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Located in desirable Benchlands Terrace, this 5 bedroom home has mountain views, southfacing light and private treed reserve to the rear. The main floor living/dining area has vaulted ceiling with skylight. The spacious open concept kitchen has granite countertops, anthracite sink and a view to nature! The family room has a wood burning fireplace and is located at the back of the home as well. The kitchen has an eating nook with full windows to the wooded reserve. Main level also includes powder room, laundry/mud room and interior garage access. The upper level has been remodelled and includes 3 bedrooms with ensuites. The lower walkout level has been completely developed and designed with 2 bedrooms, ensuite and full separate bathroom, rec room or home theater room and separate wet bar serving area.

ASKING $975,000

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CALGARY HOUSING SLUMP TO END

Signs suggest price increases on the horizon

By Mario Toneguzzi

Calgary and Edmonton are the major Canadian cities where housing affordability is the most attractive, says a new real estate report released Friday.

But the RBC Housing Affordability report says signs are accumulating that the Calgary housing market is finally overcoming its protracted slump and entering a more vigorous phase.

"Home resales grew for the second consecutive time in the first quarter of this year, advancing the most since the middle of 2009," said the report. "This helped remove even more of the earlier market slack and set a healthier balance between demand and supply.

"Home prices have yet to break out of their listless trends, but they did rise at their fastest rate in more than a year, with detached bungalows leading the way. The firming of market conditions and higher prices had only limited impact on Calgary's affordability, which remains among the most attractive of Canada's major cities."

The RBC Housing Affordability Measures show the proportion of median pre-tax household income required to service the cost of mortgage payments (principal and interest), property taxes and utilities. The higher the measure, the more difficult it is to afford a house. For example, an affordability measure of 50 per cent means that home ownership costs take up 50 per cent of a typical household's pre-tax income.

For Calgary, in the first quarter of this year, the average price for a detached bungalow was $413,400, down 1.4 per cent from a year ago. The affordability measure was 35.9 per cent, up 0.9 per cent from the previous quarter but down 3.6 per cent from a year ago. The average since 1985 is 40.3 per cent.

A standard two-storey home had an average price of $410,900, which is a 4.9 per cent decrease from a year ago. The affordability measure was 36.8 per cent, down 0.2 per cent from the previous quarter and by 4.8 per cent from last year. The average since 1985 is 40.9 per cent.

And a standard condominium average price in the first quarter was $250,200, which is down 5.1 per cent from last year. The affordability measure was 22.2 per cent, a 0.2 decrease from the previous quarter and down 2.9 per cent from a year ago. The average since 1985 is 23.4 per cent.

Sano Stante, president of the Calgary Real Estate Board, said there have been a convergence of factors "providing excellent affordability in Calgary."

"We might look back in the not-sodistant future and look back at this period and recognize that this was a good time to invest in real estate," he said. "Going forward, realtors are concerned about the impact of rising utility costs and taxes weighing on the cost of home ownership and that's why we support educating realtors and consumers on green initiatives."

RBC said Alberta's housing market continues to be stuck in low gear as sales of existing homes and construction of new housing units are showing very modest increases at best so far this year.

"Persistent hesitation on the part of homebuyers is likely symptomatic of long-lasting payback from their overextension during the 2006-2007 boom, when home prices jumped by more than 50 per cent," says the report. "This has since driven up the rate of mortgages in arrears to a generational high in the province. Until the latter stages of 2010, plentiful supply of homes for sale combined with sluggish demand to keep home prices firmly under wraps.

"Stable or slightly declining prices, in turn, contributed to substantial improvement in affordability in Alberta last year. While market conditions have become more balanced in recent months, there remains very little pricing momentum in the provincial market at this stage, maintaining attractive affordability levels -the RBC Measures for all housing categories in Alberta stood below their long-term average in the first quarter.

DEMAND FOR LUXURY HOMES INTENSIFIES AMID RISING
CANADIAN AND GLOBAL WEALTH

Improved financial standing among high net worth individuals is the major factor driving strong sales activity at the top end of Canadian housing markets, according to a report released by RE/MAX.

RE/MAX Ontario-Atlantic Canada and RE/MAX of Western Canada examined 12 major centres from coast-to-coast and found that luxury sales have surged in close to two-thirds of housing markets between January 1 and April 30 of this year, compared to the same period in 2010. Leading in terms of percentage increases over the four-month period were Greater Vancouver (118 per cent)-where foreign investment has also played a major role-Ottawa (59 per cent), Calgary (51 per cent), Halifax-Dartmouth (27 per cent), Winnipeg (24 per cent), Hamilton-Burlington (13 per cent) and Greater Toronto (nine per cent). Six of the seven major cities-with the exception of Calgary-are poised to set new records in top-end activity by year-end. Several are just short of peak levels reported in 2010, such as Victoria, Regina, and London-St. Thomas.

"The strength of the upper-end segment continues to defy expectations," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "That demand remains largely domestic speaks to the solid underpinnings of the market, while underscoring the appeal of Canadian real estate on an international stage. Western Canada, in particular, will continue to see the upside benefit of investment from abroad."

While foreign investment has augmented sales activity in several Canadian markets, its influence was only significant in Greater Vancouver. The vast majority of regions reported that locals were the primary drivers of demand for luxury product. A number of factors position Canada as an attractive option, foremost that its real estate remains a bargain by international standards, given its ranking for quality of life, political and economic stability and the strength of its property laws. To those from abroad, it's the perfect mix.

"Three key factors-serious equity gains, stock market recovery, and improved economic performance-have been behind the push for luxury housing product across the country," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "The combination also continues to bolster the bottom line of high net worth individuals both nationally and globally. The impact of that wealth is being seen in the demand for all things luxury-from homes to cars, collectibles and fine wines."

The climbing wealth factor has played a role. The financial status and number of millionaires is rising once again-a fact supported by several recent studies released by notable institutions such as CapGemini/Merril Lynch, Citi Private Bank, Deloitte Centre for Financial Services, and Investor Economics-to name a few. While estimates vary, the studies concluded that the high net worth population in Canada and/or abroad-and its corresponding fortunes-is trending upward and will experience considerable expansion moving forward. Despite the impact of the 2008/2009 global financial crisis, most millionaire portfolios/assets have improved or exceed pre-downturn levels. Of particular interest, residential real estate holdings have increased among high net worth individuals, as they express a clear preference for tangible assets. This trend is expected to continue, and serve to boost high-end residential real estate in months ahead, as the move to diversify assets continues in 2011.

As Canada's millionaire club swells in size, inventory will play an increasing role in future, as the existing upper end housing stock struggles to keep pace with growing demand in central core areas, particularly in Canada's gateway centres. Infill, renovation and new construction are helping to some extent-while driving up prices in tandem. The building activity is also serving to create new prime areas in areas that were once considered high-end peripherals, as well as in suburban communities.

Limited inventory levels in Canada's largest markets have hampered sales activity to some extent in 2011, given that demand exceeds available supply. Multiple offers are occurring in both Greater Vancouver and Greater Toronto, as buyers compete for quality product in prime neighbourhoods.

Thanks for reading and I will send you more info next month.

For all your real estate needs I am ready and willing to help you take that next, very important step.

Sincerely,

Louise Fuller

Louise@LouiseFuller.com