CREB Now
By Marty Hope
WHAT THEY SAID IN 2017
CREB®Now connected with some of Calgary's housing industry experts and leaders for their opinions on 2018.
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CALGARY SUN
By Myke Thomas
CITY RESALE PRICES STABILIZE TO MARK THE END OF 2017
The new year certainly started in a deep freeze, but Calgary's resale homes market ended 2017 on a warm streak, when compared to 2016.
The end-of-year report from the Calgary Real Estate Board (CREB) shows there were 18,882 sales on the MLS system last year, up from 17,796 sales in 2016. All product types had increased sales year over year, led by single-family homes with 11,831 sales in 2017, up from 11,206; apartment sales went to 2,869 units from 2,725; attached homes sales were 4,182, up from 3,865.
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HGTV
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Ready to rid your house of clutter? Start here with these items you're sure not to miss.
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HGTV
 10 Smart, Family-Friendly Ways to Tame Kitchen Clutter
Keeping your kitchen neat and orderly is possible, but it's a family affair. Here are some easy ways to get the clutter and chaos under control.
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Calgary Herald
By Shawn Logan
Calgary sees tentative return of rebounding luxury home market
Calgary's luxury home market continued its tentative rebound in 2017, but fewer buyers were willing to shell out for the city's most posh pads or a glut of pricey condos, according to year-end data from Sotheby's International Realty Canada.
Deep pocketed Calgary home buyers snatched up 677 homes valued at more than $1 million last year, reports the luxury realtor, an 11 per cent rise from 2016, with levels nearing the crest of the city's last boom in 2014.
But while last year's sales of opulent abodes mark the third highest in the past decade, sales of homes priced over $2 million, along with luxury condos, dropped across the board.
According to Sotheby's International Realty, only 54 properties with a price tag between $2 million and $4 million changed hands (an 18 per cent drop from 2016), and just two homes north of $4 million were purchased, half the number from a year ago.
As well, thanks to an oversupply of condos on the market, only a dozen sales over $1 million were made in 2017, a 37 per cent drop.
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HI BUSINESS
By Caleb MacCauley
STABLE DETACHED
HOMES IN CALGARY AS SPRING APPROACHES
With spring buying season just around the corner, the housing market in Calgary seems to be showing signs of a new dawn.
The most recent evaluation by the Calgary Real Estate Board showed that the detaching housing segment is steadfastly in a well-adjusted place. Even though sales were about 10 per cent less than the long-term movements for last month, they were above the past year, which has been overstretched by a detachment between low demand and high supply.
David P. Brown, president of CREB said; "It's not so much that demand went through the roof in March, but that we had less supply come onto the market, which is really helping to balance things out. These changes are lifting the cloud of uncertainty for housing consumers and nicely positioning our market as we move into the more active spring season."
The chief economist of CREB, Ann-Marie Lurie said; "Market conditions are quite different in the apartment sector. The additional supply coming from the new home sector is not easily reversed and the added competition is continuing to weigh on prices in the higher density sectors of the market."
Detached homes prices incline by 0.4 per cent year-over-year to a benchmark price of $503,900. Calgary's apartment and attached sector, on the other hand, continued to be restrained with prices well before March of last year.
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METRO
By Darla Grant-Braid
TIPS ON BUYING NEW GARAGE DOORS
Take materials, style and sizing options into account
You may not spend much time thinking about it, but your garage door is an extremely important aspect of your home. It plays a prominent role in curb appeal while providing security for your car, belongings and possibly even your family (if it's a home access point).
If it's time to replace an old, noisy, malfunctioning or uninsulated garage door, you'll want to do your homework prior to buying. There are a variety of options, but best way to choose the right one is to start with a reputable, experienced specialist. Look for a garage door expert that provides in-person estimates, warranties and options to suit your needs.
There are four key considerations to purchasing a new garage door: construction, insulations, style and size.
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A very Happy New Year to everyone!
Starting a new year is always exciting for me. I see it as a time of renewal and look forward to all of the new opportunities and experiences waiting to unfold, new people to meet, new clients to work with and familiar faces to reconnect with.
As we head into 2018, I know it will also bring change - some good, some great, and some challenging. One thing that will always be true is - change happens. The best we can do is prepare for it, adjust to the new circumstances and look for new opportunities.
You have likely heard that a big change is now under way in the real estate industry and it will impact the buying and selling power of our clients - it is the
New Canadian Mortgage Rules
.
A new
Mortgage Stress Test
has been put in place, mainly to cool down the runaway home prices in Vancouver and Toronto - which is understandable as it was becoming impossible for the average Canadian to afford a home in these cities. However, the impact will be felt Canada wide as buyers face the challenge of managing their expectations, in terms of what they can afford, now that buyers will have about 15-25% less mortgage funds available to purchase with. Sellers will likely be impacted too, as downward pressure is placed on home prices, as buyers look for homes in lower price points.
In time, we will all adjust to this new normal but there will be some bumps along the way. Adjusting your expectations, especially downwards can be challenging. It is easier to accept when you understand that the Stress Test is intended to protect Canadians from being caught over extending ourselves, should mortgage rates rise quickly. So there is a 'silver lining' in this change.
Now more than ever, it is important who you choose as your realtor. The best choice will be realtors with proven experience as strong negotiators and creative problem solvers who can successfully help buyers get the greatest value possible, and help sellers sell for the highest price possible in a changing market.
This is why I feel great about recommending our team. Experience counts! Together, our team has averaged over 200 transactions a year, for many years. Our goal is to always negotiate the best deal for our clients. When challenging negotiations arise we draw on
what
all these past negotiations have taught us, and have the extra advantage of working
together as
a team, where we can bounce negotiation strategy off each other. In December, a month that saw a spike in listings causing decreasing list prices, our realtors strategically held and pulled deals together, which is not easy to do and shows their determination to make things happen for their clients.
If you, or anyone you know, would benefit from solid real estate advice I encourage you to give us a call. We would be pleased to walk you through what to expect, what your options are and how to get the best value in the new real estate environment.
On behalf of our team, I wish you the very best in 2018! May you have a fulfilling year, filled with optimism and good health!
Best regards,
Kelly and Team
Kelly McKelvie
403-247-9988
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THINKING OF BUYING A HOME IN YYC THIS YEAR?
The New Canadian Mortgage Rules And You
1. You Can Still Buy a New Home
The good news is that for most buyers, a home is still achievable. It may not be your dream home, but if you are entering the market or moving up, you still have options, although you may have to adjust your criteria.
2. The Stress Test
Non insured mortgage consumers (buyers with a 20% or greater downpayment) must qualify at the current rate plus 2% or the 5-year posted rate (currently 4.99%) which ever is higher. The lender needs to know that you can still maintain your mortgage at a higher rate. Buyers applying for insured mortgages have had to pass this stress test since last year. Remember, it's not a matter of if interest rates go up, it's a matter of when and its good to know you will be able to handle a higher interest rate.
3. Managing Your Expectations
The key take away, is that your buying power may be affected by between 15 to 25%. This means, for example, that instead of a $600,000 home, you are now looking at a $450,000 to $510,000 home.
4. First Time Home Buyers
This is the buyer who will likely be most affected by the new rule. The 1st home you were thinking of may now be a condominium, instead of a detached house.
5. Changes Are Due Mainly to The Vancouver & Toronto Markets
The rule changes were aimed primarily at cooling these two markets. A December 14th Globe and Mail article talks about the economic impact of the new mortgage rules, but does not even mention Alberta, let alone Calgary. With our economy gaining momentum the forecast is still good.
6. Albertans Carry The Most Debt Related to Assets
While this is true, Alberta is home to a younger demographic and it would make sense that, being in acquisition mode, they would carry more debt as they grow their families.
7. Refinancing
You can still refinance up to 80% of the value of the property, but you will need to pass the same "Stress Test" as noted above. Do note though, that the new stress test rules won't apply to mortgage renewals as long as they are with the borrower's existing lender.
10. Start Looking Now
Change is never easy, but these new mortgage rules will become the new norm in time. However, to find the best home option for you, start looking now. The search is a bit more complex, but that is where our experience will be of value to you. We will assess your criteria and will help you find the best opportunities for you.
Call us and we'll show you how. Use us as your resource and we'll get you moving in the right direction.
Thank you to Jodie Hoy, of Dominion Lending for her assistance in providing this information.
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CREB
TWO SIDES OF THE STORY
December sales activity rises again but so does supply
City of Calgary, January 2, 2018
- Sales activity for all product types improved in December and pushed monthly sales to long-term averages for the second month in a row. However, new listings also rose, keeping inventory elevated compared to typical levels for December. With more supply remaining compared to sales, benchmark prices edged down for the fifth consecutive month. "Many of the economic indicators continue to post modest improvements, including improving sales. However, demand gains have not outpaced the additional supply coming into the housing market. This is creating some of the bumpiness in terms of price recovery," said CREB® chief economist Ann-Marie Lurie, who added that prices have stayed comparable to last year. The gap between detached supply to demand closed in the first half of 2017 and supported early price growth. As prices improved, this was perceived as a signal for many who delayed selling their home and caused a late rise in inventory which limited price growth. Overall, the detached benchmark price in 2017 averaged $504,867, 0.63 per cent above last year's levels. Challenges continue to face the apartment sector, with elevated supply in the resale market. The new home and rental markets weighed on this sector. The excess supply caused average annual benchmark prices to decline by four per cent this year. This is a total annual adjustment of nearly 12 per cent since the start of the recession. In the attached sector, the first half of the year saw an improvement in sales relative to the inventory levels. This supported stronger price gains in the second and third quarter. However, a late rise in inventory levels took some of the momentum away from price growth. On an annual basis, attached prices totaled $332,325, comparable to last year's levels. "This year, we saw a rise in the number of consumers willing to purchase in the market with the expectation that the economy had already shifted. There were also many who waited to list their property until prices showed more stability," said CREB® president David P. Brown. "Those who acted were typically driven by long-term plans that best suit their current lifestyle. We are ending the year with stronger sales in the last quarter, but supply levels are holding back price gains. The year played out as expected with a transition from price declines to general price stability in most sectors of the market." For more information on the 2017 housing market, CREB®'s 2018 Forecast Conference & Tradeshow (www.crebforecast.com) will be on Jan. 31.
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HOUSING MARKET FACTS
* Detached sales totaled 11,831 in 2017. This is 5.6 per cent above last year, but nine per cent below the long-term average. Sales improved across all districts except the North East, which recorded a decline of sales of two per cent. Strongest sale growth occurred in the City Centre, West and South areas of the city.
* The average annual detached benchmark price eased across all districts in the fourth quarter compared to third quarter results, but remained higher than last year's levels in most districts. This is primarily caused by inventories that were higher than sales activity. Annual total residential prices remain below peak levels in all districts.
* Elevated inventories compared to sales weighed on apartment prices across all districts. Annual price declines ranged from a high of 6.2 in the East to a low of 2.4 per cent in the West. The City Centre, West and South districts contain over 70 per cent of apartment sales. Each of these areas have prices that remain 11.7, 10.7 and 12.5 per cent below previous annual highs.
* The annual semi-detached benchmark price averaged $422,333, four per cent above last year's levels. Row prices totaled $329,200, three per cent below last year. In both cases, prices remain 0.4 and 9 per cent below annual highs.
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CALGARY HERALD
By Annalise Klingbeil
WHAT IS YOUR HOME WORTH?
Calgary residential property values jump 2 per cent
Calgary's assessed home and condo values combined have risen two per cent, according to the city's 2018 assessment report, a slight increase after two consecutive years of declines blamed on the slumping economy.
On Thursday, the city released its 2018 property assessment report, which also showed the average value of non-residential properties fell five per cent from last year.
Amid economic recovery, the city
assessed the typical stand-alone house in Calgary at $480,000, up from $460,000 in 2017.
For condominiums, the median assessed value is $260,000, down from $270,000 last year, city assessors reported Thursday.
Harvey Fairfield, acting director of city assessment, said Calgary's growing supply of condos contributed to that decrease, while most homes rose in value by more than two per cent.
"While overall residential values experienced an increase of two per cent for 2018, single-residential homes were generally higher, with condominiums experiencing a slight decrease in value for 2018," said Fairfield.
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CREB Now
By Kathleen Renne
 The in-the-works University District is an example of a new community that will be built around the concept of hub living. Courtesy West Campus Development Trust
CONNECTED COMMUNITIES
Hub living is the name of the game when it comes to new-neighbourhood design in northwest Calgary
When discussing the current trend of building Calgary residential communities around "hubs" (also known as "activity centres" or "nodes"), the phrase "back to the future" seems apt.
"It's about concentrating uses and activities in one area ... It's how settlements and civilizations have been developing forever," said Beverly Sandalack, associate dean and professor of landscape architecture and planning in the University of Calgary's Faculty of Environmental Design.
"It fell out of favour post-World War II with the over-reliance on the car, but, except for this 50-year aberration, main streets have always been the centre of community activity and business."
Once again, creating communities around nodes or activity centres is "absolutely the direction of the future when it comes to urban planning," Sandalack says. The practice creates walkable communities, reduces environmental footprint by keeping services close together, makes efficient use of infrastructure and helps to create a community identity.
"Rather than go one direction for your dry cleaning and another for your child's school and another for your coffee, with community nodes, you can satisfy all your needs in one place," said Sandalack.
In addition to being a tenet of smart urban design, community hubs have also been a priority for the City of Calgary for several years now.
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CREB Now
By Geoff Geddes
The Shane Homes YMCA at Rocky Ridge will be Calgary's largest recreation centre by square footage, and the largest wood-span structure in North America. Cody Stuart / CREB®Now
RECREATION DESTINATION
Bringing people together sets new rec centre apart
Building a community and building a sense of community are two different things. The City of Calgary understands that distinction, and the new Shane Homes YMCA at Rocky Ridge is a prime example.
As construction of new neighbourhoods proceeds at a frantic pace, the City is doing its best to make these collections of houses feel like home. That's why it committed $480 million to develop four recreation centres in freshly built suburbs. One of those projects, approved in 2012 and set to open in January of 2018, is the new recreational facility in the northwest community of Rocky Ridge.
"This facility is designed to meet the needs of the entire northwest quadrant of Calgary," said Kyle Ripley, the City's recreation director. "From Rocky Ridge to Royal Oak to Tuscany, it will become a destination amenity that draws on an area of over 60,000 people."
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CALGARY HERALD
By Annalise Klingbeil
CALGARY TO HOST FREE BASEMENT RENO WORKSHOPS AT HOME DEPOT OUTLET
At a time when Calgarians can apply for a garage, deck or basement renovation permit from the comfort of their own home, the city is making efforts to maintain a human connection.
The City of Calgary is offering free basement renovation workshops at a McKenzie Towne Home Depot beginning later this month, as part of a pilot project that aims to "get out into the community to engage homeowners in a slightly different way."
"We're trying to move more and more of our applications for our permits online . . . trying to make it easier for homeowners," said Amie Blanchette, manager of partnership services at the city.
"One of the things that that does is it sort of takes a bit of that human interaction out of it. So, we're looking for other ways to connect with homeowners, to provide them with up-to-date information and give them the ability to ask some experts the questions that they have."
The city's search for an interested partner led them to the Home Depot on 126
th Avenue S.E., where the education sessions focused on meeting bylaws, codes and safety standards will be held from 11 a.m. to noon on two Saturdays in January and one in February.
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Metro
By Brodie Thomas
GROW CALGARY HOSTING MICROHOME COMPETITION
Really small tiny homes could be used to give homeless people a safe place to stay
A Calgary man thinks taking tiny homes to new, smaller sizes could spur innovation and help deal with homeless.
Paul Hughes, best known as the founder of Grow Calgary, is helping launch what he's calling a microhome building competition.
Cribs Fest is billed as the first ever microhome design build competition in the world.
"We think Calgary can be a leader in this globally and show our our compassionate side and our creative side," he said.
Hughes said there's no concrete definition for what a microhome is, but they want to start the conversation.
"For this competition, we're using 100 square feet or less, just because we want to try to achieve that design adjective," said Hughes.
The competition will have two other classes. Besides the under 100 square feet, there will be an open class for larger tiny homes, and an online class, where people from around the world can submit their entry.
Aside from size, other design requirements will include a double bed, a shower and sink, a place to cook including a toaster oven, a set amount of storage area and a seating area.
Teams are invited to design and build their microhome at the Grow Calgary's farm this spring and summer. Judging will take place sometime in the fall.
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Sincerely,
