Midway through 2009, the cumulatiuve value of building approved by the City of Red Deer is about half of what it was at the same point in 2008.
But activity at the city's Inspections and Licensing Department last month suggests the constuction tide might be turning--at least in the case of housing.
Municippal staff issued building permits for $10.2 million in residential work in June. That's up 86% from a year ago, when the residential permit tally was $5.5 million. It marks the first month this year that the 2009 value exceeded the 2008 figure.
Providing a $2.4 million boost were 36 permits to Carolina Homes Inc. for multi-family development at 31 Jamieson Avenue.
Last June, multi-family projects contributed only $580,000 to permit tally, noted Rachelle Trepanier of Inspections and Licensing.
The residential construction jump reflects more than a few big projects, however. Trepanier said 30 permits worth a combined $4.9 million were issued for single-family homes for last month, more than double the 14 permits valued at $2 million that were recorded in June 2008.
"It seems to be picking quite a bit" confirmed Natalie Larkam, co-owner of Larkaun Homes Ltd. and president of the Central Alberta branch of the Canadian Homebuilder's Association.
Larkam said some builders might not be proceeding with homes that they struck deals on this spring.
She added that there is a good supply of residential lots in Red Deer, a situation that didn't exist in early 2008.
"We have to remember that last year was a bit slower because of the inventory issue we were having."
At $13.5 million the combined value of building permits issued last month in all categories was still behind the June 2008 total of $28.4 million.
Work on public projects including $1.2 million for interior renovation to the Red Deer Museum and Art Gallery, generated $2.8 million. That compares with $20 million in the public category in June 2008.
Permits issued last month for commercial work, which were valued at $456,000, was also down from the 2008 number of $2.8 million. As for industrial work, there was $33,000 worthof projects approved last month, a year-over-year drop from $70,000.
For the year to date, total permit values are %59.1 million, as compared with $116.9 million for the first half of 2008.
Residential approvals this year are $33.1 million, down from $63.9 million; commercial permits are up to $9.1 million, as compared with $26.2 million versus $3.9 million dollars in 2008; and public construction and renovation are up to $16.2 million, a decline from $23 million.
In 2007, $174.6 million worth of permits had been issued by the end of June. That year ended with a record $421.1 million in building approvals.
Monday, July 6, 2009
Cottage market showing signs of revival
The economic downturn has not diminished people’s appetite for a piece of Sylvan Lake waterfront, says a national report issued on Thursday.
But waterfront properties, particularly those in higher price ranges, are taking longer to sell.
Royal LePage’s 2009 Recreational Property Report collected data from Realtors in resort communities across the country said the recreational market is showing signs of revival following a slowdown in the latter half of 2008 and into the winter.
“There has been some uncertainty due to the economy, but we still have an active market that is fairly comparable to last year in terms of the level of interest from buyers,” Al Hughes of Royal LePage Network Realty Corp. is quoted as saying.
He added that listed properties, particularly those in higher price ranges, are taking longer to sell.
The report said the average price of land-access property between 1,000 and 3,000 square feet on Sylvan Lake is $691,666. Water-access homes in the same size range average $1,125,000, and residential properties 1,000 square feet or smaller that are not on the water average $285,000.
Most of the sales at Sylvan Lake last year involved homes priced between $350,000 and $450,000, said Hughes. This year, he added, properties valued from $250,000 to $350,000 have been the most popular.
The Royal LePage report said waterfront properties near the Town of Sylvan Lake are popular with professionals and other high-income buyers, while less expensive homes near other lake-front communities like Jarvis Bay and Sunbreaker Cove appeal to younger families.
Hughes said the attraction of Sylvan is the fact it offers year-round activities.
“People want properties they can use in the winter,” he said, adding that for many, boat access is also very important.
Hughes noted that fewer cottages and vacation homes in Sylvan Lake are available for rent.
“People seem to be using the cottages themselves,” he said. “A lot of older cottages that were revenue properties are being torn down and the owners are putting in new homes.”
Across Canada, the average price of a standard waterfront cottage with three bedrooms and measuring 1,000 square feet in size was $370,000 to $600,000, according to the report.
These range from lower-end properties selling for $100,000 or less in the Atlantic provinces, to between $530,000 and $880,000 in British Columbia. The range in Alberta is $400,000 to $460,000.
Royal LePage’s 2009 Recreational Property Report came less than a month after Re/Max issued its own recreational property report.
The Re/Max report estimated the starting price of a three-bedroom, winterized home on a standard-sized lot on Sylvan Lake at $1,125,000. That was the third-highest figure among the more than 50 resort areas considered, with only Vernon and Lake Windermere, B.C., topping it. Both came in at $1.2 million.
But waterfront properties, particularly those in higher price ranges, are taking longer to sell.
Royal LePage’s 2009 Recreational Property Report collected data from Realtors in resort communities across the country said the recreational market is showing signs of revival following a slowdown in the latter half of 2008 and into the winter.
“There has been some uncertainty due to the economy, but we still have an active market that is fairly comparable to last year in terms of the level of interest from buyers,” Al Hughes of Royal LePage Network Realty Corp. is quoted as saying.
He added that listed properties, particularly those in higher price ranges, are taking longer to sell.
The report said the average price of land-access property between 1,000 and 3,000 square feet on Sylvan Lake is $691,666. Water-access homes in the same size range average $1,125,000, and residential properties 1,000 square feet or smaller that are not on the water average $285,000.
Most of the sales at Sylvan Lake last year involved homes priced between $350,000 and $450,000, said Hughes. This year, he added, properties valued from $250,000 to $350,000 have been the most popular.
The Royal LePage report said waterfront properties near the Town of Sylvan Lake are popular with professionals and other high-income buyers, while less expensive homes near other lake-front communities like Jarvis Bay and Sunbreaker Cove appeal to younger families.
Hughes said the attraction of Sylvan is the fact it offers year-round activities.
“People want properties they can use in the winter,” he said, adding that for many, boat access is also very important.
Hughes noted that fewer cottages and vacation homes in Sylvan Lake are available for rent.
“People seem to be using the cottages themselves,” he said. “A lot of older cottages that were revenue properties are being torn down and the owners are putting in new homes.”
Across Canada, the average price of a standard waterfront cottage with three bedrooms and measuring 1,000 square feet in size was $370,000 to $600,000, according to the report.
These range from lower-end properties selling for $100,000 or less in the Atlantic provinces, to between $530,000 and $880,000 in British Columbia. The range in Alberta is $400,000 to $460,000.
Royal LePage’s 2009 Recreational Property Report came less than a month after Re/Max issued its own recreational property report.
The Re/Max report estimated the starting price of a three-bedroom, winterized home on a standard-sized lot on Sylvan Lake at $1,125,000. That was the third-highest figure among the more than 50 resort areas considered, with only Vernon and Lake Windermere, B.C., topping it. Both came in at $1.2 million.
Market stabilizing
The past-president of the Central Alberta Realtors Association thinks residential sales activity in the last quarter is reason for optimism.
Randy Weins of Weins World Real Estate Inc. said the median prices of single-family dwellings sold in Red Deer, Lacombe, Rocky Mountain House and Sylvan Lake from April to June were all above the medians for the preceding three months.
In Red Deer, 387 single-family homes sold through the Multiple Listing Service system with a median price of $315,000. That compares with 210 sales at a median price of $305,000 in the first quarter.
In Lacombe, 41 single-family homes sold for a median price of $312,000, up from 23 sales at a median price of $289,000.
Single-family home sales in Rocky reached 30, with a median price of $284,000. That was a jump from the 20 sales and median of $280,000.
In Sylvan Lake, sales of single-family homes tallied 76, with a median selling price of $328,000. That was up from 43 sales and a median of $318,000.
Weins suggested these communities provide a good indication of what’s happening in the market.
“That’s the best bird’s-eye view, is firstly look at Red Deer and then look at Sylvan,” he said, adding that Rocky serves as a barometer for the West Country.
The median prices of single-family homes sold in Blackfalds, Innisfail, Ponoka and Stettler during the last quarter were all down from the previous three-month period.
Blackfalds had 32 sales at a median price of $271,000, as compared with 22 deals at $278,000 to start 2009.
Sales of single-family dwellings in Innisfail numbered 28 with a median price of $255,000. By contrast, there were 24 sales and a median price of $263,000 in the first quarter.
Single-family home sales in Ponoka reached 33, with a median price of $224,000. In the preceding quarter, there were 20 sales and a median price of $247,000.
In Stettler, sales numbered 21 with a median price of $220,000. There were three fewer sales in the first quarter but the median price was $254,000.
“Innisfail, Ponoka and Stettler I can understand because they’re further from the city,” said Weins of the price declines.
The economic downturn has hit small rural towns particularly hard, he explained.
Blackfalds, added Weins, experienced a big increase in home construction when the selection in Red Deer was scarce.
“Their inventory levels are still fairly high for a town of its size.”
Blackfalds also saw house prices approach, and in some cases surpass, Red Deer’s, he noted.
“There’s probably just an adjustment there.”
Although single-family home sales increased in all eight Central Alberta communities, Weins said this reflects a seasonal fluctuation.
“The fourth and the first quarters are the slowest half of the year, so you’ve got to be realistic whey you look at the numbers.”
Still, he added, the second quarter was stronger that he’d predicted. Weins forecast in January that there would be an eight per cent drop in single-family home values from the second quarter of 2008 to the same period this year. The change in the median figure turned out to be about 2 1/2 per cent.
In Red Deer, the second quarter of 2008 produced 445 single-family sales at a median price of $323,000; in Lacombe, the Q2 figures in 2008 were 55 and $313,000; in Rocky they were 29 and $291,000; in Sylvan Lake, 98 and $376,000; at Blackfalds, 43 and $312,000; in Innisfail, 37 and $275,000; in Ponoka, 26 and $254,000; and in Stettler, 29 and $215,000.
Weins thinks the Central Alberta market has stabilized.
“I don’t see prices going down any further; I don’t see them skyrocketing.
“I think we’ll have a stable market the rest of the year.”
Government stimulus packages have yet to make an impact, he added, and oil prices have strengthened, interest rates are at historic lows, mortgage money remains available and the stock market has enjoyed an extended period of stability.
One worry is the agricultural sector, he said, with government debt at the federal and provincial levels also a concern.
Randy Weins of Weins World Real Estate Inc. said the median prices of single-family dwellings sold in Red Deer, Lacombe, Rocky Mountain House and Sylvan Lake from April to June were all above the medians for the preceding three months.
In Red Deer, 387 single-family homes sold through the Multiple Listing Service system with a median price of $315,000. That compares with 210 sales at a median price of $305,000 in the first quarter.
In Lacombe, 41 single-family homes sold for a median price of $312,000, up from 23 sales at a median price of $289,000.
Single-family home sales in Rocky reached 30, with a median price of $284,000. That was a jump from the 20 sales and median of $280,000.
In Sylvan Lake, sales of single-family homes tallied 76, with a median selling price of $328,000. That was up from 43 sales and a median of $318,000.
Weins suggested these communities provide a good indication of what’s happening in the market.
“That’s the best bird’s-eye view, is firstly look at Red Deer and then look at Sylvan,” he said, adding that Rocky serves as a barometer for the West Country.
The median prices of single-family homes sold in Blackfalds, Innisfail, Ponoka and Stettler during the last quarter were all down from the previous three-month period.
Blackfalds had 32 sales at a median price of $271,000, as compared with 22 deals at $278,000 to start 2009.
Sales of single-family dwellings in Innisfail numbered 28 with a median price of $255,000. By contrast, there were 24 sales and a median price of $263,000 in the first quarter.
Single-family home sales in Ponoka reached 33, with a median price of $224,000. In the preceding quarter, there were 20 sales and a median price of $247,000.
In Stettler, sales numbered 21 with a median price of $220,000. There were three fewer sales in the first quarter but the median price was $254,000.
“Innisfail, Ponoka and Stettler I can understand because they’re further from the city,” said Weins of the price declines.
The economic downturn has hit small rural towns particularly hard, he explained.
Blackfalds, added Weins, experienced a big increase in home construction when the selection in Red Deer was scarce.
“Their inventory levels are still fairly high for a town of its size.”
Blackfalds also saw house prices approach, and in some cases surpass, Red Deer’s, he noted.
“There’s probably just an adjustment there.”
Although single-family home sales increased in all eight Central Alberta communities, Weins said this reflects a seasonal fluctuation.
“The fourth and the first quarters are the slowest half of the year, so you’ve got to be realistic whey you look at the numbers.”
Still, he added, the second quarter was stronger that he’d predicted. Weins forecast in January that there would be an eight per cent drop in single-family home values from the second quarter of 2008 to the same period this year. The change in the median figure turned out to be about 2 1/2 per cent.
In Red Deer, the second quarter of 2008 produced 445 single-family sales at a median price of $323,000; in Lacombe, the Q2 figures in 2008 were 55 and $313,000; in Rocky they were 29 and $291,000; in Sylvan Lake, 98 and $376,000; at Blackfalds, 43 and $312,000; in Innisfail, 37 and $275,000; in Ponoka, 26 and $254,000; and in Stettler, 29 and $215,000.
Weins thinks the Central Alberta market has stabilized.
“I don’t see prices going down any further; I don’t see them skyrocketing.
“I think we’ll have a stable market the rest of the year.”
Government stimulus packages have yet to make an impact, he added, and oil prices have strengthened, interest rates are at historic lows, mortgage money remains available and the stock market has enjoyed an extended period of stability.
One worry is the agricultural sector, he said, with government debt at the federal and provincial levels also a concern.
Subscribe to:
Posts (Atom)
