HOMEBUYING TECHNOLOGY
TECH-DEPENDENT GENERATION
Mobile devices, robust apps behind continued shift in how we search for homes: experts
Millenials born as ‘digital natives’ struggle the most when tech goes wrong
INDUSTRY A4
DIGITAL DOWNLOW A6
Jim Ross
1996 CREB® President
A5
FREE oct 7 to oct 13 2016 issue 06-39 editorial 403-781-1324 advertising 403-263-4940 crebnow@creb.ca
real estate news from industry experts
CROWD CONTROL CITY OF CALGARY BENCHMARK PRICE SEPTEMBER (Y/Y%)
2.8% -3.3%
CITY CENTRE
EAST
-4.6%
NORTH
NORTHEAST NORTHWEST
Southeast district facing increased competition from new home industry JAMIE ZACHARY
manager, media services
C
algary’s resale residential housing market continues to reveal its many layers, with experts singling out the southeast district as an area of the city struggling in the face of intense competition from the homebuilding industry. This comes on the heels of CREB®’s recently released housing summary for September that indicated prices in other instances are exhibiting increased stability. CREB® chief economist Ann-Marie Lurie noted home prices in the southeast have struggled more acutely than other districts in Calgary despite indicators that would initially suggest otherwise.
The district’s benchmark MLS® price in September was down 5.7 per cent from the same time last year to $428,300. Only the northeast and city centre came close, with prices declining by an identical 4.6 per cent. Over the past four months, prices in the southeast have declined by an average of 5.4 per cent. The 5.7 per cent drop in September was the steepest in southeast this year. The city centre is the only other district to post larger declines in 2016 thus far (-6.3 per cent in January and -5.9 per cent in February). Lurie noted inventory levels in the southeast, however, were more balanced than the price drop would indicate. The southeast was carrying 3.1 months of supply in September, which was the lowest in the city.
Months of supply represents the amount of time it would take to sell all active listings. “Months of inventory was not as high as would be expected with regard to the price declines,” said Lurie. “This points toward price declines in the resale market being influenced by other factors, which is competition from the new home market. There are several new communities located in this district, which is impacting overall supply and placing additional downward pressure on home prices.” Lurie identified similar patterns in the northwest, but to a lesser extent. Homebuilding officials say they’re not surprised at ongoing interest in many of the southeast’s new communities. They have, however, noted increased interest from homebuyers living outside of the area. “We’ve been surprised by how many buyers are changing quadrants of the city,” said Sam Hudson, marketing director with Morrison Homes, which is currently building within the south-
MLS® MONTH END INVENTORY* SEP ‘14 – SEP ‘16
-4.3%
-5.7%
-4.0%
SOUTH
SOUTHEAST
WEST
east communities of New Brighton, Mahogany, Auburn Bay and Legacy. “In the past, people have tended to stay within their quadrant. But we’ve seen buyers migrate from the north to the south because of these great communities in the southeast. Hudson also pointed to buyers’ appetite for features such as lakes as a reason why more are looking to the district. “We see quite a bit of activity in the southeast … given the nature of the natural amenities there,” he said. “People are really interested in building the home they’ve always wanted the way they’ve always wanted around those amenities.” While new construction mostly impacted the resale detached housing sector last month, it also influenced others such as attached and apartment. “This is not isolated to the detached market,” said Lurie. “The additional product under construction in new home multi-family sectors is having an impact in most of the districts in
FEDERAL GOVERNMENT INTRODUCES NEW MORTGAGE MEASURES CREB® STAFF
SEP14 OCT14 NOV14 DEC14 JAN15 FEB15 MAR15 APR15 MAY15 JUN15 JUL15 AUG15 SEP15 OCT15 NOV15 DEC15 JAN16 FEB16 MAR16 APR16 MAY16 JUN16 JUL16 AUG16 SEP16
he federal government has announced new measures to “reinforce” Canada’s housing market. The new rules, which also included changes for foreign buyers and home flippers, will introduce standard “stress tests” for all insured mortgages to determine if borrowers could still manage regular payments should interest rates rise.
*All statistics based on monthly data compiled by CREB® via MLS® activity. Includes detached, attached and apartment.
SOURCE: CREB®
the city. This is not isolated to just the southeast.” Buyers’ interest in new homes located in the southeast has always outpaced other areas of the city, said Brad Logel, area manager for Walden Place, a condo/townhome development by Cardel Lifestyles, a division of Cardel Homes. Walden Place is a four-hectare development in the southeast that will eventually house six condo buildings and seven blocks of townhomes “Where the city has approved large portions of what can be bought new has been the southeast,” said Logel. “Look at how much new development opportunities exist in the southeast and then look at the rest of the city. There just isn’t as much elsewhere. You could argue the northeast may have more coming forward, but it’s always been a bit less.”
STATISTICS A3
CONTENTS MLS® STATISTICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . A2
September 2016
NEWS BRIEFS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3 WEEKLY FEED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6 EVENT LISTING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6
T
3384
4058
4336
5022
5533 5706 5641 5394 5141 5137 5215 5600 5623 5327
4796
CITY OF CALGARY 4801 4643
-3.0%
5681 6084 6242 6148 6004 5685 5656 5877
-4.6%
INDUSTRY A3
POP THE QUESTION. . . . . . . . . . . . . . . . . . . . . . . A7 Great Places
MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1 OPEN HOUSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19 @crebnow
CREBNow
@crebnow
www.crebnow.com
Gizella Davis 403-680-9093 $2,800,000 enthouse P e ir la C u a E #2300A 500 EAU CLAIRE AV SW Experience the highest residence in all of Eau Claire! This 2 level Penthouse occupies the entire 23rd & 24th floors & showcases breathtaking 360 degree views of the Bow River, Prince’s Island Park, the dynamic downtown skyline & the Rocky Mountains. Over 4200 sqft with large rooms & wonderful light throughout. Secured elevator access into a private foyer that transitions to a glorious living & entertaining space with soaring double height ceiling & gas fireplace. A dazzling state of the art kitchen opens to an enormous 400 sqft terrace-sky garden. Lavish 5 star Master suite with extraordinary separate dressing room and luxurious spa-bath with heated limestone floors. MLS®C4056861
Eagle Ridge
$2,850,000 260 EAGLE RIDGE DR SW
This beautiful home was designed by McDowell and Associates and built by Laratta Homes it has been meticulously maintained and updated. Careful attention to detail is evident throughout, from the ornamental plaster work on the ceilings right down to the recently refinished hardwood. Completely open floor plan though out the main living area, the expansive kitchen with ample cabinets and counters overlooks the formal and casual dining rooms and the great room with feature stone faced fireplace, large windows span the rear overlooking the exquisitely landscaped gardens with hot tub and gazebo that are truly an oasis. MLS®C4081488
k Windsor Par
$1,175,000 #207 5555 ELBOW DR SW
Impeccable villa backing onto the Calgary Golf and Country Club in the private gated community of Country Club Estates. Entertainment sized living room offers infinite adaptability to any decor or colour scheme. Form & function combine to create a custom kitchen with plenty of room to work, stylish cabinets, large island and bold colour scheme make this room a show piece. The choice between spending time inside, or out, on those long, summer afternoons turned evenings will be difficult, as the patios and the outdoor living space is truly serene. A restful night awaits in the master suite, the arrival of the new day made easier in the dedicated 5 piece bath with soaker tub & shower. MLS®C4071866
gizella@gizelladavis.com www.gizelladavis.com