A look back at Calgary's resale residential housing market

If nothing else, 2015 was an interesting year for Calgary's housing market.

While it remained resilient even while oil prices began to slide, the conditions that arose as 2014 drew to a close signaled a change was in the air.

And so as Christmas came and went, December 2014 saw the first year-year-year sales decline following 11 consecutive months of year-over-year growth. And with little expectation that things would change, once-lofty expectations gave way to a more realistic outlook.

John Harrop talks about what's in store for 2016

Affordable housing emerged as a pressing topic in Calgary this year, as housing prices, rents and vacancy rates challenged people's access to shelter. In fact, wanting to find a solution to the city's growing housing affordability is what drove John Harrop to his new role as president and CEO of Attainable Homes Calgary Corp.

CREB®Now had a chance to sit down with Harrop to discuss everything from the economy's impact on affordable housing to what goes into creating the perfect community. Here's what he had to say:

Homebuyers still cautious in signing mandatory agreements

Get it in writing – that's now the industry standard governing the relationship between buyers and their real estate professionals.

Yet while buyer's agreements have been a regulatory requirement since July 1, 2015, many buyers are still taken aback when presented with what are considered to be legally binding contracts, and often reluctant to sign even though these agreements are beneficial for consumers and the industry alike, said Charles Stevenson, director of professional standards at the Real Estate Council of Alberta (RECA).

Life-changing event sparks local real estate professional into action

Mathew Said Morley's good deeds come from the heart. Literally.

Six years ago at the age of 26, the Calgary real estate professional had open heart surgery. Born with some heart issues, it wasn't his first surgery – and it may not be his last.

But this particular operation changed his outlook on life — in a beautiful way.

"It really made me think about how fragile life is, and how many people could use just a bit of extra help," he said. "It motivated me to get involved in the community in different ways."

Developing technology being used by Okotoks to reduce homes' carbon footprint

As the holiday season approaches and homes light up like Santa's workshop, energy costs will spiral to top of mind for budget-conscious homeowners.

"Certainly, energy efficiency is always on the radar, but even more so during this economy and at this time of year," said Dawn Smith, sustainability co-ordinator for the Town of Okotoks.

The good news is hope is on the way for homeowners who want to manage their energy costs thanks to ongoing research at the University of Calgary.

Local housing industry experts say a change that governs the amount buyers are required to put down when purchasing a home will significantly impact Calgary's already sluggish market.

Effective Feb. 15, 2016, the change announced by the federal government in early December will raise the minimum down payment for new insured mortgages from five to 10 per cent on the portion of the house price above $500,000.

"The intent of [the change] is to pull back demand, and they're slowing demand in a market where we're already seeing demand slow," said CREB® chief economist Ann-Marie Lurie, noting resale residential sales in Calgary have already dropped nearly 20 per cent from the 10-year average.

Canadians are choosing to invest in home renovations over new home purchases

Canadian renovation activity is on the rise as the economic lull in the real estate market has left some homeowners reluctant to move, instead opting to update.

In a recent report, Scotiabank senior economist Adrienne Warren found spending on home additions, new installations and replacement of equipment rose six per cent year-over-year through the first half of 2015, with renovation spending up in most provinces and outlays on track to total $53 billion this year.

Warren said current homeowners looking to upgrade are seeing renovations as an attractive option, as industrial price inflation for many renovation-related construction materials, equipment and household goods – such as kitchen cabinets, appliances and furniture – remain consistent.

The dish on real property reports

Lost in the lexicon of real estate transactions, a real property report can paint a picture that, in many cases, is worth much more than a thousand words.

An RPR, which is an essential part of real estate transactions, provides a visual and written assessment on the current state of affairs on a given property.

Performed by licensed land surveyors – and ranging in cost from $800 to $1,000 each – this report will disclose essential information such as the property line of a plot of land, recent improvements made to a property and details on any permanent structures (such as sheds, decks, houses, and garages) built on a property.

High rents, job losses contributing to lease breaks, defaults

As the torrential storm of job losses in the province escalates, Calgary's rental community is beginning to feel the fallout.

Rental management groups in the city are reporting a higher incidence of lease breaks and defaults on rent this year as energy sector woes reverberate throughout the economy.

"We've certainly had to do a lot more of this recently than in years' past," said Brett Turner, owner of Redline Real Estate Group Inc., which manages a multitude of rental properties from single-family homes to small apartment buildings.

"We've seen significantly more lease breaks and defaults on rents than ever before."

Development standard finds its way back into the Calgary region

When is a detached home still a condo? When it's a bare land condo, an under-utilized development standard that is once again sprouting up in the Calgary region.

Developers in new areas such as Watermark in Bearspaw and Shawnee Park are designating some or all of their respective developments as bare land condos as part of a more collective approach to building and maintaining communities.

Bare land condos have previously popped up in other area communities such as Tanglewood Estates, The Lake at Heritage Pointe, Okotoks Air Ranch, Elmont Green and Lott Creek Grove.