Monthly Archives: April 2011

House Price Index (HPI): February 2011

(Calgary SFH Inventory data also below)

Canadian home prices in February edged up 0.1% from the previous month, according to the Teranet–National Bank National Composite House Price Index™.  It was the third consecutive monthly rise, following on three consecutive monthly declines.  Year-over-year, prices were up 3.8%.

Calgary prices were down 3.4% from a year earlier, for a fifth consecutive month of 12-month deflation.   Calgary is the only city tracked by the Index that is showing annual declines.    It was also the city to record the largest month-over-month drop: -0.5%.

(click to enlarge) Source: housepriceindex.ca

Calgary Single Family Housing Inventory

A quick look at SFH inventory in Calgary shows us that while it’s following 2010′s trend of increasing during the spring months, it’s not increasing nearly as swiftly.

As of April 26th, inventory is down over 11% year-over-year.

SFH Inventory (click to enlarge)

The amount of new listings coming on the market is averaging between 2009-2010′s levels.

(click to enlarge) New Listings

Between April 1-20, 2011 there were 1567 new listings added compared to 2023 during the same time period last year – a 22% drop.

April 1-21, 2011 Calgary Real Estate Update

While single family home sales are still trailing year-0ver-year,  the number of pending sales have risen to mirror 2010′s level.  Through 3 weeks of April, SFH sales are nearly 9% lower than last year during the same time period while condo sales are down 8%.

SFH sales (click to enlarge)

The weekly sales chart below shows that the busiest weeks so far in 2011 were recorded prior to the March 18th mortgage rule changes. In fact, condos had the most sales during the week of March 12-18.

More recently, SFH sales seem to slowly be strengthening week-over-week while the condo segment seems content to fluctuate between 118-125 sales.

SFH Weekly Sales (click to enlarge)

Condo Weekly Sales (click to enlarge)

SFH pending sales have made a turn-around and are now in step with last year.

SFH Pending (click to enlarge)

Condo Pending (click to enlarge)

Basement Building Permits – 4 Questions to Ask When Buying

Special thanks to Bryan Romanesky,  owner and founder of Permit Masters, for the following post:

Basement Building Permits – 4 Good Questions to Ask When Buying

When buying a property, due diligence is very important. If you are buying a property with a recently finished basement, add one more task to your already very long list of queries. You need to ensure that the renovation was done properly and that the proper permits were applied for and obtained.  Here are the 4 most important questions to ask:

What was the extent of the renovation?

Unless the renovation consisted of painting, putting new flooring or doing aesthetic improvements, a basement building permit is needed. Do not let anyone advise you that you don’t need a building permit as long as the work is done appropriately. This is the issue: without a valid permit, you don’t have confirmation that the work has been done properly. Therefore, if a fire or an accident occur, it is very possible that your insurance won’t cover your damages.

Did you add windows?

Adding windows is one of the most common alterations that home owners do when finishing their basement. Here is what you need to know: A permit is needed for a new window in a side yard. The reason is simple. If you are adding windows on the side elevation of a house, you need to ensure that the total amount of window opening facing your neighbour does not exceed 7%. This rule is to reduce the potential proliferation of fire from one house to another. If you do not meet the building code regulations, you may be putting yourself at risk.

Do you have a copy of the permit and approved plans?

When buying a home, you become responsible for all the work done by the prior owner. Ask to see the permits or call the local jurisdiction to find out if permits were applied for. Write down the address on a piece of paper and call the City of Calgary at 403-268-5311. Ask the customer service agent regarding all of the permits associated with the property. Once you know that a building permit was approved, you have two choices: you can trust that the permit matches the improvements or you can request to view the building permit file to validate that the permit matches the existing conditions.

Can you apply for your permits now?

You can apply for a basement building permit even after it is completed. The challenge is to pass the inspections. If the work is already completed, the city inspector will need you to open portions of the walls to see that the construction was done properly. Unfortunately, we see this happening very often and it adds cost and time. The additional cost and time should not deter you from requesting the permit before buying.

About Permit Masters and Bryan Romanesky

Bryan Romanesky is the owner and founder of Permit Masters. Permit Masters is a permitting solution for residential and commercial permits.

With offices in Calgary and Edmonton, Permit Masters offers a one stop shop for your development permits and building permits needs. We invite you to visit our website at www.permitmasters.ca and contact us at 403-475-2044.

2011 Calgary New Home Builder Rankings

Highest Ranked J.D Power new home builder and SAM Award Winner

Update: April 16, 2012.  JD Power has released the 2012 Calgary new home builder rankings (click here)

Congratulations to Morrison Homes for getting the highest ranking in J.D. Powers new single-family home builder customer satisfaction survey.

Among production builders that closed 150 homes or more between January 2009 and June 2010, Morrison Construction ranked highest in satisfying new homebuyers in the Calgary region single-family home market

Carma Developers (Heartland Homes) and Sterling Homes followed Morrison Construction in the regional rankings.

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In the Alberta multi-family home market, Carma Developers (Hawthorne Homes) ranked highest in satisfying new homebuyers, among production builders that closed 90 or more homes between January 2009 and June 2010,

Following in the rankings were Aspire Condo Living by Jayman and Streetside Development Corporation.

The 2011 Alberta New-Home Builder Customer Satisfaction Study is based on responses from 6,229 homebuyers within the Province of Alberta who purchased newly built single-family detached and semi-detached homes, and 1,566 homebuyers within the Province of Alberta who purchased newly built multi-family homes. The study was fielded from July 2009 to December 2010.

To view all the rankings, click here

(Click to enlarge) Source: J.D. Power and Associates 2011 Alberta New-Home Builder Customer Satisfaction Study

(click to enlarge) Source: J.D. Power and Associates 2011 Alberta New-Home Builder Customer Satisfaction Study

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2010 SAM Awards

Morrison Homes also won Builder of the Year award for the 10th consecutive time at the SAM Awards held by the Calgary Home Builders Association-Calgary Region at its annual gala this weekend.

“Morrison Homes gets to celebrate their 50th anniversary of being in business as Builder of the Year. That was their hard-earned accomplishment in a tight race with only a handful of points between the top placers,” said Donna Moore, CEO of CHBA-CR.

Runners-up in the Builder of the Year category were Baywest Homes, Jayman MasterBuilt, Beattie Homes and Shane Homes.

The other Grand SAM Award winners were Sabal Homes for Multi-Family Builder of the Year, McKinley Masters for Builder of Merit, Ultimate Renovations for Renovator of the Year and Divine Hardwood Flooring for Partner of the year.

“Sabal Homes and Divine Hardwood Flooring won their first Grand SAM Awards, while for Ultimate Renovations, it was their seventh Grand SAM and for McKinley Masters, their 9th,” said Moore.

You can read more about the SAM Award results in the Calgary Sun, here

April 1-14, 2011 Calgary Real Estate Market Update

Spring Chill

Sales for single family homes (SFH) and condos have fallen on a monthly and annual basis with pending sales showing that this trend will continue for the short-term.

After 2 weeks in April, SFH sales are down over 14% from the same time period last month and down nearly 9% from the previous year.   Bear in mind this is comparing against time periods leading up to mortgage rule changes.

(Click to Enlarge)

SFH Pending(Click to Enlarge)

Condo sales are painting a similar picture, falling back nearly 10% from April 1-14 of last year and off 4.5% from last month.

It seems that the pulled-forward demand caused by the March 18th changes affected SFHs more than condos. This is especially evident following the  average and median prices which surged after the deadline for SFH, but have remained steady for condos.

Condo Pending (Click to enlarge)

Inventory (particularly condos) is lower than this time last year, which will help offset the falling sales.

(click to enlarge)

Will this year be a repeat of 2010 or will the real estate market heat up as the year progresses?