Broadsheet Test

eConoMiC ouTlook Page 4

neW preZ To Be sWorn in Page 5

FinalisTs reVealeD Page 6

A SPECIAL REPORT ON THE

Fairmont Jasper Park Lodge Sept. 20 to 23

ALBERTA

HOME BUILDING INDUSTRY

a C a l g a r Y h e r a l D / e D M o n T o n J o u r n a l s p e C i a l F e aT u r e

W e D n e s D aY, s e p T e M B e r 1 9 , 2 0 1 2

MARKET OVERVIEW

– Stuart Gradon, Calgary Herald

kim and steve Cunningham with their daughters ashleigh, left, and Maiya at their home in auburn Bay in Calgary. The family purchased the esteem floor plan from Jayman MasterBuilT. The plan is a finalist in the alberta awards of excellence in housing’s single-family home from $325,000 to $375,000 category.

‘Livable’ details draw buyers Finalists see demand for more space and new ideas Claire Young CALGARY HERALD

C

algary couple Kim and Steve Cunningham chose their new home in the southeast community of Auburn Bay not only because it was in a lake community, but because of the model’s clean, modern lines.

“Our taste is extremely contemporary modern,” says Kim Cunningham about the Esteem floor plan by Jayman MasterBUILT. The two-storey home is 2,600 square feet, with three bedrooms and a bonus room upstairs and a two-car front-attached garage.

It has a large master bedroom with an ensuite “that is absolutely out of this world,” Cunningham says.

“That’s why my husband bought this house.

He walked in there and (gasped).” The ensuite features a divided his and hers area.

They decided to buy new for the second time from Jayman MasterBUILT, a home builder in Calgary and Edmonton.

They had just renovated the main floor of

their other home in nearby Cranston. The cost of further renovating the second floor put them on par with buying the new Esteem home in Auburn Bay for about $620,000 with upgrades.

The Esteem floor stephen Barnecut plan is a finalist in this year’s Alberta Awards of Excellence in Housing in the category of single-family home from $325,000 to $375,000 (home only, without lot or GST). Winners are to be announced at this weekend’s BUILD (Being a United Industry in Leadership and Development) Alberta conference in Jasper.

The Cunninghams appreciate livable details such as a pocket door separating the toilet and bathtub from the double sink vanity in the main bathroom, which is shared by their two teenage daughters, Ashleigh and Maiya.

The Cunninghams’ modern taste is a trend capturing the Calgary market, says Stephen Barnecut, director of product development at Jayman MasterBUILT as well as principal of

Stephen Barnecut Architecture Corp.

“We’re avoiding historical styles and having a lot of success with it, and more success than we thought,” he says.

“People have always had more contemporary interiors than exteriors, and certainly open plans have been around for decades. But exteriors have conventionally been really traditional.

We’re seeing a move away from that.”

Barnecut says the trend is likely an influence of the contemporary design of new architecture, both residential and commercial, in Calgary’s downtown and inner city.

Part of what is pushing design in Calgary is being led by the political — by the City of Calgary’s plan to increase density.

Barnecut predicts Jayman will continue to develop more multi-family product in the future, while keeping practical needs in the forefront of design.

“People are really demanding more square footage,” Barnecut says. Jayman is finding buyers are more interested in closing off an open-to-second-floor great room to add another bedroom or upstairs laundry, for instance.

Kitchens are really becoming not only the

family, but the entertainment, focus of homes, Barnecut says. They are open to the great room, peninsulas are becoming islands for better flow, and eating bars are more often flush rather than raised counters on the islands People are for better sightlines.

In contrast to the demanding thirst for the modern, more square more traditional elements are sought by footage.

White Eagle Homes’ clients in Edmonton.

White Eagle Homes is a five-time finalist in this year’s single-family categories for the Alberta Awards of Excellence in Housing.

The company’s buyers tend to be a little older, more established and know what they like, says Bozena Odyjewski, co-owner of White Eagle Homes.

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See TRENDS, page 2

2

ALBERTA HOME BUILDERS

Wednesday, September 19, 2012

Breaking news at calgaryherald.com

Calgary Herald Archive

Broadview Homes vice-president Peter-John Woolf says home styles and designs seem to recycle each year — but with improvements to better meet the needs of Alberta families.

TRENDS, FROM PAGE 1 “They have (developed) their own taste already. We try modern designs, but they didn’t work out (with her buyers’ demographic). A lot of my customers prefer to have crown moulding, lots of woodwork, lots of stone and more traditional design,” says Odyjewski.

Still very popular are open-concept plans, with great rooms open to the second floor. Grand staircases, also open to the second floor, are in great demand,

as are fireplaces.

Odyjewski hopes to nudge interest in some different designs with the company’s new show home to open this fall in Allard, in south Edmonton. She is introducing a wall separating the front room from the great room with a twoway fireplace, for instance.

The company has also purchased some smaller lots to build some starter product.

“We’re hoping to design some new styles,” she says.

Broadview Homes, a Calgary area homebuilder, is a finalist with three homes in the Alberta Awards of Excellence in Housing.

Peter-John Woolf, vice-president of Broadview Homes, says styles and designs seem to recycle, with improvements.

“We have had some great success doing just that,” he says. “We reproduced a five-level split. I have talked to families that have purchased this

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Next year, the company is celebrating its 25th anniversary by launching a variety of new designs.

Posing challenges to the housing industry is a shortage of qualified workforce at all levels, Woolf says, while the effects of the rule-tightening for federal

CHBA–ALBERTA BUILD 2012

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government-backed mortgages brought in this summer is being seen.

“The recent changes have affected our first-time buyers the most,” Woolf says. “The opportunity to have a 30-year mortgage was crucial for them to be able to afford and qualify for a CMHC-backed mortgage. We are hoping that (the federal government) will re-examine that decision and put it back on the table for further consideration and discussion on what the effects have been for the public, banks and real estate industry.”

F

or the Canadian Home Builders’ AssociationAlberta, its BUILD 2012 conference is reason to celebrate.

The association will pay tribute to its 50-year anniversary at the Fairmont Jasper Park Lodge in Jasper, Sept.

20 to 23.

“We’re cranking it up a notch to recognize the special year,” says Jim Rivait, CHBA-Alberta CEO, of this year’s event.

As a nod to its major milestone, the association will run a video in which several former presidents are interviewed, including some who served in the ’60s.

“That will be a highlight for a lot of people,” says Rivait.

BUILD 2012 includes the association’s annual general meeting, seminars including industry leaders as keynote speakers, the Alberta Awards of Excellence in Housing, the Safety Leadership Awards and the President’s Gala, with a tribute to outgoing association president Sandra Young.

The conference is valuable to those who attend for a number of reasons, says Rivait.

This year’s conference is expected to draw 525 attend-

ees, which is no surprise to Rivait who says there’s a lot to take away from the event.

“A lot of people find value in it and I think this is just a reminder of the important role our industry plays in the economy in Alberta,” he says, adding it also provides builders the opportunity to connect with peers from across the province.

“One thing I have learned is that these folks in the home building industry are fierce competitors — but they’re also great friends and Jasper sure provides an opportunity for them to get together and share some ideas and talk about things that have happened in the past, as well as share ideas on where things can go in the future.”

This year’s Alberta Builders: The Next Generation seminar is designed to foster this type of conference networking, giving the next generation of industry leaders the opportunity to connect with and learn from veteran builders.

Another seminar features Donna Diamant, a Mount Royal University instructor who will present interior design trends for 2013.

Diamant’s session will include an inside look at trends in kitchen and bathroom finishes, wall treatments

and flooring. Other workshops include speaker and author Michael Vickers’ session Persuasion: The Art and Science of Influence, which will focus on psychological triggers and making a company an emotional favourite in a competitive marketplace.

Another keynote session will feature a panel of government representatives, who will present on government decisions related to the housing industry in the province; and Dr. Joseph Michelli, who will host the workshop Leading Significance: Leaving a Legacy that Lasts. Michelli is a speaker and author who focuses on business practices in ways that develop joyful and productive workplaces.

This year’s Alberta Awards of Excellence in Housing drew a record-breaking 383 entries from builders and renovators across the province.

White Eagle Homes of Edmonton paces all companies with five finalist entries.

Jayman MasterBUILT, Douglas Homes, and Broadview Homes of Calgary and Habitat Studio and Workshop of Edmonton had three finalist entries each.

The Calgary region led this year’s competition with 25 finalist entries. For more information on the conference, visit chbaalberta.ca.

A SP E C I A L R E P O R T O N T H E

Fairmont Jasper Park Lodge Sept. 20-23

ALBERTA

HOME BUILDING INDUSTRY A Calgary Herald Special Projects publication

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Wednesday, September 19, 2012

ALBERTA HOME BUILDERS

Breaking news at calgaryherald.com

– Calgary Herald Archive

While Calgary is already seeing the housing market transition to a balanced one, edmonton is not too far behind, says lai sing louie, Canada Mortgage and housing Corp.’s senior economist for the prairies and territories.

ECONOMIC OUTLOOK FOR ALBERTA’S HOUSING INDUSTRY

All indicators point to a more ‘balanced’ market Claire Young CALGARY HERALD

A

lberta’s housing market is moving to an overall balanced market with modest price gains predicted for 2013, says the Canada Mortgage and Housing Corp.

“We’re seeing markets really transition here in Alberta,” says Lai Sing Louie, CMHC regional economist for the prairies and territories. “At the beginning of the year, we saw Calgary transition from a buyers’ market to balanced market conditions. It took a couple more quarters for that to happen in Edmonton, and we’ve (since) moved that market into balanced conditions.”

Fort McMurray’s housing market has the highest average MLS price growth in the province, with CMHC predicting 2012’s average to reach 6.5 per cent growth.

By contrast, one of Alberta’s slowest markets, Medicine Hat, will clock in closer to two per cent growth by year’s end.

“Our expectations are for markets to firm as we go through this year. By next year, we expect all the markets in Alberta to be in balanced conditions,” Louie says.

Balanced conditions indicate steady sales matching supply coming onto the mar-

ketplace, with prices moving slightly higher than inflation.

CMHC predicts modest richard Cho gains in housing prices as volume of sales picks up again after the financial crisis five years ago.

People who bought at the peak may still be holding onto property until values come up again, which slows sales.

During the peak in 2006, there were 33,024 MLS sales in Calgary.

“In 2012, we’re projecting 25,200 MLS sales for Calgary, so we’re still substantially lower than 2007, which had 32,000 sales,” Louie says. “The low in 2010 was just under 21,000 sales.”

In Edmonton, the high reached 21,984 MLS sales in 2006, and the low in 2010 at 16,403 MLS sales.

“We’re projecting about 17,900 sales for Edmonton,” he says.

While activity is slower than the high, prices are stabilizing and have even been rising.

“Last year in Calgary prices were up on average by one per cent. In Edmonton, prices were down one per cent,” Louie says. “A lot of that is

compositional, no real price movement as both markets were in a buyers’ market.”

On a provincial level, the average housing price last year was $353,390, up 0.3 per cent from the previous year.

“This year, we’re looking at the 2.5 per cent level price growth at the provincial level, and Calgary and Edmonton will reflect that,” Louie says.

“Next year at the provincial level, average growth rate for annual prices is expected to rise around 2.8 per cent, just under three per cent, a little stronger because of the markets being in balanced condition. With part of this year in buyers’ market conditions, we expect that to transition and expect to see a little stronger price growth next year.”

Helping prices will be a five per cent decline in listings in Calgary and a little more than four per cent decline in Edmonton, CMHC predicts, which will push prices up slightly. In Calgary, the economy has been improving, which is helping nudge up home prices, says Richard Cho, CMHC senior market analyst for the Calgary region.

“With that we’re seeing more jobs being created, especially in full-time employment and in higher paying sectors like energy, manufacturing and construction. Demand for housing has increased, and we’ve seen supply move

lower,” Cho says. “Recently we’ve seen more new homes being started, due in part to higher demand. But also, with supply on the resale side moving lower, some buyers are looking to the new home market.”

It’s a similar story in Edmonton, with a healthy growth in full-time employment supporting demand for housing, says David Lan, CMHC senior market analyst for the Edmonton region.

“Overall starts have been on the rise due to the fact that employment is improving and because of the low mortgage rate,” Lan says.

In Edmonton, a tight rental market is providing an opportunity for builders to build rental apartments, Lan says.

The rental vacancy rate in Edmonton was 3.3 per cent in 2011, and is predicted to tighten to 2.5 per cent by the end of 2012, and further tighten to 2.1 per cent in 2013.

“We’ve seen a strong increase in multi-family starts,” says Lan, adding that single family starts are expected to continue to climb as the market tightens with fewer new resale listings in the market.

New housing starts in Alberta are projected to be much stronger by the end of 2012 and into 2013.

“At the provincial level, we’re projecting housing

starts will be up over 20 per cent, just under 24 per cent, with 31,800 (new starts).

That’s quite an uptick from last year when housing starts were at 25,704,” Louie says.

Strong migration to the province and job growth here are behind Alberta being the fastest growing province in the country.

“We’re projecting around 57,800 people coming to the province.

That’s up 28 per cent,” Louie says.

“About 60,000 jobs will be created here in the province — employment growth of 3.8 per cent. We’re projecting for Calgary by year end, 3.8 per cent growth, while it’s softer in Edmonton at 2.1 per cent.”

Construction costs for materials such as concrete and lumber, before the downturn, were high, and so were labour costs because the unemployment rate was low.

The unemployment rate is higher now, projected to average about 4.8 per cent across



the province this year, with Calgary at the same level and Edmonton a little higher at five per cent.

Next year, CMHC predicts the provincial unemployment rate will be slightly lower at 4.7 per cent. This puts some pressure on wages, which may increase as the rate drops.

CMHC expects housing prices to rise slightly by the end of the year — considering the costs that go into building a home — to 1.4 per cent, but to rise next year by another 2.1 per cent in Calgary and two per cent in Edmonton.

The new single-detached home absorb price (the average of new home sale prices, rather than resale homes) is on the rise. CMHC predicts the price to be $564,000 in Calgary and surrounding towns by the end of the year, and $514,000 in Edmonton and surrounding towns.

“Next year, we’re projecting that will rise to $578,000 in Calgary and $522,000 in Edmonton,” Louie says.

By next year,

we expect all the markets

in Alberta to

be in balanced conditions.



INCOMING CHBA-ALBERTA PRESIDENT

Family builds framework for industry leader Josh skapin CALGARY HERALD

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Inspired by his framer and spec-home builder brother, Dave Hooge knew from an early age the housing industry was right for him.

In 1985, Hooge followed his brother into the business, working as a cribber and framer in the lower mainland area of British Columbia.

This experience led Hooge to form his own custom home building business before joining Stepper Custom Homes in Calgary in 1997, where he now serves as president and general manager.

Now Hooge will take the helm of the Canadian Home Builders’ Association-



Alberta, when the industry? he’s officially A: With a sworn in as positive ecoWe begin president at the nomic outlook group’s annual for the province, to face general meeting we begin to face challenges at the Fairmont challenges findJasper Park ing qualified finding Lodge in Jasper, workers. We are qualified Alta. Sept. 21. already starting For Hooge, to see it. The workers. this is the second federal governtime in three ment has made years that he’s some changes to held a lead posimake it easier to tion within the bring qualified CHBA, serving as president workers to Alberta. From the of the Calgary Region in market standpoint, all analysts 2011. We asked Hooge about see very positive market conhis new role. ditions with the demand for Q: With today’s economic new homes continuing to rise. conditions, how does Alberta See LEADER, page 5 fit in and how will it affect



Breaking news at calgaryherald.com

ALBERTA HOME BUILDERS

Wednesday, September 19, 2012

5

Gavin Young, Calgary Herald

Dave Hooge, president and general manager of Stepper Custom Homes, will be sworn in as the new president of the Canadian Home Builders’ Association-Alberta at the Jasper conference.

LEADER, FROM PAGE 4 Q: What are some of the ongoing issues that will be priorities for you as president?

A: Namely: ■ Mandatory New Home Warranty — We strongly support this initiative of government, but we want to make sure that any program applies to all new home construction.

There is some talk of providing an exemption for ownerbuilders that we believe will significantly compromise the consumer protection goals of

this otherwise very positive move.

■ Affordability — Code changes that add cost and items like off-site levies that add to the cost of the home.

In Alberta, home ownership is a reality and we want to keep it that way. It underpins the quality of life we have come to enjoy.

■ Safety — we want to make sure our workers return home to their families safely at the end of the work day.

We have to play particular attention with many new and young workers coming into our industry.

■ Labour shortages — We are seeing some challenges now, and those challenges will increase as demand for new houses grows.

Hooge replaces Sandra Young, who will move into the position of past-president on the CHBA-Alberta board of directors and is vice-president and general manager of Homes by Avi in Edmonton.

Young says she gleaned a lot during her term as presi-

dent, including getting to see residential development in parts of Alberta she ordinarily wouldn’t have seen.

“That was a lot of fun for me to go and see what people are doing in other parts of our province,” says Young.

Over the past year, CHBAAlberta focused on building relationships and strategic alliances, she says.

This initiative included working with the Alberta Coalition For Action on Labour Shortages, to “try and bring more of a voice to the issues around labour shortages

in our industry,” says Young.

One of her priorities as president was sandra Young related to addressing the feasibility and economic viability of changes to building codes.

While the process is ongoing, Young says the association made strides with fire code regulations in an effort

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Hwy 20 RR 20

Hwy 12

to get more consistency across the province.

“There are so many stakeholders and so many situations from small towns with volunteer fire departments to large cities, and all have different needs but all need to be addressed,” she says.

Young calls her term as president “a very special year,” and adds “every year as an association, we’re getting stronger and doing our best to serve our members and I think you’ll see a lot more coming from the association in the years to come.”

Rainy Creek Road Hwy 2

Sylvan Township Road 394 Lake

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Wednesday, September 19, 2012

ALBERTA HOME BUILDERS

Breaking news at calgaryherald.com

ALBERTA AWARDS OF EXCELLENCE IN HOUSING – Photos, CHBA–Alberta

At left: Multi-family estate home over $1 million finalist Habitat Studio & Workshop’s Windsor Park Bauhaus residence in Edmonton.

Above: Avi Urban’s Yale model in Calgary is a finalist in the Multi-Family Townhome or Duplex Over $325,000 category.

And the award finalists are ...

The finalists for the 2012 Alberta Awards of Excellence in Housing are as follows (prices do not include GST and lot). See this Saturday’s Calgary Herald for a list of the winners.

Single-family homes

• Under $250,000: Broadview Homes — Windsor, Calgary Douglas Homes — Montana, Calgary Jayman MasterBUILT — Outlook, Calgary

• $250,000-$285,000 Douglas Homes — Koh Samui 6, Calgary Douglas Homes — Miami 2, Calgary White Eagle Homes — Ruby IV, Edmonton • $285,000-$325,000: Ashcroft Master Builder — Zimmerman Residence, Lethbridge Jayman MasterBUILT — Evoque, Calgary Mattamy Homes — Windrush, Calgary • $325,000-$375,000: Broadview Homes — Kingston, Calgary Jayman MasterBUILT — Esteem, Calgary

White Eagle Homes — Ruby, Edmonton • $375,000-$425,000: Stepper Custom Homes — Cromwell, Calgary White Eagle Homes — Blue Pearl II, Edmonton White Eagle Homes — Emilia, Edmonton • $425,000-$575,000: Cedar Ridge Homes — Waterton, Lethbridge Morrison Homes — Bjurstrom Residence, Calgary White Eagle Homes — Stefanie II, Edmonton • $575,000-$750,000: Morrison Homes — Leighton, Calgary Shane Homes — Delmar, Calgary WestView Builders — Arlington, Calgary • $750,000-$1,000,000: Brad-Mar Homes — Private Acreage, Calgary Fox Maple Homes — Maple Robson, Edmonton Perry Signature Homes — Bristol, Edmonton • Estate Home Over $1,000,000: Crystal Creek Homes —

Jayman MasterBUILT’s Outlook in Calgary is a finalist in the Single-Family Under $250,000 category.

Habitat Studio & Workshop’s Parkland NetZero home in Edmonton is a finalist in the Green Home category..

Woodbine, Calgary Habitat Studio & Workshop — MacTaggart Cottage, Edmonton Habitat Studio & Workshop — Windsor Park Bauhaus, Edmonton

Under $325,000 Broadview Homes — Sorrento, Calgary Colbray Homes — Chateau, Red Deer Shane Homes — Galea, Calgary

Multi-family

• Apartment Under $325,000: Landmark Group of Builders — Birch I, Edmonton Landmark Group of Builders — Elm, Edmonton Rohit Communities — Cornell, Edmonton

• Apartment Over $325,000: Knightsbridge Homes — Villa D’Este Condominium, Calgary Parkwood Master Builder — Waterside Estates Suite 306, Edmonton Qualico Multi-Family — Brighton, Edmonton

• Townhome or Duplex:

• Townhome or Duplex

White Eagle Homes’ Ruby IV in Edmonton is a finalist in the Single-Family $250,000-$285,000 category.

Over $325,000: Avi Urban — Yale, Calgary Tapestry Developments — Monterey, Edmonton Tapestry Developments — Sedona, Edmonton • Overall Complex: Avi Urban — Victoria Cross: Phase One, Calgary Qualico Multi-Family — Vanier, Edmonton Rohit Communities — Callaghan Ravines, Edmonton

Renovation

• Under $200,000: Aquarian Renovations — Glenora Residence, Edmonton Aquarian Renovations — Valleyview Residence, Edmonton

Newcastle Homes & Renovations — Fraser Janzen Residence, Calgary •Over $200,000: Newcastle Homes & Renovations — Hart Residence, Calgary True-Line Contracting — Melynchuk Residence, Red Deer Ultimate Renovations — Bonavista SH III, Calgary

Green Home

Avalon Master Builder — Discovery 5, Calgary Effect Home Builders — Belgravia Green, Edmonton Habitat Studio & Workshop — Parkland NetZero, Edmonton

FOR MORe pHOTOS, See page 7

Mattamy Homes’ Windrush in Calgary is a finalist in the Single-Family $285,000-$325,000 category.

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Wednesday, September 19, 2012

Above: Multi-Family Townhome or Duplex Under $325,000 finalist Broadview Homes for its Sorrento model in Calgary.

At left: Newcastle Homes & Renovations’ Hart residence in Calgary is a finalist in the Renovation Over $200,000 category.

Good wood isn’t Good enouGh. It’s gotta be green.

Landmark’s energy efficient homes start with weyerhaeuser’s environmentaLLy friendL y wood. friendLy a nd 90% of those homes and start indoors.

At right: Rohit Communities’ Callaghan Ravines in Edmonton is a finalist in the Multi-Family Overall Complex category.

Most of the wall and floor panels for Landmark homes are built inside a fully automated manufacturing facility—the first of its kind in North America. This precise new system has serious environmental benefits, cutting household greenhouse gas emissions by more than 55%.

Its controlled environment means less wood is wasted too—making Weyerhaeuser’s wood even greener. Weyerhaeuser’s comprehensive sustainability strategy is one of the best in the business.

Above: Qualico Multi-Family’s Brighton residence in Edmonton is a finalist in the Multi-Family Apartment Over $325,000 category.

At left: Landmark Group of Builders is a finalist in the Multi-Family Apartment Under $325,000 category for its Elm residence in Edmonton.

Above: Brad-Mar Homes is a finalist in the Single Family $750,000-$1 million category for its private acreage home in Calgary.

Learn more about LivinG environmentaLLy friendLy at no extra cost by visitinG weyerhaeuser.com/sustainabiLity and Landmarkgroup.ca

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Wednesday, September 19, 2012

Breaking news at calgaryherald.com

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