Should a CREB® member/ Realtor have knowledge or become aware that a property he or she has listed or will be listing on the MLS® system was used as a marijuana grow-op or drug manufacturing operation, that member should disclose this information to potential buyers. This disclosure should include a statement in the “Private Remarks” section of the listing on the MLS® system. Buyers’ representatives must disclose this fact to their clients. If the property has undergone remediation, and there is supporting documentation available to a potential buyer, this additional information may also be included in the “Private Remarks” section.

Currently there are no consistent remediation standards in place for mould or air quality in properties previously used as marijuana grow-ops or other drug operations. CREB® and its Political Action Committee continue to lobby the provincial government to establish a universal standard on the remediation of grow-ops and other drug operations.

To learn “What a REALTOR® should know about Grow-Ops” visit CREA’s website and view the CREA information brochure.

Frequently asked questions

1. Once a grow-op or meth lab has been identified who is the controlling body that oversees the assessment of the problem and then the remediation of the problem?
Not all grow-ops have been “identified”. Only those grow-ops (illegal drug manufacturing is included in all of these remarks where we are talking about grow-ops) that were busted after 2006 have had an Alberta Health Services inspector in attendance during every police raid. Prior to that, it was very rare that Alberta Heath Services participated in the police raids as they did not have the necessary staff. There are also operations that were never busted. Alberta Heath Services placed a caveat (property condemned due to health concerns) on each of the properties that were raided where they attended. They are the only body that can remove the caveat and will only do so after the property owner complied with all of the corrective measures ordered for the property and certified air quality testing was done. The testing is so rigorous that these would likely be the cleanest properties in the city now.

2. Once remediated, is the property then certified as marketable and what does that certification look like?
There are no provincial standards of remediation for former grow-ops or illegal drug manufacturing locations and therefore there is no certification available. Alberta Health Services simply discharges the caveat. The owner is then free to market the property.

3. When a remediated property is offered for sale what level of disclosure is required and for how long a time period?
This is the toughest question of all and there is no time limit of any kind. REIX (Real Estate Insurance Exchange) recommends that you disclose the facts about the property every time but not until such time as the buyer shows an interest in the property. Perhaps when the buyer’s REALTOR® calls to say they may be writing an offer or to let the lister know that their client is interested in the property. REIX takes the position that the new buyer will always find out about the grow-op one way or the other so it’s better to be up front. Is this necessarily fair to the seller who has done all of the necessary work and has paid the cost of doing so properly? CREB®’s policy is that you should disclose the information. This is as far as CREB® can go because we cannot disclose that which the owner doesn’t have to “legally disclose.”

The owner only has to legally disclose if there is a latent material defect such as structural damage or any conditions (mould) that may be hazardous to one’s health. Brokerages are free to set their own policies with regard to disclosure. Some brokerages require total disclosure in the public or private remarks section of the listing or their associates are not allowed to take the listing. Other brokerages require disclosure at the time that a buyer shows an interest in the property but prior to acceptance of an offer, usually when the buyers’ representative calls to advise the lister that their buyer will be writing an offer or by way of written disclosure in a counter offer.

It is a testament to Calgary’s strong luxury home market.

An upscale Britannia home recently sold for $6 million in just days, as multiple bids upped the price by $1 million from its original listing, making it the third most expensive MLS sale ever in the city, the Herald has learned.

The custom-built twostorey-plus sandstone estate property has more than 10,000 square feet of development with a third-level observatory loft and an elevator.

According to the Calgary Real Estate Board, the top two MLS sales ever in Calgary are for $10.5 million in Elbow Park/ Glencoe in August 2009 and $8 million in Crescent Heights in June 2008.

The Britannia property was listed and sold by Rooney Cronin + Valentine of Re/Max Real Estate Central. Sue Anne Valentine was the listing agent and Donna Rooney was the buyer’s agent.

Valentine and Rooney were also the listing agents on the record sale in 2009 of the $10.5-million property once owned by former Calgary Flames goaltender Mike Vernon.

Bob Jablonski, president of the Calgary Real Estate Board, said the recent luxury-home sale indicates there is plenty of confidence from the consumer in the current economic stability.

“This buyer bought it obviously before the (provincial) election results came out. So if you can imagine spending $6 million before the election comes out when supposedly everyone is worried about what’s going to happen.”

“It shows great confidence by the consumer and he bought it in a neighbourhood that is well-established and a very desirable neighbourhood,” Jablonski said. “So that tells me they’re OK with the world.”

Jablonski said the energy sector is doing well in the province, the economy is leading the country and people are confident in making big real estate purchases because they plan on staying here and believe it’s a good investment.

Year-to-date until April 22, CREB said there have been 148 sales in the city over $1 million. Last year for the corresponding period, there were 136 sales in that price category.

“Resale activity in Calgary has been improving and is giving some existing homeowners an opportunity to sell their home and trade up into something larger,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “Some prospective buyers have also benefited from higher wages, bonuses and favourable mortgage rates, supporting demand for luxury homes.”

Mike Fotiou, associate broker with First Place Realty, said Calgarians are regaining their optimism. An ex-ample of that is that Alberta’s small business owners lead the country in confidence according to the Canadian Federation of Independent Business.

“Average weekly earnings and employment growth for Alberta continues to top all of Canada while the unemployment rate in Calgary fell to 5.1 per cent,” Fotiou said. “This has translated into increased sales in not only the luxury segment, but the overall residential market as well.”

Calgary luxury home sales since 2005

Number of MLS home sales worth $1 million or more

2005: 142 - 2006: 339 - 2007: 462 – 2008: 371 – 2009: 340 – 2010: 367 – 2011: 448

Original MLS description courtesy of the Calgary Real Estate Board and Sue Anne Valentine of RE/MAX REAL ESTATE (CENTRAL)

STUNNING SANDSTONE ESTATE PROPERTY, over 10,000 sq ft developed, SPECTACULAR CITY VIEWS backing to the Ridge on COVETED BRITANNIA DR!Once in a lifetime opportunity to own the ONLY 2 STOREY PLUS RESIDENCE on the Ridge!Contemporary meet Art Deco in this sophisticated 4 bedroom home.SPECTACULAR GOURMET KITCHEN with CUSTOM LA CORNUE GAS RANGE + OVENS, indoor GAS BAR-B-QUE, extensive professional appliances, open to GREAT ROOM LIVING with exemplary custom millwork, stone surround wood burning fireplace, and a view to the city!Huge Formal Dining, stunning Library Family Room, Elegant Wood Paneled Office. Master suite with the finest dressing room imaginable; luxury ensuite, breakfast bar, private terraces overlooking the front + rear of the property. 2 additional guest bedrooms with custom closets, full ensuites. 3rd level observatory loft. Elevator. Lower level media lounge, bar, 4th bedroom with ensuite, lap pool. Double over height attached garage. Luxury, Privacy, Security!

If you are thinking of investing in Calgary’s condos market now might be the right time to do so . 2012 is turning out to be a great year in the residential real estate market. The energy sector is booming and the future of Alberta is looking very bright. With low interest rates and favourable condo prices Calgary’s condo market is once again a prime place to invest for long term plays. H8JUSNHFSGNT

6th AND Tenth  is a new high rise project being offered by Brad J. Lamb Realty Inc. out of Toronto. Brad’s development company Lamb Development Corp. has built numerous luxury towers in Toronto, Montreal and Ottawa.  6th AND Tenth is  a new residential tower that will be their first offering in the Calgary market and features world class designs and views in the belt line area of Calgary.

Lamb Development Corp. has some great architects behind them that in my opinion build some of the most atractive  designs in the world.  6th AND Tenth  will be no exception and will be a welcome addition to Calagary’s condo market

Below is a video by The Real Estate Commission of Albert (RECA) that explains the definition and repercussions of a stigmatized property.

In response to member feedback, the 5 year summary stats report is available to members on CREB®Link under the monthly housing stats section and includes the median prices. In addition, the graphs available in CREB®Link show the relationship between the average, median and benchmark price. Please note: you will need to use your Clareity token to access the site.

The monthly statistics package is available here

Calgary, April 2, 2012 – City of Calgary residential sales continued to rise in March 2012, reaching 2,167 units, an increase of 12.6 per cent over last March.

“The rise in activity is related to the continued improvement of our economy and consumer confidence, as some concerns regarding the global economy have eased,” says Ann-Marie Lurie, CREB® chief economist.

After the first quarter of 2012, sales are up by 7.3 per cent over the same time last year. While the increase is significant, when compared to historic activity, residential sales continue to remain below the long-term trend. Monthly new listings remain slightly lower than last year, whereas year-to-date figures show 7.2 per cent fewer listings have come onto the market in the first quarter of this year.

“While the number of listings for the first quarter of 2012 remains low compared to last year, the level of decline has lessened,” says Bob Jablonski, president of CREB®; “therefore pointing to the fact that those people who have been on the fence are starting to list their homes, and this trend is expected to continue.”

The year-over-year decline in new listings, combined with improving sales, has pushed down inventory levels to 5,092 units from 5,866 last year, as well as months of supply. However, as Jablonski notes, “it is not uncommon for the months of supply to decline in March as we transition from the winter season to the spring season.”

Recently, the tightening supply has brought about much discussion of multiple offers on houses. “It is important to note that multiple offers can happen during any market with a well priced listing or a unique property,” says Jablonski. “New listings coming onto the market at a good price are generating a lot of activity, but year-over-year index price growth for the typical home in Calgary in March was 2.9 per cent, which is considered a normal range. Also, the sales-price to list-price ratio does not reflect levels recorded during the peak of the market, when there were supply shortages,” Jablonski adds.

Single family homes continue to record strong activity, with sales increasing by 10.3 per cent at the end of the first quarter.Meanwhile, quarter totals for listings of single-family homes remain 8.3 per cent lower, resulting in a tightening of supply. The benchmark price reached $433,500, while the MLS® Home Price Index points towards a price growth of 3.6 per cent compared to last year.

The apartment condominium market continues to exhibit lower sales, with 782 sales recorded in the first quarter of 2012, a decline of 2.1 per cent compared to last year. However, March sales activity did post a 7.2 per cent gain over last year and is closer in line with typical March sales in this sector. New listings recorded a year-over-year improvement of 9.1 per cent for the month of March, but still remain 2.3 per cent lower than last year at the end of the first quarter. Despite the monthly rise in new listings, inventories continue to decline. Overall market conditions continue to favour the buyer.

The condominium apartment and townhouse benchmark price for the month of March was $247,800and $293,600, respectively. While the apartment index price has remained relatively stable compared to last year, the condominium townhouse index recorded a modest improvement of 1.96 per cent over last year.

“The single family market continues to lead the housing growth in both sales activity and pricing, and the condominium market appears to have turned the corner as well,” Jablonski concludes. “Overall, the Calgary real estate market continues to move in the right direction, with all indicators pointing towards stable growth and a move towards typical levels of activity.”

Calgary, March 1, 2012 – Sales activity improved across all residential sectors this month compared to a year ago, according to CREB® data released today. Calgary and area sales growth pushed February total residential activity up by 11.6 per cent compared February 2011, mainly due to increased activity in the surrounding towns.

“City sales were boosted by a lot of activity in the last week of the month,” says Bob Jablonski, CREB® president. “This points towards the improvements that we expect to see in our spring market activity.”

Single family sales and condominium townhouse sales were the bright lights in the city of Calgary, while condo apartments continue to lag in volume of sales. There were 1,284 single-family homes sold in February 2012, a 10.9-per-cent increase over last-year figures, and a 5.6-per-cent year-to-date increase. Condo townhouses gained 11.4 per cent year-over-year in February sales.

“More selection and a wider range of prices have drawn consumers to the condominium townhouse and single family markets,” says Jablonski. “As is the case with all property types, we saw modest price improvements compared to February last year, but overall levels remain below peak pricing.”

Meanwhile, condominium apartment sales totaled 248 for February 2012, an 11.7-per-cent decline over last-year figures. Despite the 12.7-per-cent year-over-year decline in new listings, inventory levels rose to 1,031 units.

Fewer new city listings are coming to the market, with a year-over-year decline of 10.2 per cent. Inventories also fell by 8.5 per cent over last year’s figures, with a total inventory of 4,736 for the month. The opposite is true in the surrounding towns, where listings recorded a year-over-year improvement of 12.1 per cent and no significant change in inventories.

“The lack of new listings in the city compared to the surrounding towns provides insight into the improved activity in the surrounding areas, as those who are actively seeking a home in the surrounding towns are not limited in their choice by lack of new listings in the market,” Jablonski says.

Within the city of Calgary, the decline in new listings, combined with improving sales, contributed to reduced inventory levels, pushing absorption rates for single-family and condominium townhome markets into balanced territory. However, the condominium apartment inventories rose and sales activity weakened, keeping the market in buyer’s territory.

Pricing showed modest improvement in February 2012 over January, with the single-family MLS® Home Price Index increasing by 1.0 per cent after several months of relatively flat pricing. Single-family prices rose by 3.2 per cent over February 2011. While prices continue to remain below peak levels, the improvement points to stable price growth.

The apartment index rose by 2.1 per cent over January figures, and increased by 0.7 per cent over last year’s levels. Prices remain well below peak levels, but are trending into positive territory, pointing towards recovery in this market. Overall index levels for townhomes remain similar to levels recorded in January 2012.

“While the apartment market continues to lag the other sectors in the city, the balanced conditions in the total city market point towards stable pricing,” says Jablonski. “There do appear to be some positive headwinds. Following several months of decline, prices appear to have stabilized lately and recorded some modest gains in February,” Jablonski concludes.

Despite the variances in the specific property types, all indicators in the Calgary region continue to point towards stable growth in Calgary’s overall housing sector.

Here is typically what lenders in Canada will require for financing;

1. Engineers report-usually they put a hole in the foundation of the home for electrical etc.
2. Electrical inspection to be completed
3. Copies of all environmental/water/air quality testing that provides detail regarding spore counts for the home on all levels and also a control group (air test outside of home)
4. Copies of all documentation from the respective City, Town or Municipality the permits reoccupation of the property.
5. Complete purchase and sale agreement with all attachments, appendixes and signatures, including an acknowledgement that the purchaser is aware of the former use of the property
6. Customer to obtain independent legal advice to acknowledge their purchase of a former marijuana grow operation and that any remediation may not eliminate future complications the property may encounter.

Both insurers – CMHC and Genworth will support a lender approved deal as long as they can show they have done their due diligence similar to the list above. They have no restrictions on the Loan to Value or products available for this type of property. Once again, leave lots of time for underwriting as there are exceptions to every rule and approval can still be property specific.

The most important thing to keep in mind on these properties is DISCLOSURE. The fact that the property is a remediated Grow-op must be disclosed immediately to both the lender and the insurer. If the application is not present with this being the opening statement the application can and will be declined without further consideration and will not be open to appeal.

Hope this help buyers looking to purchase former grow-ops in Calagry

Below is an update on the Royal Oak oil well from the community association.

Dear Residents;

We would like to thank the 500 plus residents who participated in the oil well information “ Open House” February 11, 2012.

Although the application has been approved by the ERCB, we have applied for a review of the process with the ERCB board and looking at all possible avenues to have the surface rights application denied. We are waiting for a reply if our hearing request is granted by the ERCB board.

We have taken the following actions:
Submitted the initial review variance request for a hearing with the ERCB board to review the current application.
Submitted an additional letter outlining new findings from the open house to the ERCB board.

Contacted and continue dialogue with the City of Calgary , Alderman Hodges and Lowe.

Contacted and requested our MLA Lindsay Blackett to present our objections to the Minister of Energy.
Submitted our concerns regarding Directive 056 and the 100 meter radius rule.

Submitted our request for the ERCB to implement an Urban policy.

Conducted a survey of our residents and communicated the results to all parties concerned.

Actions to be implemented:
We are forming a sub-committee to specifically address all components of the oil well. We are asking for volunteers to contact us by the following address: oilwellvolunteer@rrroca.ca.

We are specifically looking for geologist, engineers and safety profession in the industry. Additionally for door to door people.
We are asking everyone to express their concerns to the ERCB at review_variance@ercb.ca and the Energy Minster Ted Morton at minister.energy@gov.ab.ca
After the committee is formed, further actions will be communicated through the website.

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!!