Penhold is on the brink of recording a record number of residential homes built in the town.
“This will be the most homes built in one year in the town’s history,” said Mayor Dennis Cooper. “Penhold has become a place of choice.”
The town is also on the verge of witnessing residential real estate sales that are on par with the recent boom years.
The home-building frenzy in Penhold is in marked contrast to the action seen in Innisfail in 2011. In fact Penhold, which has a population of 2,100 citizens - only one quarter that of Innisfail - has built nearly four times as many homes this year as its immediate municipal neighbour to the south.
Penhold’s planning and development department says 62 residences of all types, presenting a total value of about $10 million, have been built in the community in 2011. That number is tied with the number of homes built in 2007, a boom year before the recession.
Tricia Willis, Penhold’s planning and development officer, said she expects the all-time record of the total number of homes built and their overall value will be broken when final figures for 2011 are tallied.
As well, there have been 58 real estate sales in the community from Jan. 1 to Dec. 20. Innisfail, meanwhile, has seen only 16 new homes built in the same period, according to Elwin Wiens, the town’s development officer. In real estate action, Innisfail has witnessed 77 residences sold this year up to Dec. 20.
“Once the town started progressing it became very attractive,” said Tracy Christensen, president of the Central Alberta Realtors Association. “The multiplex is a great drawing card. There is easy access to both Red Deer and Innisfail. Prices are still a little bit more affordable than in Red Deer.”
Norm Jensen, owner of Red Deer’s Royal LePage Network Realty Corp. – one of Central Alberta’s largest real estate offices, said he believes a major reason for Penhold’s home building and real estate boom is that many people are looking to smaller communities because Red Deer’s inventory of available houses is now at low levels.
“Right now we don’t have anything to sell in Red Deer,” said Jensen, noting that as of Dec. 20 there were only 215 residences to purchase, compared to 550 at one point in 2009 and just under 300 the same time last year. “This is when people start looking into smaller communities.”
Jensen said he expects inventories to go back up to more normal levels (325) by spring. He said there would be an increase in the number of unit sales, and “slight” 3 per cent to 5 per cent increases in prices.
Cooper said he expects the town’s good fortunes with home building in 2011 will move into 2012 as well. He noted Phase 5 of the Hawkridge Estates subdivision has just opened and builders have spoken for most of the 56 residential lots. The mayor added 2012 could see another two or three new subdivisions being planned for the town.
“The builders in our town are giving people a choice, reaching a market with lots of variety on lots and size,” he said, adding he would not be surprised if Penhold becomes known across the province and even nationally as “the place to be.”
However, while Penhold’s residential home building and real estate sector is booming Cooper remains concerned commercial and industrial assessment is in an alarmingly poor state when compared to residential. He said residential assessment accounts for 95.6 per cent of the town’s tax revenues.
Cooper concedes this is the next important challenge for the town. However, he notes the town can make some headway in the right direction with available lots in a large industrial area west of the railway tracks that is now zoned and ready for sale.
