The reason is a growing economy that is quickly adding jobs, leading to population growth.

Most other provinces will see a double-digit drop in starts, with only Manitoba seeing a more moderate drop of 5.3% next year.

Alberta will see housing starts in 2012 increase to 27,800 units from the 24,881 this year. In 2010, there were 27,088 housing starts in the province.

Nationally, housing starts will drop 5.4% from 192,000 units this year to 181,600 units in 2012. There were 189,930 starts in 2010.

"With interest rates no longer expected to increase over the next year, home buying intentions have improved modestly,” said the Altus Group in its forecast. “However, deteriorating economic conditions internationally are affecting the outlook for Canada’s economy and leading to lower forecasts of GDP growth in 2012, which will act as a constraint to housing demand.”

Peter Norman, chief economist for Altus Group, said the declines were not overly concerning, however.

You were born a GENIUS with thousands of great ideas... But your FUTURE is created TODAY by the ACTION you take on just one of those ideas." Simon Chan

TANKLESS WATER HEATERS

On-demand, Tankless Water heaters are beginning to attract more attention in Canada. These provide hot water right where you need it, when you need it, without a storage tank.  When a hot water faucet is turned on at a household fixture, cold water flows through coils in the unit and is immediately heated to a preset temperature, then distributed to the plumbing fixture.  Using electricity, gas, or propane as a heat source, tankless water heaters, in some cases, can cut your water-heating bill by 10 to 20 percent. The savings come by eliminating standby losses - energy wasted by warmed water sitting around unused in a tank.

When first introduced years ago, few builders or homeowners became interested because of their relatively high price and reliability problems. But the continuing escalation of fuel costs and the redesign of many units to eliminate some of the earlier problems has led to renewed interest.  The key benefits touted in the marketing of these units are their energy efficiency, limited space requirements, and ability to supply hot water whenever needed.

Residential-sized gas-fired models that are now on the market supply only five gallons of water heated by 90 degrees per minute - a comfortable enough output for a house with one or two people. If you have a large family, however, and need to do laundry and wash dishes at the same time others shower, a tankless system probably won't meet your needs. Electrically heated models provide even less hot water than gas models - more like two gallons a minute, heated 70 degrees.

Undoubtedly, the reduced space need is a plus for almost all installations – not only because the unit takes up less physical space but because the smaller size provides options on placement in many different areas of a house that could not accommodate a large storage tank.

To meet an expected high demand, multiple tankless heaters can be installed at one central location, or several units can be distributed throughout the house.  A tankless unit can also be used as an indirect heater by installing an insulated storage tank. The feasibility of this option, however, must be weighed against the cost of installing a conventional water heater.

When contemplating installing one of these units, homeowners must look at all the costs and benefits versus storage tank type units.

1.     People who look for a home during the Holidays are more serious buyers!

2.     Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!

3.     Since the supply of listings will dramatically increase in the Spring, there will be less demand for your particular home! Less demand means less money for you!

4.     Houses show better when decorated for the Holidays!

5.     Buyers have more time to look for a home during the Holidays than they do during a working week!

6.     Some people must buy before the end of the year for tax reasons!

7.     January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market!

8.     You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!

9.     You can sell NOW for more money and negotiate a closing in early next year!

CALGARY’S HOUSING MARKET SET TO OUTPACE 2010

Several Calgary Communities Get a Boost in Sales and Price

Calgary, November 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), Calgary residential sales totaled 16,184 after the first 10 months of the year, an increase of eight per cent over last year.  

Over 61 per cent of Calgary’s established communities saw increased sales levels compared to last year.  Garrison Woods, Collingwood and Mahogany saw the largest sales increase at 170 per cent combined; nearly half of all Calgary communities recorded price increases, with Shaganappi, Chinook Park and Downtown leading the way with a combined average price increase of 55 per cent.   

“A boost in full time jobs throughout the year is gradually translating into improved sales in the real estate sector,” says Sano Stante, president of CREB®. “Consumers are taking advantage of price stability and a healthy variety of selection.  While these gains are moderate, we are set to outpace 2010 sales.”

Single family home sales totaled 988 for the month of October 2011, an 11 per cent increase over October 2010, but continue to remain well below historical levels.  Year-to-date sales totaled 11,503, a 10 per cent increase over last year. 

October listings have edged upwards over last year’s levels, increasing by nearly two per cent, but year-to-date there are six per cent less listings than levels recorded last year. 

“Consumers are feeling more confident about the local real estate market,” adds Stante.

The average price of single family homes for the month of October 2011 was $455,399, while the median price was $395,000, an increase of two per cent compared to last year. This is primarily due to the rise in the number of luxury homes sales.  Despite the monthly price increase, however, year-to-date figures remained stable at levels comparable to the previous year. 

Condominium sales for the first 10 months of the year totaled 4,681, a three per cent rise over the same period last year.  Inventory levels remained at 1,935 units, resulting in months of supply pushing above five months. 

“The condominium market has significantly tightened compared to last year, however, moving into winter, we expect to see a rise in months of supply,” Stante says.

Condominium year-to-date average and median prices in 2011 were $288,736 and $262,500, respectively, a slight decline over the first 10 months of 2010. The decline is mostly due to increased sales in units priced under $200,000. 

“Overall, the resale housing market continues to show signs of improvement and, with no near term change in interest rates, we can expect the market will continue to see moderate and stable growth throughout the rest of the year,” Stante concludes.