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Archive for the ‘Economy’ Category

Housing affordability in Alberta improves, bucks national trend

Monday, March 15th, 2010

Construction of new homes in Auburn Bay S.W.on Monday, January 11.

 

Construction of new homes in Auburn Bay S.W.on Monday, January 11.

Photograph by: Archive, Calgary Herald

CALGARY - Housing affordability improved in Alberta in the fourth
quarter of last year amid slower economic recovery, compared with other
regions across the country, according to the latest housing report
released today by RBC Economics.

“The downturn in the housing market has created a large surplus of
homes available for sale. This has held back the pace of price
increases in the province since the market rebound took effect,” said
Robert Hogue, senior economist, RBC. “This subdued pace has kept
Alberta’s affordability in check.”

The RBC Affordability measures for Alberta, which capture the
proportion of pre-tax household income needed to service the costs of
owning a home, declined across all housing types in the fourth quarter
of 2009. The measure for the detached bungalow benchmark moved down to
33.7 per cent (a drop of 0.4 percentage points over the previous
quarter), the standard townhouse to 25.8 per cent (down 0.4 percentage
points), the standard condominium to 22.5 per cent (down 0.1 percentage
point) and the standard two-story home to 37.9 per cent (down 0.2
percentage points).

The Calgary housing market continues to be attractive with
affordability measures at or below long-term averages, said RBC. The
strong rebound in resale activity slowed last summer and has reversed
since the fall. However, the tight availability of homes for sale in
Calgary has continued to provide a slight advantage to sellers, moving
housing prices in a slight upward trend, said the report.

“With the exception of townhouses, price gains in the Calgary market
have still been relatively modest and below the highs seen in 2007,”
added Hogue.

mtoneguzzi@theherald.canwest.com

© Copyright (c) The Calgary Herald

Monthly housing starts make big jump in Calgary: survey

Monday, March 8th, 2010
Total housing starts in the Calgary census metropolitan area are up by an incredible amount in February compared with a year ago — an indication of how far the economy had fallen at the beginning of 2009.

Total housing starts in the Calgary census metropolitan area are up by an incredible amount in February compared with a year ago — an indication of how far the economy had fallen at the beginning of 2009.

CALGARY - Total housing starts in the Calgary census metropolitan area are up by an incredible amount in February compared with a year ago — an indication of how far the economy had fallen at the beginning of 2009.

According to preliminary figures released today by Canada Mortgage and Housing Corp., total starts reached 743 units last month in the Calgary CMA, up substantially from 206 units in the previous year.

Single-detached starts jumped to 545 units compared with 184 a year ago while multi-family starts hit 198 in February, rising from a meagre 22 in February 2009.

“The year-over-year rise in production (in the single-detached sector) was a bit pronounced as housing starts in the beginning of 2009 were unusually low due to elevated inventories and uncertain economic conditions,” said Richard Cho, senior market analyst in Calgary for the CMHC. “With the economy stabilizing, new construction activity is returning to more historical norms with February’s numbers slightly above the 10-year average of 535 units.”

In Alberta’s seven largest centres, there were a total of 1,562 units started in February, compared to 574 units a year earlier.

Read more: http://www.calgaryherald.com/business/Housing+starts+jump+Calgary/2654592/story.html#ixzz0hcGvUGsz

Avalon unveils first Net-Zero home

Monday, March 1st, 2010

At first glance, it looks like any other new home.

Avalon Master Builders’ Discovery 4 House is a quaint two-storey with cedar shakes and stone detailing, an eye-catching crimson door, grey siding and a spacious front deck.

But upon closer inspection, there are other, more unexpected details as well — solar panels on the roof, solar thermal panels framing the windows and a solar thermal balustrade offer just a hint of what this forward-thinking home is all about.

“The Discovery 4 House is the culmination of years of work towards meeting our vision of building Net-Zero homes at no additional cost to consumers by 2015,” says Ryan Scott, Avalon’s CEO.

“This was a really interesting challenge, but once you look around, you’ll see it’s come together really, really well.”

The home — which is currently located on the SAIT campus, but will move to its permanent home in McKenzie Towne this spring — offers not just new technology, but old favourites as well.

The front foyer looks to a sunny dining room at right, where honey-hued maple hardwood comes with a history.

Reclaimed from a school gym in Canmore, the flooring is not only attractive, but eco-friendly.

At the back of the home, an L-shaped kitchen is outfitted with espresso-hued, shaker style cabinetry, along with a central island and corner pantry.

A spacious dining nook, private back entry and convenient laundr y room and half-bath complete the thoughtfully-planned main floor — however, there’s more to this space than meets the eye.

“What you don’t see is the structural insulated panel walls, which give you a much more consistent building envelope,” Scott says.

“It also gives you more than double the insulative properties for the same thickness. We also have triple-pane, low-E, argon-filled windows and LED lights, which are very efficient.”

The same standards apply upstairs, he adds, where environmentally friendly carpeting is plush underfoot, and where two secondary bedrooms, a generous full bath and a welcoming master bedroom await.

With its cosy, attic-inspired feel and a sunny, spacious ensuite, the master bedroom is an inviting space to relax much like the rest of the home.

“The house feels comfortable, like a normal house,” Scott says.

“It’s simple to operate and comfortable to live in.”

And even better, the Net-Zero home creates all the energy it consumes on an annual basis through its innovative use of photovoltaic energy, solar thermal energy and eco-friendly technologies.

But even with the space-age sounding extras, Ald. Bob Hawkesworth says the home is perfectly livable, and serves as a reminder to home buyers of just what’s possible in modern home design.

“One home may seem like a small step, but when you think about it, that’s how real change happens — with one small step,” he says.

“I see not just Calgary’s first Net-Zero home, I see the future it represents.”

FAST FACTS BUILDER: Avalon Master Builder AREA: Currently at SAIT, moving to McKenzie Towne this spring. PRICE: $550,000 including lot, landscaping and double-car garage. DIRECTIONS: Take 16 Ave. to 12 St. N.W. Turn into SAIT campus. Turn right at traffic circle and follow to Discovery 4 House. HOURS: Monday to Thursday, 4 to 8 p.m., weekends and holidays, noon to 5 p.m. CONTACT: For information, visit http://www.avalonmasterbuilder.com

Calgary to face ‘very active’ spring housing market as economy improves

Wednesday, February 24th, 2010

CALGARY - Calgary will experience a “very active” spring housing market as an improved economic outlook combined with record low interest rates and affordable housing are “fuelling recovery” in residential real estate sales, says a report released today by Re/Max.

“The supply of detached homes is beginning to tighten, with multiple offers becoming more prevalent in hot pockets throughout the city, particularly well-priced, entry-level product,” said the Re/Max Market Trends Report 2010.

“First-time buyers continue to drive the market, looking to take advantage of greater affordability before the window of opportunity closes.”

The report said that while the average price is still off peak 2007 levels it continues its ascent rising seven per cent in the single-family category to $441,217 and four per cent in the condo category to $282,639 over January 2009 levels.

“There has been a notable push by purchasers to get in before predicted interest rate hikes and tighter lending criteria,” said the report. “To that end, buyers are being more cautious in their pursuits, deliberately choosing not to max out debt service ratios, with a trend towards more modest pursuits that can be afforded. The market is picking up at all levels, with move-up buyers increasingly active.”

The Re/Max report, which looked at 16 markets across the country, noticed a sharp decline in active listings. A lack of inventory will be the greatest challenge facing housing markets across Canada this spring, it said.

That, combined with the threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario the introduction of the new Harmonized Sales Tax, have clearly served to kick-start real estate activity “prompting an unprecedented influx of purchasers.”

“Affordability is the catalyst for the vast majority of purchasers in today’s housing market,” said Elton Ash, regional executive vice president for Re/Max of Western Canada. “While homeownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now.”

Ash said the real estate market has experienced a 180-degree turnaround from this time last year.

“It’s clear that real estate from coast to coast has roared back to life and markets are once again firing on all cylinders,” said Ash. “The vast majority of markets are now recovered.”

Calgary’s economy to rebound, lead Canada in 2011

Thursday, February 18th, 2010

CALGARY - Calgary’s economy will rebound nicely this year and go on to lead the country starting in 2011, the Conference Board of Canada said Wednesday.

In its annual outlook for the cities, the board forecast Calgary’s economy will grow three per cent this year. That comes after a 2.3 per cent decline in 2009, the first drop in two decades.

“Fortunately, the initial stages of an economic recovery are starting to take hold,” the board said in its winter outlook.

“Both housing demand and prices are on the rebound, whil overall consumer confidence is gaining some upward momentum.”

Retail sales are expected to jump 4.2 per cent this year, the forecast said.

In 2010, Calgary’s economic growth will put it in the middle of the pack at 10th place. Vancouver is expected to lead the group at 4.5 per cent, boosted by the Olympic Games that begin next month.

A full recovery in the oilpatch should help propel Calgary’s economic growth to 4.4 per cent in 2010, the strongest among the provinces, the report noted.

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