Calgary’s real estate market continued on its blistering pace in April, but there are finally signs that it may start to cool off.
Calgary’s real estate market continued on its blistering pace in April, but there are finally signs that it may start to cool off.
After setting all-time records for sales in a month in March, the sector fell off that pace but still set a new mark for the month of April with 3,401 sales — a gain of six per cent year-over-year.
“We did expect to see some pretty strong conditions in the spring, just given the lack of supply going into the year,” said Ann-Marie Lurie, Calgary Real Estate Board’s chief economist. “But as we go forward and the interest rates get more aggressive, I do think that we will see the market return to … levels that are still strong, but maybe not quite at those record levels. That pace of growth should continue to ease as we move into the later part of the year.”
Still driving the sellers’ market is the lack of inventory with 4,850 units available citywide at month’s end. The market is also partially being pushed by the increase in interest rates by the Bank of Canada, as people try to get in before the rates — as being widely forecasted — jump to two per cent or higher by the end of 2022.
The conditions have pushed the benchmark price per unit to $526,700, up two per cent from March and 17 per cent from last year.
In the detached segment, year-over-year sales slowed for the first time since the spring of 2020, but there were still 1,815 units sold, which is still out-pacing long term trends. The decline is due in part to a lag in sales for homes under $600,000, which amounts to a supply issue. With the benchmark rising to $628,900 — 19 per cent above last April — there was still growth in sales over $600,000. There is currently only 1.3 months supply, creating a tight market. Inventories have not been this low in April in 15 years for detached homes.
It’s a similar situation with semi-detached homes. A decline in new listings in April aided in slower sales than in March, but they were still up 30 per cent over April 2021. This led the benchmark price to rise to $487,900, up two per cent over the previous month and up 16 per cent over the last 12 months.
Row house sales were down but a new April record was still set. The market was aided by 781 units being listed in April, a gain of 24 per cent and the highest level ever seen in April. It was not enough to bring balance to the sector but still helped keep prices more controlled as they were already being influenced by the lack of demand in other sectors. Prices were up two per cent since March and 17 per cent year over year.
Apartment condo sales continue to flourish, building off of momentum in previous months, bringing life to the segment not seen in years. There were 642 units sold in April, up 42 per cent over last year and set a record for the month. This was helped by 893 new units hitting the market, bringing supply up to almost two months.
The gains are still below the record prices of 2014 for the segment, but the gains are important for owners who have been holding on to properties in a stagnant market for years.
“It’s really the last segment where we are waiting to see the price recovery start to play out,” said Lurie. “It has been a struggle for many years; it is a shift in this market that, especially for sellers, it’s nice to see.”
While interest rates should help cool the market later this year, Lurie said the biggest salve will be new housing starts, creating more stock for those cashing in on the selling of their homes in a hot market or those moving to Calgary looking to buy. The solution, however, is still years in the building.
“It’s going to take some time to see enough supply come on in the entire housing market before we see these conditions return to a more balanced level,” she said.
There is not much relief for those looking for a deal outside of Calgary’s city limits. Airdrie, Cochrane and Okotoks remain tight markets with benchmark prices jumping in all three locations year-over-year. Airdrie is up 29 per cent to $480,600 with less than one month supply; Cochrane is up 21 per cent to $530,900; and Okotoks was up 13 per cent to $538,300 with less than a one month supply.
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CALGARY — The city of Calgary has recruited citizens from the commercial real-estate sector to help get a new event centre and home for the Calgary Flames back on track.
When an agreement between the city and Calgary Sports and Entertainment Corporation, which owns the Flames, collapsed late last year, city council voted in January to get a third party involved.
John Fisher, Guy Huntingford and Phil Swift are tasked with determining whether the Flames still want to build an arena with the city, or if the city will have to look for other potential partners to build an event centre.
Fisher is executive vice-president of CBRE, Huntingford is director of strategic initiatives with NAIOP Calgary, and Swift is executive chairman of the Ayrshire Group investment firm.
“This team brings considerable expertise from the commercial real-estate industry including experience in larger development,” the city’s planning and development manager Stuart Dalgleish said Wednesday in an event centre committee meeting.
“The third party has spent considerable time understanding the items and interests behind the terminated agreement and the current landscape. These items have become clarified.
“Based on a meeting with both the city and CSEC, the next step is for the third party to make recommendations on a possible path forward.”
Dalgleish said there is no definitive commitment or timeline for a new agreement.
The city and the Flames agreed on an arena deal over two years ago with the initial estimate of $550 million split between the two.
Shovels were scheduled to hit the ground in 2022 for a 19,000-seat arena and concert venue replacing the Saddledome, which has been the home of the Flames for 39 years.
The cost estimate for the project rose to $634 million, however.
Since the two sides agreed to an amended deal last July, the city added an additional $19 million in roadwork and climate mitigation to the project, and wanted the Flames to pay for $10 million of that.
CSEC president John Bean said in December that the Flames were withdrawing from the agreement because of an accumulation of issues and increased financial risk.
“While CSEC was prepared to move forward in the face of escalating construction costs, and assume the unknown future construction cost risk, CSEC was not prepared to fund the infrastructure and climate costs that were introduced by the city following our July agreement … and are not included in the current cost estimate of $634 million,” Bean said then.
So the Flames remain in the Saddledome, which is the second-oldest NHL arena behind New York’s Madison Square Garden.
CSEC also owns the Western Hockey League’s Hitmen, Canadian Football League’s Stampeders and National Lacrosse League’s Roughnecks.
The Flames recently announced they will move their American Hockey League affiliate from Stockton, Calif., to Calgary for the 2022-23 season.
For the first time in approximately a year, the average price of a house in Whitehorse has declined.
The real estate market has been on fire in recent months, with steadily-increasing prices.
In the last report from the Yukon Board of Statistics covering the last three months of 2021, the average house price in the city was $647,000. That represented an increase of $48,600, or 8.1 per cent from the fourth quarter of 2020.
The bureau released its latest report on Tuesday. It shows the average sale price of a single-detached house in Whitehorse was $637,300, lower than the end of 2021 but a rise of $46,700, or 7.9 per cent, from the first quarter of 2021.
In the first quarter of 2022, the total value of real estate transactions in Yukon was $81.4 million, with $70.8 million in Whitehorse and $10.6 million for the rest of Yukon.
It’s a decline of nearly $10,000 from the end-of-year report the bureau issued in March.
The average condo sale price in Whitehorse was $419,900, a decrease of $60,100, or 12.5 per cent, from the first quarter of 2021.
However, Marc Perrault, the president of the Yukon Real Estate Association, cautions people not to read too much into those numbers if they’re thinking the bubble has burst on the property market in the territory.
The first quarter of any year is usually the slowest for real estate sales, he told the Star today.
Coupled with concerns about inflation, Perrault said, he thought that was likely the reason for the dip in market values.
Perrault said he would have to see the trend continue for a year before he would become concerned about it.
The only thing that would change his mind would be other major signals of an economic slowdown, and that’s unlikely in the Yukon.
The market and economy here are very stable, he suggested, because it’s a government-based system which prevents most wild swings and
People are still immigrating into the territory to take advantage of its robust economy and growing public service, as well as other opportunities, Perrault said.
He doesn’t see that changing anytime soon.
“Demand is still greater than supply,” he noted.
The only category to show record-breaking growth was the mobile-home market. It hit a record high of $467,300.
A total of 54 single-detached houses were sold during the first quarter, an increase of 19 compared to the first quarter of 2021.
There were 49 condo sales, an increase of 27 compared to the first quarter of 2021.
The average condo price was $419,900, a decrease of $60,100, or 12.5 per cent, compared to the first quarter of 2021 ($479,900).
Four mobile homes were sold at an average price of $467,300.
Seven duplexes changed hands at an average price of $471,600.
Seven commercial properties were sold at a value totalling $6.9 million
In Whitehorse, a total of 130 real estate transactions was recorded in the first quarter of 2022, a rise of 46 compared to the first quarter of 2021. Over the previous five years, the first quarter average number of sales was 100.
Thirty homes sold in Whistle Bend during the period, with a total value of $18.5 million. It was the busiest neighbourhood in the city.
Copper Ridge saw eight properties sell at a total value of $5.3 million.
Porter Creek was the next-highest, with seven properties selling for $4.4 million.
The report showed that, excluding country residential properties, which typically sell for much higher prices than other single-detached houses, the average price in Whitehorse was $626,200 in the first quarter of 2022.
That compared to $632,100 in the fourth quarter of 2021 and $580,500 in the first quarter of 2021.
In Whitehorse, the median price of single-detached houses in the first quarter of 2022 was $620,500. That means the prices of half the houses sold were above this figure and the remaining half, below.
According to a report released by a U.S.-based property management software company, around 10 per cent of all active home listings in Canada right now are priced at less than $200,000.
There are no listings for less than $200,000 in the Lower Mainland (except in Richmond).
Here are five residential properties in B.C. that are for sale at less than $200,000.
This 630 square foot apartment is almost 50 years old and has a monthly maintenance fee of $460.
It is on the ground level and a key reason that it is priced at $199,000 is because it is built on leased land. The lease is prepaid until 2087.
This 1.26 acre lot comes with a small older cabin that is livable and is priced at $129,000. It has solar and wind power. There is a dock a ten-minute walk away.
Sonara Island is one of the Discovery Islands where Johnstone Strait joins the Georgia Strait.
The closest large community is Campbell River on Vancouver Island. Sonora Island is not serviced by B.C. Ferries.
There are four apartments in different locations within Port Hardy on the top end of Vancouver that are priced at less than $200,000.
This one has two bedrooms and has been updated with new laminate floors and is south facing. It is priced at $169,000.
As a base for ferries to Prince Rupert, Port Hardy sees a lot of tourists in the summer.
Trail, the site of Teck Resources zinc and lead smelting and refining complex, was a decade ago a place you could buy a home for $50,000.
It’s now a place where you can get a detached home for less than $200,000. Despite the smelter that looms over the city, Trail is close to excellent skiing and recreation.
This 1,300 square-foot home has views of the Columbia River with a serviceable kitchen and even has a new washer-dryer. It is priced at $199,000.
Tumbler Ridge in the Peace River region was built from scratch in the early 1980s to create a community for coal mining companies in the area.
As a result, it’s a lovely town that’s well laid out and has great amenities. It is, however, beholden to coal demand, that has led to a slump in real estate prices.
With an asking price of $183,000, this 2,100 square foot home is on a large corner lot. It has three bedrooms and comes with a new furnace. It has been on the market for over two years.
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