By Marty Hope, Calgary Herald November 20, 2010

The grace period is over. Old Man Winter has arrived — and ain’t it wonderful.

I jest, of course.

I guess if you’re a skier or boarder, the snow is a welcome sight. But those of us strapped to the couch — except for the time spent shovelling or doing our Wii exercises — are likely seriously planning a trip to Vegas, Phoenix or Hawaii.

After that, it’s time to think spring again.

So it is for single-family home builders in and around Calgary — although spring will likely come late next year, with forecasters predicting the return of the rugged winters of our youth.

Spring is a time of optimism and renewal — at least, so the saying goes.

For single-family home builders in and around Calgary, next spring will be worth the wait, says Richard Cho, senior market analyst for Canada Mortgage and Housing Corp.

Detached single-family home construction will increase at a “modest” rate, he says. The delay is because the oversupplied resale housing market is still there — and what’s worse, sales are down.

A note here: while the traditional seasonal decline in listings is underway, there are still more than 6,000 resale homes (both condos and detached single-family homes) on the market, says the Calgary Real Estate Board.

Construction of detached single-family homes will likely initially be held back by the elevated level of active resale listings — a situation that will remain for the early part of next year, says Cho.

“However, activity will pick up in the later half of the year as demand improves and the market becomes more balanced,” he says.

After bottoming out at less than 4,400 homes in 2008, builders put up nearly 4,800 homes in 2009 and are forecast to construct 5,900 by the end of this year.

For 2011, the outlook is for 6,100. Not a big increase, but what the heck; it is an increase — the third straight.

The story isn’t so good for the multi-family housing sector, says CMHC in its fall housing market outlook.

Following a year when multi-family housing construction declined to its lowest level since 1996, construction starts — which include semidetached units, townhouses, and apartments — are on pace to reach 3,200 units in 2010, up from 1,543 units in 2009.

In its report, CMHC says higher construction starts for all three multi-family dwelling types in 2010, in particular apartment units, will contribute to the increase.

“With apartment inventories expected to remain elevated moving into 2011, apartment builders will look to reduce their inventory levels and increase their presales prior to starting major projects,” says Cho.

So the end result is that construction starts of multifamily housing are expected to decline 13 per cent to 2,800 units in 2011, down from an expected 3,200 units in 2010.

But even here, there is good news with the announcement of three major highrises being built — Keynote by Keynote, Drake by Grosvenor, and the three-tower Bosa development in East Village.

As for the resale market, sales by the end of this year are forecast to decline 18 per cent year-over-year to 20,300 units. Next year, though, comes a gradual improvement. Stronger growth in employment and net migration will help support demand for used homes, as will improved wage gains, says Cho.

The growth in sales will be modest in 2011, as sales are expected to reach 20,700 units, up two per cent from 2010.

They say good things are worth waiting for — and spring is just five months away.

mhope@calgaryherald.com

HOUSING CONSTRUCTION STARTS

2008 2009 2010** change 2011** change

-Detached starts* 4,387 4,775 5,900 23.6% 6,100 3.4%

-Multi-family starts 7,051 1,543 3,200 107.4% 2,800 -12.5%

-Total starts 11,438 6,318 9,100 44% 8,900 -2.2%

-MLS sales 23,136 24,880 20,300 -18.4% 20,700 2%

-New listings 56,187 41,640 47,000 12.9% 48,000 2.1%

-Average price $405,267 $385,882 $399,000 3.4% $401,000 0.5%

- Start of construction for detached single-family homes ** Forecast Source: CMHC

© Copyright (c) The Calgary Herald

Read here: http://www.calgaryherald.com/business/Modest+growth+expected+spring/3860204/story.html#ixzz16WWKRDUw

But with a good mortgage broker finding you the best mortgage rates and products to suit your lifestyle, and the information in this two-part article, you’ll find the process is easier than you think.

As a first time home buyer, you can take advantage of many programs, including Home Buyers Plan, Gifted Down Payments, and 100% financing. Regardless of which route you go, there are seven steps you need to successfully navigate:

• Step 1: Get pre-approved
• Step 2: Arrange your down payment
• Step 3: Hire an experienced realtor
• Step 4: Hire a home inspector
• Step 5: Have all your documents ready
• Step 6: Hire a real estate lawyer
• Step 7: Move in

Here’s to your new home!

Email us at info@urbanpropertyinc.com to get a copy of the full article with detailed instructions on each step.

The results of a new poll conducted exclusively for Postmedia News and Global TV suggest public perceptions of what makes up a family lag behind the reality around kitchen tables across the country.

For example:

• Couples without children now outnumber those with children in Canada, but fewer than half of Canadians believe a married or common-law couple with no children counts as a family. A similar minority considers a same-sex married couple and their children to be a family.
• For the first time, there are more unmarried than married people in Canada, according to the most recent census data (2006), and common-law families — particularly those with children — are the fastest-growing family type in Canada. Yet poll results from Ipsos Reid show that while 80% of Canadians believe two married, heterosexual parents and their children constitute a family, just 66% consider a common-law couple and their children to be a family.

Read the entire article: http://www.nationalpost.com/news/real+canadian+family/3618697/story.html#ixzz11OcdyvmF

The media has all sorts of good and bad news out there for the consumer regarding the economy and where real estate is at. My strict thoughts are that the news in combination with the fear of the unknown due to the recession that we are slowly recovering from has caused unnecessary panic. By this I mean no disrespect, simply I want to state the obvious; the Calgary real estate market has more supply then demand. We won’t discuss in this blog as to the reasons why there is more supply – perhaps we will discuss on the next update.

On a very positive and refreshing note, today’s news gave us the information that more new jobs are being created in Alberta. We are living a buyer’s world right now with interest rates at record lows again and stabilized house pricing with little to no overpriced homes. Again, I realize that this may be obvious to you; however I thought it worth mentioning as my everyday conversations with clients, friends and family take me down this particular conversational path on a regular basis.

All in all, if you have a great Mortgage Broker and fully trusting Realtor this is the greatest recipe for real estate buying success. These are the ingredients that should build the confidence for you to buy the home that you are looking for as they ultimately are working for you and your current and future needs. Remember that owning your very own home provides you with a stable home where the purchasing price is fair, where you will be able to live in for the next 2-5 years equaling a happier you and a much happier family.

An Eco Friendly Home

Eco-friendly homes are most definitely on the rise across the world and Calgary is no exception. People often decide to live in eco-friendly homes because it allows them to live a more environmentally friendly lifestyle as well as allow them to save money on energy. These homes create equally as much energy as they take in and can sometimes even create more. In the city of Vauban, Germany the total power consumption of the city is less than the amount the eco-friendly homes and buildings create, allowing them to actually sell their energy surplus to surrounding municipalities.

While Calgary obviously isn’t on par with Vauban, there are still eco-friendly homes being built here. Avalon homes is currently building a “net-zero” home which takes in as much energy as it produces. The project, called Discovery 4 House, involves building a home that is extremely eco-friendly. This home uses renewable energy sources, mainly solar panels, that produce all the necessary heating and electricity the home needs to operate. In fact, this home has the most solar panels out of any home in Calgary. It also incorporates energy efficient appliances and LED light bulbs as well as solar thermal window shutters.

Eco-friendly isn’t limited to just reaching the “net-zero” point, but also by using certain materials in the home’s construction. The Discovery 4 home used recycled maple that was taken from a high school in Canmore and MDF was used for all the doors and baseboards in the home.
Now you might be wondering about the cost of building such environmentally conscious homes. It is true that these homes cost more than average, Avalon says these homes cost $100,000 more than their standard, not so eco-friendly counterparts. However, the company sees these eco-homes coming in on par with standard homes by 2015.

While the energy savings with these types of houses is fantastic, there remains a large gap in government compensation between “green homes” here in Alberta and and those found in Ontario. Ontario’s programs see much higher rates of government compensation for the use of “green” technologies and it’s allowing Ontario home builders to sway more people into doing their part for the environment. Hopefully these levels of government reward aren’t too far along for western Canada.

This isn’t a completely new phenomenon either: Two years ago a Calgary couple ventured into creating one of Calgary’s most energy efficient homes in the Marda Loop community. While saving money was indeed a great benefit, the green lifestyle was their main concern. “If we have the capacity to spend a little extra on technologies that will benefit the environment and our children, then we have a responsibility to take that lead in change,” says the couple.

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Referenced Articles:

Couple embraces eco-friendly home, careers – Calgary Herald (http://www.househunting.ca/eco/story.html?id=43c3573a-985c-4e9b-914d-9c16117c1efa&p=2)
Eco-Friendly home gives as much as it takes – CREB (http://www.cren.ca/content_browse/content_view?CONTENT_ID=4178&MODE=VOL_ISSUE&VOL_ISSUE_ID=2810&PUB_DATE_DISPLAY=March+4,+2010)