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Author: Vote Calgary

http://www.chattersondrive.com
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Builders keeping eye on affordability

There’s something different about housing lots in Calgary’s new subdivisions this year.

They’ve gone from tumbleweeds rolling across empty land to places where construction workers are busy with hammers and saws.

Ballooning housing construction starts have already seen triple-digit percentage increases during 2012 — including a 207-per-cent swing in April compared to the same time last year.

Although that spells good news, it may come with some challenges, too.

The upside is obvious. Increased construction means the city’s housing industry is in recovery mode.

And more people making big-ticket purchases, such as new homes, is good news for the overall economy.

The challenging part is related to supply and demand — and in this case, there’s an imbalance.

When construction starts were moving at a snail’s pace in 2011, the lack of work meant some tradespeople had to look elsewhere to ply their craft.

Now that the market is on the mend, qualified people are becoming scarce. So for those still in Calgary and with the know-how to build a new home, their wages are on the rise.

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Source: Calgary Herald  Author: Josh Skapin 
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The Limits of Density

Density is all the rage these days. Urban economists, some of whom could be heard extolling the praises of "sun, skills, and sprawl" just a few years ago, now see increasing density as the key to improving productivity and driving economic growth. In his story for The Atlantic, "How Skyscrapers Can Save the City," Harvard University’s Edward Glaeser put it this way: "As America struggles to regain its economic footing, we would do well to remember that dense cities are also far more productive than suburbs, and offer better-paying jobs ... tall buildings enable the human interactions that are at the heart of economic innovation, and of progress itself." Well-intentioned planners and preservationists drive up prices when they stand in the way of taller and taller buildings, he argues. Overly restrictive height limitations not only impede economic progress, but make cities less, not more, liveable.

There can be no doubt that density has its advantages. In general, denser cities are more productive, more innovative, and more energy efficient. But only up to a point.

The key function of a city is to enable exchange, interaction, and the combination and recombination of people and ideas. When buildings become so massive that street life disappears, they can damp down and limit just this sort of interaction, creating the same isolation that is more commonly associated with sprawl. As Jane Jacobs aptly put it: "in the absence of a pedestrian scale, density can be big trouble." Skyscraper canyons of the sort that are found in many Asian mega-cities, and that are increasingly proposed in great American cities, risk becoming vertical suburbs, whose residents and occupants are less likely to engage frequently and widely with the hurly-burly of city life.

Edward McMahon of the Urban Land Institute cuts to the chase, differentiating between density and high-rise buildings in his recent post for Citiwire, “Density Without Highrises?”. If the pendulum originally swung too far in the direction of sprawl over the past 50 years, the risk today is that it is swinging way too far back toward high-rise skyscrapers. "To oppose a high-rise building," he writes, "is to run the risk of being labeled a NIMBY, a dumb growth advocate, a Luddite — or worse. Buildings 20, 40, 60 even 100 stories tall are being proposed and built in low and mid-rise neighborhoods all over the world. All of these projects are justified with the explanation that if density is good, even more density is better."

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Source: The Atlantic Cities  Author: Richard Florida 
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Luxury home sales booming in Calgary

Growing confidence in Calgary’s residential housing market has spilled over into luxury properties with first-quarter sales over the $1-million price point, the best on record since 2007, says a report released Wednesday by Re/Max. The Upper-End Market Trends 2012 report said 115 homes changed hands in the first quarter, up from 106 during the same period in 2011, 67 in 2010, 35 in 2009, and 86 in 2008. Only 2007 posted greater sales activity in the top end, with 124 sales priced over $1 million, said Re/Max. “Locals are primarily behind the push, trading up to larger homes or lot sizes, taking advantage of today’s low interest rates and more affordable housing values,” said the report. “Movement back into Calgary — in the form of transfers from international corporations — is also a trend worth noting. A good selection of upper-end product is available in the City of Calgary where more than 400 properties are currently listed for sale. Inventory is noticeably tighter closer to the inner core, especially in older, established areas like Elbow Park, Bonavista, and Mount Royal.” According to the blog of Calgary realtor Mike Fotiou, of First Place Realty, 36 single-family homes in Calgary sold for more than $1 million in the first two weeks of May. That’s up from 31 sold during the same period last year. Sales in that price point for single-family homes for the first two weeks in May historically were: 28 in 2010; 16 in 2009; 23 in 2008; and 27 in 2007. Read more
Source: Calgary Herald  Author: Mario Toneguzzi 
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Caviar condos set to flood Toronto market

Five months after buying one of Toronto’s new luxury hotel condominiums, Oliver Baumeister is girding for a glut of suites like his to hit the market as the biggest names in the hotel business open hundreds of units in Canada’s largest city.

Baumeister, himself a real estate agent, is in no rush to sell. When Toronto’s untested market for five-star condo living absorbs the surplus - say by 2016 - he intends to offload his sky-high unit for a tidy 20 percent profit, and look for his next Canadian real estate investment.

“A bunch of it will sit for a while and it will take time to sell,” said Baumeister, who has been buying Toronto condominiums with his brother for the past four years.

“But we bought it with the belief that the Toronto hotel condo market definitely has a future. When we sell, hopefully ... we’ll see about a 20 percent profit.”

The model of ultra-fine condos attached to luxury hotels isn’t new - cities like Hong Kong and New York are full of them.

But Toronto, a relatively small city with no five-star hotel condominiums a year ago, is coming to the game late but with a vengeance.

By the end of this summer Toronto will have four such projects, as Four Seasons, Ritz Carlton, Trump and Shangri-La open massive towers in a city where a red-hot market for all types of housing has brought rising concern about a real estate bubble.

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Source: Calgary Sun  Author: Andrea Hopkins 
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Calgary leads country in year-over-year MLS sales growth

Calgary led the country in April with the highest year-over-year growth in MLS sales, according to the Canadian Real Estate Association.

In a report released Tuesday of housing market activity in Canada’s major centres, CREA said MLS sales of 2,720 in Calgary were up 30.3 per cent from a year ago.

In Canada, sales of 49,480 for the month increased by 11.5 per cent from April 2011.

The average MLS sale price in Calgary rose by 0.7 per cent to $414,932 while it was up 0.9 per cent in Canada to $375,810.

“Calgary is quietly becoming a market to watch,” said Robert Kavcic, economist with BMO Capital Markets, adding sales are back above the 10-year average for the first time in about three years.

“Prices have yet to gain much momentum but supply conditions are tightening rapidly across Alberta. The months’ supply was down to 4.6 from a post-recession high of more than eight, and sales have far outpaced new listings in recent months. If oil prices remain high enough to continue supporting strong economic growth and migration flows, Calgary could again become Canada’s real estate hot spot in short order.”

Robert Hogue, senior economist with RBC Economics, said April was the third consecutive “outsized” increase in Calgary which is a “clear indication that this market is finally taking flight.”

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Source: Calgary Herald  Author: Mario Toneguzzi 
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Home starts triple year over year

The numbers for the Calgary housing market are close to, but not completely in, the stratospheric heights of the boom years from late 2005 to early 2008, but they’re certainly knocking the socks off of 2011.

New home starts figures for April released this week by Canada Mortgage and Housing Corp. (CMHC) show new home builders in the Calgary Census Metropolitan Area (CMA) poured the foundations on 1,708 units in April, more than triple the 556 starts in April 2011.

Last month’s activity takes the year-to-date total to 4,908, significantly higher than the 2,104 starts in the first four months of 2011 and the highest January-to-April total since 2008’s 5,752 starts.

As has been the case in all of 2012, multi-family starts far outnumbered single-family starts as construction of a number of high-rise apartment-style condo buildings was begun, says Lai Sing Louie, CMHC’s regional economist for the Prairies and Territories.

“Multi-family starts, which consist of semi-detached units, rows and apartments, rose to 1,151 units in April 2012, up from 138 units a year earlier,” says Louie. “Apartment starts have been a substantial contributor to multi-family production for the last several months. “There were 918 apartments started in April, compared to only four units in 2011. Semi-detached and row units were also up from the same month last year.

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Source: Calgary Sun  Author: Myke Thomas 
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Women more likely to be first-time homebuyers, Canadian poll finds

Women are more likely than men to be first-time homebuyers among Canadians who plan to buy a home within the next two years, according to the 19th Annual RBC Homeownership Poll released Monday.

The poll said 49 per cent of women and 35 per cent of men plan to be first-time homebuyers.

“We are seeing more single women entering into the housing market, as income levels, changing demographics and lifestyle patterns shift purchasing habits,” said Marcia Moffat, head of home equity financing, RBC. “But women are being more cautious than men, weighing cost, affordability and job security before buying a home.”

Of the Canadians who have recently become first-time homebuyers, men and women were tied (47 per cent) in saying affordability was the biggest concern that prevented them from purchasing a home earlier.

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Source: Calgary Herald  Author: Mario Toneguzzi 
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The State of American Infrastructure

A growing number of American states and metropolitan areas understand that their competitive position and quality of life depends on investing both in growing infrastructure backlogs and cutting-edge opportunities. They know that to succeed in the global marketplace, and compete successfully for jobs and residents, they must build 21st century infrastructure. Self-interest, disciplined by scarce resources, is spurring entrepreneurial metro regions to experiment with new approaches, create new partnerships, and connect the infrastructure dots in innovative ways.

The Urban Land Institute, in partnership with Ernst & Young, tracks global trends in infrastructure. In our annual reports, we’ve emphasized the need for the country to take infrastructure seriously. Infrastructure 2012: Spotlight on Leadership [PDF], released today, shows how many metropolitan areas are demonstrating infrastructure leadership, and explores the new infrastructure connections metros around the country are making.

Connecting funding with a positive vision for the future. Many metropolitan regions are appealing directly to voters to allocate new resources for transit and road investments, often in the form of property or sales tax increases. Even during the heart of the recession, these efforts have been successful. ULI analysis of data from the Center for Transportation Excellence indicates that between 2008 and 2011, 64 percent of ballot measures funding transportation passed.

By painting a picture of a more interconnected, sustainable future and emphasizing benefits to individuals, successful ballot campaigns convince voters of the value of investing in their communities. When voters know what they are buying, and believe in its worth, they are more likely to commit resources. Strong champions are a crucial part of the puzzle.

Infrastructure 2012 highlights the successful campaign for 2008’s Measure R in Los Angeles County, which is funneling $40 billion into a long list of transit and road improvements to be built over 30 years. Los Angeles Mayor Antonio Villaraigosa was a strong supporter of Measure R, and is now seeking ways to deliver the projects in 10 years, rather than 30. Oklahoma City has also found a formula for success in its Metropolitan Area Projects series, which is channeling resources into a variety of urban priorities. In late 2009, voters approved a third temporary sales tax increase, which will collect $777 million over eight years and fund riverfront upgrades, a new grand central park, and 57 miles of recreational trails.

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Source: The Atlantic Cities  Author: Rachel MacCleery 
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Mortgage arrears rate highest in Alberta

The mortgage arrears rate in Alberta is by far the highest in the country, according to the CIBC Household Credit Analysis report released Wednesday.

In January, the rate in Canada was 0.4 per cent while in Alberta it was 0.7 per cent.

“This reflects the fact that, on average, homeowners in Alberta are younger and less established,” said the report authored by Benjamin Tal, deputy chief economist at CIBC World Markets. “As well, the pre-recession period in Alberta had seen activity surging rapidly — leading to a higher percentage of consumers overextending themselves to speculative investment activity and excess.”

In March, the average sale price of a home in Alberta was $358,988, the third highest in the country behind British Columbia at $522,663 and Ontario at $389,342. The Canadian average was $367,821.

The CIBC report said there are some early signs of moderating activity in the Canadian mortgage market.

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Source: Calgary Herald  Author: Mario Toneguzzi 
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Calgary region building permits soar

The value of building permits in March in the Calgary region soared year-over-year, according to the latest data by Statistics Canada.

The federal agency reported Monday that permits during the month were $457.7 million in the Calgary census metropolitan area, an increase of 33.3 per cent from March 2011 and up 2.9 per cent from February.

In Alberta, permits totalled $1.2 billion, representing a monthly hike of 5.6 per cent and an annual gain of 37.5 per cent.

The residential sector in the province rose to $698.3 million, up 6.8 per cent from February and an increase of 22.7 per cent from a year ago. The non-residential sector saw a whopping 64.6 per cent year-over-year spike to $509.9 million which was also an increase of 3.9 per cent from February.

Todd Hirsch, senior economist with ATB Financial, said building intentions are an excellent leading indicator of economic conditions — a reliable predictor of where overall activity is going. “In Alberta, the solid building permit data add to the general optimism in the province around the economy,” he said. “The rivalry between Alberta’s two largest cities also seems to be heating up. Five years ago, Calgary was clearly in the driver’s seat with building permits nearly double those in Edmonton. However, that gap has closed and now the two cities are neck-and-neck in the race for construction activity.”

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Source: Calgary Herald  Author: Mario Toneguzzi 
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