JUST LIKE A HEATWAVE

Condo pace picks up steam in city
By Claire Young
Calgary Herald May 18, 2012

Compared to the last three months of 2011, resale condos sold faster from Jan. 1 to the end of March in three of four quadrants of the city, says the Calgary Real Estate Board.

All of the board’s zones except for Zone A — which roughly corresponds to the city’s northwest — sold more quickly than during October to December.

In Zone A, condos took an average of 58 days to sell — three more than during the last quarter.

Condos in Zone B, which roughly consists of northeast Calgary, averaged 58 days on market, down from 64 in the first quarter.

Meanwhile, Zone C — roughly southwest Calgary — saw the hottest sales with an average of 49 days on market, down from 60.

And Zone D, which is roughly consists of southeast Calgary, saw a six-day drop to an average of 50 days on market.

The new year brought many more listings for condos.

From Jan. 1 to the end of March, there were 2,702 new listings in the city compared with 1,644 during October to December.

The bulk of the new listings were in Zone C, with 1,492 added. This zone also saw the most sales at 783, up again from last quarter’s 612.

The only neighbourhood to hit triple-digit sales in 2012’s first quarter was Connaught in Zone C, which saw a tidy 100 sales averaging $309,451.

Other neighbourhoods in Zone C that sold well were Victoria Park with 48 sales averaging $351,754, and Bankview with 32 sales averaging $262,512.

The most expensive neighbourhood from Jan. 1 to the end of March was Varsity Estates in Zone A, which had two sales averaging $598,750.

The most affordable neighbourhood was also in Zone A — Highland Park, which had one sale for $79,000.

During the first three months of 2012, the average sale price increased in all zones except Zone D — where this quarter’s average sale of $259,768 marked a decline from last quarter’s $268,998.

Zone C had the highest average sales at $307,822, an increase from $298,960.

Zone A’s average sale was $281,193, up almost $10,000, while Zone B was up a little more than $4,000, with an average sale of $173,544.

BLOOM & BOOM

Calgary housing market booming
Calgary Herald April 23, 2012

Just over three weeks into April and it appears Calgary’s housing market has seen a resurgence of activity this spring.

A boom perhaps?

According to the Calgary Real Estate Board, MLS sales in all housing categories are noticeably up compared with last year.

From April 1-22, single-family sales of 1,108 transactions are up 26.05 per cent from the same period a year ago but the average sale price has dipped by 0.43 per cent to $481,423.

The condo apartment category has seen sales grow year-over-year by 14.91 per cent to 262 units while the average price has dropped by 2.83 per cent to $269,046.

And in the condo townhouse sector, sales of 198 are up 15.79 per cent from last year and the average price has risen by 6.46 per cent to $319,140.

A NOTABLE MENTION!

GTA condo sales this year smash record
Garry Marr
Financial Post Nov 22, 2011

Condominium sales are taking over the Greater Toronto Area new housing market and some parts of the country are following closely behind as rising costs push consumers into vertical housing, a new report suggests.

The Building Industry and Land Development Association said there were 23,747 condo sales in the Greater Toronto Area through the first 10 months of the year, smashing the previous high of 22,316 in 2007 — with two months yet to go.

High-rise sales accounted for approximately 61% of all sales in GTA from January-October. At this point last year high-rise sales only accounted for 57% of the overall market.

“It’s very much becoming a condo market,” said Joe Vaccaro, acting president of BILD. “Ten years ago the split was 25% high-rise versus 75% low-rise.”

The trend appears contained not just to Toronto’s urban core but is now moving to the suburbs. “There seems to be a new trend setting in over the last couple of months with the 905 [suburban] areas outperforming Toronto when it comes to [condo] sales,” said Mr. Vaccaro.

Suburban land costs have skyrocketed because of what the industry refers to as regulatory inertia with no new land developments approved in the suburbs over the last five years. It has led to the hoarding of land and rising prices for single detached homes.

A report Tuesday from Altus Group suggests the GTA will not see any sort of slowdown in new condo construction in 2012.

“New condominium apartment sales in Toronto and Ottawa continue to hum along, which will continue to buoy apartment starts in Ontario through 2012,” said Altus.

Peter Norman, chief economist for the Altus Group, says population growth has supported the Toronto condominium market. “That number of people generates a fair amount of housing demand no matter what is happening,” says Mr. Norman. “Add in the interest rate environment, and them not going up, and that adds to it. There has been a restriction on [new] lots and a lot of people have been shoved into apartments.”

The group looked at 10 real estate markets across the country and found only Alberta is set to rise in 2012. Regina, along with Toronto, is forecast for flat sales.

“Calgary and Edmonton employment growth in 2011 has more than made up for 2010’s declines,” says Altus. “Although employment growth will be more moderate in 2012, the strong showing this year is favourable for stronger housing starts in 2012.”

Altus is forecasting apartment starts to jump to 5,475 in 2012, up from 3,975 in 2011. Single family construction is also forecast to jump to 22,325 in 2012 from 20,906, putting high-rise construction at almost 20% of the Alberta market.

Phil Soper, chief executive of Royal LePage Real Estate Services Inc., says his company has noticed the trend in top condominium apartments in its corporate owned franchises in Toronto and Vancouver. “There is the cost of the commute, the hard costs like gas and insurance but then there is the soft costs in time,” he said, noting consumers look for housing that is closer to subways and urban cores.

If anything, he says Canadian cities, including Toronto, are playing catchup when it comes to high-rise construction. “Look at big established mature cities like New York. They have much more vertical living per resident than we do, they just don’t have as much on per capita basis that is new,” says Mr. Soper. “We have hundred of thousands of new Canadians that have to be accommodated in Toronto.”

Photo By: Surrealplaces

THE 411 ON T.O. CONDOS

Cool with condo
Alex Newman
National Post  Nov. 18, 2011

As Toronto condo prices march steadily upward, luxury suites are right in step. Fetching at least $1,000 per square foot with sizes anywhere from 1,800 to 4,000 sq. ft., final sale prices are well into the millions. Not surprisingly, such projects are situated in the city's toniest neighbourhoods - Forest Hill, Yorkville, Yonge and St. Clair, the financial district, plus a smattering along the waterfront.

What is surprising, however, is who is buying. In addition to the wealthy couple downsizing from their large family home, and foreign investors looking for a safe financial haven, there's a newly emerging group of younger buyers.

What's even more surprising is that a sizable number of them are first-time buyers, according to Tina Amato, vice-president at Baker Realty, which handles sales for the Ritz-Carlton. Given that suites start at $1.4-million, these younger buyers are clearly well employed. Because most are single and work long hours, they love to be able to walk to work through the PATH system, and love the hotel perks such as maid or room service, she says.

As much as they like to be pampered in exchange for the gruelling schedules, Ms. Amato says they're also realistic about spending: "If they can't manage the Ritz, they'll go the next project down, which may not be the Ritz, but is still luxury." Stephen Price, COO of Graywood Developments, which built the Ritz-Carlton, says 10 years ago "that group wouldn't have existed in a project of this nature."

A similar shift is apparent at Trump Toronto. "Early on, the bulk of our purchasers were a mix of Canadian and foreign investors," says Howard Tikka, director of marketing for Trump. As the tower nears completion, however, he is finding more local people, some empty nesters but particularly area finance workers who want to have a downtown residence. It's also attracted companies looking for guest suites for clients who come to Toronto on business.

A similar story unfolds at the Shangri-La - a 66-storey, 370-unit project described by its marketing manager Michael Braun as being at the "intersection of the cultural entertainment and business worlds." Situated at University and Adelaide, with suites ranging from $1-million to $13.3-million for a 6,700-sq.-ft. two-storey penthouse, it's attracting whiz kids who work in the financial district and are buying up some of the smaller suites.

Even empty nesters seem to be younger downtown. Mr Braun notes that a number of buyers aged 40 to 55, not yet retired but with older kids who are moving out, "want the action of downtown." Call it a condo mid-life crisis, if you will.

While the downtown buyer wants a hip location, the downsizing older couple craves a luxury spot in familiar territory: midtown or north Toronto where they've owned large family homes. They end up choosing suites in projects like The Four Seasons, Museum House and The Avenue.

"Buyers in a downsizing phase still want to stay in the community where they have always lived," says Elli Davis, a top Royal LePage agent for luxury residential resale. "They want to be able to walk to Forest Hill Village, take a quick streetcar ride to Yonge and St. Clair, be near the subway."

Those buyers are the majority of Hunter Milborne's clientele, as well. As managing partner of Sotheby's, he's sold some of the city's most expensive condos to people from "higher-end neighbourhoods, like Bayview, Forest Hill and the Kingsway. And most are independently wealthy."

The suites they buy - for anywhere from $1-million to $10-million - aren't even a "huge part of their net worth," Mr. Milborne says. One couple, who couldn't decide which apartment to buy, purchased both, figuring they'd sell whichever one they decided not to keep.

And what this market wants more than anything is space, says Mimi Ng, vice-president for Menkes, which developed the Four Seasons. "Our purchasers are primarily end users who are either downsizing from a family home, or already living in a condo and making the move to a larger suite in a new building," she explains.

The other draw is service, which could put hotel-condos in the front of the luxury pack. "A big part of buying into the [Four Seasons] is its reputation for incredible personalized service, and access to all those amenities, concierge, spa, restaurant," Ms. Ng says.

The final group of luxury buyers is international. "International buyers represent about a third of the suite sales at Shangri-La," Mr. Braun says. He figures these buyers probably have business interests in the city, and tend to travel from home to home.

Trump Toronto also has its share of the international market. Mr. Tikka says their buyers come from the U.K., the U.S. and 20 other countries. While Canadians account for about 35% of Trump purchasers, U.K. buyers represent about 25% and U.S. about 20%. The remaining 20% are scattered throughout the world.

The waterfront is a big draw for the international buyer, says Cityzen Group's president Sam Crignano. His Pier 27 project has a wide variety of suite prices, but luxury purchasers are attracted to the penthouse suites, which command about $1,000 per square foot.

Mr. Crignano has recently noticed an increasing interest "from wealthy buyers from mainland China and south Asia," he says. "They may want to live in the suite, but mostly they want to park money with the reassurance that if there's political upheaval where they're from, there's a place they can go to."

Foreign buyers have always gravitated to waterfront properties, Mr. Crignano says. "[It's a trend] that's not just here but elsewhere in the world, because there's a perception that waterfront projects demand a higher-per-square-foot price."

While location and suite size are major factors in luxury purchases, suite finishes are a close second. These include marble bathrooms, 10-or 12foot ceilings, top-of-the-line fixtures and kitchen cabinetry and appliance packages featuring Sub-Zero, Wolf or Miele. Other draws: soaker tubs and rainshower sprays and saunas and private elevators, also real hardwood floors (as opposed to engineered hardwood), granite, marble or limestone tiles, plaster cornice mouldings, and eight-inch baseboards.

Amenity spaces are also lar-ger and more luxurious. The city's usual requirement of two square metres of amenity space per unit won't do in a luxury building. For one thing, units are typically large, so there are fewer per building, which makes amenity space smaller than any mid-market building.

The pampering quotient of amenities is nice, especially when they include spas and such, but they're as much about increasing a resident's overall living space. A 1,000sq.-ft. condo in the Trump Tower, for example, expands exponentially to include housekeeping and room service, a two-level full-service spa and wellness facility, and a 10,000-sq.-ft. business facility.

Naturally, maintenance fees reflect these benefits, with high-end projects levying $1 per sq. ft. "What creates cost is staff," Mr. Milborne says. "Valet parking, concierge, spa manager that all translates into high maintenance fees."

About 8% of the condobuying public qualifies for a luxury product. What's financing this choice, at least in the downsizing set, says Ms. Davis, is the fact that they own large homes that have appreciated wildly since first purchased. Simultaneously, there's a "transfer of funds coming down the generations."

They've got the money, but they're ready to shed responsibility, Ms. Davis says. They're trading the high-maintenance large home for the freewheeling condo lifestyle. But with few options in familiar neighbourhoods - close to the shops and cafés they're attached to - developers have had to find land, even if it's on the fringes of established single-family neighbourhoods. 1717 Avenue Road - the first condo project in that whole area - for example has attracted three of Ms. Davis's empty nester clients.

Although the price tags on luxury suites can run as high as $10-million, Ms. Amato says Toronto is still "cheap" in the world market: "Our prices are lower than any other large city in the world, including Vancouver. The Ritz, at $1,100 per sq. ft. for example, is a lot lower than New York where I'd say it's at least $4,000 per sq. ft. for something super luxury."

Which is to say, luxury could be considered a bargain in this city.

BUYERS LURED!

More buyers attracted to city's condo market
By Mario Toneguzzi
Calgary Herald September 20, 2011

Two high-profile projects will launch into the next phases of their development this weekend, suggesting the city may be poised for a residential condo rebound.

Keynote Urban Village will open its doors to a new show suite for its second tower in the east Beltline area while University City will launch its Building 3 project near the Brentwood LRT Station.

"Activity in the condo market has been gradually improving," said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp.

"Gains in employment, favourable mortgage rates, and price reductions have attracted buyers to the condo market, especially those looking for their first place."

A majority of Calgary condo sales this year have been for units priced below $300,000, said Cho, who expects to see more apartment-type condos break ground in the coming months. "There has been an uptick in the number of apartment permits issued, signalling the intention of more activity," he said.

According to CMHC figures, the 451 apartment starts in August was the highest monthly total since May 2008.

The 29-storey second Keynote residential tower will include 250 suites.

Possessions are scheduled for summer 2013.

Project sales manager Jeannie Elrafie said sales have been surging during the past eight months and that's "telling us there is an upswing underway in the Calgary real-estate market".

"We're getting a lot more demand than we ever were," she said.

The Keynote development, which encompasses nearly an entire city block on 1st Street S.E., already includes a 26-storey residential tower comprising 179 units, and a 14-storey office tower that includes 40,000 square feet of retail space, occupied by the likes of Sunterra Market, Starbucks, and an RBC Royal Bank branch.

The city's subdivision and development appeal board last week approved construction of the first two condo highrises for the University City project.

An invitation for this weekend's VIP launch of the third building says 400 condos sold in five days for the project's first two buildings.

A public launch is expected to be announced next week.

The first two towers are 18-storeys, each with 216 units.

The University City website states the project's third and fourth phases will consist of 12-to 14-storey buildings.

The planned fifth phase will be four storeys.

THE SIMPLE LIFE

Small, simple, smart
By Pedro Arrais
National Post · Sept. 16, 2011

The combination of an aging population, first-time buyers and rising real estate costs has created the trend toward downsized living areas, with the resulting challenge of how to do more with less.

Smaller rooms have folks rethinking their furniture needs. Disposing of some items is an option, but the solution many people are turning to is multi-functional furniture.

Some pieces have long been multifunctional. In many homes, a dining room chair is moved to another room - a home office, for example - to serve as an occasional chair until needed for large dinner parties.

In many households, the dining table functions as a task desk by the family before and after dinner.

"People expect their furniture to do more," says Dana Wright, merchandising manager for La-Z-Boy Furniture. "They are looking for a simpler life."

She says the trend toward multi-functional furniture began when home sizes began to get smaller. Interior changes, such as a move away from separate living and family rooms to a great room in houses, created a need to reduce visual clutter.

Nowadays, ottomans invariably double as storage bins, and coffee tables have drawers for remotes and magazines.

"It is an ongoing evolution," Ms. Wright says. "At one time there was only a television to contend with. Now we have large flatscreen televisions and gaming consoles. All those components and controllers need to be hidden away."

It is easier to adapt to small living spaces if the furniture is smaller as well. An average sofa is about 216 centimetres long. A condo-size sofa can be 198 centimetres.

"Manufacturers typically put straight and narrow armrests instead of wider, more traditional rests on condo-size couches. That makes the difference in width not that noticeable but it fits better in smaller spaces," says Love Dodd of Dodd's Furniture in Victoria. "Some bottoms flip up to reveal storage underneath, some have a chaise on one end and others can recline. It is all about catering to different needs."

Even the traditional sofa bed, the original multi-functional piece of modern furniture, has evolved.

"Our hide-a-bed couch separates into two chairs, which can face each other, turn and swivel," says Chris Morton, assistant manager at Nood Furniture, a chain of stores in Western Canada. "We carry furniture with more European sizing, with smaller dining chairs and slipper chairs with no arms."

Also in an effort to declutter, people are looking for elegant solutions to recharging their electronic devices. Complex docking stations with hidden power bars are now built into bedroom night stands or kitchen sideboards.

Furniture is not the only item that is being asked to do more. Increasingly, interior designers are also being tasked with coming up with multipurpose rooms.

"It comes up all the time," says Cydney Hellier Gray, principal of an interior design business that bears her name in Victoria. "The classic scenario is for a condo's only extra room to be a TV room, a den, an office and a guest room when called upon."

She advises people to build more custom cabinetry to take advantage of dead space in a room. But she also warns multi-functional pieces should be used in proportion to a room's dimensions.

"I am not a fan of wall beds," she says. "They tend to make a room look smaller because of their bulk." She tries to keep furniture less than 91 cm in height because it visually preserves a sense of volume in a room when a person can see the wall. Any higher and that piece dominates the room because it eats up a person's sight lines and makes a small room look smaller. She says Murphy beds work better in larger spaces.

"It all comes down to a sense of balance and proportion." PH

THEN THERE WERE TWO...BUT IN THE MEANTIME...

Home buying help for singles
By Helen Morris
National Post

Purchasing a home alone can be daunting but help is at hand to make the most of your single income.

"Get pre-approved -with a single income, many times people are looking at condominiums. The condo fees and taxes need to be included, and, of course, the mortgage payment," says Kevin Suddaby a mortgage broker with Invis in Calgary. "Make sure you've got a complete assessment of what you can afford. Get an interest rate held, so that you are protected while you are looking for a home."

The new mortgage rules effective March 18 need consideration.

"We don't have access to the 35-year amortization anymore. This is impacting singles more than couples who have dual incomes," Mr. Suddaby says. "You can qualify for less property now."

One option may be to ask a co-signer, such as a parent, to help you qualify for the mortgage.

"By co-signing or guaranteeing the debt the parent is obligated as much as their son or daughter with the payments," says Stan Falkowski, senior vice-president, Mortgage Intelligence in Toronto. Helping with the down payment may make more sense.

"We're looking at the baby boomers. Their kids are now buying homes. If parents can afford it and they have assets, it wouldn't be a bad time to gift a down payment," Mr. Falkowski says.

With only your income under consideration, putting together a healthy deposit is more important than ever.

"For those who are looking to buy in the next two or three years, it's a good point to max out on their RRSPs every year if they can," Mr. Falkowski says.

"They can in turn use those funds for the down payment."

If you meet the Canada Revenue Agency criteria as a first-time buyer, you can withdraw up to $25,000 from RRSPs to buy or build a qualifying home. Mr. Suddaby says you may also borrow funds to put into an RRSP and then withdraw those after 90 days to generate a down payment.

"The borrowed loan affects your total debt service," Mr. Suddaby says. "If you contributed to an RRSP earlier this year, there's a chance you would get a tax refund that can also be used as a down payment."

If you are receiving child or spousal support, these can count as income. Mr. Suddaby says many clients come to him too soon after they become single. The separation must be legally documented and the lender needs to see a clear record of payments. Mr. Suddaby says a home with a separate rental unit can generate more income, but it is critical to get good advice on all the expenses involved and work out if the additional time and effort is worth it. If you do not qualify now Mr. Falkowski says don't give up, have a plan.

"If they take a look at their financial situation: They can't get a gifted down payment; their RRSPs are a little low; it's never too late as long as they put a plan in action," Mr. Falkowski says. " 'With what I can put away, I can buy a place in two, three years or whatever.' In the time frame that they're actually starting to save they could meet someone and they could start saving together."

APARTMENT SALES ENLARGEMENT

Mondo condo sales for 2011
Lisa Van De Ven,
National Post, Sept. 10, 2011

If you ask Ben Myers, 25,000 is the magic number. There may still be a few months left of 2011, but Mr. Myers, executive vicepresident and editor at real estate research firm Urbanation, already has his forecast for the year. He expects there will be 25,000 new condominium sales by the end of 2011. If he's right, it'll be a new record, surpassing 2007's previous record of about 22,500 new condo sales.

"We're certainly on pace to have the most condominium sales in any one year in 2011," Mr. Myers says. And with the Toronto new-condo market coming off a busier-than-normal summer and a record-setting second quarter, he's not surprised.

Urbanation recently released its second-quarter results. From April to June, Mr. Myers says, 9,455 new condo units were sold in the Toronto CMA. That's a record in itself; the previous best quarter was 2007's second quarter, when 6,997 units were sold. That wasn't the only Q2 number to be beat, though. The quarter also set records for the number of active projects, the number of active units, the number of new condominium launches and the number of projects and units under construction.

"There was a huge number of new projects coming on line," Mr. Myers says. "And surprisingly, even with all of this extra supply, they had the highest absorption rate ever of new product. Even in the face of all this additional supply, they sold better than any other new release that we had in a quarter."

But Mr. Myers is quick to dispel any talk that the Toronto market might be in the middle of a real estate bubble. Prices, he says, have remained "pretty consistent" over the past five years, with 7% to 9% increases in the new condo market from year to year.

"A bubble is characterized by rapid increases in prices, and we haven't seen that," he says. "That's the type of thing you obviously saw in the United States and you even saw in Calgary a few years ago, where you saw 20% and 25% increases year over year, and in our market in the '80s where we saw prices double in three years."

Developers, he says, have been doing their homework and "setting fairly moderate pricing." They're also, it seems, paying less attention to the sales seasons of the past. Whereas spring and fall are still the prime selling times, more developers decided to release their projects in the summer this year. Since the market is being driven by investors more than ever, Mr. Myers says, there was less need to wait out the summer season, when end users are typically on holiday and less focused on condo buying.

According to the Building Industry and Land Development Association (BILD, using data provided by RealNet Canada), 1,490 new condo units were sold throughout the Greater Toronto Area in July, up almost 20% from last year. "Forget the old conventions of a spring and fall market," says Stephen Dupuis, BILD's president and CEO. "The market's that much bigger now - it's active all the time."

Photo By: GalleryLoftsCA

GOTTEN GAINS

Condo market gains strength
By Kathy McCormick, Calgary Herald
August 6, 2011

The story of the resale condo market in Calgary is positive, albeit fragile, say some of the city's realtors.

For the first time since April 2010, sales of resale condos have gone up year-overyear - and in terms of new condos, several inner-city highrise projects that were in limbo have been brought back to the market.

For April 1 to the end of June, sales of resale condos reached 1,617 within the city.

The Calgary Real Estate Board's Zone C - which roughly corresponds to the city's southwest and includes the Beltline - posted the most sales from April 1 to the end of June at 881.

Not surprisingly, the busiest communities during that period were in the innercity neighbourhoods of Connaught with 95 sales and Victoria Park with 50 sales.

"Condo sales bounced back this month (in July) and we now have less than four months of supply on the market," says Sano Stante, president of the Calgary Real Estate Board. "Stronger condo sales, combined with a decline in inventory, will lend more balance to this market in the months to come."

The key, though, is prices, says Marlene Swinton of Real Estate Professionals Inc.

"Buyers today are extremely nervous and a lot of them come in well below list price," she says.

"A lot of sellers, on the other hand, haven't recognized that prices have changed. They don't want to hear that the marvellous prices they heard they could get for their place once isn't there anymore."

That resonates with Chris Zaharko of Royal LePage Foothills. "My gut feeling is that people are only in the position to buy and pursue it if they think it's the absolute bottom line."

Prices during the second quarter of the year averaged anywhere from $77,600 for five sales in Forest Lawn in the board's Zone B - which roughly corresponds to northeast Calgary - to $850,000 for one sale in Bayview in Zone C.

But overall, affordability was key. A total of 30 communities within Calgary had average sale prices under $200,000 - with more buyers purchasing condos under that price range this year compared to last year during the same period.

"Buyers in this market expect value and many are taking advantage of some affordable buys in both the single-family and condo markets," says Stante.

He expects this fall to be more active. "I think as the inventory is absorbed, more particularly in condos, the shift will be to sellers and there will be slight increases in price."

Swinton, who has a condo apartment building of 11 units among her portfolio of properties for sale, says she had three calls for showings for that development on the last weekend of Stampede - traditionally a very slow time for real estate transactions.

"It was priced well and a good product, but still, that is investors looking to buy, so that's positive."

Zaharko, too, points to the new condo market where several highrise developers are starting marketing or re-starting projects that had been on hold during the downturn in the inner city.

"The big developers are coming back to the table," he says.

"They've got their pulse on the market, and see what the oil and gas industry will be doing in the next couple of years. The timing is right to start now."

Typically, a highrise project can take two years or more for construction to be complete.

Zone C, which is mostly southwest Calgary and the inner-city neighbourhoods in the Beltline, was not surprisingly the most active for resale condos in the second quarter.

It also had the highest average price and highest median price at $317,301 and $285,000 respectively. The median price is the mid-point of all sales.

Overall, most condos took an average of 54.5 days to sell - but if it's the right product at the right price in the right location, it will sell quickly.

A $835,000 condo in Eagle Ridge in Zone C, for example, sold in just nine days during that period; another condo in Citadel in Zone A went for $440,000 in just four days.

MOTIVATING MOVES

Making the switch to condo living
Financial security a major motivator behind the move
By Denise Deveau
For Postmedia News March 30, 2011

For Sara Kinnear, an investment firm lawyer in Winnipeg, moving from her house to a condo was the perfect way to simplify her life.

After three years of owning a detached home, she realized that the maintenance chores were more than this busy professional wanted to handle.

"There weren't any big problems, just the normal stuff around the house," she says.

"But having to arrange time to be at home to have people fix things and getting estimates .. It was too much of a drain on my time."

Condo living suits her lifestyle much better, she says.

"I like the fact everything is on one floor, it's on a better bus route and I don't have to have people look at the roof when it needs fixing," says Kinnear.

"Someone else will do that for me now. And I don't have to shovel snow when it's -40 C or mow the lawn when it's 30 C."

Kinnear is not alone in preferring the maintenance-free lifestyle that condominium living has to offer after experiencing the ups and downs of home ownership.

Jack Courtney, assistant vicepresident of advanced financial planning for Investors Group in Winnipeg, says he's seen the trend happening within many families, including his own.

"My in-laws sold their house to move to a condominium, not because it meant a cost savings but because it could give them more freedom to go to the lake and other things."

They made the move despite the fact they had a home with a pool that overlooked a golf course.

"He liked to golf, but didn't want to have to cut the grass or look after the pool anymore to do it," Courtney says.

Urban centres are seeing a growing influx of people moving back to condominiums after going through the life cycle of home ownership, confirms Andrew Bodnar, a sales representative with Re/Max Condos Plus in Toronto.

"Maintenance is a big reason or they simply kept a house to accommodate a family that has moved out. With condominiums, there's a lot of comfort, less stress and enough room and amenities for people to enjoy themselves."

Financial security is also a major motivator, he adds.

"We see people in different financial stages of savings who want to use the equity in their home to increase their cash flow later in life."

Courtney agrees the transition is often motivated by a need to free up capital for retirement.

If this is the intent however, he advises that prospective buyers make sure they understand all the expenses involved when making the move, from closing costs and commissions, to acquisition and maintenance fees.

A major consideration in making the switch from house to condominium is the nature and extent of the capital repair funding for the property you're considering.

"Sometimes capital repairs on a condominium property can be significant if there isn't a sinking fund in place," Courtney says.

"In fact, if you're looking at a property and the condo fees seem out of whack or too low, I would be suspicious and start asking questions."

Otherwise, you may get hit with a big assessment for a major repair to a parkade, for example.

"I knew of one property that was a converted highrise apartment block, where the tenants were stuck with a huge foundation repair issue and there was no fund put aside," he says.

The best defence for prospective owners is to examine the condominium owner's agreement carefully, Courtney advises.

"I would hope that a real estate agent dealing in condo sales would be familiar with the process," he says.

"A lawyer definitely should be. Have them review the terms and explain them so you have a better understanding of what you are getting into. Don't be afraid to ask, where is that $400 a month fee going and how is it used?"

When it comes to fees, Bodnar says it's relatively easy to manage them based on the available amenities.

"Most recognize there's a correlation between fees and amenities. You might have a couple looking to streamline expenses, so if they are concerned about costs, they may look at properties that have a smaller gym or don't have a pool."

He advises restraint for people on tight budgets who need to secure financing.

"A $100-a-month reduction could be the difference between getting that approval or not."

DESIGNING A COMPACT LIFE

Volumizing your small space
Designers can make dinky digs look grand and sprawling rooms intimate — and their services are multifarious
By Samantha Pynn, National Post

In the early ’80s, people who worked with designers lived in a world of Champagne wishes and caviar dreams. It was the late great design legend Mark Hampton who said that it wasn’t until the ’80s that a decorator entered through the front door and not the trade entrance. But these days, it seems like everyone is working with a designer.

In fact, I can’t remember a week passing without someone asking, “Can you give me the name of a good designer?”

The answer: Yes. As a design editor at Style at Home magazine, I have worked with hundreds of the best and brightest as well as rising stars.

From mansions where you can park 10 cars in the entrance, to teeny nests where you’d barely have room to store a bicycle, I’m always awestruck by the way designers can manipulate space. A professional can make a sprawling space feel cozy and a small space feel, well, spacious.

You may be thinking, “There isn’t much a designer can do with my 500-square-foot condo.” Or, a small space is easy to furnish because you need a lot less. Au contraire. Tiny spaces can be the toughest to design, but somehow designers have a knack for making them feel larger. On one of the first photo shoots I assisted at, designer David Overholt divided a 400-sq.-ft. bachelor pad to give it a wall of storage including bar, office, bedroom, living area-cum-TV-watching spot, plus dining table. If you’ve ever lived in a bachelor pad, you know that’s a lot of function in a very small space.

I understand if you may not have the budget to go all Lifestyles of the Rich and Famous, but there are so many capacities in which you can work with a designer, from consults to full-service design. There are even online services popping up all over the Web.

Croma Design, a full-service company owned by Amy Kent and Ryan Martin, recently opened a subsidiary company, Croma Express. Instead of driving all over the city, you go to their downtown Toronto studio, where you can view different Ikea cabinet doors alongside other hardware and finishes. With the help of one of their designers, you pull together the kitchen of your dreams. “Designing a kitchen can be overwhelming; we help people make the right choices and upgrades to make it look like a million bucks,” Mr. Martin says. Croma Express focuses primarily on kitchens. “But we also open our design library of wallpaper, paint, fabric and other samples for those working on other rooms,” he says. Shopping all over the city is time-consuming. “Having everything under one roof with a designer to guide you in the right direction saves multiple trips and hassle.”

The right fit: Find someone whose style is simpatico with your own. If you like ultra-white spaces, you may want to rethink working with someone whose portfolio is filled with red floral sofas and bouillon fringe. Plus, there are designers who shift from mod to trad with ease, but be sure to see examples of their work.

Go online, extract names from decorating magazines, watch the daytime TV shows that feature designers’ work, and, of course, ask your friends. If a designer you love is too busy to take on your project, ask them to recommend someone.

One-time consultation: Next, determine the level of service you need. One-time two-hour consults can cost $500 and are for people who have done their research and have images of furniture, paint chips and fabric swatches. If you know what you like, but have specific decorating questions or you’re worried you’ll make a mistake, a consult will give you the affirmation you need. (Tip: If you can’t remember what colour underwear you’re wearing, then take notes. Two hours of decorating talk is a lot to take in.)

Many designers don’t give consults because it’s difficult to download in two hours everything that one needs to do to a space. Moreover, one thing that’s guaranteed in the land of design is that something will go wrong. The chandelier will be too small for the dining table or the floors will have been stained the wrong colour.

Every time something goes wrong or changes, 10 other things have to change, too. It’s the domino effect.

And two hours of consultation will not really equip you for a soup-to-nuts makeover.

Designer floor plan: This is ideal for anyone confident in his or her style and colour choices, but who wants a furniture roadmap. Explain your needs to a good designer and he or she can give you a floor plan that tells you where your furniture should go and what the maximum sizes should be. This will prevent you from buying a sectional that will block both entrances of your living room (ahem, not that I know anyone who did that a long time ago).

For those who like to do the legwork, a designer Web package will give you a paint-by-numbers design plan. Online packages range from floor plans to complete room designs. You are required to fill out a questionnaire about your decorating and lifestyle, as well as submit a photograph, and you’ll need to measure your space and send inspirations shots. Prices range from $350 to $2,500.

Full-service design works just like the full-service gas station. A designer will take care of everything, you just have to sign off. “It alleviates stress for people who don’t have the time or expertise to pull their space together,” says designer Kimberley Seldon of Kimberley Seldon Design Group, who offers many different levels of design. Like anything that makes your life easier, good design costs money. Hourly rates start at $125 per hour for a junior designer. A senior designer with a well-known reputation can command $325 per hour.

“Busy working couples understand the value of having something taken care of properly,” Ms. Seldon says. Indeed, a designer will pay attention to every detail, help you make purchases that last, save you from costly mistakes, and project-manage (ever try to arrange a plumber, cabinet maker, electrician and painter in that order?).

If this sounds costly, remember you don’t need every square inch of your home professionally designed. “We’ve occasionally worked on a task-only basis for clients, preparing lighting plans, sourcing furniture for a single room, or styling a large bookcase,” Ms. Seldon says.

Treat your designer right: Your full-service designer may feel like your best friend, but respect that your project is a job (kind of like when you go to the hair salon). Many designers work around the clock — if you’ve ever designed a room you know that it’s a time-consuming process — but will keep contact hours between 9 a.m. and 5 p.m. Emails at 11 p.m. count as work, too. I don’t know any lawyer who doesn’t clock and charge every phone call and email. And unless you only use your home’s back door yourself, be sure to see your designer in through the front.

CHANGING THE RULES YOU LIVE BY

Condo can't-do
Ground rules are essential when hundreds of strangers live in one building
By Helen Morris, National Post

Moving into a shiny new condo for the first time can be pretty exciting. If you have been renting for a while, now you have a place you can more or less call your own. If you are downsizing from a house, you may be pleased not to have to take care of your own garden, or look forward to decorating your unit.

But the people at the Ontario Ministry of Consumer Services who try to help consumers understand how condo legislation works want to make sure condo owners know their rights and responsibilities.

"Most condo owners are not terribly aware of what it is to own a condo and the responsibilities of owning a condo," says Vishnu Kangalee, manager of consumer services bureau, Ontario Ministry of Consumer Services. "There is so much misinformation about what the condo owner really does own and what they own in concert with the other owners of the condo corporation."

The Ontario government has launched an online survey (Ontario.ca/condos) to "take the pulse" of condo owners, in order to try to clear up some of the confusion.

"One of the misconceptions is that people think we are a government agency that regulates in the same way as the landlord-tenant board [would]. There's a big difference between being a condominium owner and a tenant," says Joseph Kavanagh, consumer services officer, Ontario Ministry of Consumer Services. A frequent question he receives is whether there is a maximum increase in common expense fees. "I have to tell them 'No'," he says. "It's not like landlord-tenant legislation where landlords can only raise the rent a certain percentage every year. In condominiums, if you don't like the way the board is operating, you vote them out."

According to the Canadian Condominium Institute, misunderstandings can take root even before condo owners move in.

"There needs to be some very significant changes to the pre-purchase information. Information is provided by the barrel load," says Mario Deo, vice-president, Torontochapter, Canadian Condominium Institute, but "the problem is, the purchasers don't understand what it means. They're caught up in the euphoria of purchasing a condominium unit."

Mr. Kangalee says that condo purchase documents are incredibly complicated and abstruse. His colleague agrees there is complexity.

"Number one," Mr. Kavanagh says, "we always advise consumers who are buying a condominium to consult with a lawyer or real estate professional at least during the 10-day cooling-off period, so they can go through the documentation."

Once you move into the condo, many aspects of how you live will now be subject to the condominium documentation.

"The main big difference is when you're owning your own [house], you're not subject to [any restrictions within] the condominium documentation," says Mr. Deo. "There can be hundreds of restrictions, but the main ones are repairs, insurance, how you deal with your neighbours, pets, how you decorate and renovate and the use of your property. All of that is not controlled as much when you own [a house, though] of course there are municipal by-laws, etc."

Mr. Kangalee says some consumers who call his office misunderstand how condo ownership works.

"There is no direct ministerial role here. This is what is known as a declarative statute. It states what the law is. Condo owners are the owners of the corporation, they run the corporation, it's like a microcosm of a democracy," Mr. Kangalee says. "They elect the board of directors and it's incumbent upon them to ensure the efficient functioning of the corporation by being proactive and taking part in the meetings and voting. They even have the authority to vote out directors if they are unhappy with them. There are a lot of consumer protection rights given to them in the Condominium Act."

Mr. Kangalee emphatically states that, should a condo owner have a dispute with their board, on no account should he or she refuse to pay their monthly fees. The board can get a lien on the unit and even sell it if the fees aren't paid.

LIVING LARGE IN LIMITED SPACE

Small condo with a big social life

Maximize your space -- and entertaining options
By Stephanie David, Edmonton Journal
 
Many people have made the sacrifice of downsizing their living space to gain a better location. But there is no need to sacrifice your social life.

Stephanie Fourgeaud has become accustomed to entertaining in a small condo. She has traded living space for a hot-spot location in the charming coastal region of western France. Her 50-square-metre condo is located in Royan, in the popular Charente-Maritime province.

There are not many drawbacks to living in France's sunniest region, but one is the price for space.

Living in a small condo has not stopped Fourgeaud from indulging in one of her favourite pastimes: socializing with friends. Fourgeaud's experience in entertaining in her spatially challenged condo makes for useful tips, no matter where the party is located.

Making the most of her small home starts with making room for extra. "I always make sure I have extra chairs and drinks that can be pulled out after the party has started," she explains. "It adds spontaneity, although everything is organized ahead of time." It also makes the room seem larger as guests are arriving.

Fourgeaud often separates the entrance from the living space with a simple wood partition and dresses it with party decor.

"It makes it easy to greet guests and collect jackets as they are arriving," she says. "This is a good chance to put jackets away in a separate area to keep the main room free of clutter."

Removing all unnecessary furniture can also maximize a limited space. Bar stools and floor cushions can add extra seating and create a casual atmosphere.

Organizing a centre to the room with edge-style seating further enhances space. For example, use functional furniture like a sturdy coffee table, push it against the wall, and add throw-cushions to create bench-seating.

One of Fourgeaud's favourite tricks to maximizing limited space is to serve snacks buffet-style and all food in bite-sized pieces. The key to her success: "lots of napkins."

She usually spreads the buffet across two tables and passes the appetizers herself. This both omits the need for a snack table and creates a more intimate atmosphere.

The keys to preparing a dinner buffet: plates and cutlery on the left, desserts and beverages last (or separate) and a serving utensil for each dish. Coloured napkins can be added to the buffet and to the room for decor that does not take up space.

If you don't want to compromise on the dining experience, another option is to rent or borrow a large table, which after dinner can be pushed against a wall and used for a coffee station or bar. When dealing with limited space, it is best to serve a plated meal from the kitchen so you will not have to accommodate a large spread of different dishes.

Alternatively, placing the food in separate stations in different parts of the room can encourage mingling, an added bonus if there is a lack of seating. Serve finger foods that can be consumed while standing.

If entertaining in a space split into two adjoining rooms, remove the door from its hinge and stash away in the bedroom to open up the space and draw the rooms together.

If including bar drinks, be sure to have extra ice stored in the bathtub or outside. If possible, have a bowl of ice on the counter and replenish as needed, to allow people to flow through a limited bar space faster.

Don't overstock the bar area, but do plan on an average of three glasses per person (five glasses in a bottle of wine). This designated drink preparation area will also serve to keep the beverages contained in one location.

An unused stove top with a flat, covered surface or a cupboard with the door removed works well for the bar when there is limited space.

INVESTING IN WHAT WE LOVE

Invest in real estate and in your kids
Garry Marr, Financial Post
Published: Friday, May 07, 2010

Here's one way to tackle the red-hot Canadian housing market: Get someone to buy you a home.

That someone would be your parents. According to a new survey from TD Canada Trust, 10% of Canadians are considering buying a condominium for their adult children. A year ago, only 5% of parents thought about buying the kids a condo.

"It could be something that the parents are looking at as a long-term source of income, letting their children live it in for now," says Chris Wisniewski, associate vice-president of real estate and secured lending with TD.

It could also be that parents know condominium prices, like detached homes, have climbed to unprecedented levels, making it difficult for adult children to come up with a minimum 5% down payment, let alone the 20% needed to avoid costly mortgage default insurance.

Toronto condo research firm Urbanation Inc. says the average existing condominium in the city sold for $331,000 in the first quarter of 2010. Based on an average $369-per-square-foot price, that's a 900-square-foot unit.

For a new one, prices averaged $443 per square foot in the first quarter, so about $400,000 for that same-sized condo.

Ms. Wisniewski says low interest rates are convincing parents to step up and buy their children homes. The condominium represents an attractive alternative to those parents because the costs are stable.

"They know what the maintenance costs will be," she says. "[Parents] are thinking, ‘I'm not worried my children are too young to accept the responsibilities of home ownership if I set them up in an apartment. They don't have to recognize the responsibilities of maintenance in an apartment.' "

Parents might also see a condominium as a way to get their kids to start a family. The survey found 36% of Canadians are willing to raise families in a condo.

"One of the reasons for that is affordability," says Ms. Wisniewski. "Where are the new condominiums being built? They are being integrated in really nice existing neighbourhoods with all the infrastructure and all the schools and amenities."

Brian Johnston, president of developer Monarch Corp.'s Canadian division, says he doubts families will ever be integrated into the condominium stock, but does agrees with the premise that parents are helping to buy housing for their children. He says parents often want to keep children close to them so they'll chip in for a condominium in a nearby neighbourhood.

"How do we know they're helping out? They tell us when they are writing the cheques for the deposit," Mr. Johnston says.

Mr. Johnston said when it comes to recent immigrants to Canada, there is "lots of help" from family members to get that first home. "Condominiums are not inexpensive and they're going to need that help, particularly if the younger ones have not had time to build up their finances."

The builder has his own children and, based on today's prices, he figures he's going to have to lend a helping hand. "I don't expect them to be able to buy a condo ... before they are 30. That is just part of the deal [for parents]," says Mr. Johnston.

It's not like Baby Boomers don't have the cash. There have been endless studies that suggest the Boomers are set to inherit billions of dollars in the coming years from their parents.

Craig Alexander, deputy chief economist with TD Bank Financial Group, says there is no hard data to suggest how much parents are helping children, but they certainly have the financial capacity to lend a hand.

Canadians have $1.5-trillion invested in stocks and mutual funds with $500-billion of that figure in capital gains.

"The generation before the Baby Boomers were big savers and, as a consequence, there is a very large income transfer going to take place over time," says Mr. Alexander, adding it makes sense that some of that money is going to end up in housing and real estate.

For first-time buyers facing rising rates and increasing prices, the helping hand couldn't come at a better time - just ahead of tighter mortgage financing rules. Most of them probably hope their folks go from "considering" buying a condo to actually doing it.

Photo By: Remodeleze

COMING UP ROSES IN FEBRUARY

Housing market shows 'momentum' in February
Real Estate Sales, Prices Firm Up
By Mario Toneguzzi, Calgary Herald
March 2, 2010

The local housing market showed signs of balance, not a bubble, in February, according to the Calgary Real Estate Board.

In releasing its official MLS numbers for the month, the board said sales and average prices increased in both the single-family home and condominium markets compared with year-ago levels.

"We're just pretty steady and we're getting some momentum, but that's fairly typical in a normal year and I don't even compare it to last year because last year wasn't a normal year," said board president Diane Scott.

"Right now, where we sit in February, it's pretty stable. It's a comfortable market and we're almost close to equal buyers and sellers."

Single-family home sales for February were 1,035 units, up 25.5 per cent from February 2009's 825 units. The average sale price hit $458,254, an increase of 10.3 per cent from last year's $415,568.

Also, condo sales were up a whopping 56.3 per cent to 536 units compared with 343 sales in February 2009. The average price also increased by 5.2 per cent, to $282,880 from $268,971.

Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp., said market watchers have to be careful when comparing February numbers with a year ago.

"In many ways it would be like comparing apples to oranges," Cho said.

"Market conditions now are stronger compared to this time last year, when conditions were more uncertain. We are still seeing steady demand for homes, especially for the entry-level product. Low mortgage rates continue to support demand for home ownership.

"The selection of homes for prospective buyers has also improved, with active listings trending up. The resale market has settled into balanced conditions, putting modest pressure on prices."

A year ago, Cho said, people were losing their jobs. They were waiting on the sidelines to see where the economy was going and where house prices were headed.

Now, with things improving and the economy and housing market stabilizing, prospective buyers are more comfortable with making larger purchases such as homes, added Cho.

Scott agreed the economic situation last year had an impact.

"We were in such a slump and there was no consumer confidence," she said. "It looked like we were going downhill for a long period of time.

"This year, the consumer confidence is up, the interest rates are low still and hopefully that will stay for a little while longer and afford-ability is there. A lot of people who were sitting on the fence last year are coming off."

She said the Calgary housing market has shifted from fragile to fervent in just over 12 months. The city is also seeing a moderate rise in the number of competing offers on homes.

For towns just outside Calgary, sales were up 55.8 per cent to 335 units from 215 a year ago but the average sale price dropped by 4.82 per cent to $353,912 from $371,829.

In the country residential market, which includes acreages, sales increased by 84.38 per cent, going from 32 last year to 59 last month, with the average price remaining virtually the same at $748,506.

Scott said many first-time buyers are seeing this as the time to take advantage of record-low interest rates.

"We will see a rise in both our inventory and demand this spring -- and we expect both to stay in a healthy balance. Prices will edge up as the year progresses, but the rise in prices will be moderate," added Scott.

Single-family listings in Calgary added for the month of February totalled 2,154, a 4.72 per cent jump from a year ago.

New listings for condominiums for February were 1,109, up 24.3 per cent from last year.

"The story of the housing market is all about interest rates at the moment," said Scott. "When the rates will rise is the wild card. Canada's economic recovery showed marked improvement in the final quarter of last year. This will put pressure on the Bank of Canada to begin raising rates sooner than planned to curb inflation."


Calgary Home Sales In February

Single-family homes 2009 2010 Change

Sales 825 1,035 25.5%

Average Price $415,568 $458,254 10.3%

Median Price $375,000 $411,000 9.6%

Condominiums 2009 2010 Change

Sales 343 536 56.3%

Average Price $268,971 $282,880 5.2%

Median Price $249,900 $265,900 6.4%

Source: Calgary Real Estate Board