Calgary Herald
Marty Hope

26 Jun 2010

Two years ago when the economic downturn’s grip was the strongest, Canmore’s recreation housing market was almost non-existent, says a local realtor. The pace of construction has slowed in Canmore due to the economic downturn and the resulting weakness in the economy — but activity in the resale market is showing strength. Re/Max Alpine Realty broker Jessica Stoner has been selling real estate in this mountain town for nine years and she recalls seeing “almost no activity” in rec housing in 2008.

“In 2009, we started to see an increase in activity and that trend has continued into this year — and there are signs we are getting closer to a normal market,” she says.  When the economic downturn first showed its ugly head, sellers were reluctant to adjust their prices, so properties sat unsold.  Eventually, the realization hit home and price reductions started to show on listings — and that has helped generate new interest from buyers.

ReMax Recreational Property Report Released May 21, 2010

Economic recovery fuels significant upswing in sales in Canada’s recreational property markets, says RE/MAX.
79 per cent of markets report upward trending in recreational sales in 2010.
Serious year-over-year gains have characterized sales in most major Canadian recreational property markets this year, according to a report released today by RE/MAX.
The 2010 RE/MAX Recreational Property Report, highlighting sales, prices, trends and developments in close to 50 markets from coast-to-coast, found that 79 per cent of recreational areas reported an upswing in the number of properties sold during the first three months of the year. Starting prices for recreational product were also on the move, with 43 per cent posting a nominal increase. Inventory levels, with the exception of the coveted entry-level price point, were healthy and balanced market conditions prevailed in most areas.

Stronger than expected economic recovery, combined with additional incentives such as rising interest rates, stricter lending criteria, and a new sales tax, have served to kick-start activity in recreational property markets from coast-to-coast. Entry-level product is experiencing the greatest demand this year, as value-driven purchasers look to stretch their dollar as far as it will go. This is especially true in Western Canada, where values have softened considerably yearover- year, but are now starting to firm up.

Calgary Herald
20 May 2010
MARIO TONEGUZZI

The average sale price of an existing home in the Calgary census metropolitan area will increase year-over year in 2010, following two consecutive years of declines, predicts a new forecast released Wednesday by Canada Mortgage and Housing Corp.
 
“In the resale market, we’re expecting sales growth to move more in line with how the economy is improving,” said Richard Cho, senior market analyst in Calgary for the CMHC. “Throughout most of 2009 sales were firmly supported by historically low mortgage rates and so we’re not going to see that as much this year compared to last year.
“So demand for housing is going to move more in line with growth in the economy. On the supply side of things, consumers are going to be seeing more selection on the market. They can spend a bit more time looking for their perfect home. Throughout the forecast period, we are expecting to see balanced conditions and with that we’re going to see prices grow.”
In the first quarter, the average resale price was $394,463, an increase of seven per cent from the same period in 2009, said the CMHC in its spring Calgary market outlook.
The CMHC is forecasting the average residential MLS price, which includes all properties, to increase 4.4 per cent this year, reaching $403,000. Balanced conditions are expected to continue into 2011, when the average price is forecast to rise 3.7 per cent to $418,000, said the CMHC.
“The lift in mortgage rates coupled with higher home values will push monthly carrying costs up, tempering demand in home ownership,” said Cho.
For 2010, CMHC forecasts MLS residential sales to reach 25,000 units, up by 0.5 per cent from last year.

• Last week proved to be momentous on several counts, starting with a massive €750bn financial rescue package for the eurozone by the EU & IMF with a resulting strong rally in global equity and bond markets 
• The UK Conservatives formed a coalition government with the Liberal Democrats and immediately announced a £6bn cut in the deficit
• In Europe, Spain and Portugal followed in the footsteps of Ireland and Greece by announcing swinging cuts in public spending as part of their own austerity measures

 
 
Quantum Politics
 

RE/MAX Upper End Report  2010 - Western Canada
 
Luxury home sales soared in the first quarter of 2010 as affluent purchasers moved to take advantage of favourable market conditions across the country, according to a report released today by RE/MAX.
The RE/MAX Upper End 2010 Report, highlighting sales and trends in 13 major Canadian centres and five sub-markets, found that improved economic performance, increased personal wealth, immigration and foreign investment all contributed to a serious upswing in sales.  Virtually all areas experienced double and triple-digit increases between January and March of this year over 2009 figures for the same period.  Nine out of the 13 markets examined (69 per cent) shattered existing records – setting new all-time highs for first quarter activity in the upper end.
“Recovery in the upper end has been nothing short of remarkable,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.  “This segment of the market was hardest hit when the recession took hold—yet its comeback has been fast and furious. There is no doubt that mindset has changed and confidence has returned.  One only has to look at the percentage increases to see the current upward trajectory.”

• Increasing economic evidence that the US economy is at last set to take-off engendered a positive tone for markets last week.
• The economic outlook in the UK is less clear, but a report from the Ernst & young ITEM Club said after sluggish growth this year the UK economy should surge next year.
• China sought to take steps to cool its rampant property market which stormed ahead in the last year and raised concerns about overheating.
• The SEC announced that it had charged US investment firm Goldman Sachs with fraud related to sub-prime loans.

 
 Ready for Take Off
 

Calgary Herald
April 16, 2010
MARIO TONEGUZZI
 
Ample Supply Expected To Limit Price Growth
 
Potential homebuyers in Calgary now have more choice heading into the busy spring real estate market because of an influx of new listings during March which will “subdue” future price increases.
Multiple Listing Service data released Thursday by the Canadian Real Estate Association show new listings in Calgary in March jumped by 43.3 per cent from a year ago to 5,433 units.
The increase in new listings here is consistent with what is happening across the country, said Gregory Klump, chief economist with the CREA. “It’s back to levels that we saw in late 2004.”
In the first quarter of this year, singlefamily sales in Calgary are up nearly 30 percent compared with the same period in 2009, while condo sales soared over 50 per cent. Average prices also increased. have been 276 sales so far this month for an average price of $297,940 and a median price of $271,750, compared with March’s average of $296,660 and median of $275,000.
In March 2009, single-family home prices averaged $420,354 with the median price at $375,000, while condos averaged $284,056 with a median price of $260,000.
“In Calgary, (the increase in listings) stems from people sitting back last year and waiting to see what was going to happen this year,” said Diane Scott, president of the Calgary Real Estate Board. “They’re coming out on the market now where they would have maybe done it last fall, when prices weren’t so good.”

·       Economic data was positive and well received by investors even though US jobless figures still rose slightly
·     Globally markets enjoyed a good week as tensions over Greece eased and there was no bad news from central banks in respect of possible stimulus exit policies
 
Going Down

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.

Air Canada onAIR - March 2010

Contemporary Canmore

By Drew Anderson

Calgary’s launch pad for alpine adventure is gaining cultural cred.

Cradled in the wide arc of the Bow Valley, Canmore, Alberta, has evolved from a small coal-mining town to a sophisticated mountain playground for throngs of Calgarians and international visitors. While some locals may bemoan the town’s rapid development, Canmore’s slow evolution from blue-collar roots, through hippie adolescence, toward semi-urbane maturity means daytime mountain excitement can now be capped with first-class fine dining and sophisticated accommodations at night.

Canmore’s main street still maintains a small-town look and feel, complete with the cherished SAAN department store, but rubbing elbows with the odd trinket shop and candy boutique are upscale shops, restaurants, clothing stores and more. Strolling through Canmore Wine Merchants, where an impressive stock of fine wine is offered at remarkably reasonable prices, or browsing contemporary art at Elevation Gallery, the intersection of a quiet mountain-town past and a culturally vibrant present becomes apparent.

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