Thursday, April 27, 2017

Calgary's Top Neighbourhoods

The view of Calgary, Alberta as the sun rises (Henryk Sadura/Shutterstock)


       (Henryk Sadura/Shutterstock)

House prices in the No. 1 ‘hood have appreciated 30% in the last five years

                                                                                   

Hoping for a rebound

Many homebuyers in Toronto and Vancouver are becoming convinced you can’t lose money on real estate; homeowners in Calgary know better. Four out of every five neighbourhoods in Calgary lost value last year. The hardest hit areas were also the most expensive. For instance, homes in Elbow Park, just 10 minutes south-west of the Calgary Stampede fairgrounds, fell 12% to an average price of $1.1 million. Overall, neighbourhoods across this city fell on average by 3.1%. Our top 25 however fared slightly better, dropping by an average of 2.5%.

Realtors, however, suggest the worst may be over. More than half of the realtors we surveyed expect prices to stop falling this year, and two out of five expect prices will actually head up again. The east and northeastern parts of the city offer the best value and strongest price momentum, although realtors are cool to a few of these areas. Neighbourhoods favoured by realtors as desirable places to live offer little relative value and weaker price momentum than other parts of the city.

Calgary at a glance… 

  •  

CityTop 25
Average Neighbourhood Price $556,429 $395,191
Median $512,858 $394,067
Max $1,604,550 $550,558
Min $328,992 $330,983
Below $500K46%96%
Average 1-year return-3.1%-1.6%
Average 3-year return7.7%14.8%
Average 5-year return18.1%30.3%
Realtor grade (out of 5)★★★★★½

Calgary’s top 5 neighbourhoods

1. Albert Park/Radisson Heights, East

Homes in Albert Park/Radisson Heights go for as little as $350,000. It’s affordable, but is it good value? It depends on what you’re looking for. If you’re looking at appreciation potential, this area has momentum on its side. While the average neighbourhood price in the city fell by 3% last year, the drop in prices here was a little more modest. That’s important given homes in this neighbourhood are up almost 30% over the past five years, which far outstripped the average. Realtors, however, are reluctant to give this neighbourhood high praise. It’s close to the LRT and strip malls, but it’s more conducive to income properties, says Casey Pedazo with Re/Max Realty Central. It’s a good location, but the area is mostly populated with bungalows that were built in the 1970s and 1980s.

2. Martindale, Northeast

Almost every neighbourhood in Calgary saw home values fall when the provincial economy hit a rough patch, but Martindale was one of the few exceptions. Even after surging 35% over the past five years, homes in this area held their value in 2016. And according to Pedazo, activity is already starting to pick up here. Unlike Albert Park, Martindale is comprised of newer homes that are better suited for families.

Photo gallery: Top 25 Calgary neighbourhoods »

3. Castleridge, Northeast

If you’re looking for a neighbourhood closer to the city, consider Castleridge. While homebuyers can expect to find bungalows that aren’t too old, many of them are being knocked down and replaced by larger two storey homes with an attached garage. This is an established area that really appeals to buyers who don’t want to travel further east, away from the city, says Pedazo.

4. Southview, East

This neighbourhood is close to amenities and offers easy access to the downtown core, but one of the key attractions for homebuyers in Southview is price. This is a low-income part of the city says Gary Fayerman with Re/Max First. The area is made of well-kept bungalows and is appealing to families.

5. Falconridge, Northeast

Proceed with caution. That’s the advice of Fayerman when it comes to Falconridge. “We’re very cautious in that district,” he says. This is a low-income area that is only attractive because of its low-cost. Indeed, it is the third-cheapest area in the city. While prices took a step back in 2016, home values in this neighbourhood are up more than 36% over the past five years.

Realtor Pick: Hillhurst, City Centre

If you want to get realtors excited in Calgary, ask about Hillhurst. “This is a great area,” says Fayerman. Builders have been sweeping in here in recent years to rip out older homes and replace them with new higher-end dwellings. “It’s really changing over,” he says. Fayerman estimates 60% of the properties here are now new. This area is particularly attractive for investors and builders, he adds.

Photo gallery: Top 25 Calgary neighbourhoods »

Where they land on a map

Tap or click to see where to find the top five Calgary neighbourhoods and this year’s realtor pick.

 

Top 25 Calgary neighbourhoods ranked

Click here to see the full ranking of Calgary neighbourhoods.Calgary-25
  • RankNeighbourhood Area Average priceValueMomentumRealtor grade
    1 Albert Park/Radisson Heights East $343,808      ★★½
    2 Martindale Northeast $360,550      ★★
    3 Castleridge Northeast $337,258      ★★
    4 Southview East $380,058      ★★½
    5 Falconridge Northeast $331,367      ★★
    6 Marlborough Park Northeast $398,708      ★★
    7 Pineridge Northeast $394,067      ★★
    8 Abbeydale Northeast $337,150      ★★
    9 Taradale Northeast $398,075      ★★
    10 Haysboro South $470,667      ★★★½
    11 Skyview Ranch Northeast $410,733      ★★★
    12 Country Hills North $415,717      ★★★
    13 Coventry Hills North $434,458      ★★★
    14 Dover East $350,100      ★★
    15 Forest Heights East $330,983      ★½
    16 Fairview South $410,283      ★★★
    17 McKenzie Towne Southeast $424,175      ★★★½
    18 Harvest Hills North $454,908      ★★★
    18 Whitehorn Northeast $361,408      ★★
    20 Kingsland South $473,492      ★★★
    21 Tuscany Northwest $550,558      ★★★½
    22 Bowness Northwest $348,367      ★★★
    23 Monterey Park Northeast $415,033      ★★½
    24 Rundle Northeast $380,883      ★★
    25 Marlborough Northeast $366,975      ★★

 

Tuesday, April 4, 2017

Fighting Homelessness


Calgary follows Medicine Hat’s footsteps as it aims to win the battle against homelessness. Getty Images
 

Medicine Hat’s virtual elimination of homelessness gives Calgary a good path to follow
Governments of all levels have been talking about ending homelessness for some time now, but Medicine Hat is actually walking the talk.
With a population over 63,000, Medicine Hat, for all intents and purposes, has put an end to chronic homelessness – a cycle in which individuals are perpetually stuck, residing in shelters, or worse, living on the streets for extended periods.
It’s a goal seven municipalities across Alberta, including Calgary, vowed to accomplish almost a decade ago. But only Medicine Hat can claim success — outside of a handful of individuals who continue to use the city’s shelter system on a long-term basis.

So what’s its secret?
“Our plan to end homelessness is based on the housing first philosophy, meaning that housing is a basic human right and people are worth having a roof other their heads,” said Jaime Rogers, manager of Homeless and Housing Development Department with Medicine Hat Community Housing Society.
This approach is by no means unique to Medicine Hat. The Housing First initiative is, in fact, a national campaign that has been embraced by large cities, including Calgary. What makes Medicine Hat a little different is it has been ahead of the curve in prioritizing housing, says Kevin McNichol, vice president of strategy for the Calgary Homeless Foundation, a leading non-profit providing services for homeless individuals and families.
“Calgary was the first city in Alberta to launch a 10-year plan to end homelessness, so in many ways we’re trailblazing,” said McNichol.
Yet early on, its efforts were more diffuse – a patch-work approach of providing food, clothes, blankets and social services to the city’s more than 3,000 homeless individuals, as well as housing solutions.
But about five years ago the city, province and non-profit organizations came together to refocus on housing as the linchpin to ending chronic homelessness in Calgary.
“It was really about recognizing that homelessness is not some dysfunction or failure on the part of people who find themselves homeless,” he said. “There are systemic, structural and societal issues that have often led them to be in a space where they don’t have access for a variety of reasons to basic needs, and housing is central to meeting those needs.”
He adds Medicine Hat’s efforts gave Calgary a good road map to follow.
Our plan to end homelessness is based on the housing first philosophy, meaning that housing is a basic human right and people are worth having a roof other their heads.
Medicine Hat now triages homeless individuals and families who come into the shelter system. It’s a successful initiative that has since been adopted in Calgary.
“Individuals would not have to experience emergency shelters for more than 10 days prior to be connected to the appropriate housing supports to end their homelessness,” said Rogers. “That does not mean they receive housing within those 10 days because there are a lot of external factors that we can’t control like the availability of housing units.”
But thanks to this process the majority of homeless individuals do not fall through the cracks of the system, she adds.
Another factor in Medicine Hat’s success is that housing for the homeless is largely provided by the private sector in Medicine Hat.
“We rely heavily on landlords and property management companies,” said Rogers.
That approach has proven more difficult in Calgary where affordable housing is in very short supply. According to a recent City of Calgary report, Calgary’s subsidized and affordable housing is a little more than half the national average.
While the statistics on affordable housing aren’t pretty, agencies at least now know what they’re up against, says McNichol.
“If we had this kind of data in the early days, we might have set some slightly different agendas.”
Challenges aside, Calgary has made remarkable progress, he adds.
“The fact is we’ve still been able to house over 8,000 people since we started this campaign,” said McNichol, adding the goal is to provide housing for 10,000 people by the end of 2018.
Yet, McNichol says the city will probably never truly end homelessness. “But what is achievable is we can ensure that it no longer becomes a permanent condition for people."

 

Thursday, March 16, 2017

Did You Sell Your Home in 2016? Let the CRA Know or Else . . .

A for sale sign displays a sold home in a housing development in Ottawa.

 
If you sold your home in 2016, you need to let the taxman know as failing to do so could cost you up to $8,000 in penalties.
You heard that right.  Canadians didn’t used to have to report the sale of the home that was their primary residence, but the Liberal government changed that when it introduced new federal mortgage rules last October.
 

Starting this tax-filing season, a home sale that took place after January 1, 2016 needs to appear on your income tax return. Here’s what you need to know:

You still get the principal residence tax exemption

The changes do not affect your ability to claim the principal residence tax exemption, one of the most cherished provisions of our country’s income tax system. If you made money from selling your home, you don’t have to pay a capital gains tax on the proceeds.
From now on, however, you need to report the sale in order to be able to claim the exemption.

 Canadians in the sharing economy are running out of excuses not to pay taxes

New requirement part of a tax-evasion crackdown

The new rule is meant to reduce tax evasion and take some steam out of overheated housing markets by closing a loophole exploited by real estate speculators.

Are federal mortgage rules actually working? Not really.
Without a requirement to disclose the sale of a primary residence, house flippers had an easy time buying and selling property tax-free. The primary residence exemption was never meant for such transactions, but what were the chances of an audit when the CRA wasn’t even aware the sales?
When the Liberals introduced the reporting requirement, it was widely seen as a measure to crack down on foreign buyers. But the primary residence exemption has been widely abused by Canadians as well, York University professor Lisa Philipps has noted in the Globe and Mail. 
And now that the CRA will start receiving more data on home sales, you can bet it will keep a close eye on them.

Can’t afford to pay your tax bill? Here’s what you can do
“There is a perception that house and condo renovation and flipping has been taking place and that the profits from those sales are not being reported,” Toronto tax lawyer David Rotfleisch wrote on his website. And that has put pressure on the CRA to crack down, he added.
The agency has added at least 70 auditors to look specifically at real estate in B.C., according to a leaked memo that emerged last summer.
The CRA has also recently told Global News that stepped-up information-sharing with the provinces has helped it detect fraudulent real estate transactions.
In general, the industry is one of three — along with the food and accommodation sector and the retail sector — that the agency has singled out in its effort to catch tax-cheats in the cash economy.

WATCH: Canadian tax deadline: 8 things you need to know


Here’s what you need to do to stay out of trouble

  • Report the sale of your primary residence on Schedule 3 of your T1 return. You’ll have to indicate when you bought the house, when you sold it and how much you made on it. You’ll also have to provide a description of the property.
  • If you didn’t live in the house for the entire period you owned it, you’ll have to also file Form T2091, according to the CRA website. This would apply, for example, if you’ve designated your cottage as your principal residence for part of the year.
  • Even if you rent part of the house or use it for business as well, you might still be able to claim it as your primary residence. More details here.
  • If you forget to report the sale this year, you should file an amended return as soon as you can. The CRA can impose a penalty of $100 for every full month since the filing deadline, capped at $8,000. The good news is that the agency has said that for the first year it will only apply the penalty “in the most excessive cases.” Remember, though, if you don’t file, you won’t be eligible for the capital gains tax exemption.
 

© 2017 Global News, a division of Corus Entertainment Inc.

Tuesday, February 21, 2017

Here's What $500K Homes Look Like In 14 Canadian Cities

February 18, 2017 4:47 pm     Updated: February 18, 2017 5:18 pm


 


What if you cashed out of your pricey pad and moved some place where you could get a house twice as nice for half as much?
The average price of a home in Canada went up just over seven per cent in 2016, according to the Canadian Real Estate Association. At only $489,591, the price seems very affordable for those in big city centres like Vancouver and Toronto where average home prices are almost double that.
But elsewhere in the country, $500,000 can go pretty far.
 
In December, we took a look at what $1 million homes looked like in key Canadian cities. From a run-down home ready for demolition in a south Vancouver neighbourhood to a stunning and large lakefront home in Halifax, the discrepancies from coast to coast were remarkable.
Now we’re lowering the bar to a more affordable price point.
To keep it simple, we  went searching for detached homes with at least three bedrooms. In some cases, it wasn’t possible to find one in our budget. For those, we had to go outside the city.
Here’s what you can get for $500,000 in cities across Canada:


Vancouver, BC

What you get for $500,000:
With nothing in Vancouver-proper in the budget, there was this home in Langley. Listed at $545,000, this 1920’s character home has three bedrooms and needs quite a bit of work.
vancouver real estate langley
vancouver real estate langley
 

Victoria, BC

What you get for $500,000:
What used to be an affordable oasis a boat ride from Vancouver, Victoria’s home prices are now growing at a rapid pace. The cheapest detached home outside the city in Saanich is listed at $517,500 and needs considerable work – or a bulldozer.
3217-millgrove-street-saanich-bc-8873_16289549-1585550-0_lightbox
3217-millgrove-street-saanich-bc-4005_16289549-1585550-5_lightbox

Kelowna, BC

What you get for $500,000:
As the increase in prices moves east, homes in Kelowna are still on the verge of affordable. This four-bedroom home in West Kelowna was built in 2003 and is listed at $519,000.
kelowna real estatekelowna real estate

Calgary, AB

What you get for $500,000:
Who said real estate in Calgary came cheap? In the Marlborough neighbourhood of Calgary, this renovated home is listed at just under $500,000. It may be some distance from the city but it is close to the C-Train.
calgary real estate calgary real estate

Edmonton, AB

What you get for $500,000:
For just under $500,000, you can buy a 2,200 square-foot home with four bedrooms right on the River Valley. Located in Beverly Heights, a neighbourhood east of Edmonton, the home is fully renovated and comes with an amazing view.
Edmonton real estate
edmonton real estate

Saskatoon, SK

What you get for $500,000:
This home, built in 1912 and updated to modern standards, is listed for $539,000. Located in the Riversdale neighbourhood, it has five bedrooms but only one bathroom.
Saskatoon real estate
Saskatoon real estate

Winnipeg, MB

What you get for $500,000:
You get a lot of bang for your buck in Winnipeg. This river-front home in North Kildonan has five bedrooms, four bathrooms and a large backyard backing on the river. It also has an elevator.
Winnipeg real estate
winnipeg real estate

Toronto, ON

What you get for $500,000:
Toronto prices certainly aren’t getting cheaper. The city is feeling a real estate boom similar to Vancouver’s, meaning $500,000-homes are like finding a needle in a haystack. This one in West Hill, east of Toronto, sits on a 20-foot lot and has five bedrooms.
Toronto real estate
Toronto real estate

Hamilton, ON

What you get for $500,000: 
This home in Sherwood, Hamilton is listed at $488,484 and comes with a large backyard, four bedrooms and two bathrooms. It’s been recently renovated and has air conditioning.
Hamilton real estate
Hamilton real estate
 

Ottawa, ON

What you get for $500,000:
Just across the river in Gatineau, this new home built in 2011 offers modern luxuries and an above-ground pool. It’s apparently only seven minutes away from Ottawa and is listed at $549,900.
Ottawa real estate
Ottawa real estate

Montreal, QC

What you get for $500,000:
A renovated “cottage” in Saint-Laurent can be yours for $479,000. It has three bedrooms, two bathrooms, a solarium and a finished basement.
Montreal real estate
Montreal real estate
 

St. John’s, NL

What you get for $500,000:
Most new construction in St. John’s is priced in the $500,ooo range. This brand new home in Kenmount Terrace is listed at $492,900 and includes three bedrooms, three bathrooms and an open-concept floor plan.
St. John's real estate
St. John's real estate

Moncton, NB

What you get for $500,000: 
For much less than $500,000, this Moncton home features four bedrooms, four bathrooms and a custom kitchen. It’s located right in the heart of the city and is listed for $459,000.
moncton real estate
moncton real estate

Halifax, NS

What you get for $500,000:
Just across the bridge in Dartmouth, this 1872-built home with modern updates is listed for $549,900. It has four bedrooms and a large 14,000-square foot lot overlooking the Halifax harbour.
Halifax real estate
Halifax real estate

 


© 2017 Global News, a division of Corus Entertainment Inc.

 

Thursday, February 2, 2017

Better than the Last

Houses in Calgary, Canada

 

January market improves over last year

At 4,112 total units, January’s inventory was 18 per cent below last year’s levels, according to CREB®, which released its monthly housing summary today.

“While housing conditions continue to favour buyers, a slow transition toward more balanced conditions is helping to ease downward pressure on home prices,” said CREB® chief economist Ann-Marie Lurie. “Conditions have improved over last year, but people need to remember that last year’s market was one of the weakest on record. Despite the appearance of a major shift in activity, the transition in the housing market is going to be a slow process.”

January sales totaled 947 units, 24 per cent above last year, but 21 per cent below 10-year averages for the month. Sales activity improved across all product types, but only when compared to the near record lows that occurred in January 2016.

The detached segment of the market is demonstrating the most improvement.  Sales activity totalled 584 units in January, a considerable improvement over the 466 sales recorded last year. Inventories have also declined pushing the months of supply to 3.2 months well below the 5.4 months recorded in January 2016.

“This past month showed how the market never stands still,” said CREB® president David P. Brown. “The market isn’t expected to be as unpredictable in 2017, but it’s early in the year and there are still lots of unknowns that will shape decision-making for consumers.”

“Every transaction is a personal decision and anyone going through the process of buying and selling real estate will be trying to make the best decision for their family. They need to consider their long-term objectives and think about the price they are willing to accept or pay for a home.”

City-wide benchmark prices totaled $437,400, 0.16 per cent lower than last month and 2.82 per cent lower than last year’s levels. Since recent highs in 2014, residential prices have declined from a low of 4.9 per cent in the detached sector to highs of 11.5 per cent in the apartment condominium market.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

 

Thursday, January 26, 2017

High-End Home Sales in Calgary to Continue to Rebound

 


A built-in coffee machine, here below the wine rack, adds a touch of luxury to the daily              

CP, The Canadian Press
More from CP, The Canadian Press
    
Supplied / Calgary Herald
 
Sotheby’s International Realty Canada says it’s expecting a buyers’ market for luxury homes in Calgary in the first quarter of 2017 following a lift in sales last year.

After declining 40 per cent year-over-year in 2015 due to the sudden plunge in oil prices, sales of homes worth $1 million or more rose 19 per cent, to 612 properties, in 2016.

The realtor released a report Wednesday that looked at sales of homes for more than $1 million in Calgary and three other cities — Toronto, Montreal and Vancouver.

It said high-end sales activity in Calgary stabilized last year as prices better aligned with buyers’ conditions. Sales of $1 million-plus single-family homes grew 22 per cent year-over-year to 548 properties. Nineteen luxury condo units sold for $1 million or more.

Toronto is poised to lead the country in high-end home sales for a third consecutive year, Sotheby’s Canada said.

It concluded 19,692 such properties were sold last year in the Greater Toronto Area — an increase of 77 per cent compared to 2015. Sales of homes worth more than $4 million in the GTA rose 95 per cent year-over-year to 290 properties.

In Vancouver, high-end home sales started off strong but slowed in the second half of the year as a number of government policy changes took effect. They included a one-per-cent tax on vacant homes implemented by the City of Vancouver and the B.C. government’s 15 per cent tax on foreigners buying homes in Metro Vancouver.

Those changes amplified a cooling in the Vancouver real estate market that started over the summer, Sotheby’s said.

Sales in Vancouver’s $1 million-plus market were down 34 per cent year-over-year in the second half of the year compared to the same period in 2015. But on an annual basis, sales of Vancouver homes worth $1 million or more were relatively flat last year, down one per cent year-over-year to 4,515 properties.

Luxury home sales were up 36 per cent year-over-year in the city, with 573 properties priced at more than $4 million trading hands.

The realtor says global turmoil — including Britain’s vote to exit the European Union and Donald Trump’s election win in the U.S. — injected uncertainty into global real estate markets last year.
Canada, which is regarded as a haven, has a low dollar and a strong real estate market, making it a desirable destination for real estate investment and immigration, the report said.

Monday, January 23, 2017

CMHC Hiking Insurance Premiums



By Robert McLister

Homebuyers with less than 20% down are going to pay more.

CMHC is hiking mortgage insurance rates for the third time in three years. Premiums are jumping up to 0.65 percentage points on the highest LTV mortgages, effective March 17, 2017. Here’s the new premium table:



But high-ratio hikes aren’t the only story. Premiums on mortgages between 65.01 and 80% LTV are soaring too.

At 80% LTV, the premium is almost doubling to 2.40%. That will push up interest rates among lenders who currently pay this premium for their customers in order to securitize the mortgage.

CMHC had a conference call this morning about the increases. Here were some takeaways:
  • It says these premium hikes are due mainly to OSFI’s capital requirement changes, which took effect January 1.
  • OSFI’s new capital requirements include a formula based on LTV, credit score, location and other things. Oddly, this formula disproportionately targets (increases the costs for) mortgages in the conservative 65.01 to 80% LTV bracket.
  • Bulk insurance premiums have increased similar to the low-ratio transactional premiums, says CMHC.
  • The insurer says it has communicated bulk pricing criteria to lenders (although the securitizing lenders I’ve spoken with cite considerable obscurity in bulk pricing, which has led many of them to transactionally insure their mortgages instead).
  • Roughly two-thirds of CMHC’s business is in the 95% LTV category, said CMHC, and about 4% of its transactional insurance is used for low-ratio customers.
Steven Mennill, Senior Vice-President, Insurance, said that CMHC is “Not doing this to affect housing markets…” and doesn’t think it will have a significant effect on competition.

Mortgage finance companies would vehemently disagree. Higher premiums have already limited competition in the low-ratio market where MFCs must charge rates that are up to ¼ point higher on 80% LTV deals (compared to last fall).

Big banks, which don’t need to rely on insured mortgages for securitization purposes, now have more pricing power than ever—at least since the dawn of NHA-MBS. And no one should blame banks. They’re not writing these rules. But from a consumer standpoint, Joe Borrower is getting the shaft, which leads us to the legislated purpose of the National Housing Act:

“The purpose of this Act, in relation to financing for housing, is to promote housing affordability and choice, to facilitate access to, and competition and efficiency in the provision of, housing finance, to protect the availability of adequate funding for housing at low cost, and generally to contribute to the well-being of the housing sector in the national economy.” (emphasis ours)
 
The recent decisions by the Department of Finance, OSFI and CMHC appear to twist or flout these essential provisions of the National Housing Act.

Policymakers argue that such measures are warranted for the stability of the market. That’s a whole other debate, one that’s not well supported by any publicly available mortgage risk data (default rates, overall credit quality, equity levels, etc.).

Suffice it to say, Canada’s mortgage industry never required an unlevel competitive playing field to create stability. But that’s what these new premiums have now given us.