City leads country in sales, price declines: report

Canada's resale residential housing markets illustrated further signs of regional disparities in January, with sales and prices up in hot markets such as Toronto and B.C.'s Lower Mainland yet down in others such as Calgary and Edmonton, according to a new report from the Canadian Real Estate Association (CREA).

Sales in Calgary last month fell by 14 per cent to 1,049 units, representing the sharpest year-over-year decline among all major urban centres in Canada. Edmonton also saw a sharp 9.7 per cent decrease in the number of sales to 777 units.

In contrast, Greater Vancouver saw sales pick up by 30.3 per cent to 2,626 units and Greater Toronto Area (GTA) by 7.3 per cent to 4,672.

Commercial market outside the core still active

Calgary's suburban commercial market is bucking the trend and chugging along in the face of Alberta's current economic downturn, say industry experts.

"The perception is that all commercial real estate is facing challenging times, but the reality is our industrial market and our suburban office market and our retail market are very resilient," said Colliers International managing director and broker Joe Binfet.

"And, while I wouldn't say robust, I would say active."

Office market to face increased vacancy, lower lease rates

Calgary's downtown office market struggled in 2015 and is expected to face challenges in 2016 due to prevalently weak economic conditions in the province's oil patch, says a new report.

Commercial real estate firm Barclay Street Real Estate Ltd. reported the downtown office market finished the year with a vacancy rate of 17.29 per cent, up 2.23 per cent from the third quarter.

Vacancy was at a record high of seven million square feet at the end of 2015.

Residential homeowners left in the dark as province rolls out solar energy incentives

While the sun is set to shine a little brighter on some Albertans with news the provincial government will be offering increased incentives for solar power, others in the province are saying they're being left in the dark.

The Alberta government recently announced a $5-million Municipal Solar Program as part of its Climate Leadership Plan. Included in the plan are rebates of up to $0.75 per watt, to a maximum of $300,000 per project, to communities that install solar panels or set up solar panels in fire halls, community centres and offices.

Another $500,000 will go toward Alberta farmers who wish to generate their own electricity.

However, with the program largely ignoring the vast majority of residences, critics of the new incentives say they don't do enough to encourage more Albertans to go green.

Attached sector reacting similar to others during downturn

Softness in the city's attached housing market is creating opportunities for would-be buyers as increased selection is resulting in more competitive pricing, according to local housing officials.

Sales of row-type housing and semi-detached properties, which make up the city's attached market, decreased last month by 10.5 per cent compared to the same time last year, according to CREB®'s regional housing market report.

Listings also declined, yet by a more moderate 5.2 per cent. When combined with existing listings, year-over-year inventory levels jumped in January by more than 20 per cent.

More product on the market has meant sellers have had to be more competitive with their pricing. According to CREB®, the attached benchmark price was $345,600 last month, a 1.65 per cent decline from last month. Looking back on 2015, it slid 1.29 per cent from the start to the end of the year.

Plan is expected to provide more housing diversity, increase tourism options

A plan approved by Rocky View County late last year to rebuild Bragg Creek after the 2013 flood will also lift a 20-year building ban on the community and is expected to transform the hamlet from a through-point to Kananaskis with a mature population into a vibrant business community with young residents.

Long favoured by day-trippers, Bragg Creek has seen little change in decades due to the lack of water and wastewater infrastructure to support new residents. Under the new plan, the hamlet will encourage flood-resilient design, including homes raised on piles, roadways with permeable surfaces, and rustic themed landscaping that conceals structural dykes.

"The Hamlet of Bragg Creek is envisioned to be a vibrant commercial core that attracts residents and visitors, a thriving residential community, and a country atmosphere that is in harmony with the natural environment," said Amy Zaluski, acting policy supervisor in the planning department at Rocky View County.

Fundraising total also surpasses $4.5 million

Cochrane's $45-million aquatic and curling centre has taken another step forward, with construction on the structural steel frame now complete.

Roofing insulation on the 150,000-square-foot project, being constructed adjacent to the existing Spray Lakes Sawmills Family Sport Centre on the east side of town, has also started.

The remaining second floor and roof deck is in progress and is expected to be completed within the next few weeks, as will the installation of window frames and fire spray to structural beams and decks.

Understanding the lingo

CREB® released its regional housing market statistics earlier this week for January, showing the residential housing market is continued to be challenged by energy sector uncertainty. But what does it mean for homeowners?

CREB®Now breaks down the lingo in this week's "Five Things" feature.

Sales
CREB® reported that sales of all housing types in Calgary are down 13 per cent from last January to 763 units. By segment, however, a slightly different story begins to unfold. While sales in the detached market decreased by an identical 13 per cent, the attached sector dropped by just over 10 per cent, while the apartment sector fell by a precipitous 16 per cent. For sellers, this shows which segments are more active than others – keeping in mind that the detached sector still represents nearly two-thirds of all sales activity.

Housing stats indicate some buyers still sitting on the sidelines

Calgary's resale residential housing market picked up where it left off in 2015, with buyers' conditions prevailing through every major category last month, according to CREB®.

Yet with many homebuyers still sitting on the fence, local housing officials caution that historically it's been difficult to find a utopian moment to enter the market.

"Buyers, especially first-time buyers and investors, will do their best to time the bottom, but I think that will be really difficult," said CREB® president Cliff Stevenson, noting that few were able to do so during the last recession in 2008/09 when the upturn happened quickly. "I think this year it will be a guessing game as to when will be the best time to get into the market."

Shared-equity housing and other programs are creating solutions to the city's affordable housing crisis

Affordable housing advocates say more moderate population growth this year will not be enough to break down barriers to homeownership that many Calgarians continue to face.

Calgary Homeless Foundation vice-president of strategy Kevin McNichol said the housing market still cannot keep up with demand, with historically high prices prohibiting many people from owning a home of their own.

In late December, more than 3,600 people were on the Calgary Housing Company's wait list for subsidized and affordable housing units — the largest number of Calgarians waiting for a home since March 2012.