Daily Archives: October 26, 2011

$2.7M Repairs Needed For Latest Leaky Condo

Resiance Corporation’s vision was “to build a better world” but instead it has left dozens of condo owners to tackle an estimated $2,662,705 worth of repairs because of defects with the building envelope.

Resiance, now out of business, (remember Gateway Midtown?) was the developer of the 250 unit Gateway Garrison Green project located at 5605 Henwood St SW which was completed in 2006.  Yes, it’s only 5 years old.

What makes matters worse is that the residents have been advised that it is “unlikely” that the Alberta New Home Warranty Program will provide any coverage and that insurance doesn’t cover poor quality workmanship or builder defect.

You can read the special assessment FAQs on the Gateway Garrison Green public site here

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In addition to this project, Resiance was the developer for:

June 2004: A Sound Investment: The Gateway at Garrison Green

House Price Index (HPI): August 2011

(Note: This is the first monthly release where Edmonton, along with Hamilton, Québec, Victoria and Winnipeg have been added to the House Price Index)

Canadian home prices in August were up 0.9% from the previous month, according to the Teranet–National Bank National Composite House Price Index™. It was the 9th consecutive monthly increase and the fifth of 0.9% or more. 6 of the 11 metropolitan markets surveyed were also at all-time highs. Year-over-year, Canadian prices were up 5.4%

Calgary prices were up +0.7% from the previous month and up +0.8% year-over-year. The Calgary appreciation broke a 9-month run of 12-month deflation.

In Edmonton, prices increased +0.6% m/m but remained down from a year earlier for a 10th consecutive month (−2.1%)

It’s great to see Edmonton join the index so we can compare Calgary’s market to it.  Edmonton boomed just after Calgary did, and to a greater extent.

(click to enlarge image)

I know it’s difficult to distinguish the cities in the spaghetti mess in the chart below, but Winnipeg has even surpassed Calgary’s 2007 high and is closing in on Edmonton’s peak before it corrected. Their increase, however, has been a more gradual incline rather than the spike seen in the Alberta cities.

(click to enlarge image)