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CREB Media Release :Calgary real estate market feeling impact of COVID-19

City of Calgary, May 1, 2020 –

After the first full month with social distancing measures in place, the housing market is adjusting to the effects of COVID-19.

April sales hit 573 units, a decline of 63 per cent over last year.

"The decline in home sales does not come as a surprise. The combined impact of COVID-19 and the situation in the energy sector is causing housing demand to fall," said CREB® chief economist Ann-Marie Lurie.

"Demand is also falling faster than supply. This is keeping the market in buyers' territory and weighing on prices."

Sales activity eased across all price ranges, but the largest declines were for homes priced above $600,000.

With a greater share of the sales occurring in the lower price ranges, the average price decline was more than eight per cent. Prices for the average home are also declining, reflected by the benchmark price, which fell by nearly two per cent compared to last year.

New listings this month totalled 1,425 units, a decline of 54 per cent compared to last year. Inventories also declined, but with 5,565 units available, they remained high enough to push the months of supply above nine months. 

The economic impact of the situation is significant and early indications point toward more job losses and higher unemployment rates. Several government incentives will help cushion the blow, but challenges in the housing market are expected to persist throughout this year.

 

HOUSING MARKET FACTS

Detached

  • Detached sales eased by 63 per cent this month compared to last year, with the largest decline in the West district.
  • Slower demand was also met with easing supply, as new listings declined by 57 per cent. Overall, inventories eased by 25 per cent compared to last year. Despite the decline in inventory, the months of supply rose to more than eight months.
  • The detached benchmark price eased by one per cent over last year, totalling $479,100. Prices managed to remain flat in both the South and South East districts. The highest price decline was in the City Centre, with a drop of more than three per cent.

Apartment

  • Apartment sales slowed to 95 units. This is a 62 per cent decline over last year. New listings also slowed, but it was not enough to support a larger decline in inventory levels, which only eased by 13 per cent compared to last year. With 1,349 units in inventory, the months of supply rose to 14 months.
  • Condominium prices were falling before recent developments in the market and the pace of decline remained relatively unchanged at more than two per cent compared to last year. Since the first energy crisis in 2014, the citywide apartment benchmark price has declined by nearly 19 per cent.
  • Year-over-year prices have eased across almost all districts, but the South East district saw the largest year-over-year decline this month at nearly six per cent.

Attached

  • Semi-detached and row properties recorded a significant drop in sales and new listings, causing inventories to decline by nearly 20 per cent. However, with a combined inventory of 1,441 units compared to just 138 sales, the months of supply rose to over 10 months.
  • Semi-detached prices eased across all districts for a citywide year-over-year decline of nearly three per cent. The City Centre recorded the largest year-over-year decline at four per cent.
  • Row priced declined in all areas except the East district. Citywide row prices declined by more than two per cent for a total of $278,300.

 

REGIONAL MARKET FACTS

Airdrie

  • Sales in Airdrie slowed to 60 units in April. This decline in sales was met with a similar decline in new listings, which totalled 107 units. This helped reduce inventory levels, but with 407 units still in inventory, the months of supply rose to nearly seven months.
  • Overall, the benchmark price remains comparable to last year. Average prices have declined, but some of this is due to more homes being sold in lower price ranges, as there was a significant decline in sales for homes priced above $500,000.

Cochrane

  • April sales in Cochrane dropped to 29 units. This is 55 per cent below levels recorded in the previous year. However, new listings also eased. With only 61 new listings in the market, inventories declined to 281 units.
  • Prices were easing before social distancing measures were put in place and April's benchmark price totalled $398,900. This is nearly two per cent lower than last year. However, both the median and average price rose compared to last year. This is likely due to more homes being sold in higher price ranges, as there were no sales recorded in the lowest price range.

Okotoks

  • Both sales and new listings dropped, with totals of 17 and 44 units, respectively. Inventory remained well below last year's levels, but weaker demand pushed up the months of supply to nearly 12 months.
  • Prices were trending down from the start of the year, but levels have remained relatively stable compared to the previous year. In April, the benchmark price continued to trend down, totalling $402,300.


Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

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How The Government traces who you have been in contact with

Corbella: Alberta's disease detectives save countless lives

Officially they’re called contact tracers — but in short they are nothing less than sickness sleuths, pandemic police or, more recently, COVID cops.

Alberta’s disease detectives — all of them either nurses, doctors or medical students who are volunteering their time during this pandemic — have contacted each and every one of the 2,908 Albertans who have, to date, tested positive for COVID-19. Once an infected person is contacted, these medical gumshoes do some scientific scouting that helps stop the spread of a communicable disease as soon as possible.

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COVID-19 pandemic stalls the Calgary housing market

The sudden and devastating impact of COVID-19 was more than apparent on Alberta’s housing markets, which were showing signs of recovery in early March, says the latest report from the Alberta Real Estate Association (AREA).

“March sales activity started the month strong, but the spread of COVID-19 and the dramatic drop in energy prices caused an abrupt downturn in the demand for housing by the middle of the month, causing provincial sales to decline by nine per cent,” says Ann-Marie Lurie, chief economist for AREA and the Calgary Real Estate Board (CREB). “This is an unprecedented time with a significant amount of uncertainty. It is not a surprise to see these concerns also weigh on the housing market.’


The impact on the housing market will likely persist over the next several quarters, says Lurie.

“However, measures put in place by the government and lending institutions, to help support homeowners through this time of job and income loss, will prevent more significant impacts in the housing market,” she says.

The impact on the housing market will likely persist over the next several quarters, says Lurie.

“However, measures put in place by the government and lending institutions, to help support homeowners through this time of job and income loss, will prevent more significant impacts in the housing market,” she says.


The nine per cent drop in sales province wide was met with a 15 per cent decline in new listings, causing a reduction in inventory levels and preventing significant gains in the amount of oversupply.

“Nonetheless, the risk and uncertainty regarding the economic situation also weighed on home prices, which eased by nearly three per cent in March, compared to last year,” says Lurie.

Calgary’s MLS housing market was enjoying a slow, but significant, turnaround from January to mid-March when the COVID-19 crisis stalled the market, resulting in a reduction in sales in all housing types, with the exception of the apartment sector.


“Home sales in the second half of the month in the Calgary region declined by nearly 10 per cent, which is nearly 24 per cent lower than activity over the past five years,” says Lurie. “At the same time, new listings in the region fell by nearly 19 per cent, contributing to an inventory decline of nearly 14 per cent.”

The Calgary market was facing oversupply and price declines prior to the recent changes caused by the pandemic and oil price crash, says Lurie.

“The recent changes will likely continue to weigh on prices,” she says. “Prices were already forecasted to ease this year due to oversupply in our market. In March, the citywide benchmark price was $417,400, nearly one per cent lower than last year. The reduction in both sales and new listings should help prevent significant price declines in our market.”


By type, single-family home sales declined 15 per cent, which was met with a larger decline in new listings, causing inventories to fall by 17 per cent and keeping the months of supply slightly lower than last year.

With 217 citywide sales, the apartment sector was the only one to record a year-over-year gain of 15 per cent, while new listings fell back, resulting in a small decline in inventory.

Semi-detached and row home sales declined 22 per cent and 12 per cent respectively, year over year. These sectors also had a significant drop in new listings, pushing down inventory levels for both property types.

 
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Update COVID-19 pandemic in Alberta (April 17 at 4:15 p.m.)

Latest updates

  • Cases have been identified in all zones across the province:
    • 1,673 cases in the Calgary zone
    • 429 cases in the Edmonton zone
    • 135 cases in the North zone
    • 77 cases in the Central zone
    • 68 cases in the South zone
    • 15 cases in zones yet to be confirmed
  • Of these cases, there are currently 60 people in hospital, 13 of whom have been admitted to intensive care units (ICU).
  • 400 cases are suspected of being community acquired.
  • A total of 50 Albertans have died from COVID-19 to date: 34 in the Calgary zone, eight in the Edmonton zone, seven in the North zone, and one in the Central zone.
  • To date, 270 cases have been confirmed at continuing care facilities, and 32 residents at these facilities have died.
  • There have been 89,144 people tested for COVID-19 and a total of 92,805 tests performed by the lab. In the last 24 hours, 3,831 people have been tested.
  • Effective immediately, Alberta Health Services will assume administration of Manoir du Lac in McLennan. Learn more here.
  • The 310 call centre is assuming standard hours of operation, from 8:15 a.m. to 6 p.m. weekdays, and will not be open this weekend.

Expanded testing

  • Alberta Health continues to closely monitor outbreak situations, and is working with employers and Alberta Health Services to expand testing to asymptomatic residents and staff in continuing care facilities and outbreak sites in the coming days. All workers from all companies at outbreak sites will be offered this opportunity.
  • Additionally, Alberta’s testing capacity is rapidly expanding and anyone with symptoms anywhere in the province can now be tested.
  • Those with symptoms of COVID-19, including cough, fever, runny nose, sore throat, or shortness of breath, should complete an online COVID-19 self-assessment. After completing the form, there is no need to call 811.
  • Alberta’s testing capacity is currently approximately 7,000 samples per day, and the laboratory network is working to increase this capacity.

Camping reservations temporarily suspended

  • Alberta Parks has suspended online campsite reservations and is refunding customers who have booked up to May 19.
  • The decision is in line with other jurisdictions, such as Ontario, British Columbia, Saskatchewan and Parks Canada, which have also suspended or delayed camping reservations.

Wastewater management

  • As the regulator of municipal wastewater systems, Environment and Parks is aware of reports from municipalities that some homeowners are flushing inappropriate items down toilets, such as disinfectant wipes or paper towels.
  • Albertans should avoid flushing items not intended for toilets because they can block sanitary lines, create service disruptions and cause sewer backups.

Temporary suspension of applications for emergency social services funding

  • Effective April 21 at 6 p.m., the Government of Alberta will be temporarily suspending applications for emergency social services funding to charities, not-for-profits and civil society organizations to support their COVID-19 response.
  • Government has received more than 600 applications for the $30-million fund. Current applications are being reviewed, and approvals for urgent requests will occur before reopening application intake.

Mental health supports

  • Confidential supports are available to help with mental health concerns. The Mental Health Help Line at 1-877-303-2642 and the Addiction Help Line at 1-866-332-2322 are available between 7 a.m. and 11 p.m., seven days a week.
  • Online resources provide advice on handling stressful situations or ways to talk with children.

Family violence prevention

  • A 24-hour Family Violence Information Line is available at 310-1818 to get anonymous help in more than 170 languages.
  • Alberta’s One Line for Sexual Violence is available at 1-866-403-8000, from 9 a.m. to 9 p.m.
  • Information sheets and other resources on family violence prevention are available at alberta.ca/COVID19.

Quick facts

  • The most important measure Albertans can take to prevent respiratory illnesses, including COVID-19, is to practise good hygiene.
    • This includes cleaning your hands regularly for at least 20 seconds, avoiding touching your face, coughing or sneezing into your elbow or sleeve, and disposing of tissues appropriately.
  • For recommendations on protecting yourself and your community, visit alberta.ca/COVID19.
  • All Albertans need to work together to overcome COVID-19. Albertans are asked to share acts of kindness they have experienced in their community during this difficult time by using the hashtag #AlbertaCares.

Media inquiries

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Help For Canadians From The Federal Goverment

Prime Minister announces expanded access to Canada Emergency Response Benefit and support for essential workers

 
 
 

The Government of Canada is taking significant and decisive action to support Canadians and businesses facing hardship as a result of the COVID-19 global pandemic.

No Canadian should have to choose between protecting their health, putting food on the table, paying for their medication or caring for a family member. This is why the government introduced the Canada Emergency Response Benefit (CERB), a taxable benefit of $2,000 every four weeks for up to four months for eligible workers who have lost their income due to COVID-19.

The Prime Minister, Justin Trudeau, today announced that the government is stepping up to better support those who need help but don't qualify for the CERB, and Canadians working in essential jobs who make less than they would if they received the benefit.

To help more Canadians benefit from the CERB, the government will be changing the eligibility rules to:

  • Allow people to earn up to $1,000 per month while collecting the CERB.
  • Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their usual seasonal work as a result of the COVID-19 outbreak.
  • Extend the CERB to workers who recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19.

The COVID-19 pandemic has placed particular demands on low-income workers in certain sectors, including those on the front-line in hospitals and nursing homes, those ensuring the integrity of the food supply, or providing essential retail services to Canadians.

In recognition that these essential workers’ salaries are often less or similar than what they would receive from the CERB, the government will work with provinces and territories through a new transfer to cost-share a temporary top-up to the salaries of workers deemed essential in the fight against COVID-19, who make less than $2,500 a month. Details as to the application and delivery of this measure will be released shortly following further work with provinces and territories. This measure could help several million workers currently involved in the COVID-19 response. The government will continue to look for ways to better help all Canadians during this difficult time.

Quotes

“We will do whatever it takes to protect the health and safety of Canadians, while making sure that our workers and businesses are supported. This is an extremely difficult time for all Canadians, and we need to make sure that essential workers have the support they need so they can continue to do the critical work we all rely on. Together, we will get through this difficult time.”

The Rt. Hon. Justin Trudeau, Prime Minister of Canada

“The COVID-19 pandemic has had significant impacts on workers in all sectors, including those on the front-line saving lives in hospitals and nursing homes. The measures we are introducing today will ensure that they are properly compensated for their efforts, and ensure that workers who have lost income as a result of the pandemic get the help they need through the Canada Emergency Response Benefit.”

The Hon. Bill Morneau, Minister of Finance

“We remain unequivocal in our commitment to support Canadian workers impacted and unable to work due to COVID-19. Through the Canada Emergency Response Benefit we are ensuring that Canadians have access to the emergency income they need during this difficult time. Today’s announcement recognizes that many Canadian workers who did not qualify for the CERB were still in need of financial assistance – which is why we have worked hard to expand the eligibility criteria to be more inclusive.”

The Hon. Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion
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Do You Have A Green Thumb?

Do you have a green thumb but no garden to grow your greens? Indoor farming methods have seen a resurgence over the past few years, particularly with many condo dwellers who don’t have access to a garden. Not only does growing your own herbs indoors provide you with fresh ingredients daily, but there are other benefits too.

Year-round greens: Indoor gardening or farming means you can grow greens all year around, with no worries about weather conditions. As long as your home is equipped with the right tools and lighting, you can cultivate your indoor garden throughout winter and during extended grey periods.

Practical solutions for greenery in a small space: Sometimes a condo or a studio space can feel restricting, but adding plants and greenery can really make a difference. If you’re looking to spruce up your small space, indoor gardens are both practical and beautiful! Grow your favourite herbs and vegetables to use in meals while lounging in a fresher, more inviting space.

Hyper-local: The farther your produce has to travel from farm to table, the more harm it does to the environment due to pollution from transportation. Indoor gardening will allow you to grow your own greens at home all year round, eliminating the negative environmental impact that imported goods contribute to. You can get similar ingredients right in your own kitchen, which is only steps away! It could even save you some trips to the grocery store.

Looking to get growing? Building a DIY indoor garden is quite simple! Once you find the right space for your growing shelf, you’ll need LED or fluorescent growing lights, seeds, soil and containers to start the planting process. You could even tap into hydroponic technology with its own growing light system, which does all the hard work for you!

Indoor gardening is a great way to cultivate your green, regardless of the type of home you live in. You’ll reap great benefits for the home and your wallet without too much effort on your part. As long as you have the right equipment, you can enjoy fresh, hyper-local ingredients and the joy of gardening, all year round!

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Best Places to live in Calgary

Alberta’s largest city, Calgary, is situated 80km east of the front ranges of the Canadian Rockies. It is known as the sunniest major city in Canada with an average of 2,300 hours each year and is home to the Calgary Stampede, a 10-day outdoor event with incredible shows, amazing food and non-stop entertainment.

We know that Canadian’s truly celebrate the liveabililty factors of their neighbourhood – the qualities that give homeowners the true satisfaction of their home within the context of a neighbourhood. In fact a Leger survey conducted by RE/MAX revealed that 89% of Canadians recommend their neighbourhoods to others. Unlike your home, neighbourhoods cannot be changed, so it is important to assess what qualities are important to you before you purchase. Luckily, when it comes to Calgary, there is a lot of celebrate in terms of liveability.

A survey of RE/MAX Brokers revealed that the best places to live in Calgary are InglewoodHillhurst and Charleswoodareas rank as the top three all-around liveable neighbourhoods for access to green spaces and parks, walkability, access to retail stores and restaurants and ease of getting around/public transit. 

In the same Leger survey, six-in-10 Canadians put easy access to shopping, dining and green spaces at the top of their liveability criteria. Proximity to public transit (36 per cent), work (30 per cent) and to preferred schools (18 per cent), as well as cultural and community centres (18 per cent) fall out of the top five neighbourhood wants and expectations. So how does Calgary stack up?

If you are searching for the best place to live in Calgary, you should know that North Haven UpperRenfrewChinook and Meadowgate Park rank as the top hidden gem neighbourhoods to housing supply, affordability and liveability factors.

Interested in seeing how Calgary compares to other cities across Canada? Explore the RE/MAX Liveability Report to learn more about the features Canadians value when it comes to the places they live. 

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Spring Break Calgary

As we all look forward to warmer weather, here are some ideas of things to do in Calgary around spring break for the kids & family.


Calgary Zoo- Spring Break Day Camps March 25-29 $285


Telus Spark- 5 diffrent camps March 25-29 $290


Hide N Seek indoor playground and cafe $9:95-$14:95


Quest Theatre Camp -March 25-29  $300


Winsport- spring camps, skiing, tubing  & snowboarding


Spring skiing in Banff & area


Its been a long and cold February, and we are in need of some fun!! so take advantage of some of the amenities around Calgary

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Inventory climbs in Calgary's housing market

 

February sales activity remains low

Year-over-year new listings growth eased from 37 per cent last month to nine per cent in February. However, as sales activity remained below long term averages for the month, Calgary inventory levels rose to 5,474 units in February.

“While housing supply levels continue to be higher than we have seen in this market for some time, they remain below February 2008 record highs of nearly 7,000 units,” said CREB® chief economist Ann-Marie Lurie. “If the pace of growth in new listings continues to ease, this could place some downward pressure on the supply growth in the resale market.”

After the first two months of the year, there have been 6,236 new listings come onto the Calgary market. However, the new listings gains have varied depending on price range and segment.  Detached homes have continued to see a decline in new listings in the under $400,000 segment, while both the apartment and the attached product have recorded listing growth in the over $300,000 price range.

“It’s really important for consumers to consider what segment of the market they are buying or selling in when they make any real estate decisions,” said CREB® president Corinne Lyall. “The inventory, demand and price movement will vary based on the community, price range and product type.”

City of Calgary sales totaled 1,217 in February, a 34 per cent decline over the previous year’s activity. While sales fell across all product types, the rate of decline was higher in the apartment and attached sectors of the city.

"Everyone has different reasons for making a move and so it’s difficult to predict how buyers will react to this market,” said Lyall. “Buyers who have been waiting for more inventory to come on the market may find what they are looking for today. If they are in a position to make a buying decision, they certainly can take advantage of the lower interest rates.”

Months of inventory remain elevated at 4.5 months due to supply gains relative to slower sales in February. This placed downward pressure on pricing over the past month.

Unadjusted detached benchmark prices totaled 516,000 in February, a year-over-year increase of six per cent, but a 0.5 per cent fall over January figures.

Meanwhile, attached and apartment benchmark prices totaled 354,600 and 296,000 respectively. Both represented a decline over previous month’s levels.

The variation in price is more extreme when considering the average price. In February the average price rose by 0.3 percent relative to January, but fell by 4.2 per cent compared to last year. This does not come as a surprise given how the composition of the sales influences the change. Benchmark prices provided changes over time on similar properties, providing a clearer indication of pricing trends.

“Expectations vary significantly when talking about the impact that lower oil prices will have on the housing market,” said Lurie. “This wide range in forecasts is often related to assumptions about how long the cycle will last and the resulting impact to employment and net migration.”

“These differences in expectations will likely persist until there is some firm data to support assumptions about Calgary’s employment levels,” said Lurie

 

Compliments of CREB on March 02, 2015

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