January 21, 2008

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Homebuyers feeling choked with city traffic, pollution and cramped suburban lots found the breathing room they craved in 2007, almost doubling construction in out-of-town areas during a year where Calgary saw a one-quarter decrease in single-family housing starts.

According to figures from Canada Mortgage and Housing Corporation (CMHC), the MD of Rockyview for example saw a huge boost in single-family home construction with an 87.6% increase in starts in 2007 compared to 2006 Ð a stark contrast to the drop Calgary saw.

For the same period, single-family housing starts in Calgary fell by 25.8%.

Calgary-based Elite Homes is among the first to respond to the demand for out-of-town homes, predicting the trend will continue in 2008. The builder will open showhomes this spring in three new destination-style areas beyond the cityÕs borders, with more scheduled.

Elite will open showhomes in Speargrass near Carsland, 20 minutes east of Calgary via Hwy 22X; Seclusion Valley in Turner Valley; and the Lakes of Muirfield, a gated golf course community 15 minutes east of the city limits via Country Hills Blvd.

"It is a growing market. A lifestyle choice to get some peace," says Lai Sing Louie, senior market analyst for CMHC.

"These people want the open space, fresh air, and a large piece of property with a bigger home to raise family," says Louie. "Plus you get something quite scenic with forested areas, the river valley, golf courses."

In the past homebuyers sought out-of-Calgary homes mostly for affordability. Now, they are just looking for the space for their dream homes, says Louie.

Elite Homes president Bruce Botterbusch agrees.

These buyers have profited from a boost of city property values and a hot job market. Plus many newcomers to Calgary hail from prairie towns. They wish to return to rural-style living as soon as they can afford it, says Botterbusch.

Also, the rising cost of vacation properties has put many would-be buyers out of that market, but they are unwilling to give up on the idea of a country getaway.

"It's a question of both affordability and time. The cost of a city home, plus one in an affluent area of Canmore or Fernie is a half-million dollars out of reach for most people who don't even have time to enjoy it," he says. "It's sensible to have one address which offers the benefits of both daily."

Troy Halsall and fiancée Jill Kreiser will take possession this year of their Elite Home in the Lakes of Muirfield, a community which includes golf memberships in the price of the home.

The couple grew up in rural Saskatchewan, and relocated to Calgary as adults. They are eager to leave their west-side city home for an improved lifestyle.

"You can come home and go play a round of golf, go cross-country skiing, or take the dog out," says Kreiser.

"When we have kids they can go dirt biking, and experience that rural atmosphere that we grew up in," adds Halsall. "We are really excited about the project. It is going to be beautiful."

From Halsall's Eau Claire office, he is reminded why he feels more at home in the country: "From my office you can see that layer of smog over the city. All I can think of is Ôthat canÕt be healthy for you.'"

Halsall and Kreiser's 2,296 sq. ft. two-storey comes standard with up-market finishing, on a pie-shaped lot backing onto the golf course. In Calgary, new city lots average 28-34 ft. wide, where Muirfield lots are mostly 50 ft. wide. The couple considered acreages also, but many were $100,000 more expensive, plus have unknown costs such as renovations to the small war-era homes on site.

"This is by far more affordable. There will be no neighbours behind us with the golf course. And we have a mountain view," says Halsall. The gated community eliminates acreage chores, yet retains all the serenity, he says.

Towns such as Turner Valley are also planning for the trend Ð recognizing investment in Seclusion Valley from big builders such as Elite Homes can only mean more city dwellers will be drawn into their communities.

Turner Valley mayor Dona Fluter says the town anticipates the population will double in five years and is ramping up plans for revitalizing their main street, and looking at proposals to add needed recreation facilities. They even hired a full-time town planner.

"We are not going to be able to stop it, so we are planning for a healthy and well-managed growth that has opportunities for better facilities for everyone. We are a beautiful, quaint town, close to Kananaskis. People have been drawn here as tourists. Now they want to live here full time," Fluter says.

On Saturday, January 26, Elite Homes hosts an open house from noon to 5 p.m. at their Home Gallery at 808 - 55 Ave. NE to preview their three new communities. Build in Speargrass from the $500,000's, the Lakes of Muirfield from the $560,000's, and Seclusion Valley from the $570,000's.