Real Estate Blog

Artificial grass has been used in warmer climates for some time, but it’s also become more popular in Canada as an alternative to a natural lawn. The jury is still out as to which is best, and there are definitely pros and cons on both sides of the fence.

Natural Grass
Benefits:  There’s nothing like the lush, organic feeling of natural grass under your feet.  It’s affordable to install, and with maintenance, it can last a lifetime.

Things to consider:
Maintenance – A lot of time and effort is needed to cut, water and maintain the lawn.  It’s difficult to keep it looking good all year round.
Environmental Impact – Tons of water are used every day to get that ”green” look.  Harmful pesticides used also wash away into the water system.
Expense – Sod may be cheaper to install ($1-$2/ yard), but the monthly water bill is much higher than artificial turf.

Artificial Grass
Benefits:   Today’s artificial grass is like a carpet for your yard. The turf looks great all year round with virtually no maintenance, no water and no monthly cost.

Things to consider:
Expense: Artificial turf is very expensive to install.  Anywhere from $4-$9/ sq. ft, a small 500 sq ft area can cost upwards of $4500.
Environmental impact – Although it doesn’t need the water and pesticides and has a lifespan of 15-25 years, artificial grass is synthetic and does eventually end up in the landfill.
Animal waste – The turf can be watered and liquids pass through, but there are mixed reviews on how well Fido’s business washes away.

Whichever you prefer, you will start noticing artificial grass in more residential and public spaces. Artificial turf is being used in dog runs, playgrounds, on boats, trade show booths and golf courses.  Toronto is even installing artificial turf on its medians. It looks like it is here to stay.

Not long ago, in 2008, the mortgage rate in Calgary was 5.39%. This year, we have consistently seen posted rates under 3%. The low rates offer significant opportunities for buyers and sellers alike, but to take advantage of the trend, learn to evaluate your financing options.

Taking advantage of the lowest rates possible allows you to make real strides on interest payments. But if your mortgage is short-term and a variable rate, there is a possibility it could change with the market.

If you are looking to reside in a home for a while or invest in a long-term rental holding property, some lenders offer up to a 10-year fixed rate.  Fixed rates are generally higher than variable, but can minimize uncertainty and the risk of higher interest and payments in the future.

Refinancing an existing mortgage to a lower rate might also help you save. However, you are liable to pay penalties and administrative costs for breaking your mortgage.

A mortgage consultant can assess the specific needs of your situation and guide you in choosing the financing plan that will fit you best.

Upcoming Events & Festival

– Global Petroleum Show – Tuesday, June 9th – Thursday, June 11th

– Fishing at Bow Habitat Station – May 15th to Saturday, October 31st

– Safeway Father’s Day Walk/Run – Sunday, June 21st

– Pawsitively Fun Run – Sunday, June 21st

– Storybook Theatre Presents Roald Dahl’s Willy Wonka – Friday, May 22nd to Friday, June 26th

– 2015 Calgary Stampede – Friday, July 3rd – Sunday, July 12th

Market moves toward balanced conditions

Calgary housing prices change direction in May

For the first time since December 2014, Calgary’s residential unadjusted benchmark prices improved over the previous month. Within the city of Calgary, housing prices totaled $454,100 in May, a monthly and year-over-year increase of 0.55 and 0.96 per cent.

“For the third month in the row, new listings have eased compared to last year, helping push the market toward more balanced conditions, despite the current environment of slower sales activity,” said CREB® chief economist Ann-Marie Lurie. “This has helped prevent further declines in the unadjusted benchmark price.”

New listings in the city of Calgary totaled 3,161 units in May, a 27 per cent decrease over last year. Meanwhile, total inventory levels for the month were 5,342 units, 16 per cent higher than last year, but eight per cent lower than May levels recorded over the past five years and three per cent lower than average levels over the past 10 years.

Two measures of balance are the months of supply and the sales to new listings ratio. In May, the months of supply decreased to 2.43, while the sales to new listings ratio was 69 per cent, both within the norms for balanced conditions.

“Back in January, higher inventory levels relative to sales activity caused months of supply to rise above five months,” said CREB® president Corinne Lyall. “While some challenges continue to exist for sellers, depending on the property type, price and location, the decline in the months of supply points toward more stability for both buyers and sellers.”

Year-to-date the detached sector recorded the largest decline in new listings at eight per cent. While overall inventory levels are 12 per cent higher than last year’s levels, they remain well below the five and 10 year averages for May.

Detached sales activity in May totaled 1,366 units, with the majority of transactions occurring below $500,000. While conditions are not as tight as last year’s market conditions, which favoured the seller, over the first five months of this year activity in this price range has remained relatively balanced.

“This segment of the detached market continues to have a good amount of consumer activity, as many have taken advantage of the improved selection compared to last year,” said Lyall. “While some have waited for steeper price declines, to this point it just hasn’t happened across all areas of the market. This is partly related to activity in the under $500,000 segment.”

Meanwhile, year-to-date apartment sales and new listings totaled 1,383 and 3,229 units respectively. The May apartment benchmark price of $294,800 increased by 1.20 per cent compared to last month, but remains 0.2 per cent below May 2014 figures.

The apartment sector continues to remain the only sector where prices have contracted relative to last year’s figures.

“While the resale market has recorded an easing of upward inventory pressures, the new home sector has started to record some gains in inventory,” said Lurie. “Current new home inventories remain relatively low. However, the overall impact on Calgary’s housing prices will ultimately depend on the duration of the economic slowdown and the amount of inventory build-up in the new home sector.”

Keep it Green while you Spring Clean

It’s that time when many of us do a thorough clean of our home after a long winter. A few of our basic pantry items can do the job just as well or better than the heavy duty supermarket cleaners. Here’s five great tips that don’t need more than four ingredients: Vinegar, baking soda, rubbing alcohol and lemon.

Mattress: Sprinkle baking soda on mattress. Leave for 1 hour and then use upholstery attachment and vacuum. Spray mattress with rubbing alcohol. Let it dry. Remake bed with fresh sheets (see tip below).

Mildew towels or clothes: Wash your load of towels on the hot cycle and add 1 cup of vinegar to the load. Let the washer do its job.

Dishwasher: Place two cups of vinegar in a container in the top rack. Sprinkle baking soda on the bottom and sides. Run on the hottest cycle.

Microwave: Place one cup of vinegar with one cup of water in an uncovered container and microwave to a boil to let it steam and clean. Use microfiber cloth to wipe clean.

Homemade all purpose cleaner: ¼ cup of vinegar, 4 cups of HOT water, 2 tbsp of baking soda, juice of 1 lemon. Combine all ingredients in a spray or squeeze bottle. Use liberally throughout the house.

Are You Sure you Can do That??

Before you begin on any major projects in your yard this year, make sure you have an up to date Real Property Report (RPR) and that you obtain the proper development permit. If your improvements do not comply with the City rules or real property lines, it could be quite costly in fees, fines or even lawsuits down the road.

A general rule, all of the following set-back requirements must be met in order to obtain a Certificate of Compliance (m = meters):

1. A shed that is not attached to the house and is less than 10 sq.m. in size can be located anywhere on the property. A shed of any size, small or large – that is attached to the house must be at least 1.2 m from the side property line.

2. A deck less than .6 m in height, can be located anywhere on the property. The City then regards it as a patio. If the deck is .6 meter or greater in height, it must be back at least six m from the rear property line and 1.2 m from the side property lines.

3. A detached rear garage – must be set back at least .6 m from the rear property line. If the garage has a maintenance free exterior such as metal or vinyl siding, stucco, etc., then it can be built right up to the side property line. If it is a maintenance-free exterior, it must be set back at least .6 m from the side property line.

These are general by bylaw rules for City of Calgary. These rules may vary for different land zoning. Always make sure you consult the city before starting your project. Click here for more details.  http://www.calgary.ca/PDA/pd/Pages/Permits/Development-permits/Development-permits.aspx

Upcoming Calgary Events
Calgary Community Events – May 2015

– 2015 Canadian Open Volleyball Championship – Thursday, May 14  – Tuesday, May   19

– MEC Calgary Race THREE 2015 – Saturday, May 16

– Calgary International Children’s Festival – Wednesday, May 20–Saturday, May 23

– Calgary EATS! Connecting the Local Food System – Thursday, May 21

– Calgary’s 6th Annual Charity Vegan Bake Sale – Saturday, May 30

– Water Polo – National Finals – Saturday, May 30 and Sunday, May 31

New listings decline as home prices ease

Improved sales to new listings ratio reduces inventory gains

After the fifth consecutive monthly benchmark price decline in Calgary, the number of new home listings eased to 3,064 units in April, a decrease of 18 per cent over the previous year.

“With fewer buyers making purchase decisions and improved selection for resale, new home and rental property, sellers have been either adjusting their expectations on price or delaying their plans about when to list their home,” said CREB® president Corinne Lyall.

Sales activity in April totaled 1,957 units, 22 per cent below last year’s levels and nearly 15 per cent below April’s long term averages. Despite weak sales levels, the drop in new listings prevented strong gains in overall inventory levels and helped improve absorption rates in the market.

“While conditions continue to favour the buyer, both the months of supply and the sales to new listings ratio, which represent measures of market balance, tightened in April,” said CREB® chief economist Ann-Marie Lurie. “If this trend continues, it should help prevent resale inventories from rising to previous highs and limit some of the downward price pressures we’ve been seeing.”

Benchmark prices for detached homes totaled $510,200 in April, which represents an unadjusted decline of 0.7 per cent from last month and 1.9 per cent higher than April 2014 figures. Meanwhile, apartment product recorded a monthly decline of 0.7 and a year-over year decline of 0.2 per cent

Year-to-date apartment sales activity has declined by 33 per cent, while new listings have risen by nearly eight per cent. Despite the recent shift in new listings, months of supply in this sector remain elevated, causing steeper monthly price declines and a year-over-year price contraction.

“There’s improved selection across all segments of the market, which takes some of the urgency away for buyers as they consider all of their options before making a purchase decision,” said Lyall. “Sellers have more competition and need to be aware of how much product is available in comparable neighborhoods.”

The detached sector continues to be the most balanced out of the three market sectors. For the second month in a row, the sales to new listings ratio and the months of inventory moved to levels that are more consistent with balanced conditions. However, the detached market does vary significantly depending on the price range.

“Higher priced properties in the detached sector saw a noticeable decline in absorption levels city-wide, indicating there is less demand relative to supply levels,” said Lurie. “This does not come as a surprise as many of the job losses in recent months have occurred in the higher paying sectors.”

Meanwhile, areas outside city limits are also impacted by the slower economic conditions. Year-to-date sales activity in the surrounding areas totaled 1,346 units, a 26 per cent decline. Despite positive growth following the first quarter, April benchmark prices totaled $434,800, 0.4 per cent below last month’s figures and 5.8 per cent above April 2014 figures.

“Market impacts on pricing are wide ranging and ultimately depend on the location, property type, specific features and amount of comparable supply available,” said Lyall. Both buyers and sellers need to be aware of the local market conditions and adjust their expectations accordingly.”

As Spring invites us to get outside, what better way than to pull out the bike and hit the pathways around town. Besides being a great way to commute, cycling is a great way to discover the city that can’t be done from behind the wheel. Whether it’s an all day excursion or a leisurely spin on a warm evening, here are three great routes to check out:

1. Glenmore Reservoir
The beauty of this looped path is not only the the woods and water, but the Weaslehead area on the west end makes your forget that you are still within the city limits. The bonus is that you can start wherever you like.

2. Nose Hill Park
A protected peak in the north of town, this secluded area can include sightings of of deer, fox and the occasional coyote. There are some hilly parts but much of it is open field without a glimpse of the city in sight.

3. Bow River Pathway
This route along Memorial Drive is one of the city’s most popular and many prefer to ride it at night. Start from the zoo and head west toward the series of bridges – Langevin, Centre Street and Peace. Check out the backdrop of downtown against the river and cross the bridges at any point to loop your ride.

Bike Routes Help:
• Bike Map app
• City of Calgary pathway app published by the City of Calgary (free, no directions, iPhone only)

Apartment and condo recycling is coming! City Council has approved a bylaw amendment that will require all multifamily complexes to offer on-site recycling by February 1, 2016. Every complex will have to provide on-site recycling of the materials accepted in single family Blue Cart recycling.

I’m a multi-family resident
Find out what you need to do to make recycling happen in your building.

I’m a building owner or manager
Find out what you need to do to comply with the bylaw and what resources can help.