Economic Recovery for Calgary – Will it happen again?

Economic Recovery for Calgary – Will it happen again?

Albertans have Confidence



Now that Alberta is seeing increased confidence as the oil and gas market starts its recovery, the wheels are in motion for Calgary real estate. Market indicators show that first-time and luxury home buyers are looking to get in and up. They have faith that life will get better.



According to the CMHC – Market Movement

Even with increased interest rates and new mortgage rules, first-time and move-up home buyers are leading the residential charge in multi-family residences and luxury homes, respectively. Meanwhile, Millennials and younger couples are balancing the condo market.

Over-building - Looks to be Subsiding

Senior market analyst with CMHC, James Cuddy, says, "Over-building has started to come back a bit." Also, vacancy for rentals fell from 6.3 per cent in October 2017 to 3.9 per cent in the same month in 2018. "Last year was the first year we saw positive price increases in terms of rental rates” since 2014." says Cuddy. This is good news for the housing market.

Cuddy notes, "Ultimately in Calgary, it will get to a point where renters are making that trade-off decision between the cost to rent and the cost to buy."

Absorption Rates – Percent Rising

CREB statistics for May show a positive market indicator of absorption rates – the number of sales vs. the number of homes listed. CREB chief economist Ann-Marie Lurie explains that the sales of real estate has remained low compared to historical activity for May, but, "the easing prices have brought some people back to market, while also preventing some others from listing their homes."

New listings in May pulled back significantly from previous year's levels. Combined with an improvement in sales, this resulted in inventories declining from 4,504 units last May to 3,921 units this month. This is the first time since May 2017 that year-over-year inventories declined.

Altus Group - Indicator of Market Improvement

Altus Group released its 2019/2020 forecast this month revealing the city’s struggling housing market should benefit from growing migration, which will elevate demand for housing and boost starts. Calgary’s slumping real estate market appears to be headed toward recovery near the end of this year and into next, according to a new report.

"We will probably see more of the same for housing from last year into this year initially," says Peter Norman, vice-president and chief economist of research, valuation and advisory. He adds that the conditions look like they will slowly improve into 2020. "Yet the slump in prices also creates greater affordability, which along with strong job growth expected in 2020 —15,600 new jobs — will drive demand amidst falling inventories."

Luxury Market

CREB’s current files show that in 2018, the most expensive house sold for $5 million and, so far in 2019, a sale price has hit $4,587,000. It is worth noting that an all-time Calgary luxury market sale happened in the 2013 heyday when one Calgary home sold for $11.1 million. You may want to check out my blog on the luxury market back in 2014. "Huge Appetite for Calgary's Best Homes": https://yourhomeinalberta.wordpress.com/2014/05/02/74/

Office, Commercial and Industrial Sectors – Trend also UP!

A Price Waterhouse Coopers (PwC) report states that Calgary’s industrial real estate market continues to gain momentum, showing positive absorption in 2018. There is a flight to quality in office so landowners are getting creative by developing unique, collaborative spaces to target Millennials, Start-ups and Tech Firms. Some are dog-friendly, offer perks such as a basketball courts putting greens as well as dog spas and outdoor dog parks.

Follow my posts on facebook: https://www.facebook.com/LiveInOkotoks/ or Call Chris 403-680-4479

First Home? How about 10% Off?

First Home? How about 10% Off

It Could be a Dream-Come-True for Some

The recent federal budget has some interesting news for those who dream of owning their own home. There's new help for first-time home buyers and some consider this the boldest proposal in the new 2019, budget. After a new ruling that came into effect in January, namely that mortgage applicants had to pass a stress test to ensure their ability to make payments, helping to cool the market, now a boost in homes sales is expected. The promise is that buying a home could be easier!

Government to Help with the Cost – Wow!

The help is coming from the Canada Mortgage and Housing Corporation (CMHC) If buyers have a household income of under $120,000 they will be eligible to receive a credit worth up to 10 per cent of their home price from the CMHC. This will reduce the overall cost of their mortgage. The plan will provide $1.25 billion over three years toward assisting new buyers in securing a mortgage. The assistance will come with CMHC holding an ownership stake in the property equal to the credit.

New Home or Older Home – There are Different Rules

There are different incentives depending on when the house was or will be built. The incentive would be 10 per cent for buyers purchasing a newly built home and 5 per cent for existing homes.

For example, say you’re hoping to buy a $400,000 home with the minimum required five per cent down payment, which works out to $20,000. With the new incentive, you could receive up to $40,000 through the CMHC. Now, instead of taking out a $380,000 mortgage, you’d need to borrow only $340,000. So the bottom line is that this would lower your monthly mortgage bill from over $1,970 to less than $1,750. It is now more important than ever to talk to a Realtor about buying a new home, BEFORE you step into the show home!

Some Details Not Clear – Stay Tuned

So what should you make of this information? If you’re looking to buy, this could be good news, especially if you’re in the Calgary area where homes listed are some of the country’s more affordable, especially compared to Vancouver or Toronto. If your budget is under the $480,000 cap it could be worth waiting to see how the new CMHC initiative shakes out.

This is a complicated proposal. Any new incentive has some unknowns. For example: How long will buyers have to repay and when will the initiative start? Will the equity stake adjust with the market value or will it be a fixed amount? Need help? Visit the CMCH website at:  https://www.cmhc-schl.gc.ca/ or Call me 403-680-4479

Curious about Condo Ownership? Read On

Curious about Condo Ownership? Read On

Wish You Owned a Condo? Good News for Buyers and Sellers

New governance regulations, for Condo ownership, were approved by cabinet recently. "About one out of every five Albertans lives in a condo and our government has their back," says Brian Malkinson, Minister of Service Alberta.

Rules Change – More Protection for Condo Owners' Investments

A condo is a substantial investment. The new rules can be found at https://www.alberta.ca/assets/documents/condominium-property-regulation.pdf

If you are considering buying a condo it is recommended that a professional read the bylaws and review the financials first.

Access to Condo Documents - New Changes! - What You Need to Know

In previous years gaining access to this information could be expensive! But now prices will be set. With new regulations it will now be easier to access condo documents and the new rules will clarify which documents must be provided to new owners and when they need to be provided. It will also stipulate what exactly needs to be included in them.

New Regulations Will Make Condo Life Better

Anand Sharma of the Canadian Condominium Institute (CCI) appeared on media channels recently to explain the many of the changes. "This is huge for condo owners," said Sharma, who is president of the North Alberta chapter of the CCI. "We’ve been waiting for this regulatory change for 18 years. It was a big piece of legislation." These new regulations will make it better for everyone in the industry.

Condominium Boards - More Important – More Transparent

There is good news for potential buyers. As a result of surveys, consultations and studies by condo owners (more than 5,000 across the province) in cities like Edmonton, Calgary, Lethbridge and Fort McMurray there are now new bylaws for condominium boards. These new rules come into effect in July of 2019. The Minister has also stated that, "Alberta condominium boards will have to be more transparent as a result of changes made to the province's Condominium Property Regulation."

Revamp of Voting Rules and Much More - This is Huge!

The new rules mean owners will get more notice to attend general meetings and see 'Agenda Topics' beforehand. Other changes include adjustments to make the rules fairer on how condo corporations can issue bylaw fines and how reserve funds are managed. Some changes related to insurance matters were also made.

Condo Fees – More Pressure on Condo Boards for Accountability

Condo boards will not be able to raise condo fees without justification. Sharma said, "They have a fiduciary responsibility."

He went on the explain that the new regulatory framework is going to put a lot more pressure on condo boards in terms of professionalizing the industry and professionalizing their action. For example the reserve fund studies will not be able to be penned by just anybody, as the updated regulations define the 'study-provider' qualifications.

Insurance and Deductibles - What You Need to Know

While it's not mandatory under the Condominium Property Act or Regulation to have insurance to cover insurance deductibles, a condo board can now enact a local bylaw. And effective Jan. 1, 2020, condo boards will be able to go after condo owners for outstanding insurance deductibles up to a maximum of $50,000. Sharma advises condo owners to look into an insurance plan. "Start preparing for that," Sharma said.

Any questions about the new condo regulations and what they mean for you? Please give me a call 403-680-4479.

Class Action Law Suit - Alert! KITEC Plumbing

Do You Have This Plumbing?

Class Action Law Suit - Alert! KITEC Plumbing

A Flood Waiting to Happen – Save Money Now - Deadline Looming

It is important to take a look at the plumbing in your home. If you have Kitec plumbing, both the fittings and pipes are prone to deterioration.  It was a type of plumbing sold between 1995 and 2007. To be eligible for settlement benefits, you must file a claim before January 9, 2020 or you will not receive payment.

Kitec – The Go-to-Pipe

During this time most plumbers and heating companies agreed it was the 'go-to-pipe'.  It was popular and inexpensive. That was before the recall. The good news is Kitec products are the subject of a class-action lawsuit. The settlement is worth tens of millions of dollars. Homeowners are eligible for partial compensation to pay for repairs.

Courts Have Granted Class Authorization

The USA courts, as well as Canada nationally have certified and approved cases for settlement purposes. You can begin the procedure of processing a claim. See Claim Forms: http://www.kitecsettlement.com/index.cfm. The site estimates there are approximately 292,000 installations/properties with the Kitec system in North America.

Do You Have Kitec? - How to Find Out

Start by looking near the hot water tank or in the mechanical room. The Kitec system is usually blue in color for cold water applications and orange for hot water. The plastic piping and aluminum, over time, expand and contract at different temperatures. It can cause them to burst. It may also result in clogging and poor water pressure and flow. Also check your home’s electrical panel doors. Professional plumbers typically added a sticker to the electrical panel stating that Kitec was used. A Kitec pipe can be marked with one of about 10 different brand names, for example PlumbBetter, IPEX AQUA and WarmRite. All visible fittings should be stamped with Kitec or KTC. Unfortunately Kitec brass fittings when in contact with well water with a high mineral content or acidity will chew away and cause them to fail.

Don't Risk Water Damage to Your Home

Most sellers and owners are completely oblivious to the fact that there's potentially an issue with the plumbing. Some will pay to replace it. Others will insure homes but at a higher rate. Some insurance companies give homeowners a certain amount of time to replace it or lose their insurance. In the event your pipes break, everyone should know how to turn off the water.

If you have questions or concerns or if you need help figuring out if you have this type of plumbing, give me a call. I am happy to help. 403-680-4479

Holiday Greetings – A Recipe – Some Jokes

Holiday Greetings – A Recipe – Some Jokes

We will be enjoying our 1^st Christmas in our new house. It is an incredible dream-come-true. Our young children are especially excited and are assured that Santa has our new address.

Some of you may have been following my blogs about the trials and tribulations of a custom built home. They are a collection of real-life stories, honest and sincere and interesting to say the least.

We have some news. Although the wedding is some time in the future, Nancy and I are officially engaged. We are very happy. Life is good.

Whether or not you celebrate Christmas in all its formality, it has become a multi-denominational joyous time of the year. If you are lucky enough to live in Canada, it is a holiday. I hope you take this time off to have fun with your loved ones. Stay warm and safe and have a happy and healthy New Year in 2019. Please enjoy the recipe and jokes.

Our best wishes to you,

From Chris, Nancy, Meah and Nick (also in the picture are friend, Miles, Baba and Papa)

SLOW COOKER CHICKEN CURRY

INGREDIENTS

10- bone-in chicken thighs 2-3/4 lbs or 1.2 kg

1 Jar (650ml) thick and chunky salsa – mild or medium

1 onion chopped

2 Tbsp Curry Powder

½ cup Cream Cheese

DIRECTIONS

Place chicken in slow cooker.

Combine salsa, onion and curry powder and pour over chicken

Cook on Low 8-10 hours (or High for 5 hours)

Transfer chicken to platter. Cover and keep warm. Add cream cheese to slow cooker. Whisk until cream cheese is melted and sauce is well blended. Spoon over chicken and serve with rice or your favourite pasta.

Why don’t crabs celebrate Christmas? Because they’re shell-fish.

Where does Santa keep all his money? At the local snow bank.

What do you get when you mix a Christmas tree and an iPad? A pineapple!

Buyer's Market? Yes for Some

Buyer's Market?  Yes for Some

You may have notice some recent 'Listings Alert' emails from me. They show numerous active properties, but of interest, is that many of them show: "Price Change". What does this mean? Is this now a Buyer's Market? What is clear is that there are significant changes in the Real Estate Market for Calgary and the surrounding area.

Decline - CREB Has the Figures to Prove It

The Calgary Real Estate Board says sales totalled 1,272 in September, down 13 % from the same month a year ago, "well below" long-term averages. CREB chief economist Ann-Marie Lurie says, "Concerns in the employment market, higher lending rates, and shaken confidence are weighing on house demand."

Good for Buyers

From a price perspective, Gary MacLean, a 32-year realtor with ReMax Central, says prices at the end of September were sitting at 2014 levels. Recent figures from CREB show the biggest sales decline are those homes in the $600,000 to $999,999 range. Home sales, overall declined nearly 10 per cent in October across the city. Detached home sales are down to levels not seen since the late 1990's. MacLean says that it is, "Great news for those buying. I can think of nowhere you can buy a home in 2018 at 2014 prices."

Modern Family Home Ownership Trend

Sotheby International Realty president and CEO, Brad Henderson says, "Even though everybody is talking about it being a buyer's market, we’re not seeing buyers really being active." From the 2018 Modern Family Home Ownership Trends Report, Sotheby explains that, "about half of Canadians have abandoned the dream of owning a single-family home." This is due to challenges, preferences and home-buying habits of modern families, specifically between the ages of 20 and 45.

More Power for Active Buyers

There is reason to have a positive attitude about the future in Alberta. Oil is still at a good rate. Interest rates seem to be holding fairly steady with no major increases lately. There are no more changes looming for mortgage rules. November CREB Report states that there is some easing in new listing growth. If they are down that is a sign that inventory will slow soon. With the younger set waiting, that means the buyers that ARE active have more negotiating power. Keep your eyes on the listings then give me a call # 403-680-4479

Building a Home in a Brand New Community – What We Didn't Expect

Grass is not just a Decoration!

Building a Home in a Brand New Community – What We Didn't Expect

We have moved in. We love our new house but we are now in a community-wide limbo of development. Sure there has been some post-possession calming down for us but the neighbourhood is one big bustling construction site.

Noise - There is So Much going on!

The construction of other homes continues on in the Riverstone Community. These guys start early! During the summer, with the kids not having to get up early for school, we had hoped to sleep in a little but not a chance with all the noise. We often hear big trucks rumbling by as early as 7 AM. Excavators, bulldozers, Bobcats, dump trucks, delivery vehicles and other large vehicles operating heavy equipment all day long. Supplies are being delivered for building decks, screened-in rooms, backyard landscaping and pouring of concrete driveways. Oh wait. That was us. We were no different. We have contributed to that same kind of noise.

Dust – Dust – Dust and Mop

Green grass is not just a decoration. Without grass there is dust blowing everywhere. Remember the heat wave? Well, if we left the screen windows open at night to cool the house down then next morning the floors felt like grit. We had to dust, vacuum and mop every day.

Thinking Ahead – Hooray Albi Riverstone!

One of the things that we like about the community is that even though it is not finished by a long shot, there are already three small parks within a two minute walk. So that is a good thing.

Riverstone is actually connected to Fish Creek National Park via 145.6 hectares of environmental reserve. It is the second largest urban park in Canada, nestled in and around, the scenic Bow River, amongst the trees and plenty of wildlife. When completed, Riverstone will have 1,100 homes. It won't be long before it really is paradise and of course, a very good investment. If you are interested give me a call: 403-680-4479

To read all of the series of Blogs about our Custom-Built Albi Home visit: Chris Ashby Blogs http://www.liveinokotoks.com/or visit: