Calgary Real Estate Jennifer Dill, A Day in the life of a Struggling Realtor!

'B' is for Balance In Calgary's Resale Real Estate Market

Jennifer Dill — Sun, 14 Mar 2010 16:48:00 GMT

Housing bubble talk dismissed by board

By Marty Hope, Calgary HeraldMarch 13, 2010

Diane Scott is using the "b" word when talking about Calgary's resale housing market.

And no, it's not housing "bubble" -- it's "balance," says Scott, president of the Calgary Real Estate Board.

"There has been much talk of a housing bubble in some markets across Canada, but we believe balance, not bubble, is the story of the Calgary housing market for 2010," she says.

A strong February market could mark the beginning of what could be a return to a more traditionally active spring market.

Last month, the board reported 1,035 detached, single-family homes changed hands within the resale housing market in Calgary's city limits -- an increase of 36 per cent compared to January.

There was also a 43-per-cent jump in the number of resale condos sold.

Although the number of new listings moved up by nearly five per cent last month, the two-month total for January to February is still down nearly four per cent compared to the same period last year.

"The market is tightening and we are seeing a moderate rise in the number of competing offers, but Calgary's market remains in a healthy, stable position," says Scott. The average price of detached homes hit $458,254 in February, an increase of four per cent from the previous month and up 10 per cent from a year ago.

On the condo side, the average selling price was nearly unchanged from January at $282,880 -- and up five per cent compared to last year.

"There is a spring in the step of Calgary homebuyers as we get ready for the spring market," says Scott.

The market has gone from "fragile to fervent" in 12 months, she says -- adding she foresees strong activity in the spring as consumers continue to take advantage of low mortgage rates and overall afford-ability prior to expected rate hikes in the second half of this year.

- - -

RESALE HOUSING IN CALGARY FOR FEBRUARY

2010 2009 %change

Single-family housing

-Month-end inventory 3,106 4,352 n/a

-New listings added 2,154 2,057 4.72

-Sales 1,035 825 25.45

-Avg.* days on market 34 51 -33.33

-Avg. sale price $458,254 $415,568 10.27

-Median price** $411,000 $375,000 9.60

Condominiums

-Month-end inventory 1,741 2,065 n/a

-New listings added 1,109 892 24.33

-Sales 536 343 56.27

-Avg. days on market 66 83 -20.48

-Avg. sale price $282,880 $268,971 5.17

-Median price $265,900 $249.900 6.40

- Average

- * The middle of the range of prices

Source: Calgary Real Estate Board

- - -

We believe

balance, not bubble, is the story

of the Calgary housing

market for 2010

Diane Scott, Calgary Real Estate Board

Price Reduced on 1011 17 Street NE in Mayland Heights

Jennifer Dill — Wed, 03 Mar 2010 16:15:00 GMT

Mayland Heights, Calgary - Announcing a price reduction on 1011 17 Street NE, a 968 sq. ft., 2 bath, 3 bdrm bungalow "Hillside Bungalow". Now MLS® $429,900 - "Reduced!".

Property information

Time for Calgary Home Buyers to Get Back into Real Estate Market?

Jennifer Dill — Tue, 02 Mar 2010 00:26:00 GMT

Home sales, and prices, rise in Calgary

By Mario Toneguzzi, Calgary HeraldMarch 1, 2010 3:03 PM

CALGARY - February saw a substantial increase in MLS sales in Calgary as well as continued growth in the average price compared with a year ago.

Data released Monday by the Calgary Real Estate Board showed single-family home sales for February were 1,035 units, which was up 25.45 per cent from February 2009 (825). The average sale price hit $458,254, an increase of 10.27 per cent from last year’s $415,568.

Also, condo sales were up a whopping 56.27 per cent to 536 units compared with 343 unit sales in February 2009. The average price also increased by 5.17 per cent from $269,971 to $282,880.

“There is a spring in the step of Calgary homebuyers as we get ready for the spring market,” said Diane Scott, president of CREB. “Indeed, the Calgary housing market has shifted from fragile to fervent in just over 12 months. We will see strong activity in the spring market as many buyers will view 2010 as the time to take advantage of affordability and to get in before interest rates rise.

“The market is tightening and we are seeing a moderate rise in the number of competing offers on homes,” said Scott. “But Calgary’s market remains in a healthy and stable position. There has been much talk of a housing bubble in some markets across Canada but we believe balance, not bubble, is the story of the Calgary housing market for 2010.”

In the towns outside Calgary market, sales were up 55.81 per cent to 335 units from 215 a year ago but the average sale price dropped by 4.82 per cent to $353,912 from $371,829.

In the country residential market (acreages), sales increased by 84.38 per cent going from 32 last year to 59 last month with the average price remaining virtually the same at $748,506.

Scott said many first-time buyers are seeing this as the time to take advantage of record-low interest rates.

“We will see a rise in both our inventory and demand this spring—and we expect both to stay in a healthy balance. Prices will edge up as the year progresses, but the rise in prices will be moderate,” added Scott.

Single-family listings in Calgary added for the month of February totaled 2,154, a 4.72 per cent jump from a year ago.

Condominium new listings for February were 1,109, up 24.33 per cent from last year.

“The story of the housing market is all about interest rates at the moment,” said Scott. “When the rates will rise is the wild card. Canada’s economic recovery showed marked improvement in the final quarter of last year. This will put pressure on the Bank of Canada to begin raising rates sooner than planned to curb inflation.”

MTONEGUZZI@THEHERALD.CANWEST.COM

Calgary Real Estate Market Heating Up!!

Jennifer Dill — Tue, 02 Mar 2010 00:16:00 GMT

News Release

For more information contact:

Jason Martin, Communications Manager

(403) 781-1345

Jason.martin@creb.ca

Calgary Housing Market Shows Signs of Balance, not Bubble

An expected rise in interest rates to fuel an active spring market

Calgary, March 1, 2010 – Calgary’s housing market continues to build stability and momentum in the second month of the year, according to figures released today by the Calgary Real Estate Board (CREB^®).

The number of single family homes sold in February 2010 in the city of Calgary was up 25 per cent from the same time a year ago, while condominium sales saw an increase of 56 per cent from the same time a year ago.

February 2010 saw 1,035 single family homes sold in the city of Calgary. This is an increase of 36 per cent from 762 sales in January 2010. In February 2009, single family home sales totaled 825. The number of condominium sales for the month of February 2010 was 536. This was an increase of 43 per cent from the 376 condominium transactions recorded in January 2010. In February 2009, condominium sales were 343.

“There is a spring in the step of Calgary homebuyers as we get ready for the spring market,” says Diane Scott, president of CREB^®. “Indeed, the Calgary housing market has shifted from fragile to fervent in just over 12 months. We will see strong activity in the spring market as many buyers will view 2010 as the time to take advantage of affordability and to get in before interest rates rise.”

“The market is tightening and we are seeing a moderate rise in the number of competing offers on homes,” Scott acknowledges. “But Calgary’s market remains in a healthy and stable position. There has been much talk of a housing bubble in some markets across Canada but we believe balance, not bubble, is the story of the Calgary housing market for 2010.”

The average price of a single family home in the city of Calgary in February 2010 was $458,254, showing an increase of 4 per cent from January 2010, when the average price was $441,217, and showing an increase of 10 per cent from February 2009, when the average price was $415,568. The average price of a condominium in the city of Calgary was $282,880, showing no significant change from January 2010, when the average price was $282,639 and a 5 per cent increase over last year, when the average price was $268,971. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The median price of a single family home in the city of Calgary for February 2010 was $411,000, showing a 3 per cent increase from January 2010, when the median price was $398,000, and a 10 per cent increase from February 2009, when the median price was $375,000. The median price of a condominium in February 2010 was $265,900, remaining nearly the same as in January 2010, when the median was $265,000. That’s up 6 per cent from February 2009, when the median price was $249,900.

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

“Affordability continues to drive the market and many first time home buyers are seeing this as the time to take advantage of record low interest rates,” says Scott. “The spring market will continue to see strong demand for affordable single family homes by first time home buyers and young families looking to move up.”

Single family listings in the city of Calgary added for the month of February totaled 2,154, an increase of 18 per cent from January 2010 when 1,822 new listings were added, and showing an increase of 5 per cent from February 2009, when 2,057 new listings came to the market. Condominium new listings in the city of Calgary added for February 2010 were 1,109, up 17 per cent from January 2010, when the MLS^® saw 951 condo listings coming to the market. This is an increase of 24 per cent from February 2009, when new condominium listings added were 892.

“The story of the housing market is all about interest rates at the moment,” says Scott. “When the rates will rise is the wild card. Canada’s economic recovery showed marked improvement in the final quarter of last year. This will put pressure on the Bank of Canada to begin raising rates sooner than planned to curb inflation.”

CREB^® is a professional body of 5,469 licensed brokers and registered associates, representing 251 member offices and is dedicated to enhancing the value, integrity and expertise of its REALTOR^® members. REALTORS^® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and Standards of Business Practice. Using the services of a professional REALTOR^® can help consumers take full advantage of real estate opportunities while reducing their risks when buying or selling real estate. The board does not generate statistics or analysis of any individual member or company’s market share. All MLS^® active listings for Calgary and area may be found on the board’s website at www.creb.com.

New Mortgage Guidelines Not too Bad for Calgary Homebuyers

Jennifer Dill — Wed, 17 Feb 2010 20:19:00 GMT

Calgary homebuyers take changes to mortgage rules in stride

Ottawa Tightens Lending Standards

By Mario Toneguzzi, Calgary Herald; with files from Canwest News ServiceFebruary 17,

CALGARY - The same day federal Finance Minister Jim Flaherty announced mortgage changes that some economists said would cool the housing market, Calgary first-time homebuyer Conor Murphy was moving full steam ahead in seeking a home.

The 26-year-old and his wife, Katherine, have been looking for a house for the past couple of weeks and are in the process of getting a pre-approved mortgage. They are in the market for a house between $300,000 and $400,000, with a $50,000 down payment.

Murphy has no concerns about entering the local real estate market at this time, even with the recent talk of a housing bubble.

"I have been watching the market since October-November of last year and I'd say the average house price has come up in Calgary $10,000 to $15,000 in that time," said Murphy. "If that is a bubble or the start of a bubble, then I'm willing to eat that."

Flaherty tightened mortgage rules on Tuesday, saying he was taking steps to help prevent a housing bubble and stabilize the market.

For most consumers, the changes are unlikely to make it more difficult to get a mortgage, but they could reduce the size of the mortgage a consumer can negotiate with a lender.

Flaherty's changes apply to any mortgage backed by the federal Canada Mortgage and Housing Corp.

The change most likely to affect borrowers is a new credit test for any CMHC-backed mortgage.

Previously, a lender wanted to ensure that a borrower could make the monthly payments based on a three-year, fixed-rate mortgage. Now, lenders will want to see that a borrower can afford a five-year, fixed-rate mortgage -- even if the borrower plans to take out a mortgage with different terms that could result in lower monthly payments.

Flaherty also said those who wish to refinance their mortgages can borrow only up to 90 per cent of the assessed value of their home, down from 95 per cent. The intent is to prevent a homeowner from carrying a mortgage that is worth more than the home itself.

Investors will also have to put up 20 per cent of the purchase price instead of five per cent to get a government-backed mortgage to buy any property that is not the borrower's own residence.

In Calgary, the average MLS sale price for a single-family home was $441,217 in January, but according to the website of Mike Fotiou of First Place Realty, sales so far this month until Feb. 15 have averaged $457,487. In February 2009, the average was $415,568.

For the condo market, the average price so far this month is $284,039, up from $282,639 in January and an increase from $268,971 last February.

Flaherty has struck a good balance with the mortgage changes, said Todd Hirsch, senior economist with ATB Financial in Calgary.

"He was under a lot of pressure to not crush this economic recovery taking place right now," said Hirsch.

Extending the qualifying measure to a five-year, fixed-mortgage will make the conditions tighter for prospective homebuyers.

"It will eliminate a lot of people who are just those really marginal borrowers, first-time homebuyers who might be tempted to get into a situation that they're not going to be able to manage," added Hirsch.

Diane Scott, president of the Calgary Real Estate Board, said the changes won't affect new homebuyers much.

"I think the number of sales will stay steady. These changes won't affect that so much at all. The investors are going to have to come up with 20 per cent down now. That's OK. They were prepared for that before," she said.

Flaherty said he did not want to discourage Canadians from home ownership.

"On the other hand, we do want to discourage a tendency by some to use their homes as an ATM machine, the tendency by some to buy three and four condominiums, for example, by way of speculation," said Flaherty. "We have a healthy housing market in Canada but we want to keep it healthy."

In a commentary, Craig Alexander, senior vice-president and deputy chief economist at TD Bank Financial Group, said the regulatory policy changes are limited, but they will help cool the market.

"The announced changes are prudent," he said. "They will not dramatically impact housing, but they will help to cool the market, temper speculation and reduce the risk to personal finances from the inevitable future rise in interest rates."

The tighter rules on mortgage applications, he said, don't necessarily mean the affected individuals will not buy.

"They will simply have to limit the size of home they purchase," said Alexander.

mtoneguzzi@theherald.canwest.com---------

New Rules For Borrowers

Finance Minister Jim Flaherty announced restrictions Tuesday for any borrower who wants a mortgage backed by the Canada Mortgage and Housing Corp. Though the changes officially go into effect April 19, experts say lenders will likely put them into place immediately:

1. The maximum amount consumers can borrow to refinance their mortgages is being lowered to 90 per cent of the value of the home, down from 95 per cent.

2. All borrowers will have to be able to demonstrate that they could make the payments on a fiveyear, fixed-rate mortgage, even if they end up choosing a mortgage, such as a variable-rate mortgage, that would result in smaller monthly payments.

3. Anyone who wants a government-insured mortgage to buy a home that they will not live in will have to come up with a minimum down payment of 20 per cent, up from five per cent.

Source: Financial Post

New Home Buyers Continue to boost Calgary's resale real estate Market

Jennifer Dill — Sun, 14 Feb 2010 23:18:00 GMT

Wow you can sure tell this weekend is the family day long weekend and 1st weekend of the 2010 Olympics in Vancouver.. Go Canada Go!

I am staring at my phone willing it to ring!! LOL...

See the article courtesy of the Calgary Herald in regards to the impact first time home buyers are playing in Calgary's Real Estate Market!

Happy Valentines Day and Happy Family Day Weekend to all.

First-time buyers boost resale pace

By Marty Hope, Calgary HeraldFebruary 13, 2010

With mortgage rates holding the line, first-time buyers in metro Calgary were the main reason detached resale housing activity climbed by nearly 39 per cent in January from a year ago, says the Calgary Real Estate Board.

The number of resale condo transactions for the comparative months also leaped by more than 67 per cent, it says. "Low mortgage rates and earlier price reductions have improved the affordability of home ownership," says board president Diane Scott.

In real numbers, 762 single-detached homes changed hands last month compared with 550 in a year ago. At the same time, 376 condos changed ownership, up from 225.

The average selling price of both type of housing also increased, with detached homes topping $441,000 and condos closing in on $283,000.

Getting back to affordability, Scott says that for the "time being, average home prices are more in line with average incomes."

That would suggest, she says, that the narrowing of the gap between renting and owning will bring more first-timers out of rental apartments or townhouses and into home ownership this year.

Canada Mortgage and Housing Corp. has forecast some mortgage rates will start to move up in the second half of the year, adding 50 to 75 basis points to current rate levels. One hundred basis points equals one per cent.

In addition to low mortgage rates, affordability is also being helped along by a better mix of sales and inventory, says Scott.

"Just a year ago, we were facing record low sales and more than 10 months' supply of inventory," she says. This year is starting out much healthier, with sales and listings moving in tandem.

Figures from Gary MacLean of ReMax Central show that the sales to active listings ratio in January stood at one property selling for every 3.29 on the market.

The ratio has been easing up for the past seven months after being as tight as one sale for every 1.85 on the market last July.

"Sales have been slowing and listings have started to pick up," says MacLean. "The bigger the spread gets, it takes some of the pressure off pricing."

CREB says new listings of single-detached homes in January reached 1,822, down from 2,068 a year ago. On the condo side, 951 new listings came to the January market, up from 225 last year.

MacLean says that as the spring market kicks in, the number of listings could increase more rapidly.

"It's a situation where there will be new listings, but there will also be homes coming back onto the market that didn't sell last year," he says.

---------

Calgary metro area resale housing*

2010 2009 % change

Single-detached

-Month-end inventory 2,513 4.040 n/a

-New listings 1,822 2,068 -11.90

-Sales 762 550 38.55

-Avg. days on market 43 62 -30.65

-Avg. sale price $441,217 $413,049 6.82

-Median price $398,000 $374,700 6.22

Condominiums

-Month-end inventory 1,397 1,923 n/a

-New listings 951 941 1.06

-Sales 376 225 67.11

-Avg. days on market 50 64 -21.88

-Avg. sale price $282,639 $270,940 4.32

-Median price $265,000 $243,000 9.05

- January 2010

Source: Calgary Real Estate Board

Calgary New Home Starts UP!

Jennifer Dill — Thu, 11 Feb 2010 00:46:00 GMT

Housing starts show rebound

Figure still shy of level seen in 2008

By Dan Healing, Calgary HeraldFebruary 9, 2010

The home building industry in Calgary staged a strong rebound in January from last year's 18-year depths, but failed to recoup all the ground lost since the same month in 2008.

According to Canada Mortgage and Housing Corp., total housing starts in the city reached 514 units last month, more than double the 243 in January 2009 but 28 per cent lower than the 711 units started in January 2008.

Richard Cho, CMHC's senior market analyst for the city, said the general direction for new housing is stable.

"Housing activity is encouraging in January. It's a good start to the year," he said.

"We're still seeing a fair number of singles being started, if not the same level of activity we saw in the latter part of 2009. The momentum is still being carried over to this year."

He said fewer incentives are expected to be available for buyers this year due to the stronger market, but higher interest rates expected at midyear will tend to prevent the market from growing beyond a sustainable level.

Todd Hirsch, senior economist for ATB Financial, agreed 2010 will be stable, noting a cold January also likely slowed housing start statistics.

"It's coming off a bit of a surge we saw in fall of last year . . . (but) there's no sign that housing starts are collapsing at all," he said. "They're up from where they were a year ago, so that's positive, and overall I think we'll have a balanced year of housing starts."

He said there will be fewer construction jobs on commercial projects this year, but more in home building and institutional and infrastructure projects.

Both single-detached and multi-family housing starts were up in January, with builders starting work on 413 homes, versus 204 units a year earlier, and 101 multifamily units breaking ground, up from 39 units in the previous year.

Cho said there were no apartment units started, reflecting the oversupply of inventory in Calgary. He predicted the trend this year will be toward medium-density housing.

The peak January for single-family starts came during the overheated economy of 2006, when 838 houses contributed to 1,086 housing starts.

The more volatile multifamily sector posted its biggest January in 1978, when 1,718 units were started.

Provincially, housing starts in Alberta's seven largest centres totalled 1,271 units in January, up 52 per cent from January 2009.

Nationally, the seasonally adjusted annual rate of housing starts reached 186,300 units in January, up from an annual rate of 176,100 units in December.

According to final figures, housing starts for 2009 totalled 149,081 units, with activity improving as the year progressed.

In the Prairie region, the seasonally adjusted annual rate of urban starts decreased by 4.8 per cent in January from the previous month.

Also on Monday, the Canadian Real Estate Association revised its forecast for MLS home sales in 2010.

It forecasts national sales activity will reach 527,300 units in 2010, up 13.3 per cent from 2009. This would represent an annual record -- 1.2 per cent above the previous peak in 2007.

Sales in Alberta are forecast to be 63,050, up 9.1 per cent from 2009.

dhealing@theherald. canwest.com

Investing in Calgary Real Estate Market a Good thing!

Jennifer Dill — Thu, 11 Feb 2010 00:40:00 GMT

Hi all, check out this article that appeared in the Calgary Herald. Being out there as a realtor in the market myself I can tell you prices are looking good and people are starting to gain more confidence in Calgary's Real Estate Market. New Buyers, or move up buyers should definitely start thinking about making the move to buy and or sell as interest rates are still quite advantageous.

Calgary real estate making comeback

By Mario Toneguzzi, Calgary HeraldFebruary 10, 2010

Investment in Calgary's commercial real estate market is showing signs of recovery as the city digs itself out of last year's painful recession.

A report by RealNet Canada Inc. released Tuesday said a total of 72 transactions worth more than $1 million were recorded in the fourth quarter of 2009 in the greater Calgary region, totalling $561 million, a 16 per cent increase in dollar volume from the previous quarter.

It was the third consecutive quarter of increasing investment volumes in the region and brought the total investment activity to $1.68 billion for the entire year.

Unlike other Canadian markets, which saw all-time lows last year, according to RealNet, 2009 investment volumes in the Calgary area were only the fourth-weakest in the past 10 years.

"At an overall market level, investment momentum appears to be returning slowly to the greater Calgary area," said George Carras, president of RealNet Canada.

Last year, the nearly $1.7 billion in investment activity was the result of 248 transactions. In 2008, activity totalled $4.8 billion.

"Overall, Calgary is doing better than most Canadian commercial real estate markets as we emerge from the recession," said Richard Pootmans, business development manager for real estate at Calgary Economic Development.

The RealNet report said one transaction, in particular, lifted the Calgary result.

"The significant increase in overall investment activity can be attributed to the top transaction of the quarter, the $253-million sale of Sunridge Mall to Primaris REIT," it said.

mtoneguzzi@theherald.canwest.com

State of Canada's Housing Market

Jennifer Dill — Wed, 10 Feb 2010 19:31:00 GMT

Is Canada's housing market a bubble set to burst?

February 10, 2010 | 08:47
Update: February 10, 2010 | 14:22

Stefania Moretti | Money

Boom, backlog or bubble? There’s been much speculation about Canada’s housing market and whether it’s entering ‘bubble’ territory.

Fuelled by low interest rates, Canada's housing market staged a strong recovery from the financial meltdown to return to record levels of activity in late 2009. That helped pull the overall economy out of recession.

Steep prices and activity gains at a time when other areas of the economy, such as job creation, remain sluggish have raised fears of a bubble.

“No doubt the market is hot. Hotter than one would expect given the economy and unemployment,” Douglas Porter, BMO Financial Group deputy chief economist, told QMI in an interview Wednesday.

Price tags on homes in Canada jumped 19% in December from a year earlier and are on pace to climb another 5.4% to a new all-time record this year, according to the latest figures from the Canadian Real Estate Association.

Affordability could soon be out of reach for many as the price of the average home in Canada is on track to reach $337,500 by year’s end before easing again in 2011.

But Porter put a pin in bubble fears.

“We’re not in full-fledged bubble territory just yet,” he said, pointing to higher prices in the already expensive markets of Toronto and Vancouver, which may be slanting national averages and forecasts.

A backlog of activity could also be skewing the latest real estate snapshots as buyers and sellers re-enter the market after putting off decisions during the recession.

"A downward trend in national sales activity, combined with an increase in listings will result in a more balanced market,” CREA Chief Economist Gregory Klump said earlier this week.

Higher prices aren’t the only factor in bubble-forming either, according to Gilles Duranton, an economics professor specializing real estate markets at the University of Toronto.

That’s because like any other investment asset, house prices are a reflection of what the market is willing to pay at a given time. They’re based on predictions of what a particular property could be worth in the future, Duranton said. In most cases, prices are somewhat justifiable, therefore price tags alone cannot signal the onset of a bubble.

However, there is one aspect of today’s market that this long-time real estate watcher has rarely seen before in Canada.

“Individual markets are all on the way up at the moment,” Duranton said pointing to Canada’s major metropolitan areas including Vancouver, Calgary, Toronto and Montreal.

“It’s quite unusual historically and certainly not the norm,” he said.

Other warning signs of hot air include double-digit credit growth among consumers and persistent lineups for new building projects, neither of which have come to fruition yet, according to BMO’s Porter.

RISK & RISK AVERSION

Still, Porter said, the current atmosphere warrants a close eye from policymakers.

A bubble and subsequent burst could have devastating consequences for the economy, he said.

Consumer confidence would be shattered if paper wealth were to take a sizable hit. Financial institutions would also be hurt if foreclosure and loan delinquencies spiked.

But, in the event of a real estate crash, the federal government would bear the biggest brunt of the costs since they are the final backstop on mortgages, Porter said.

The federal government and the Bank of Canada should be considering “minor tweaks” to take some steam out of the market, Porter said, but stopped short of recommending a hike in the minimum down payment required on the purchase of a home.

The government has already reduced the maximum allowable amortization period from 40 years down to 35 and could take steps to increase minimum down payments next.

The Bank of Canada has downplayed talks of a bubble thus far, but has said it’s watching home prices closely. The central bank has said it expects to hold its lending rate at historic lows of 0.25% until at least June.

The whole purpose of lowering interest rates was to stimulate the economy and get real estate transactions flowing again, Porter said.

“It doesn’t make sense for officials to slam on the brakes now.”

The head of ING Direct Canada and economists at Scotia Capital also warned Tuesday that dramatic rules changes by Ottawa at this stage in the game could swing the housing market in the opposite direction too quickly.

January 2010 Calgary Buyers Eager to Jump Into Real Estate Market

Jennifer Dill — Fri, 05 Feb 2010 00:34:00 GMT

More homes sell above asking price in January

By MARKUS ERMISCH, Calgary Sun

Last Updated: 3rd February 2010, 4:09pm

Eager home buyers pushed up prices of an unusually high number of houses in Calgary last month and paid more than what sellers were asking, shows Calgary Real Estate Board Data.

In January, 7% of homes sold through the multiple listings service in Calgary sold above the asking price.

In a normal market, where neither buyers nor sellers have the upper hand, the vast majority of homes sell for slightly below the listing price. A small percentage always sells above the listing price, even in a recession. January last year, 2.1% of Calgary homes were bid above the asking price, while in all of 2009, 4.5% of homes changed hands for more than the asking price.

CREB president Diane Scott conceded 7% is a high percentage of homes to sell for more than the sticker price.

But she quickly doused fears that the bidding wars — in 2006, more than one in five homes sold above the asking price, pushing prices to unprecedented levels — are about to return.

“It’s just a market that’s catching up, simply because the prices have come down and the listings are very low,” she said.

“We’ll see a correction in February. I’m sure that as we get more listings, it’s going to settle down.”

Last month, realtors put an additional 1,822 single-family homes on the market, pushing the total number of single-family homes for sale in Calgary to 2,513. One year ago, 2,068 new listings pushed the January 2009 sales inventory to 4,040 single-family homes.

Average prices for single-family homes dipped 2% in January compared to December, but were 7% higher than one year ago.

ATB Financial economist Dan Sumner said he doubts Calgary’s housing market is headed for another manic period after wallowing in a depressed state for more than a year.

“Almost anything that’s happening right now, just look to interest rates,” he said. “That really is the driver.”

Cheap money has lured reluctant buyers over the past few months, leading to a recovery of the real estate market that has caught many by surprise.

But it’s exactly the strength of the rebound that has led some to speculate that another housing bubble, inflated by low interest rates, is gradually rising.

Sumner, however, said the days of cheap money are numbered, as the Bank of Canada is likely to raise rates by the middle of this year.

Recovery In Calgary's Housing Market in 2010 Gradual

Jennifer Dill — Fri, 05 Feb 2010 00:31:00 GMT

Calgary housing market extends gradual recovery

By Lisa Schmidt, Calgary HeraldFebruary 1, 2010

CALGARY - Home sales and prices in Calgary continue to make gains, marking another rise in January.

But the housing market slowed slightly from December’s pace, according to figures released Monday by the Calgary Real Estate Board.

The city’s housing market is expected to continue a “gradual and modest” recovery, one official said, helped by low mortgage rates and more affordable prices coaxing buyers into the sector.

“Just one year ago, we were facing record low sales and more than 10 months of inventory,” board president Diane Scott said in a release.

That makes for dramatic year-over-year increases in sales figures, she noted.

“But all in all, sales this month are moving closer to the range we would expect this time of year.”

Analysts expect the Bank of Canada to start raising interest rates from historic lows this summer, once a still-tentative economic recovery takes a firmer hold.

“With a fully functioning credit creation process — check the hot housing market if you have any doubts — the clock is ticking . . . to lift policy rates and the general cost of credit from current extreme lows,” BMO economists Michael Gregory and Benjamin Reitzes said in a commentary Monday.

That could put a damper on sales later in the year, analysts expect, but help prod cautious buyers hoping to lock in current low rates.

Recent forecasts show migration — a key driver in housing markets — will continue to rise in Calgary, as job seekers come to the city.

The Calgary Real Estate Board is forecasting a six per cent rise in home prices to $470,000, while condos are forecast to appreciate over four per cent to $296,000. According to January sales figures, the average price of a single family home was $441,217, a seven per cent increase from January 2009. It was, however, a two per cent decline from December.

Average condominium prices are up about four per cent from a year ago to $282,639. That was a two per cent decrease from December’s average.

The number of single family homes sold last month was up 39 per cent from a year ago, while condo sales jumped 67 per cent.

There were 762 single family homes sold in Calgary in January, a five per cent decline from December.

For condominiums, there were 376 sales, up 10 per cent from December.

The number of new listings for single family homes rose to 1,822, more than double than in December. But it was below the 2,086 listings added to the market last January.

For condominiums, new listings also doubled in January from December, as fewer sellers opted to list in the lead-up to the holiday season.

lschmidt@theherald.canwest.com

January 2010 Calgary MLS Statistics. Day 330 In the life of a struggling realtor.

Jennifer Dill — Fri, 05 Feb 2010 00:18:00 GMT

Ever feel like you have one of those days where nothing goes right? That was my day trying update my blog on my computer.

Techonology is wonderful until it STOPS WORKING!!! LOL.. Day was better today! Met a really nice woman when I went to view her house to complete a Comparative Market Analysis. Great place in great location in Dougladale.. Had lunch with my friend Emily.. Which was even better cause EM picked up the tab!! Thanks Em....LOL.. Well here is the information I tried to get out yesterday the Calgary Real Estate Boards communique on the January 2010 Stats. Things were looking up which is awesome.. Come on buyers.. time to take advantage of the low interest rates!

Affordability Drives Calgary’s Housing Market

With rising interest rates on the horizon buyers will see 2010 as the year to take advantage of low mortgage rates

Calgary, February 1, 2010 – Affordability continues to drive a recovery in Calgary’s housing market according to figures released today by the Calgary Real Estate Board (CREB^®).

The number of single family homes sold in January 2010 in the city of Calgary was up 39 per cent from the same time a year ago, while condominiums sales saw an increase of 67 per cent from the same time a year ago.

“Low mortgage rates and earlier price reductions have improved the affordability of home ownership for Calgarians,” says Diane Scott, newly elected president of CREB^®. “For the time being average home prices are more in line with average incomes. A narrowing gap between the costs of renting versus owning a home will attract more first time home buyers into the market in 2010,” adds Scott.

January 2010 saw 762 single family homes sold in the city of Calgary. This is a decrease of 5 per cent from 799 sales in December 2009. In January 2009, single family home sales totaled 550. The number of condominium sales for the month of January 2010 was 376. This was an increase of 10 per cent from the 341 condominium transactions recorded in December 2009. In January 2009, condominium sales were 225.

“The story for 2010 will be a balanced and steadier market,” says Scott. “Just one year ago we were facing record low sales and more than 10 months of inventory. Consequently, year-over-year sales comparisons are up dramatically—but all in all sales this month are moving closer to the range we would expect this time of year,” adds Scott.

The average price of a single family home in the city of Calgary in January 2010 was $441,217, showing a decrease of 2 per cent from December 2009, when the average price was $451,349, and showing an increase of 7 per cent from January 2009, when the average price was $413,049. The average price of a condominium in the city of Calgary was $282,639, showing a 2 per cent decrease from December 2009, when the average price was $288,640 and a 4 per cent increase over last year, when the average price was $270,940. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The median price of a single family home in the city of Calgary for January 2010 was $398,000, showing a 1 per cent decrease from December 2009, when the median price was $401,000, and a 6 per cent increase from January 2009, when the median price was $374,700. The median price of a condominium in January 2010 was $265,000, remaining the same as in December 2009, when the median was also $265,000. That’s up 9 per cent from January 2009, when the median price was $243,000.

“Affordability is the silver lining in Calgary’s housing market. Even in the face of slowing wage growth—we can see affordability has improved. Higher prices in 2007 and 2008 left the average family with a maximum buying power of $250,000—while average single family prices pushed well into the $450,000 range. Lower interest rates have enabled these same families to now look at homes in the $350,000 to $375,000 range—closer to average market prices,” says Scott.

Single family listings in the city of Calgary added for the month of January totaled 1,822, an increase of 126 per cent from December 2009 when 806 new listings were added, and showing a decrease of 12 per cent from January 2009, when 2,068 new listings came to the market. Condominium new listings in the city of Calgary added for January 2010 were 951, up 114 per cent from December 2009, when the MLS^® saw 444 condo listings coming to the market. This is an increase of 1 per cent from January 2009, when new condominium listings added were 941.

“The outlook for Calgary is still about energy. Re-starting of investment in Fort McMurray will be needed to boost employment in Calgary. Undoubtedly Calgary’s economic recovery is still fragile—and improvements in the housing market will be gradual and modest. The good news is improved housing affordability will make Calgary more attractive to job seekers than in past years,” says Scott.

CREB^® is a professional body of 5,445 licensed brokers and registered associates, representing 252 member offices and is dedicated to enhancing the value, integrity and expertise of its REALTOR^® members. REALTORS^® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and Standards of Business Practice. Using the services of a professional REALTOR^® can help consumers take full advantage of real estate opportunities while reducing their risks when buying or selling real estate. The board does not generate statistics or analysis of any individual member or company’s market share. All MLS^® active listings for Calgary and area may be found on the board’s website at www.creb.com.

Click on Attachment To View Statistics Package

Calgary MLS STATS Day 335 Day in the life of a struggling realtor

Jennifer Dill — Sun, 31 Jan 2010 20:28:00 GMT

Well a busy day was had yesterday! Updating marketing materials and working on brochures for my listing. Albeit to no avail as NO ONE at office printed them out for me.. grrrr.. Have to wait till regular staff get in on Monday. Had a great time at Gerry and Shirleys' house warming party out in Chestemere. Great to meet lots of new people from Chestemere!

On to the stats: MlS Stats as of Jan 30,2010

Total Single Family Residential Actives: 2576

Total Single Family Residential Pendings: 264

Total Single Family Condominium Actives: 1430

Total Single Family Condominium Pendings: 183

Total Single Family Residential/Condominium Actives: 4006

Total Single Family Residential/Condominium Active/Pendings: 4453

Total Single Family Residential Sold as of Jan 30, 2010: 747

Total Single Family Condominiums Sold as of Jan 30,2010: 372

Total Single Family Residential/Condominiums Sold as of Jan 30, 2010: 1119

Calgary Real Estate Forecast Brings Promising News

Jennifer Dill — Thu, 28 Jan 2010 00:32:00 GMT

Report: 2010 forecast bright for local housing market

Posted By Scott Mitchell — Senior Reporter

Posted 5 hours ago

Scott Mitchell

Senior Reporter

More good news is on the horizon for the region's real estate market, the Calgary Real Estate Board said last week in its 2010 forecast report.

According to the report, single-family homes will show "modest price increases", while condominium price growth will "continue to lag."

The number of single-family homes sold in 2009 in the City of Calgary was 14,440. That number is expected to jump to approximately 17,000 in 2010, an increase of 17.7 per cent.

Condo sales are also slated to increase by 10.6 per cent, according to the report.

"MLS sales are seasonal, so we anticipate seeing higher year-over-year monthly sales in the beginning of 2010, mainly as a result of low levels of sales experienced in the first quarter of 2009," said Diane Scott, 2010 CREB president. "New housing starts are also expected to be relatively high in comparison to a very weak first quarter of 2009."

The region was in the midst of a recession this time last year that saw housing numbers plummet across the province.

The CREB also predicts that the average sale price for a single-family home will increase approximately six per cent in 2010. A modest increase of 4.3 per cent is expected in the condo market.

"Single family resale prices will again outpace condos in 2010, as equity gains from pre-2006 will enable move up buyers to afford more," Scott said. "Consequently, the gap between single family homes and condominium prices will continue to widen in the short term."

However, low interest rates and price reductions mean buyers can afford more, Scott added.

Calgary MLS STATS Day 338 A Day in the life of a Struggling Realtor!

Jennifer Dill — Thu, 28 Jan 2010 00:23:00 GMT

Hi all, it's been a somewhat busy day for me.. signed up new listings.. yahooooo.. stopped by board to pickup the new Homesource GPS Data software. I am excited about being able to start using it. It is neat technology.. Allows you to look up MLS listings right on your GPS as you drive by an area with MLS listings.. Sweet...

Well on to the stats

As of 5:26pm on Wednesday January 27th Calgay MLS Statistics are as follows;

Single Family Residential Actives: 2490

Condominium Residental Actives: 1404

Single Family Residential Pendings: 291

Condominium Residental Pendings: 184

Total YTD Single Family/Condominium Residential Actives/Pendings: 4369

Total YTD Single Family Residential Solds: 610

Total YTD Condominium Residential Solds: 312

Total YTD Single Family/Condominium Residental Solds: 922