Dave Dry

Open House in Ellerslie Saturday May 19

Open house Bridgeport in Leduc Saturday May 5

May newsletter

Open house Saturday April 28 2012, in Ellerslie

Open house in Bridgeport Leduc. Sunday April 22.

Oil boom finally hits Alberta housing starts

Economists predict strong year for Prairies

By John Shmuel, Financial PostApril 12, 2012

Home construction is booming in the Prairies - and Alberta, after years of tepid housing starts, is leading the charge.

The rate of residential construction, especially condominiums, has lagged behind the oil boom in Alberta in the past few years.

But blockbuster housing starts in March - they jumped 72 per cent year over year - hint that residential construction is getting hot again.

The data, released by Canada Mortgage and Housing Corp., showed starts grew nationally by five per cent, to 215,600, from the previous month.

Starts in Alberta jumped to their highest levels since March 2008.

Robert Kavcic, an economist at BMO Capital Markets, said the numbers show the Alberta housing market is finally picking up momentum again, something it lost following the province's housing boom in 2006-07.

"It looks like we're at a point now where strong economic growth and stronger population trends are starting to finally tighten that market up a little bit," he said.

"We're seeing more sustainable momentum in housing starts in Alberta."

Growth in Alberta comes as the entire Prairie region benefits from an oil-fuelled economic boom, boosting housing along with it.

Data from CMHC show the Prairie provinces posted an annualized growth rate of 6.4 per cent in urban housing starts in March.

Housing starts in Alberta have grown 53 per cent in the first three months of the year, while next door neighbour Saskatchewan has registered growth of 34 per cent. Manitoba, meanwhile, saw starts jump 41 per cent.

Home construction has soared in Alberta's biggest cities, especially the condo segment.

In Calgary, while single detached home starts increased 55 per cent year over year, multi-unit starts were up a whopping 407 per cent.

That's good news for a market that suffered from a glut of supply following the 2008 financial crisis.

Home construction went into frenzy mode in 2006 and 2007 as the province struggled to keep up with a flood of workers from other parts of Canada who worked in the oilsands. However, after oil prices crashed in 2008, many workers were laid off or moved back home, leaving fewer buyers for the surplus of homes.

A jump in starts suggests that excess supply has been absorbed, and the province is starting to build again as it accommodates one of the fastest-growing populations in Canada. While the Prairies recorded strong growth in housing starts, it was Ontario and the blistering condo market in Toronto which added the biggest numbers in March.

Multiple-unit starts in Ontario jumped by 50.4 per cent to 85,200 on a seasonally adjusted annual basis - a number CMHC called "exceptional" but said could "not expected to be sustained."

Leslie Preston, an economist with TD Economics, said the surge in Ontario housing starts was probably because of the warm winter weather, which led to earlier groundbreaking on projects.

She said subsequent data for housing starts in Ontario, and particularly Toronto, would likely disappoint in the second quarter.

"If you expected a certain amount of building projects over the first half of the year, that has now likely been concentrated in the first quarter," she said. "I think the risk of disappointment in construction in the second quarter is high."

Economists say that despite the huge jump for Ontario in March, home-construction growth will continue to be centred in the West this year, with the Prairies in particular seeing strong numbers.

"We're anticipating continued growth in residential and real estate construction as a result of Western Canada's economic strength," said David Onyett-Jeffries, economist with the Royal Bank of Canada.

"Looking at the Western provinces, we're still seeing a pick up in housing start activity in Alberta, Saskatchewan, B.C. and Manitoba."

In contrast, Onyett-Jeffries said, housing starts in Ontario and Quebec should cool off this year.

Read more: http://www.calgaryherald.com/business/real-estate/Oil%20and%20gas%20industry%20boosts%20Alberta%20new%20home%20construction%20in%20March/6446499/story.html#ixzz1rsz3wktJ

Making your Real Estate needs my priority!

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017

April Newsletter

What do these statistics tell us?

February and March have got the year off to a great start with increases across the board, with the slight exception of average condominium prices in March, which showed a slight decline ($3,344 / 1.4%). These numbers do require a little clarification. When examining the sales numbers we see an increase of 75 in March with the majority of these in the $150,000 - $249,000 price range, therefore dropping the average. This is more of an indication of the price range that buyers are looking at not a direct reflection of the value of an individual property.

There have however been some challenges in the condominium market, most notably the Bellavera, complex in Leduc, and the safety concerns surrounding it. In the last year or so a number of condominium complexes have had problems. Whether it is with construction and developers or the poor financial condition of the corporation, these have hurt the market, with buyers understandably very sceptical.

The accompanying article goes into the importance of closely examining the condominium documents provided by the seller.

February and March have both been very active months. Sales increased in February above expectations as did March. While it looked like it was going to be a sellers market coming off the February numbers in March listings kept pace with the slowing of sales, but still at a significant increase of both at just over 19%.

If sales continue at this pace and the number of new listings start to trail off we can expect to see prices increase through the spring and summer.

Making your Real Estate needs my priority!

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017

Open house Saturday April 7 2012

This two bedroom single bath home has an open concept kitchen, living room and dining room while offering privacy to the bedrooms. Laminate floors in the living room and dining room provide a warm and inviting welcome. Top floor means no noise from above, from the deck you can see for miles. All this and a single car garage and parking stall! Where else can you find a better place to relax.

Property details

Making your Real Estate needs my priority!

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017

Condominium documents why should I read them?

Condominium documents are a set of documents including bylaws, meeting minutes and financial statements relating to the condominium corporation.

After receiving these documents I have heard clients say, thanks but you know I'm not going to read them, I'm not paying someone to read them for me and there are other people who bought here,that are more educated than I, so there can't be anything wrong. - Wrong these "smarter" people may have the same assumption as you. They may have found something in the bylaws or meeting minutes that did not concern them but may concern you.

Now I have talked you into looking at the documents. Do you look at them or have your Realtor, a lawyer or someone else examine them?

Your Realtor may say sorry thats really not my thing, and he is in all honesty not being lazy it really is not his thing. A real Estate lawyer may very well be comfortable looking at, and advising you as to the condition of the condominium corporation. There are also companies that look at and evacuate condominium documents. I encourage my clients to take the time to go through the documents themselves and also have a professional take a look at them. This performs two purposes 1) They become personally familiar with what is involved with being a member of a condo corporation 2) It may raise questions that you would like answered.

So what are we looking for? Like any corporation we want to know financial status, the condition of property owned by the corporation and whether the corporation is functioning well. The financial statements can tell if money is being spent responsibly, if for example is the management fee in line with industry norms? One of the most important documents in this package is the the reserve fund study this will tell how much the corporation expects to spend in the future and how much of the condominium fees should be going to day to day expenses, such as snow removal or lawn care, and how much needs to be going into a savings account (reserve fund) for future repairs and maintenance. A comparison between this and the financial statements can tell if the reserve fund, condominium fees and reserve fund contributions are in line with the reserve fund study.

Meeting minutes can tell us a number of things. Is the board working as a team with common goals. Is the corporation moving in a proactive manner or are there actions reactive. What are the problems in the building? What are the short term goals to deal with problem areas in the building? In a complete set of minutes you should be able to answer these questions.

You would not buy a brand of car that you had never heard of without doing some research: so why buy property and an interest in a corporation without doing some research.

The money you spend to check out your new condo is well worth it. Some feel that if nothing is found in the documents to raise a red flag it is money wasted, and well spent something is found. If something is found to raise a red flag and the deal is not completed then it can possibly save you thousands of dollars and years of heartache and headaches. If nothing is found you have peace of mind and all your questions have been answered to your satisfaction.

Making your Real Estate needs my priority! 

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017

Open House in Ellerslie on Saturday

Ellerslie, Edmonton  -  We invite everyone to visit our open house at 324-151 EDWARDS DR on March 31 from 2:00 PM to 4:00 PM.

Property information

Making your Real Estate needs my priority!

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017

Re/max Spring report for 2012.

Open house in Leduc Saturday March 24, 2012

Property information

This truly is a rare find. Penthouse, end unit with a view. This two bedroom single bath home has an open concept kitchen, living room and dining room while offering privacy to the bedrooms. Laminate floors in the living room and dining room provide a warm and inviting welcome. Top floor means no noise from above, from the deck you can see for miles. All this and a single car garage and parking stall! Where else can you find a better place to relax and unwind? Close to shopping, Airport and 20 minutes from Edmonton. Small town living combined with the convenience of a big city. A rare find.

Making your Real Estate needs my priority!

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017

2 Story For Sale in Sherbrooke

• 1,601 sq. ft., 2 bath, 4 bdrm 2 story - MLS® $279,900

Sherbrooke, Edmonton  -  Spacious 1600 sqft 4 bedroom home in Sherbrooke with double detached garage. This a fantastic renovation project. With hardwood floors and large yard. Create your dream home, or great opportunity for the investor.

Property information

CMHC predicts higher prices in 2013

This is the Alberta overview taken from the CMHC housing outlook released for the first quarter of 2012. It gives a good perspective of the Alberta market, adding credibility to the prediction of steady growth throughout the year.

Alberta Overview

With respect to overall economic growth, Alberta’s real Gross Domestic Product is forecast to grow by 3.5 per cent in 2012 and 3.3 per cent in 2013. Despite low natural gas prices, Alberta’s commodity-driven economy will experience the strongest economic growth among Canada’s provinces in 2012 and 2013. Substantial investments in exploration and development of Alberta’s natural resources will be a key driver of economic growth. Energy exports will continue to dominate the trade sector and generate employment.

After two years of decline Alberta’s labour market experienced a large gain in employment in 2011. With most of the employment growth occurring in full-time positions, housing demand is expected to rise in 2012. Employment growth in 2012 and 2013 will not outpace the rebound year in 2011, but will remain about 2.7 per cent. Alberta’s labour market conditions are expected to tighten over the next two years, lowering the unemployment rate to below 5.0 per cent and lifting wages.

Economic growth, job creation, and low unemployment rates are attracting more migrants to Alberta. Net migration to Alberta is on an upward trend and the 2011 count will approximately double 2010’s total, which was a 15-year low. Over the forecast period, net migration will be close to the ten-year average with about 40,000 people added each year, increasing housing demand for rental and homeownership.

In Detail

Single Starts:

A 24 per cent increase in single-detached starts during 2010 caused inventory levels to trend higher and delay some new construction activity in 2011. Moving forward, demand is expected to improve with continued economic growth and job creation. In 2012, single-detached starts are projected to rise by about 14 per cent to 17,300 units. In 2013, price growth and modestly higher mortgage rates will increase financing costs, thus moderating growth to 4.0 per cent, or 18,000 units.

Multiple Starts:

Multi-family starts will continue to rise over the forecast period. Production in 2012 is projected to increase by about 12 per cent over 2011 activity to 11,800 units. Meanwhile, 2013 is expected to see 12,000 units, which is about double the recent low of nearly 6,000 units in 2009. After a period of dormancy, the high-rise condominium market is beginning to show signs of activity, and this market should improve with lower inventories and the expected economic and demographic growth.

Resales:

Residential MLS® sales in Alberta rose approximately seven per cent in 2011, while new listings decreased by an estimated four per cent. As a result, market balance improved over the course of 2011. Alberta’s positive economic and demographic outlook will result in growing demand for resale homes. In 2012, resale transactions are projected to rise to 54,650 units and then increase by over three per cent to 56,550 in 2013.

Prices:

Most of Alberta’s major resale markets were in buyers’ market conditions through 2011, holding price growth to near one per cent. The notable exception was Wood Buffalo, where the oil sands driven economy boosted the average price by around seven per cent. Over the forecast period, gains in employment and migration are expected to lift demand, improve market balance, and increase Alberta’s average resale price to $363,650 in 2012 and then to $372,300 in 2013.

For the full article click here.

If your thinking about buying a home in the near future now maybe the time, low interest rates combined with predictions of higher prices, make now a great time to buy.

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017

March 2012 Newsletter

What do these statistics tell us?

We are off to a good start in 2012.
January was typical, November through February are typically the slower moths
and so was true of this year until the middle of February. In the second week
of February the market suddenly came to life about a month early, with talk of
multiple offers and buyers actively looking to buy. This spurred the market as
we can see from the numbers sales are up 28% from January while the number of
active listings is only up 1.2%. Prices also showed a increase 6.2% in single
family detached homes and 8.4% in condo sales, with an average sale price of
$329,911 for all residential sales. For comparison the average price for
February 2011 was $312,840.

What does this say for the rest of the year? This could be the beginning of the spring market
which may indicate an early peak, with June or July being the normal yearly
high point in the market. In 2010 prices topped out in March of that year and
slowly declined through the remainder of the year. However I am more of the
belief that we will see a slowing of prices in the next month and prices will
resume a slow and steady climb returning to the normal yearly pricing trends.

High levels of consumer debt, and concern still swirling about the financial crisis in Europe
and the U.S., will be balanced by low unemployment and above average job creation
in the Edmonton area. Consumer confidence in Canada and more specifically,
Edmonton has continued to grow in the last year, leaving consumers feeling more
confident and secure in making big ticket purchases. So I am predicting a
steadily growing market.

2012 is looking to be a good year and I stick with my prediction, of December, that we will come close if not surpass the sale prices of 2007.

Making your Real Estate needs my priority!

Dave Dry

Realtor, Re/Max Real Estate

Website: www.davedry.com

Blog: blog.davedry.com

Office: (780) 457 3777

Direct: (780) 446 3727

Fax: (780) 478 7017