Read all about it! Don’t miss the most important events in Calgary real estate news for the week of December 15 - 21, 2013. Compliments of the Calgary Home Team.
Critics Decry Alberta's New Home Warranty, Calgary Herald
Critics are outraged at new home warranty regulations approved by cabinet this week because they say the regulations do more to limit claims by new home and condo owners than to protect them. The regulations for the New Home Buyer Protection Act begin in February and consist mostly of exclusions and limits to claims.
The regulations set the minimum level of coverage at $265,000 for homes and $130,000 for condos, while coverage for common property in condominiums and multi-family dwellings is capped at $3.3 million. Critics argue the new regulations limit the liability of home builders, which could result in losses to buyers through no fault of their own.
The new law requires all new home builders to provide a warranty of one year for workmanship, two years for major systems, five years for the building envelope and 10 years for structural problems. Builders do have the option to provide more under warranty if they so choose.
The New Home Warranty legislation stems from a 2008 report by Edmonton-Castle Downs MLA Thomas Lukaszuk, who sounded a call to address complaints of poor workmanship and building envelope problems that were resulting in mould and rot in fairly new homes and condos.
Home Price Growth Doubles National Average, CREA
Prices for Calgary homes continue to get higher. The year-over-year price growth in Calgary was the best in the nation in November and more than doubled the Canadian average, according to the Canadian Real Estate Association.
Home prices in Calgary rose 8.82% from a year ago, while in Canada, for 11 major centres, prices went up 4.11%. MLS® sales across Canada for November rose 5.9%, but were up by 18.7% in Calgary, where the average sale price was $455,114.
Expect Building Shift To Multi-Family, Calgary Sun
According to the City of Calgary's Suburban Residential Growth report, in 3-5 years time, 32,269 multi units will be built compared to 20,829 single-family/semi-detached units.
The plan is to reduce the number of single-family suburban homes, which will raise the value of these houses and make them unaffordable for many buyers. From there, people would be expected to buy a multi-family home for a lower price if they decide to stay with Calgary's city limits. All the city wants to drive inner city growth by 50% in the long term.
Townhome Demand On The Rise, Calgary Herald
Townhome housing starts in Calgary are up 13% from November last year with construction on 1,801 units underway. At this time last year, 1,589 had broken ground.
When it comes to resale, the number of townhomes sold this year, up to Dec. 16, was 21% higher than in 2012. Prices on those sales have gone up as well, with the average year-to-date sale going for $341,160. That's 8% more than in 2012, when the average townhome sold for $316,993 in Calgary.
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Ryan MacDonald, B.Sc. Real Estate Professional
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