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Rental Vacancy Rates Inch Higher In Alberta

12/18/2014

Apartment vacancy rates edged higher in October in both Edmonton and Calgary according to the fall rental market reports released by Canada Mortgage and Housing Corporation (CMHC).

Alberta’s capital city experienced its first apartment vacancy rate increase since 2009, seeing its rate inch from 1.4 per cent in October 2013, to 1.7 per cent in October of this year. CMHC reports that even though the apartment vacancy rate rose softly, the rate itself is quite low and resulted in a rise in rental prices. The average rent for a two-bedroom apartment in Edmonton in October was $1,227 per month.

Calgary also witnessed an increase in apartment vacancies after declining for four consecutive years. According to CMHC, the vacancy rate was 1.4 per cent in October, up from 1.0 per cent from a year prior. Calgary's average monthly rent for a two-bedroom apartment was $1,322 in October.

The main reason for the rate increases comes down to basic supply and demand. The supply of apartments has been growing faster than the demand for units. In turn, this helped increase the vacancy rate in both cities this year. Although vacancy rates crept higher, they remained below the national average (2.8 per cent) thanks to high levels of migration, rising wages, and a favourable employment environment.

**Article courtesy of Todd Hirsch, Senior Financial Advisor with ATB Financial. Thanks Todd!!

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Alberta's Bill 9 Broken Down - The Condominium Amendment Property Act

12/10/2014

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The question is, what does Bill 9 "The Condominium Amendment Property Act" involve? If you're thinking about purchasing a condo or you are currently an owner, this information is for you!

Below you'll find a summary of the key points of the Bill that has yet to be passed.

**All info taken directly from http://www.servicealberta.ca/2166.cfm (Service Alberta)

1. Improve protection for buyers by:

mandating the appointment of an interim board to run the affairs of the corporation while the developer owns a majority of units;
strengthening the Province’s power to inspect, investigate and enforce rules respecting condominium sales;
expanding purchase disclosure information to include:
- a statement setting out a fixed date or range of dates, including a final date, by which the unit must be ready for occupancy
- a budget or proposed budget for the corporation
- notice of material changes to the purchase agreement or other required information
- summary of findings from a Building Assessment Report prepared for existing buildings converted to condominiums
- a copy of the home warranty insurance contract under the New Home Buyer Protection Act,where the corporation is or will be named as the insured

2. Improve protection for existing owners by:

limiting the circumstances in which a board may impose a special levy and requiring boards to provide owners key information, in advance, pertaining to an impending levy;
restricting the registration of a caveat against an owner’s title for unpaid contributions to only those contributions permitted under the Act. This means that a charge to an owner’s unit for monetary sanctions imposed under a bylaw or other debts claimed by a corporation may only be registered against a unit title by caveat if the sanctions or debts are found by a court to be valid but remain unpaid;
capping the expenses that may be included in the caveat in connection with the preparation, registration, enforcement and discharge of a caveat;*
limiting the amount of monetary sanctions that can be imposed in accordance with bylaws*; and
limiting the circumstances under which an owner’s right to vote may be suspended.

3. Enhance board transparency and accountability by:

requiring a board to hold a special general meeting if requested by 15% or more of the owners;
requiring a board to notify owners of key changes to the corporation’s insurance policy, including changes to deductibles, property replacement cost value and any permitted exclusions;
requiring a board to provide a minimum 14-day notice of a meeting of the owners and include copies of financial statements, the annual budget and annual report on the reserve fund;
ensuring rules adopted by the board are reasonable and consistent with the Act, regulations and bylaws, and are properly disclosed to owners and tenants

4. Allow for efficient governance by:

enabling directors to participate in board meetings electronically;
enabling certain types of votes to be conducted electronically*;
validating “show of hands” voting and clarifying procedures for voting in writing or at general meetings;
enabling certain agreements entered into by the developer to be cancelled within one year of aboard being elected
expanding the permitted uses of the reserve fund to allow for payment of a reserve fund study and report or other expert report, and any improvements required by law;
prescribing maximum fees that can be charged for corporation documents*; and
clarifying insurance, maintenance and repair obligations of the corporation and unit owners*.

5. Raise standards in Alberta’s condominium management sector by:

designating the Real Estate Council of Alberta (RECA) as the regulator of condominium managers; and
enabling RECA to establish licensing requirements for condominium managers, including education and training requirements.

6. Enhance dispute resolution by establishing the framework for a new tribunal that will hear and settle a variety of disputes:

the tribunal will:
- be an affordable and efficient forum (or decision maker) for certain types of condominium disputes between boards owners, occupants and other interested parties;
- operate under rules and procedures set out in the regulations, to ensure hearings are fair and efficient;
- operate in a limited geographic area (e.g. Edmonton or Calgary) during a pilot phase;
- be expanded laterto hear a wider range of disputes in a greater number of locations across the province;

Courts may continue to hear certain disputes that fall outside the tribunal’s jurisdiction, for example, disputes regarding real property (e.g. unit foreclosure, modification of a condominium plan).

*Matters to be addressed in the regulations supporting the Act.

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Your 2015 RE/MAX Market Outlook Report

12/10/2014

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Below you'll find the 2015 RE/MAX Market Outlook Report Video and the report itself.

click here for the 2015 RE/MAX market outlook report

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building permits march on in alberta

12/9/2014

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The value of building permits issued by Alberta’s municipalities rose by $87 million in October to $1.6 billion, according to new figures released by Statistics Canada. The increase from September was due in large part to the rise in the value of residential projects in our province.

After a small drop in September, residential permits rebounded and rose by eight per cent across our province in October. Since 2013, future spending by Alberta’s homebuilders has increased by almost the same amount (seven per cent). The jump in the total value of Alberta’s housing sector can be attributed to sustained demand from new provincial migrants.

Permits for commercial projects picked up in October as well, where the total value of business-related building permits increased by $25 million (or by five per cent). Over the last twelve months, the total value of future construction spending in Alberta has increased by almost six per cent.

Calgary’s housing sector continued to grow at a furious pace which helped lift the value of Alberta’s residential projects higher in October. The total value of housing permits in Alberta’s largest city grew by $44 million (+11 per cent) from September. Meanwhile, Edmonton’s biggest gains were made in the non-residential sector where the total value of commercial permits increased by $72 million (+37 per cent) from one month earlier. Additionally, Edmonton held almost half the value of all non-residential permits issued in our province in October.

** Article courtesy of Todd Hirsch of ATB Financial. Thanks Todd!!

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Home renovators take a summertime break

12/3/2014

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The proliferation of home renovation shows on TV may be an inspiration for some people to remodel their kitchen or add onto the family room. But last summer, it seems Albertans were perhaps spending more time watching TV than actually renovating.

During the months of July, August and September of 2014, the value of renovations to residential properties fell to just under $1.18 billion—the lowest level it’s been in nearly two years and a sharp drop from the $1.6 billion record in the spring. The data were released this morning from Statistics Canada as part of its regular quarterly report on residential investment activity.

Still, the big drop in the third quarter masks a longer term trend towards increased spending on renovations. Over the last ten years, investments on improvements to homes and condos have doubled. And even with the summer slump, total renovation spending over the last complete four quarters is up 19 per cent compared to the previous four quarters.

There could also be some substitution effect taking place in the residential market. That is, rather than renovating their existing home to get that new kitchen or bigger media room, some Albertans may have opted instead to purchase a new home. Construction on new residential properties set close to record highs over the summer. Instead of hiring contractors to rip out walls and flooring—or even trying to do it themselves—it seems some Albertans may have opted simply to move into something new.

**Article courtesy of Todd Hirsch of ATB Financial. Thanks Todd!!

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Rental Vacancy Rates Inch Higher In Alberta

Alberta's Bill 9 Broken Down - The Condominium Amendment Property Act

Your 2015 RE/MAX Market Outlook Report

building permits march on in alberta

Home renovators take a summertime break

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