Category Archives: City of Calgary

Calgary prices post-flood

It’s enlightening to look back and see what the experts were predicting about Calgary real estate immediately after last June’s flooding. One got it right, one got it wrong. Mike has the details on his blog http://calgaryrealestatereview.com/2014/06/08/june-1-7-2014-calgary-real-estate-statistics-trends/

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Market update April 30, 2014

Inventory vs sales and price2

A frenzied market continues…

  • 33% of sales were for list price or higher.
  • The only occurrence which has prevented all-out insanity is the fact that new listings are increasing slightly. In the price range below $500,000 homes are selling faster than they’re being listed.  The absorption rate for homes priced between 0 – 500,000 is .8, so that means there is a 24-day supply of listings. In December there was a 36-day supply.
  • 66% of the homes listed last month are already sold.

Suggestion for buyers…

If you’re a buyer, and can wait a few months, there’s bound to be more inventory come July and chances are good that prices will moderate accordingly.

Suggestion for sellers…

There’s never been a better time to get top dollar and a quick sale.

Send me an email if you’d like an evaluation or have any questions bobtruman@shaw.ca

Market update March 31, 2014

Inventory vs sales and price2

My warnings last year of a looming inventory shortage have become reality and it’s an entrenched seller’s market. If you’re looking to sell your home, chances are good that you’ll have a bidding war from prospective buyers. In March, 34% of homes sold for list price or higher. That’s the highest it’s been since the insanity of 2006-2007. Call me for a free evaluation 403-650-2514.

For a more detailed summary of the month-end stats , go to my website

Market update July 31, 2013

Record sales in July

Update Aug 1: The Financial Post Magazine contacted me today regarding a story they’re doing about the real estate market across Canada. The reporter was asking  why Calgary was so different from other cities. I have my opinions which will eventually be published. What’s your take? (I had to chuckle when they asked about Garth Turner’s bad predictions for Calgary!)

How do you achieve record sales when there’s almost nothing to buy? Inventory is at its lowest point since 2006, so you know that attractive new listings are going fast. As we learned from the craziness of 2006 – 2007, a runaway market is no fun for anyone except a few sellers who are moving to cities where the prices are low or dropping. Many homes are sold by the time a buyer comes to view them. Sellers can realize a quick sale, but if they are moving up or across town, they have all the headaches of looking for a new home with all the difficulties and turmoil of an over-heated market. We require lots more inventory before things will settle down, and there is no sign of that happening.

Inventory vs sales and price2

First-time buyers were up 39% compared to the average of the past 3 years.

The sales-to-new-listings ratio at 80% is the highest it’s been since 2005. Homes under $500,000 are in huge demand, with an absorption rate of 1.1 in July. That is an entrenched seller’s market. Over the last four days of July, 15% of sales were for list price or higher. As Brad stated in his recent comment, Garth Turner looks very foolish for his dire predictions of a nosedive in Calgary’s sales. Be careful who you listen to.

Calgary +29,327

Calgary’s population has reached 1,149,552; this is an increase of 29,327 residents from the previous year when the Civic Census showed the city’s population was 1,120,225. This is an increase of 2.62%, similar to the level of population growth reported in 2012.

The number of housing units, both existing and under construction continued to rise, increasing by 9,019 to 468,358; an increase of 1.96%.

There are currently 442,558 occupied dwellings. Of those, 303,166 or 68.5% are owner-occupied.

There’s no rocket science involved in understanding why we have a shortage of listings, and will continue to do so.

Read more  City releases 2013 census

Cardel shows confidence in Calgary real estate

From the Calgary Herald:

Calgary home builder Cardel Homes is planning a 1,700-unit residential  development in Shawnee Park after purchasing 52 hectares of land that was  formerly known as the Shaw-Nee Slopes Golf Course.

The golf course ceased operations in 2011.

Cardel Homes purchased the southwest land, located alongside the southern  edge of Fish Creek Park, from Geo-Energy Enterprises Ltd. The sale price was not  disclosed.

The home builder said its city-approved project will consist of condo  apartments, town houses, and single-family estate homes, all adjacent to Fish  Creek Park.

Development will begin in the fall.

Read more:  Cardel Homes plans 1700 unit residential project

Silence says a lot

Easterner Garth Turner who has made no secret of his disdain for Alberta, has a posting on his pathetic blog which is critical of Calgary’s Attainable Homes program. No mention has been made of Calgary’s May real estate numbers, something he does for all other major cities in Canada.  After making predictions about a housing crash with home prices falling 50%, he can’t find anything to criticize here except a program which helps people buy their first homes. Seeing Calgary’s stable real estate market must be driving him crazy. He could have swallowed his pride and reported the truth: Calgary housing market smashes records in May.

Who should pay for infrastructure?

No doubt you’ve heard about the “Smoking Gun” video of a November meeting hosted by Cal Wenzel, founder of Shane Homes, where Wenzel presents a plan to defeat select members of city council who are perceived to be anti-development.

Some in the housing industry have been clashing with the city over growth and who should be responsible for infrastructure.

Mayor Nenshi, in an interview on CBC this morning, says he is against urban sprawl and corporate welfare, implying that developers, and ultimately new home owners, don’t pay the true costs of their infrastructure, and are getting a free ride on the backs of the taxpayers.

When the city pays for infrastructure, it distorts the playing field.  Rather than making inner-city more attractive because the infrastructure is already there, it basically subsidizes the developers(and their private jets and big profits, as Nenshi pointed out),  and contributes to urban sprawl. Should developers be paying for the true costs of the infrastructure in new areas?

Global News video of Cal Wenzel, founder of Shane Homes, presenting a plan to defeat select members of city council are perceived to be anti-development: http://globalnews.ca/news/502394/exclusive-video-obtained-by-global-news-reveals-calgary-developers-plan-to-control-city-council/

CBC’s Eyeopener this morning: Mayor Nenshi reacts

This story has produced a flurry of comments on Global’s website. For example:

“Things WILL change, they WILL HAVE to build sustainably and buck up with environmental initiatives as well as paying for asp’s that they push the City to develop just because they want to slap up a new development in the sprawling parts of Calgary. Shame shame shame. Well done global, we need more developers actions put under the microscope”

“Continued urban sprawl is a financial subsidy to housing developers in that their developments get the necessary physical infrastructure (water, road, sewer, transit, et cetera) on the cities dime and property taxes never fully recover these costs.   The city carries a large ongoing debt due to the expense of continued urban sprawl that these developers are trying to ensure continues unabated through the purchase of the necessary votes on city council.”

“The fact is that inner city development is far less costly when you look at the overall life cycle costs than development on the fringes (Transportation, water, sewer, etc.) so its time that the full cost of development is borne by the consumers of new homes in the suburbs.”