and promote a healthy housing market in Calgary,” Stante concludes.

Below are just some of the shots from the workshop and a link to others we took that day. You can also check out more images on Scott’s blog.

More great photos of Calgary homes to come!! Just need to get some more listing now to test out the new technics!!

Calgary, July 4, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), residential sales surged in the month of June 2011 to 1,979 units. While this indicates a third more sales than June 2010, the year-to-date increase proved a moderate 2 per cent. Strong monthly increases does not imply a housing boom, as it is important to put into perspective that sales activity remains below long term averages. While the single family market has shown signs of improvement throughout the first half of this year, this is the first time since April 2010 that condominium sales have recorded a year-over-year increase.

“Improved housing demand is being fueled by a younger demographic and, with the affordability of homes in Calgary, we are continuing to see young Calgarians pursue ownership over rentals,” says Sano Stante, president of CREB®.

“Historically, Calgary’s average family income has been higher than the national average and a younger more mobile demographic has been attracted to good paying professional jobs in Calgary. As the economy continues to build momentum, we expect this same trend will support a balanced and healthy housing market in the second half of 2011 and into 2012.”

With 581 sales for the month of June 2011, the condominium market improved by 31 per cent over June of 2010, however year-to-date figures show a 5 per cent decrease over the same period last year.

“Condo sales bounced back this month, and we now have less than four months of supply on the market. Stronger condo sales, combined with a decline in inventory, will lend more balance to this market in the months to come,” says Stante.

After the first half of the year, average prices of condominiums are still slightly lower than levels recorded last year, as more buyers bought condominiums under $200,000 in 2011 compared to 2010 for the same period.

“Buyers in this market expect value and many are taking advantage of some affordable buys in both the single family and condo markets. It highlights using a skilled REALTOR® to properly price your home for your unique market area,” says Stante.

The single family market recorded 1,398 sales in the month of June 2011. This is an increase of 32 per cent when compared to June 2010 when 1,059 single family homes sold in the city of Calgary. With a total of 7,231 sales after the first half of the year, year-to-date single family sales are 6 per cent higher than last year.

“While new listings are still lower than levels recorded last year, the rate of decline has eased. With the market shifting to more balanced conditions in recent months, sellers are feeling more confident to list their home. Overall our absorption rate has remained relatively stable, staving off any significant rise in prices,” says Stante.

Year-to-date average price of a single family home in Calgary is $472,330, while the median price is $410,000, virtually unchanged over levels recorded in the previous year. The distribution of sales by price range has not shown any significant shift compared to last year, pointing to continued stability in the market.

“After the first half of the year, it appears the recovery in the housing market is starting to find its footing. This gradual leveling has been fueled by growth in employment, and in particular growth in full time jobs. Improved job prospects, combined with an increase in the number of people moving to Calgary, will give lift to our housing market for the remainder of this year and into the next,” says Stante.

Unfortunately when I was in the lower level parking this particular time I found ground water spewing out of the concrete. Calgary has had record rain fall this spring which is likely where the ground water is coming from. This type of thing has happened in other towers in Calgary and I imagine the developer will do what it takes to correct the problem. If not the residents can turn the 4th level parking into an Olympic sized swimming pool. In the other buildings I have seen they were able to bring it under control and come up with a solution. I will post an update if I hear of any further developments.

See video below for details.

Sellers of penthouse condos in Calgary please note: The smell of rotting organs does not appeal to most buyers in todays market. Especially ones looking at penthouse units. If this was Transylvania and my clients were vampires we might be able to do a deal.

Calgary Real Estate Statistics for June 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), year-to-date residential sales in the inner city grew nearly 4 per cent, outperforming the city wide average. City of Calgary residential sales totaled 1,816 in May 2011, a 2 per cent increase in volume over May 2010. However, slower early spring sales resulted in the overall year-to-date sales being 3 per cent lower than the 2010 spring market.

As the city grows, improvements in the inner city communities are consistent with changing preferences in lifestyle options.

“Consumers are looking for shorter commute times to work and easy access to a wider range of services provided by these inner city communities,” says Sano Stante, president of CREB®.

“Many of these communities are surrounded by abundant amenities such as parks, mature trees, diverse shopping and transit which appeals to a wide range of consumers; furthermore, inner city homes can be considered a stable real estate investment, as there is significant value in land located near the city’s core.”

The average price for single family homes in May 2011 was $489,482 and the median price $423,000, comparable to levels recorded last year. Single family home sales were 1,313 in May 2011, a 5 per cent increase over last year, while 2,552 listings came to market, a 14 per cent decline over the same period last year.

The decline in listings has caused inventory levels to come down to 4,616 units, an 18 per cent decline from last year. Moderate sales and a reduction in inventory have resulted in a decline in months of supply compared to May 2010.

To date, the single family market has fared better than the condominium market, as prices have come down from peak levels recorded in 2007 providing individuals more options with regard to home ownership, noted Stante. After the first five months of the year, single family home sales were 5,835 units, consistent with sales levels during the same time frame last year.

“With just under four months supply, we expect single family home prices to remain stable in the coming months,” says Stante. “Provided that interest rates remain moderated, we are positive about the near term stability and recovery in the Calgary real estate market.”

“While condominiums continue to experience some decline in sales and prices, the rate of decline seems to be easing, indicating signs of improvement in this market” adds Stante.

The inventory of condominiums continues to remain higher than average, but has declined by 21 per cent from levels recorded in May 2010.

Condominium sales were 503 for May 2011, 3 per cent lower than last year’s figures. Year-to-date condominium sales are 11 per cent lower than last year’s levels, however, listings have declined by 19 per cent as well over the same time frame, placing downward pressure on inventories.

“Full time employment growth has been sluggish in Calgary, with only notable improvements occurring in April,” says Stante. “All indications point to the trend that as full-time employment growth takes hold in the later portion of the year, so too will improvements in migration, ultimately translating into improvements in the housing market.”

To view more Calgary Real Estate Statistics check out my blog.

Bankruptcy allows a person to wipe out most of all existing debt and start fresh. It can be a very long and complicated process that should only be used as a last resort. Even though it might bring peace of mind, it comes with challenges to anyone who wants to purchase a property in Calgary unless they speak to an experienced mortgage professional.

For nine months, everything a person owns is surrendered to a trustee in bankruptcy, and all surplus income is paid to that trustee during this time. In most cases, the client is discharged after nine months, and can start building their credit right away.

In order to get a mortgage after bankruptcy, the first and most important goal is to restore credit. A common misconception is that borrowers think they must wait seven years before they can start applying for credit – this is simply not true; they can start right after the nine month discharge. Another misconception is that borrowers think they can get a mortgage as soon as bankruptcy is declared. In most cases, the person must wait at least 2 years after the discharge for a lender to consider loaning them money. During this time, the borrower must start rebuilding their credit.

Rebuilding Credit After Bankruptcy

1) Check your credit report: When a borrower files for bankruptcy, it shows up on their credit report from Equifax and TransUnion. It is essential the borrower checks to make sure the bankruptcy shows no balance owing after the discharge, or this will slow the rebuilding process. If the report does, it is a matter of filling out the proper paperwork, attaching the letter of discharge, and sending it in. A mortgage professional should be able to help the borrower with this.
2) Obtain a credit card: It may be hard to obtain credit from ‘A’ lenders, so a mortgage professional can help set up a secured credit card where the borrower provides a deposit to the lender; ideally $1500. The lender will deposit this into a GIC and holds the money for a full credit card.
3) Be diligent: Once the credit is set up, it is absolutely imperative the borrower does not fall behind in payments because this would certainly inhibit the chances of obtaining mortgage financing in the future. Take steps to prevent that from happening such as setting a reminder in the calendar on a mobile phone, or set up an automatic bank withdrawal a few business days prior to the due date.

Common Misconceptions:

1) You must wait 7 years after bankruptcy to obtain credit. You can actually start applying for credit once you are discharged, which is typically a nine month period. Your credit report will show the bankruptcy for 7 years, but you don’t need to wait that long to obtain mortgage financing. It will be difficult to get an excellent rate at the bank, but a savvy mortgage professional can still provide a competitive rate with a credit union or an alternative lender.
2) Once you declared bankruptcy, you can obtain mortgage financing. You must be discharged first (which takes 9 months), then build your credit. Most lenders won’t consider your application unless 2 years has passed since your discharge.
3) Paying rent and parking tickets on time improves my credit. Wrong. These payments do not get reported on the credit report, therefore it does not improve your score.

Important Steps To Take After Bankruptcy:

1) Ensure all tradelines on the credit report with Equifax and TransUnion are wiped clean after discharge
2) Get set up with a secured credit card. Even if you can afford $500, it’s the right step to establishing your credit score
3) Do not miss or be late with any payments. This will have a negative impact on the credit score and make it extremely difficult to obtain mortgage financing in the future

For those who have foreclosed on a property in a bankruptcy, they may find it more difficult to obtain mortgage financing after, so it’s important to take measures to prevent that from happening.

Coming out of bankruptcy is not a difficult process if a borrower knows the right steps to start establishing credit; it just takes time and diligence. With the right information, guidance, and education, a mortgage professional will be able to help the borrower get back on the path to home ownership.

This just released today from the Calgary Real Estate Board.

Calgary, May 2, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), City of Calgary year-to-date sales declined by 4 per cent compared to the first four months of 2010.  The decline was offset by a 14 per cent drop in listings recorded over the same period, resulting in lower inventory levels, and a moderate growth in average prices.

In April 2011, single family home sales were 1,217, while 2,299 listings came to market, a decline of 10 per cent over April 2010 and 25 per cent, respectively.  Inventory levels rose slightly over March 2011 levels, but remained well below inventories recorded in April 2010, and close to the long term average, indicating the market continues to show balanced conditions.

“While our spring market has been a little slow to get started, we are seeing our inventory levels return to healthy levels,” says Sano Stante, president of CREB®.  “This trend, combined with an improving job market, will help warm up Calgary’s housing market in the coming months.”

Along with a decline in inventory, Stante points out that homes in the higher-end of the market are selling faster, with average days on market trending down, and below the 5-year average.

“We are seeing improvements in the sale of homes in the higher price points.  Homes above $700,000 are selling within an average of 41 days. This is consistent with pre-recession levels,” says Stante.

The average price of single family homes in the City of Calgary in April 2011 was $479,575, a 4 per cent increase from April 2010 levels. Meanwhile, the median price of $420,000 rose by 1 per cent over levels recorded in April 2010.  The price differential comes as a result of high end home sales. In April 2011, two single family homes were sold in the price range of $3 million to $4 million, skewing up the monthly average price.

“Condominium listings declined 27 per cent in April, helping to offset a 16 per cent decrease in year-over-year sales. The decline in listings is significant and has helped place downward pressure on inventory levels. This will improve stability in condominiums and begin to move it towards a more balanced market,” says Stante.

Year-to-date condo sales were 1,883, a 13 per cent decline compared to the first four months of 2010.  The condominium average price for the month of April 2011 was $289,158, similar to the previous year when condominiums sold for an average of $289,588.  The median price for condominiums in the month of April 2011 was $260,000, down 3 per cent compared to the same time last year.

“All in all, the positive investments we are seeing in the energy sector and our economy will begin to translate into improved job prospects and growth for Calgary. This will help contribute to a stronger demand for housing and a stable real estate market,” adds Stante.