Monthly Archives: June 2010

House Price Index (HPI): April 2010

According to Teranet-National Bank’s House Price Index released today, Calgary prices recorded a 0.76% increase in April over March. Year-over-year, prices were up 4.18%.

In Canada, the index was up 0.81% month-over-month, and up 12.89% from last April.

For the first time in five months, all six metropolitan areas surveyed showed prices up from the month before, and for the first time in eight months, all six monthly gains exceeded 0.5%.

Here’s how the other index cities performed (Month over month, Year over Year)

  • Vancouver:   +0.81% , +15.63%
  • Toronto: +0.58% , +16.95%
  • Ottawa: +1.11% , +9.65%
  • Montreal:  +1.13% ,  +8.19%
  • Halifax: +1.87% , +6.28%

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Question Box: What are Post Tension Cables?

Calgary Condominiums

There are over 200 units on the market today in condominiums that were built between 1970 and 1985 and of concrete construction (as opposed to wood frame.) Something that condo buyers should be aware of is the possibility of post tension cables in those condominiums and what it entails.

The following article is reprinted with permission.  Special thanks to Phyllis Fyckes, President of Condo Diagnostics

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Are Post-tension Buildings Too Scary?

When you learn that the building you are considering buying a condominium unit in is a post-tension building, don’t be frightened away until you learn the facts about that particular building. Most buildings constructed with a post-tensioning system are in reasonable to excellent condition – you just need to discover if the one you are considering is one of those.

What is post-tension anyway?

Particularly in the 1970s and 1980s, many buildings in Calgary were built with post-tension cable construction in one or more of the horizontal concrete slabs. Builders have been especially fond of using a post-tension system over a parkade. Some buildings being constructed today use this method as well.

This construction method uses steel strands inside a plastic tubing with grease or oil as a corrosion retardant. There are many strands in both directions cast within a concrete slab, with the strands tensioned against the concrete at the ends of the slab. Sometimes you can see the plugs on the end of a slab that conceal the tensioned end of a cable. The purpose is to create a slab that can support more weight without additional columns that consume space, and also to minimize cracking in the slab.

The concern about a post-tension system relates to the potential for corrosion and deterioration of the steel cables if water and oxygen has entered through a crack. If sufficient cables have deteriorated and lost tension, they may have reduced the slab’s ability to support weight, and may require costly replacement. Post-tensioned slabs also require a certain amount of preventative maintenance in the form of waterproofing any portions of the slab that are exposed to the elements. The waterproofing is another maintenance expense to the Corporation.

If the Corporation has been regularly having their post-tension system monitored by an engineering firm, and have been performing the maintenance as recommended by that firm, the building is no riskier than any other form of construction. However, the Corporation does need to set aside some funds in their reserve account to accommodate the possibility of a future expense.

Check your documents for a recent post-tension report.

The document package you receive from the seller of the unit should include a recent post-tension report if the building has used that construction method. The engineer’s comments will give you some insight into the condition of the system, and the likelihood of future problems. Many engineering firms also give a recommendation for what funding the Corporation may require in the future.

The financials will show whether the Corporation is setting aside money for post-tension work.

The operating budget shows if they are allotting an amount for annual post-tension inspections. You may find mention of post-tension work having been done recently in the audited financial statements. Their reserve fund study will reveal if any funding for post-tension work was recommended to the Corporation. And their reserve fund study plan will state if some of the funding is earmarked for possible post-tension work.

So post-tension is not necessarily bad?

You could be depriving yourself of an attractive home to live in if you immediately steer clear of post-tension buildings. In some buildings that post-tension system may be the only system that has some potential of large expense to the Corporation sometime down the road, but the building itself may otherwise be in top shape. In some other buildings without a post-tension system they may be encountering some other problems that are equally expensive.

As an example there is an apartment building that has been directed by the City to correct its heating and ventilation system; the most recent cost estimate they had was in the neighborhood of $100,000 (an expense to be shared by all the owners in the building, of course). Some townhouse complexes have been built with untreated pine shake roofs which have been suffering fungus problems and are failing much sooner than regular asphalt shingle roofs would. Shake roofs tend to be costlier than asphalt shingle.

The purpose of these examples is just to illustrate that many complexes have their own type of problem, which will require additional funding from the owners. If the prospect of having to provide additional funds for your new home daunts you, you need to remember that most home ownership of any kind requires extra dollars at some time or another – it’s a fact of life.

Be prepared, do your homework, and understand the future possibilities in the place you hope to call home.

Phyllis L. Fyckes, President
Condo Diagnostics Ltd.

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Below is some more information on Post Tension Cables, including some Calgary specific information:

Sales of the Day

I’m happy to introduce a new feature in providing you with the most up-to-date and in-depth information for the Calgary real estate market.

Starting today you’ll notice that there’s a new hyperlink on the dates providing the daily statistics on my main webpage. You’ll now be able to view which properties have sold on that specific today so that the statistics are no longer just numbers.

A new stat you’ll see is the original list price of that specific MLS number as well as the list price when the property actual sold.

Complying with CREB’s rules, I cannot provide both the address and sold price to non-clients so only the community will be displayed as a reference.

Along with the sold price you’ll be able to see the market activity for the specific community as well. This is delayed by two months. You can have up-to-date information by signing up to my free Market Snapshots which includes addresses and much more information. Of course, if you’d rather not sign up and just have a question about specific property, feel free to email me directly at mike@findcalgary.com

NOTE: Remember sales are audited and may be corrected if necessary a few days later.  For official statistics, please visit CREB.

I hope you find the new information useful! If you have any suggestions or tips I would be happy to hear them.

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Mike Fotiou
Associate Broker, CCS
Commissioner for Oaths in the Province of Alberta
First Place Realty

June 1-21, 2010 Metro-Calgary Real Estate Statistics

Metro-Calgary Single Family Homes (SFH)

Not much has changed since the mid-month update, but it has become readily apparent that this sales slump (or so-called “blip“) wasn’t just limited to May.   In fact, MTD sales are even lower in June than they were last month.  (762 vs 946)

Prices are still up year-over-year, but are essentially unchanged from last month.

SFH inventory is 70.5% higher than June 21, 2009.

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Metro-Calgary Condo

Unlike the SFH market, condo inventory seems to have reached a plateau.   Active inventory has been hovering in the 2700′s since the first week of June.

Prices are down from last month, and have reverted to last June’s levels.

June sales are still very weak, and like SFH, even lower than May’s levels MTD.  ( 316 vs 385)

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Mid-June 2010 SFH Market Update

Metro-Calgary SFH Stats through 15 days of June:

  • Average & median prices are up month-over-month, and year-over-year
  • Active inventory is up 63% from June 15, 2009
  • Sales are still on pace to be the lowest level recorded for June in over 10 years

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