Calgary Industrial and Residential Tax Assessments

Many of you have already received your Calgary Industrial and Residential tax assessments. I have had a few phone calls and emails on the subject.  Some people noticed an increase and others a decrease in their tax assessments.  I have completed quite a few market evaluations in the past month since the assessments were mailed.

An increase in assessment does not automatically mean an equivalent percentage increase in taxes. When an assessment on a residential home goes up more than the City average the owner in most cases will end up with a bigger tax increase.

It is worth your while to get a market evaluation for this purpose as the deadline to appeal your tax assessment is March 7th, 2011.

How does the City determine value?

The City of Calgary uses a few methods of how they calculate their property assessments:

Sales comparison approach – sales of similar properties.

Income approach – capitalize the income being generated by the property.

Cost approach – land value plus the depreciated replacement cost of the property.

Residential Property Assessment
When we prepare residential assessments, we typically look at all similar properties within a similar area that are sold during the same timeframe. When properties are sold, there is a range of sale prices. Assessed values are based on these prices. This is called the sales comparison approach to valuation.
Multi-Residential Property Assessment
For multi-residential property assessments we use the income approach to valuation – capitalize the income being generated by the property.

Non-residential Property Assessment
In determining non-residential assessments, the City uses one of the three approaches to value stated above.

Research what your own tax assessment is by going to:  https://assessmentsearch.calgary.ca/TermsOfUse.aspx

What is needed to drive growth in Calgary and Alberta?

Jobs and Migration

Confidence in employment prospects and family income will determine the pace of the housing market.   As such, a more robust improvement in Calgary’s housing market will require new permanent jobs.

Oil and Gas

Oil and gas have contributed to some improvement in employment in
Alberta this year, but these jobs have been focused in the northern regions of the province. Consequently, net interprovincial migration from June 2009 to June 2010 showed 2,183 people left the province. Jobs and more affordable housing attracted migrants to BC (9,367),
Saskatchewan (3,909), Newfoundland (1,309), and New Brunswick (722).

Projection for Employment Growth

Overall, Alberta’s employment growth will fare better in 2011 than in the year past, but will only grow by about 1.3 per cent.  Like 2010, job growth is expected to be in oilsands.

source: StatCan

To view the rest of this article visit:

http://www.creb.com/public/documents/Electronic%20Media%20Package/CREB_ForecastReport_2011.pdf

Calgary’s Housing Recovery Has Staying Power

Low borrowing costs continue to fuel market recovery

Calgary, December 1, 2009 – The Calgary housing market is showing signs of a sustained recovery according to figures released today by the Calgary Real Estate Board (CREB).  

“November sales are clearly demonstrating that the recovery in the Calgary housing market has staying power,” says Bonnie Wegerich, president of the Calgary Real Estate Board.  “We have now seen six consecutive months of year-over-year sales increases for both the single-family and condo markets.  And November sales are in line with what we would expect this time of year in a balanced and normalized market.”

First Time Buyers shaking it up

“Clearly low borrowing costs are helping to fuel this recovery,” says Wegerich.  “Many buyers want to get in while mortgage rates remain at record lows. Better employment numbers and an improving economic outlook are giving the market an added boost.”

 “It’s the ‘new kids on the block’—the young first time homebuyers if you will—that continue to be a bright spot in our housing market.  Clearly this can be seen in the strength of our condo sales this month and it is helped by the narrowing gap between the costs of renting when compared to owning,” says Wegerich.  

“But interestingly in recent months we have also seen more move-up buyers enter the market and this is being reflected in the strength of our average price of single family homes,” adds Wegerich. 

Pricing in Calgary will remain stable

“A healthy demand for homes combined with a steadily decreasing inventory is holding prices firm,” says Wegerich.  “Our absorption rate for single family homes in the city of Calgary is currently less than 2.5 months.”

“Pricing will remain stable and may edge upwards in some markets—but it is unlikely that we will see any dramatic jump in prices in the months to come,” adds Wegerich.

Calgary MLS Listings Single Family Homes

The number of single family homes sold in November 2009 in the city of Calgary were up 63 per cent from the same time a year ago, while condominium sales saw an even steeper increase—up 77 per cent from the same time a year ago.

November 2009 saw 1,095 single family homes sold in the city of Calgary. This is a decrease of 15 per cent from 1,285 sales in October of this year. In November 2008 single family home sales were 670.

 The average price of a single family home in the city of Calgary in November 2009 was $464,444, showing no significant change from October 2009, when the average price was $462,465, and showing an increase of 7 per cent from November 2008, when the average price was $435,471.

Calgary MLS Listings Condominimum Sales

The number of condominium sales for the month of November 2009 was 504.  This was a decrease of 16 per cent from the 601 condominium transactions recorded last month.  In November 2008 condominium sales were 284.

The average price of a condominium in the city of Calgary in November was $294,264 showing a 2 per cent increase from October 2009, when the average price was $289,155 and a 3 per cent increase over last year, when the average price was $285,820. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

  Calgary MLS Listings are down from October 2009

Single family listings in the city of Calgary added for the month of November totaled 1,365, a decrease of 25 per cent from October 2009 when 1,819 new listings were added, and showing a decrease of 13 per cent from November 2008, when 1,567 new listings came to the market. Condominium new listings in the city of Calgary added for November 2009 were 705, down 18 per cent from October 2009, when the MLS^® System saw 859 condo listings coming to the market. This is a decrease of 5 per cent from November 2008, when new condominium listings added were 741.

Prediction for the Calgary Real Estate Market? 

 “We expect sales to taper off as we enter the winter months,” notes Wegerich. “But the market is well above the trough we saw at the end of 2008 and we are now seeing much healthier and balanced conditions for both buyers and sellers.”

All city of Calgary MLS^® statistics include properties listed and sold only within Calgary’s city limits.  All of this information was provided by CREB Stats.  For up to the minute latest CREB Stats visit www.NancyBall.ca

No guarantee rates will stay low, Carney warns

Paul Vieira, Financial Post

OTTAWA — Governments will be required to undertake “concerted” and “sharp” efforts to restore fiscal sustainability once a market-led recovery is assured, Bank of Canada governor Mark Carney said Monday.

This will particularly apply to countries with ageing populations and “unsustainable entitlement programs,” he said in a speech to the Victoria Chamber of Commerce.

While Mr. Carney was speaking about the need of governments to get their fiscal houses in order in the post-crisis landscape, the central banker also went to some lengths to reiterate that the central bank’s pledge to keep interest rates at 0.25% until the end of June 2010 is “conditional” on meeting inflation targets. He told reporters afterward it would be unwise to assume current rates are “normal.”

“It is an expectation, not a promise,” Mr. Carney said in his remarks.

In recent weeks, analysts have debated whether the bank may move before that June 2010 deadline to raise rates given the strength in the economic rebound; or whether it may extend its pledge to keep a lid on growth in the Canadian currency, which it identifies as a risk to growth.

His speech touched on familiar ground, such as the risk of the rising loonie, but also attempted to set the landscape for the “hand off” from government-led growth to the private-sector-led expansion. His remarks suggested that stimuli – whether through government spending or low interest rates – should be kept in place “until the recovery is assured.”

When that recovery is assured, certain countries have much work to do to clean up their public finances, Mr. Carney indicated. He did not cite specific countries in his remarks, but jurisdictions that fall under this category could include the United States and western Europe.

“Once the recovery is assured, concerted efforts will be necessary in most economies to restore fiscal sustainability,” he said, adding it would be “particularly sharp” for some countries. “The fiscal cost of arresting the downfall will need to be first contained and then repaid over many years.”

In Canada, the federal government has set out a framework under which it would remain in a deficit position until at least the 2014-15 fiscal year. But, the Conservative government said it would be able to reduce the amount of red ink in the coming years through cost controls and better growth.

But some governments are indicating they are prepared to take the steps Mr. Carney is calling for. Alistair Darling, Britain’s finance minister, said Monday the country will make annual budget deficit reduction a legal commitment in order to bind future governments to getting the national debt down.

“Policy makers will have to act deftly to maintain stimulus long enough for private demand to take up the burden of growth, but not too long to undermine confidence in and the sustainability of that growth,” Mr. Carney said. “The aftermath of the crisis will make considerable demands on structural policies in all countries, including Canada.”

Among the structural changes in Canada would be the need for businesses to rely more on emerging markets as a source of demand as open access to the U.S. market becomes “less valuable,” Mr. Carney said.

 Note: This information was provided by Betty & Kevin Saskiw, Pro-link Mortgage