A 'fantastic' year for Calgary businesses despite dropping energy prices

Despite plummeting oil prices, commercial activity in Calgary remained robust throughout 2014, creating what many industry analysts are calling one of the most competitive markets in Canada heading into the new year.

"I think it's been a fantastic year despite the last quarter of the challenging energy prices. We had some great revenue streams that were available for the first three quarters of the year," said Calgary Chamber president and CEO Adam Legge.

"Building projects are strong. You see some of the new towers going up in the downtown. You've got a lot of major infrastructure projects.

Low vacancy rates, high absorption rates in the resale condo sectors and dwindling supply in the single-family market vaulted secondary suites into the spotlight in 2014.

The issue culminated in mid-December with an 8-7 vote by city council against approval reforms – which prompted Mayor Naheed Nenshi to declare he'd leave the room during future secondary suites debates until it came time to vote. Ward 7 Coun. Druh Farrell likened the entire process to "giving birth to a chair."

The latest framework would have established a discretionary development permit process for suites where they were currently not allowed, as well as furthered public consultation with Calgarians to fully develop regulations moving forward.

Calgary's tight rental market, combined with low mortgage rates and relative affordability, supported record growth in the city's resale condominium sector in 2014.

Combined condo (apartment and townhome) sales up to the end of November increased 19 per cent to 8,105 units, compared with 6,782 units during the same period the year prior, according to CREB®.

The all-time sales record for condo sales was set in 2006, when 8,390 homes changed hands.

"In addition to lifestyle preferences, condominiums appeal to those looking for more affordable ownership options," said CREB® chief economist Ann-Marie Lurie, who originally forecasted 7,641 combined condo sales in 2014.

Calgary's luxury resale residential housing market continued to fire on all cylinders in 2014, according to new numbers from CREB®.

Year-to-date home sales priced over $1 million increased 18 per cent to 812 from 688 as of the end of November compared to the same period in 2013. Of those, six were sales in excess of $4 million.

With one month to go, the total already surpasses the record for the most million-dollar-plus sales in a year, consecutively set over the previous two years with 732 and 544 homes sold in 2013 and 2012, respectively.

Council votes 8-7 against secondary suite reform

''If this fails today, we're done ... I'm done, frankly."

So was the sentiment of Mayor Naheed Nenshi earlier this week prior to council voting 8-7 against a reform plan for secondary suites in the city.

The mayor, expressing frustration at the tedious talks, followed up by saying if secondary suites showed up in council again, he'd leave the room until it came time to vote.

Ward 7 Coun. Druh Farrell, meanwhile, likened the entire process to "giving birth to a chair."

On Dec. 15, city council voted 8-7 against secondary suite reform in Calgary. Here's some of what was said throughout the debate.

Mayor Naheed Nenshi:

"How can we continue to have discretion in this debate while removing the approval of each secondary suite from council ... a lot of folks think today's vote, if it were to pass, [suites would] be legal immediately."

"If this fails today, we're done ... I'm done frankly because we have tried very hard to try different compromises."

While the recent drop in oil prices has caused speculation about implications for the housing sector, stable conditions are expected given current forecasts for employment and migration.

"While employment and migration are expected to support housing demand, estimates could change depending on the extent and duration of oil price declines," said Ann-Marie Lurie, CREB®'s chief economist. "However, concerns over the potential impact will influence consumer confidence. This is expected to cause supply and demand to ease in 2015, maintaining resale market balance and keeping prices relatively stable."

12/15: On Dec. 15, secondary suites once again go to Calgary city council for blanket approval

$5,000: Last September, council waived the $5,000 fee normally charged for applying for a secondary suite

1.4%: Calgary's vacancy rate has been hovering around 1.4 per cent, which, along with Edmonton is the lowest in Canada

Provincial politicians submit letters of support to Calgarians for Secondary Suites

Provincial MLAs and party leaders are joining a growing throng of secondary suite supporters leading up to a crucial vote at city council Dec. 15.

"As a former small business owner, I know the importance of attracting and retaining talent to our rapidly expanding city," said Alberta Party leader Greg Clark, in a letter submitted to Calgarians for Secondary Suites, the grassroots group behind the We Support Secondary Suites campaign. "For workers to come to our city, we need safe and affordable options for them to transition."

New bill could mean added security for Alberta condo buyers and owners

Alberta condo owners could soon have more protection thanks to a new bill being proposed by the province.

The bill, which includes more than 50 amendments to the decades-old Condo Act, would strengthen rules related to occupancy dates, purchase agreements, warranty information and conflict resolution.

The new rules would regulate more than 8,000 condominium corporations that exist in Alberta, and provide protection for an increasingly large portion of the province's homebuyers.