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In this section of the website you’ll find articles and reports pertaining to the market, from local conditions to advice on when to buy and sell.  We do our utmost to keep on top of market conditions and we hope you will find this helpful.
 

Thursday, December 8th, 2011 - Alberta is Attractive Market for Investors and Landlords

Alberta is fast becoming a landlord’s market, and is expected to stay that way into 2014. Home prices are fairly stagnant, but there are so many people coming into the province in search of work that rental property is becoming hard to find. That means that rents will be on the high side for the foreseeable future.

Most new immigrants rent for an average of two years before moving into the real estate market as potential homeowners. That means landlords are in good shape because of the steady increase of jobs available. Alberta also has no rent control, meaning that landlords may ask what the market will bear.

Alberta turns out to be the exception as far as job creation throughout Canada. The nation as a whole lost some 19,000 jobs this past November. At the same time Alberta created almost 3,000 new positions.

The thinking is that investors will see profitable times for the next couple of years at least, until those renters are ready to start looking for housing or move on to other pastures. Then home prices are bound to go up, encouraging those that have been sitting on their properties to put them on the market. In the end, everybody wins.

Friday, November 18th, 2011 - Edmonton Construction Start Ups Continue to Increase

October was a good month for housing starts in Edmonton. The city led the province, according to figures produced by the Canada Mortgage and Housing Corporation. Submitted this past Tuesday, the report showed that there were 1,250 starts in the Edmonton metro area. Calgary came in second, with 981 starts.

Much of this is attributed to apartment construction, according the Richard Goatcher, one of the senior market analysts with the firm. He noted that this October showed 550 starts in that market, a five-fold increase over the 100 starts in October of 2010. Goatcher noted that if you have a development with units numbering in the 100s, each of those counts as a start, punching the numbers up quite easily.

Dan Sumner, from the Alberta Treasury Branch, noted that Edmonton is likely to be the leader in housing starts for the next few years at least. The city has added more than twice as many jobs as Calgary during the last year, mostly directly or indirectly associated with the resurgence of the oilsands.

The beginning of 2011 saw construction companies get behind because of severe weather and inventory issues. Now they are playing catch up, trying to get enough properties up and running for the thousands of immigrants expected to come to Alberta in search of work. Goatcher expects that 2012 will also see a healthy increase in start ups.

Wednesday, November 2nd, 2011 - Heartland Transmission Project Approved, Will be Above Ground

The much debated Heartland Transmission Project is going ahead. It will take the Sherwood Park route and it will not be buried, but rather be on immense towers above ground. The project was approved this past Tuesday by the Alberta Utilities Commission, who deemed that going ahead with the 500-kV line, set to take electricity into the heavily industrialized region near Fort Saskatchewan, to be beneficial to the public.

The route runs just east of Edmonton’s border and close to homes in nearby Sherwood Park. The fear of health and safety risks prompted calls for AltaLink and Epcor Utilities, the proponents, to bury the high-powered line. But both corporations noted that burying the lines would double the cost. Since the AUC did not see any evidence of health risk, that idea was soundly rejected. Studies have shown that the lines, whether below or above ground, would pose no health risk at the distance planned.

Strathcona County, most affected by the route, may appeal. AltaLink and Epcor will have to use monopoles through this area since they are more visually appealing. The two firms have also been ordered to look into moving the line so that it isn’t so close to Colchester Elementary. If the route isn’t changed, the school may move. Right now residents of Strathcona are looking into legal alternatives, which may end up including a class action lawsuit.

Wednesday, October 12th, 2011 - Katz Group Begins Non-Campaign to Get Lawmakers to Approve Arena by Oct 31st

The Katz Group is tired of waiting for the City of Edmonton to approve their downtown arena project. Having set a self-imposed deadline of October 31st, the group is looking for supporters to get involved by imposing the will of the people on politicians, forcing them to take action. The Oilers president just doesn’t want to take no for an answer.

Patrick LaForge, a key member of the group sent out emails to supporters of the project, encouraging them to contact their representatives, by whatever legal means necessary. LaForge was not quite upfront about how many emails went out, and who was on that mailing list. He just mentioned that it was to personal friends and seemed to downplay the action.

But to those personal friends he gave options about emailing councilors, calling the Edmonton 311 line to voice opinions, send letters to the Edmonton Journal, use any social media outlet available and to inundate local radio stations. Then in the same breath insisted he was just providing information, not starting a campaign.

LaForge also insisted that October 31st is a firm deadline and that the company, having spent some $25 million on the project, was not willing to spend any more time and money on something that may not go anywhere. He also implied that the Oilers were not able to function in Edmonton because the current arena is too small. And so the debate continues…until Halloween.

Thursday, September 6th, 2011 - American Consumer Confidence Stuck in the Doldrums

It is no secret that the stock market has been a true rollercoaster ride in the last couple of months. While that has had little affect on consumer investing, it is likely that the volatility may start changing the way people spend their money. This logic comes from the Consumer Outlook Index for September, put out by RBC.

The index notes that of those who have invested in mutual funds, bonds or stock, some 77 percent report they have left their holdings as is. Roughly 11 percent have increased their holdings, while 10 percent have sold part of their portfolio and another 10 percent have sold the entire lot.

Some 26 percent of those in America do plan on reducing spending. Yet the most often heard opinion is that the market is not currently affecting how people use their money. Perhaps three out of four people are going about their financial affairs as usual, but there is at least a hint that things will change. Consumer confidence in the United States remains flat, after showing a huge dip over the summer months. September showed an index of 40.2 while August came in at 40.1. Those are some of the lowest numbers of the year.

The underlying factor in the economic picture is the lack of jobs. While the number of jobs is holding steady, there are not enough new positions being created to re-employ those who are already out of work. Almost one third of Americans are so spooked by the job market that they worry that they or someone in their family will loose their job before next spring. Some 75 percent of Americans believe that the country is headed in the wrong direction, a mere one percent less than the 76 percent in August.

Wednesday, August 3rd, 2011 - May Sees a Slight Decrease in Canadian Economy Numbers

This past May the gross domestic product number in Canada decreased by 0.3 percent. Economists are putting the major blame on declines in the resource sector. This follows a flat-line performance this past April. Most analysts were expecting May to have at least a 0.1 percent gain over the prior month.

The bad weather and the Northern Alberta wildfires caused a 5.3 percent decrease in production in the area’s energy production. It hit both the oil and gas extraction industry as well as those in mining. This number will bounce back fairly easily as the weather improves and the fire danger abates.

Perhaps more troublesome are the drops in construction, down 0.3 percent, manufacturing, down 0.4 percent and the service industry, which saw a 0.2 percent increase, not anywhere near normal for this time of the year. The service industry was considered more immune to supply shocks, so the very slight increase is troublesome. Even if the energy and mining figures were taken out of the equation, the GDP would have decreased by 0.1 percent between April and May.

CIBC’s Emanuella Enenajor believes this is a disturbing trend, and makes it probable that the targeted 1.6 percent increase in the GDP by year’s end will not be met. The Bank of Canada has already adjusted its growth prediction from 2.9 percent to 2.8 percent for 2011. So far the bank has left the 2012 prediction, at 2.6 percent and the 2013 targeted number, 2.1 percent, as is.

Wednesday, July 6th, 2011 - Edmonton’s Communities Must Work Together to Create Playgrounds

Edmonton is growing. More and more neighborhoods are being added, pushing the city borders even farther outward. Developers come in, build a community, make sure it has nice homes, all utilities and clean, crack-free sidewalks. But what they don’t do is add a playground. They provide homeowners with a map of where the schools and parks are slated to be, but that’s it. Another factor is that the city of Edmonton no longer takes responsibility for adding playgrounds, and hasn’t since 1980.

Building a community playground is the responsibility of the community. Some groups do quite well, including Castle Downs that opened their new playground on Canada Day. This year enough groups have gotten their requests in that the $5 million budget allotted to match funds with the neighborhoods has been depleted. Last week the city council added $1.25 million to that budget, covering playgrounds in both old and new neighbourhoods. Others, like Brintnell in the northeast, are not having as much success. This community has formed its second playground society, hoping to someday have something built on what is now one big patch of grass.

There are a couple of theories as to why the city leaves it up to the community, other than for simply financial reasons. One, building a playground helps build the community. By working together to plot, plan and raise money, neighbors get to know each other. Another is that it is unreasonable to put in a playground until the community needs one. A development that is only beginning to see residents come in may not be ready to use or need such an amenity.

Friday, June 3rd, 2011 - CMHC Changes Housing Start Predictions for 2011

The Canada Mortgage and Housing Corporation (CMHC for short) had already put out its housing start forecast for 2011. Now it appears that due to the improving economy and the still low interest rates, the agency has decided to amend that forecast, for the better.

This past February CMHC predicted that there would be 177,600 housing starts by the end of 2011, and that number would rise to 183,800 during 2012. Now the prediction for 2011 is for 179,500 new housing starts and for 185,300 starts in 2012.

New government housing regulations in regards to home mortgage financing and shorter amortization periods are expected to cool the housing market somewhat. At the same time Canadian interest rates are still low despite the fact that first quarter growth in the country was four percent. The second quarter growth is expect to be roughly half that figure. The Bank of Canada is expected to raise interest rates during the third quarter; best guess is in July or perhaps September according to a Reuter’s poll from last week.

As far as sales, the CMHC is predicting 452,100 homes changing hands this year, about 1.16 percent higher than in 2010. For 2012, the agency predicts 461,300 homes being sold.

Thursday, April 28th, 2011 - St Albert Has Second Highest Property Tax in Alberta

St Albert has the second highest property tax rates in the province. In 2010, residents of the town paid an average of $745 per $100,000 assessed property value in municipal property taxes. Grande Prairie took the number one spot, billing property owners $848 per $100,000. Third place went to Cold Lake, charging $722 per $100,000. Camrose at $691 was fourth.

Calgary had the least expensive taxes in Alberta, coming in at $314 per $100,000. Other cities on the bottom end of the list included Airdrie with $402, Fort Saskatchewan coming in at a close $408 and Edmonton pulling $473 on average. St Albert took the third place spot in 2009, bested by Grande Prairie and Cold Lake.

Considering the non-residential tax payers, St Albert placed 9th of the 16 cities in Alberta. Business owners paid on average $1,206 per $100,000. Wetaskawin took the top spot at $1,769 and Spruce Grove was the least taxed at $344.

Mayor Crouse noted that St Albert has services that some of the other cities don’t, so it was not entirely fair to compare tax rates. For example, St Albert has a transit service. Cold Lake does not. St Albert doesn’t charge for parking, while Edmonton, with a much lower tax rate, does. The property values in St Albert also tend to be higher than other cities in the comparison. Crouse advised that if the residents want to cut out some of these services, then taxes would indeed be lower.

Monday, March 28th, 2011 - More Albertans Consider Buying U.S. Properties than Other Canadians

Of all the people across Canada, those that live in Alberta are most likely to purchase property in the United States. This past Friday, BMO Bank of Montreal released survey results showing that 31 percent of residents in that province would consider buying a home south of the border. With real estate prices being much less than in Canada, at least for the moment, that is not surprising.

Some have already taken the plunge. Tanya Ekland, a realtor with Re/Max Real Estate Central in Calgary purchased a townhome in Scottsdale, Arizona with her husband. It was a good investment, costing $289,900 USD for the 1,300 square foot property. In Canada, that same property would be $100,000 more. Currently they rent it out.

Phoenix realtor Diane Olson notes that business is booming. One reason is the skepticism in the stock market. Another, as far as Canadians goes, is the fact that the Canadian dollar is now worth more than the United States counterpart. That makes buying in the USA very tempting. Lastly, the prices for homes south of the border are at all time lows.

In Phoenix there are usually about 50,000 homes on the market. The supply is now just over 31,000, and going fast. Just how long this bargain frenzy will last is anyone’s guess. There are hints that the American economy is making a recovery, slow as it may be. When, and if, that happens, the US Dollar will strengthen and more Americans will be buying homes in country, stabilizing the market.

Friday, March 4th, 2011 - Conservative MLA Lyle Oberg Jumps Ship, Joins Wildrose Alliance

Lyle Oberg, a former senior cabinet member in the Tory party has jumped ship. He’s landed in the midst of the Wildrose Alliance, citing displeasure with the provincial budget just unveiled by Premier Ed Stelmach. The premier however is dismissing the move as no more than a bit of political theatre.

For Oberg’s part, he notes that he has loss faith in the Conservatives and had been thinking about switching parties for quite a while. This latest budget, which puts Alberta in the red for the fourth straight year, was his final straw. Oberg served 15 years as a Conservative MLA before retiring in 2008.

While Oberg blames Stelmach for the province’s financial woes, Stelmach throws the ball somewhat back in Oberg’s court because the former MLA was also the former finance minister. The two men have had little contact since Oberg left office. The other issue is the change in Alberta’s health care system with the creation of the new health super-board to be operated out of Edmonton. Oberg tried to get posted to one of the provincial agencies, including Alberta Health Services, but he was rejected.

Meanwhile Oberg will begin his new journey with the Wildrose Alliance by purchasing a membership and introducing Danielle Smith, the party leader, at a fundraiser in Edmonton on Thursday. Tickets for the dinner are $300 each.

Friday, January 28th, 2011 - Edmonton’s Drainage System Should Handle the Big Melt Just Fine

Lots of snow means lots of water come the spring run-off. But Edmonton city officials are confident that the city’s drainage system will be able to handle the massive amounts of water the record snowfall will produce. But this is only January and there is not much of a melt off yet.

Still, crews are clearing the windrows along major roads to reduce the amount of water ending up in the drainage system. About 20 percent of streets in neighbourhoods have already been cleared. All residential streets are expected to be done by the latter part of next week. The collector and arterial roads are scheduled to be cleared within ten days baring any further storms. The crews will also have to keep drainage catch basins clear from debris so that they don’t back up.

Some residents are complaining about the lack of plowing in certain areas. One west end neighbourhood resident noted that the snow plow has only been by once since the storms first began three weeks ago. Roads are all but impassable, and only then if you have a vehicle with high clearance. Garbage service and the Christmas tree pick-up have been delayed.

Police and city officials are asking for a little patience and that people not report vehicles that are parked in the street and not blocking anything. The cars, for the most part, are just stuck or covered in snow and not abandoned. Officials will get to them as soon as it is safe, and as long as there is no more snow.

Wednesday, December 22nd, 2010 - Alberta’s Advanced Education Minister Looking for Ways to Cut Textbook Costs

Going to university is an expensive proposition. Not only do you have ever increasing tuition costs, but you must purchase all of your books, something that can set you back between $750 and $1000 per year. Doug Horner, Alberta’s minister for Advanced Education wants to change all that.

Horner has been working on ways to make education a less expensive experience since 2006. He has already been successful in getting the application process streamlined. A system called Campus Alberta lets students apply for almost any of the post-secondary schools in Alberta by using one central website. This makes it easier to transfer between schools as well..

Now Horner wants to create an Internet site where students can download the textbooks they need on an e-file and reduce their book costs by at least half. Because of the success of Campus Alberta, which actually got the leaders from the different institutions talking to each other, the idea of a shared textbook site is a possibility.

The hurdles that must be overcome are copyright issues, getting more instructors to use the same books, or at least a list of required texts and that fact that many publishers that sell e-books put what is called a “time bomb” on the text. This means the students only have access to the e-books for a certain amount of time, usually six months. Other options would be to make it easier for instructors to create their own books; self publish and use the text in their classrooms. Anything is possible.

Monday, November 29th, 2010 - The Scent of Pine Can Come in Smaller Packages

There is nothing like the scent of a fresh cut pine tree to put Edmontonians, or most others for that matter, in the Christmas spirit. But what if you are space challenged? That pine tree, no matter if it is just the table top variety, may just take up too much of your abode. There is a solution.

Try decorating with only a few bits and branches of that tree or other types of sweet smelling greenery. Rob Sproule, owner of the Salisbury Greenhouse is seeing a trend in people doing just that. This year he will be importing a whole trailer full of greens, some all the way from Florida. Among his offerings will be red cedar, Douglas fir, Ming pine, exotic lichen and fragrant, potted eucalyptus.

Sproule began experimenting with other ornamental plants because poinsettias are not selling quite as fast as they used to. People started gravitating towards a variety of fresh greens. Though he will still see about 10,000 poinsettias sold, Sproule decided to fill the growing need for variety. Branches accented with glitter or silver trim, holly berries and plants such as purple and orange sage add color and interest to wreaths, centerpieces and mantle displays.

One advantage of the in house greenery versus a tree is that just because December 26th rolls around, you don’t have to give your decorations the boot. Keep them around to enhance your home, both inside and out, giving you a splash of color through the mostly white winter season.

Thursday, October 28th, 2010 - Renovations Down For Alberta Homeowners

According to an Ipsos-Reid survey that polled 3,565 Canadians, among them 337 Albertans, the home renovation picture within the country is changing a bit. In Alberta, only 58 percent of homeowners plan on renovations during the next couple of years. In 2009 that figure was 64 percent and in 2008 it was even higher, at 74 percent.

That puts Alberta below the national average of 62 percent. British Columbia had the absolute lowest, at 55 percent throughout the province. Tied for the number one spot was Manitoba and Saskatchewan, both coming in at 67 percent.

The other interesting thing about Alberta is that homeowners were the least likely to carry large debt loads from such renovations. Almost 70 percent of Albertans have already paid for renovation work completed in 2008. This is above the 60 percent national average. Albertans were also best at sticking to a planned budget. Roughly 60 percent of homeowners kept their eyes vigilantly on the money line, compared to 49 percent in the rest of Canada.

Tuesday, September 28th, 2010 - Bustling Job Market in Fort McMurray Spurs Home Prices

Fort McMurray is leading Alberta’s two largest cities in terms of listings of homes with four bedrooms and two bathrooms. A survey conducted by Coldwell Banker gives the term “aspirational” to this type of house, and notes that its average price in Fort McMurray is $593,390. The amount of “aspirational” homes for sale in the town points to its extremely active job market.

The average prices for a four-bedroom, two-bath house in Calgary and Edmonton were $551,920 and $452,628, respectively.

John Geha, the president of Coldwell Banker Canada, said that the survey information paints an accurate picture of listing activity, indicating that this category of home is sought-after by executive-type buyers.

In North America, Newport Beach, California was the most expensive residential market, with an average listing price of $1,826,348 for a four-bedroom, two-bath dwelling. The only Canadian city to make it to the top ten priciest North American cities was Vancouver, with a house of the above-mentioned type listing for $1,324,000 in Canadian dollars.

On the other end of the spectrum, Detroit came in as the most affordable market, with an average listing price of about $68,000 for a four-bedroom, two-bath home. Canada’s most affordable market for this type of dwelling was Windsor, with an average listing price of $158,242.

Geha said that his company’s research shows that because of the wide range of home types in Canada’s major markets, an “aspirational” home is well within reach for many people. He said that in densely populated markets, town homes, semi-detached homes and condominiums represent feasible alternatives to single-family homes with as many bedrooms and baths.

In another survey, this one released TD Canada Trust on September 22, it was noted that Alberta residents are two times as likely to be shopping for a vacation residence as compared to all other Canadians. Some 13 percent of Albertans are reportedly in the market for a holiday home, while only five percent of the national population are in the market for this type of property.

Wednesday, September 8th, 2010 - Real Estate Follows the Physics of the Universe, and the Facts of Life

A boom can only be a boom for so long. Sooner or later the fuel feeding that energy will run out. That is a fact of life, if not just basic physics. The United States is in the process of learning this fact. During the latter half of the 20th century, real estate was considered a strong investment. Buy a property, hold on to it awhile, maybe do some renovations and then sell it at a decent profit and then more on to the next one. It’s not as easy to do that anymore.

What about Canada? In some respects both housing markets mirrored each other. The main difference in the timeline is that Canada’s boom buy and sell years only lasted about a decade, the one just before the recession. The two countries seemed to be in sync, with real estate prices steadily increasing by about 2.4 percent per year from 1920 to 2000.

Call it the millennium effect if you will, but sometime during the year 2000 Canadian housing prices started to increase at a faster rate. Up until 2009 property values increased about 5.4 percent per year. Hot markets such as Vancouver and Victoria saw even more dramatic increases in home prices and appreciation. Buying and flipping homes became an easy way to earn a lot of money very fast. It was a financial wet dream that logically could only come to a screeching halt.

In 2009, it did. The economy tanked. Jobs became scarce, money got tight and real estate sales dried up. No one was spending money. Real estate values dropped. Property owners didn’t want to list their homes for sale at such low prices. Homes that were already on the MLS system were pulled from the market.

The Bank of Canada stepped in and reduced mortgage rates and sales picked up until by the end of 2009 Canada had a full fledged real estate boom. Fast forward to July of 2010. After roughly a year of hot sales, things are starting to slow down. Mortgage rates are higher, but not exorbitantly so. There are plenty of listings but buyers are a bit more cautious. Average home prices are still holding their own pretty much with the blistering prices witnessed during the height of the “hot season.”

Now everyone is worried. Go back and read the first three sentences. This is part of the cycle. Canada is not the USA. We did not have mortgage lenders offering loans to people who clearly could not afford them. We are in better financial shape. We are smarter. You should be too.

Tuesday, August 3, 2010 - Group Banned from Collecting Signatures at Edmonton Festivals

Envision Edmonton members have hit an obstacle in their petition to keep Edmonton’s City Centre Airport open.

Volunteers were asked to leave Taste of Edmonton at Churchill Square this week after being told Churchill Square is private property when rented out. And, after five days of collecting signatures at Capital Ex, the volunteers were again asked to leave.

The group spent close to $2,000 to rent a booth in Hall E at the Northlands Expo Centre. The money was refunded to them, but group members found Northlands’ decision odd.

Ken Knowles, Northlands CEO, said fairgoers complained about the group approaching them for signatures, an action that is not permitted at the exhibition. Knowles said the group is allowed to give out promotional information, but not allowed to actively solicit.

Members of Envision Edmonton were reportedly walking through the crowds to collect signatures.

Another obstacle for Envision Edmonton came from Heritage Days when its organizers told the group that signature collection wouldn’t be allowed during the festival.

Nathan Graham, a member of Envision Edmonton, said the group is close to collecting the 78,000 signatures required by the August 24 deadline. If the campaign is successful, the vote on keeping the airport open will be included in the civic ballot in October.

Saturday, June 26, 2010 - Edmonton Will Get $800 Million In Transit Funding For NAIT LRT Line

Edmonton will be getting its hoped for $800 million in transit funding, ensuring the NAIT LRT rail line will be finished by the targeted 2014 date. There was fear that the scrutiny of the $2 billion Green TRIP plan would throw the NAIT schedule off but that was not the case. Most of that fund will go to Edmonton and Calgary, as promised back in 2008.

Edmonton’s transportation manager Bob Boutiller is now on a mission to get plans approved and order 10 LRT cars ASAP so they can be delivered by 2013. Contractors will be contacted to begin demolition duties by end of year and the project will be underway. The city needed to get vendors on board by the fall or the target finish date may not have been met.

Some of the property has already been purchased and some of the designing has been started. The $45 million tunnel that is under the Epcor Tower is already under construction. Edmonton can now look at extending LRT service to Mill Woods and Lewis Estate, but must wait for federal funding for that project. The city is also looking at an expansion of the LRT to St. Albert.

Tuesday, June 1, 2010 - Nine Schools Open in Edmonton’s Suburbs – Enrolment More Than Encouraging

Downtown Edmonton recently announced the closure of schools due to a lack of enrolment. It is a completely different story on the outskirts of town. New communities such as the Hamptons and Glastonbury have an overabundance of children and Edmonton’s Public and Catholic school systems are rushing to accommodate them.

One example is the Sister Annata Brockman School which will open its doors for the first time this September. So far roughly 500 students have been enrolled. This is the first Catholic school opened that is to the west of Anthony Henday Drive and the demand is great. So great, in fact, that the Edmonton Catholic district has had to limit enrolment to Catholic families, a rare occurrence in the city.

Nine schools are scheduled to open in the suburbs this fall. Three, including Brockman, are under Catholic jurisdiction; the other six are operated under the Edmonton Public School banner. The schools, in total, were built to service 6,600 students. So far, over 4,000 have already enrolled.

Younger families tend to gravitate towards the suburbs because of the larger lots and the slightly less expensive cost of real estate. It has also become the trend to buy new homes rather than a used structure that may be in need of work in the near future. The suburbs tend to be more spread out, more relaxing and there is more open space for kids to play. As the downtown core’s population ages, the up and coming suburbs are attracting the young, the vibrant and the families. It is the way of things.

Tuesday, April 27, 2010 - Real Estate Appreciation of Special Interest to Canadians

The real estate industry has certainly had its share of press time lately. Either it is stories about the impending interest increases or reports of losses or gains in the industry or even commentary about practices within the real estate community. But what most Canadians really want to know is how much their homes will appreciate, especially those who have bought larger homes based on the productivity of the market in the last ten years.

Normally, according to Phil Soper, president of Royal LePage Realty, house prices appreciate in concert with incomes, usually 2.4 percent per year after taking inflation into consideration. That is known in the economic world as real return.

Sometimes other factors cause dramatic fluctuations in house prices, ether up or down. It could be nationwide or confined to a certain city or region. To put it bluntly, things could be quite unpredictable.

During the 1980s houses appreciated at a faster rate because of high demand from maturing baby boomers starting their own families. Interest rates were reasonable, but then they started to go up and by 1989 Canadians were putting a considerable amount of their incomes into keeping the mortgage current.

After that, housing prices fell during the decade of the 1990s as the market corrected. Since 2000, incomes have increased more than housing costs and home values have appreciated roughly eight percent over the last decade. Today it takes much more of a Canadian’s income to support a home. The worry is that some who have just gotten into the market will not be able to keep up with costs should interest rates rise substantially.

Saturday, March 27, 2010 - Canadian Housing Markets On a High Roll For the First Half of 2010

The Canadian housing market is still going strong, taking its momentum from 2009 and carrying it through to the early part of 2010. January and February sales are just a bit below the almost record numbers of the latter part of 2009. Scotiabank also predicts that the average MLS sale price will set records nationwide this year.

People are more confident in the employment picture and potential home buyers are anxious to get their dream homes purchased before the anticipated hike in home mortgage costs later this year. The weather has also helped. Much of Canada experienced a mild winter and spring sales, in effect, got an early start. More homes are being listed and more new homes are being started.

Most major markets are seeing the sellers have a slight advantage on the real estate playing field. Listings are not quite keeping up with demand, which can tend to drive prices up. Multiple bids on the same property are becoming more common.

The second half of the year is expected to be slower. New mortgage rules come into affect mid April, the mortgage interest rates are expected to increase during the summer and Ontario and British Columbia are initiating the controversial Harmonized Sales Tax, or HST.

Predictions for the coming year include MLS sales to increase 10 percent from 2009, hitting 510,000 sales nationally. Prices are expected to increase eight percent to a record breaking $345,000 per unit and 190,000 new housing starts are expected, an increase from the 149,000 starts in 2009.

Friday, February 26, 2010 - Edmonton’s Public Schools Headed for Stormy Weather

Edmonton’s public school system may be in for a bumpy ride. The public school board apparently thinks that ride will be of major proportions so has sent letters home to parents, encouraging them to get involved in the political process to boost educational funding.

The latest word from the province is that there would be no increase to the $6.1 billion annual budget allocated to education.  The increase is needed to provide the teachers with their scheduled pay raises. Edmonton’s school board says without that increase, their budget cannot be balanced without major cutbacks in staff and services.

Parents were asked to come up with ideas to keep the students from being impacted by this latest round of monetary wrangling. Some parents are wary of the request, afraid they are being put in the middle between the province and the board in the budget negotiations.

The school board maintains that the letters are just to keep the parents informed about the happenings with the schools budget and that they are sent on an annual basis. The bottom line is that while the powers at be negotiate who will get what and how much, the students ultimately will pay the price.

Monday, January 25, 2010 - Fire Causes Thirty People to Evacuate

When an apartment building in the area of 104 Ave. and 156th St. caught fire last week, one child's mother was unable to exit the building safely because thick black smoke filled the hallways.  She has no choice but to hang her child out side of a window to give him fresh air.

In a moment of true heroism, the child's father was able to stand under the window to allow the mother to drop the child to save him from the burning building.  His father safely caught him, allowing the mother to use her ability to escape through a smokey hallway.  The mother and child were then reunited on an ETS bus where they were nursed and kept warm.

The mother says she thought that they were all going to die, and more than anything, she just wanted her son to be safe.  Over thirty people had to use the ETS bus for shelter while the fire department battled the blaze.

The professional firefighters had the fire under control within an hour, but officials still do not know if the fire was caused by faulty wiring or a space heater that was too close to bedding.  The estimated damage to the building was $500,000.

Friday, December 11, 2009 - Strong Housing Data

Recent data showed that home construction from the same period a year ago was up over 230%.  Not only is this information promising, November was the fifth straight month that activity numbers have risen in year-over-year figures.

Jayman MasterBuilt vice-president, Jim Sirup, says that the company sees steady growth.  He says it feels busy because it is busier than the builder had anticipated.  After the dismal start to the year, investors and buyers came in from all directions to take advantage of the record-low interest rates and prices.

Affordability has been driving the sales activity in the housing market for the past nine months.  The builders in the Edmonton area started over 935 new homes, compared to only about 275 in the same period of the previous year.
There were almost as many starts in November of 2009 as there were if November of 2007 when the market marked its high.

Even with the optimism among market investors, the home-builders are weary and cautious because the market seems quite delicate.

Thursday, November 19, 2009 - Resale Housing Sales Trend Remains Strong through October

It seems the real estate market for Edmonton is continuing to be strong through October with home sales continuing to rise. October turned out to be the second highest month for homes listed through the Multiple Listing Services since October of 2006. Realtors and home owners are becoming more optimistic about the economy as home sales are increasing. This is great news for us all and not only helps with the home sales but overall consumer confidence.

The home prices in Edmonton have stabilized which makes it a great time to purchase a home. The rates are at record lows so new home buyers are able to afford single family and multifamily homes at great mortgage rates. This makes it great for home owners to sell their homes at a faster rate than just the previous year. We attempted to sell our home this time last year and it sat on the market for months before we finally took it off the market. With the way the house marketing is improving we are planning to place our home back on the market in hopes it will sell. This is the ideal time to place a home on the market with the reduced mortgage interest rates and the increase in homes sales.

Charlie Ponde is the president of the Realtors Association in Edmonton and he is showing prospective home buyers and sellers the trends which show the increase in home sales. As confidence grows more people will begin to search for new homes and look for great mortgage rates. They will be able to lock-in their mortgage rates at record low prices and find a home that will meet the needs of their family. This will be true not only for single family homes but also for duplexes, town homes and condominiums. Multiple family dwelling will also benefit and increase as new people move into the area.

The economy in the town of Edmonton will continue to improve as a result of the increase in the real estate market. So not only will each individual resident benefit from the movement in the housing market but the entire town will increase business and revenues as new homeowners settle into their new homes. They will begin to need everything required for a new home such as furniture, appliances, new paint, lawn care and other household necessities. This generates economic improvements through increased home sales.

Thursday, November 12, 2009 - LRT Routes Are Focus of City Council Hearings

Light Rail Transit routes that could permanently influence development in Edmonton were to be discussed at a November 9 City Council meeting. Business owners and residents in the city’s southeast and west corners were ready to weigh in with opinions on the proposed routes.

The routes under review would link Lewis Estates to Grant MacEwan University, as well as travel between the southeastern Churchill Station and the Transit Centre. Planners for the LRT contend that the new routes would be part of a continued effort to encourage citizens to take public transportation. LRT’s Adam Laughlin advises that the new routes will result in higher-density residential and business buildings in the affected areas, reduce traffic congestion and control urban sprawl.

The Stony Plain route is under criticism among area businesses and groups such as the Stony Plain Road and Area Business Association. Director Diane Kereluk argues that the planned route would jeopardize the association’s plans to reinvigorate the community. Concerns also exist about the southeast route, as local leaders contend that the development would increase noise and congestion along the route’s residential neighborhoods.

Following the November 9 hearing and possibly an extended hearing on November 14, city council members will either vote on the proposed routes, or reconvene to make revisions.
 

Tuesday, October 27, 2009 - Is The CMHC Manipulating The Real Estate Market?

Some Canadians believe that the Canada Mortgage and Housing Corporation’s rogue policies are creating a housing bubble in Canada through the use of taxpayer money. Many believe that this is why residential real estate is rising despite recession and high unemployment. The combination of record-low interest rates and the CMHC’s steady increase in mortgage backstopping has caused the sharp jump in housing prices.

Many Canadians are worried that the CMHC, which is as big as a bank but unregulated, is becoming like many of the United State’s rouge financial institutions. The CMHC allows the banks to recklessly lend money and in return, housing prices are being pushed up for everyone. The CMHC has become accustomed to a policy that rewards risk and leverage while discriminating against prudent home buyers who are sincerely interested in buying property by allowing people to take out a mortgage with only a 5% down payment.

Canadians are upset with the practices at the CMHC because it seems like they are encouraging the same irresponsible lending practices that forced the country into a recession. Economists have noted that eventually the air will be let out of the housing bubble when the interest rates are raised. Also, higher interest rates means a higher Canadian dollar.

Wednesday, October 7, 2009 - Edmonton’s Filipino Community Aiding Typhoon Survivors

The Filipino community of Edmonton is stepping up to assist countrymen whose land and property in the Philippines were devastated by Typhoon Parma. The typhoon claimed the lives of 16 people, and caused severe flooding in two villages in the Philippines’ northern region.

People numbering in the tens of thousands had to abandon their homes in search of higher ground as the typhoon brought down trees and utility poles. The storm arrived only a week after Tropical Storm Ketsana killed some 288 people and caused damage to some three million homes.

Eloisa Lau, a Filipino native who has lived in Edmonton for 30 years, quickly organized a fundraising campaign via email. Messages from Lau and other Edmonton Filipinos have been forwarded to thousands of people, eliciting numerous offers of help. Lau and her friends are collecting canned food and clothing to send to the Philippines. Lau noted that she is also collaborating with the Red Cross on relief efforts.
 

Monday, September 21, 2009 - A Record Month for the Canadian Housing Market

According to the Canadian Real Estate Association (CREA), the country not only had record home sales for the month of July, but it also had the largest increase in two years in a year-over-year comparison. The Ottawa-based group reported that the resale housing market is much better now than compared to earlier in the year. The CREA also reports that there were 50,270 units sold through the MLS, topping 50,000 home sales in the month of July alone. That is an 18.2 % jump from just one year ago.

It appears that homebuyers are recognizing the affordability of bottomed out home prices and low interest rates, and are taking advantage of it before they start to climb back up again. Currently, a five year mortgage at a fixed rate is the most popular among the homebuyers. Consumers see this as a great value at a rate of less than four percent.

It appears the real estate market is strong all over the country; with Vancouver, Toronto, and Edmonton up in sales, as well as other regions. This is a great reversal from what appeared to be a down real estate market only months ago.

Tuesday, September 8, 2009 - Edmonton’s LRT Proposal Promises To Be Expensive Proposition

Edmonton’s plans to make their transit system greener have hit a snag: Costs. Officials looking at the feasibility of adding two more LRT lines have found that it would cost a whopping $2.4 billion.

Transportation general manager Bob Boutilier called the idea of Edmonton building the lines on their own an “impossibility,” and said he would look to higher governmental levels to help out.

The reason for the high costs includes the need to buy several homes along parts of the proposed routes, even though the majority of the lines would be able to be worked around existing construction. These buyouts add much expense to the proposition.

Before the plan can proceed further, there will be a Council vote and then a public hearing. If the votes are favorable, the city will then have up to a year and a half to come up with a final design. At that point, revenue procurement proposals can be discussed in detail.

Thursday, August 20, 2009 - July Home Sales in Edmonton

Homes in the Edmonton area broke sales records for the second month in a row. July saw 2,277 resale homes bought. This number is down from June by 11%, but it beats July 2008 home sales by 27.6%. It also beats the previous record of 1,953 from June 2006.

The prices are relatively stable. The average residential price, $324,847, is only down 3% from last year and 1% from the previous month. Single-family homes fared the best, as they were down only 1.71% from the year prior. They are up .75% from June. The average price of these dwellings was $372,741. Condos sold for an average of $244,265, which is down 3.78% from last year and 1% from last month. Row houses and duplexes had a selling price of $296,284. This is down from July 2008’s figure of $316,832, but 1.8% higher than June’s price.

There were 6,592 listings by the end of July. In June, homes stayed on the market for an average of 49 days. In July, this number went down to 46. First time home buyers taking advantage of low interest rates, a strong inventory, and a relatively healthy economy all contributed to the strong sales numbers.
 

Friday, August 7, 2009 - Alberta Energy Holds Meetings Regarding Bill 50

Alberta Energy will hold open houses throughout Alberta on transmission line upgrades this summer. Bill 50 was introduced June 1. Critics claim Alberta is furthering its controversial agenda without public input. Alberta Energy claims they can’t wait until fall to host open-houses because community comments must be compiled before the legislature reconvenes in autumn.

Meetings attracted 10 to 50 people so far including media and MLAs. Lack of interest isn’t causing the low attendance. Timing is a factor also. Questions are being raised about the government’s decision to hold meetings in July and August. Ranchers and farmers opposed to Bill 50 have to choose between attending meetings or working. For those who cannot attend, the government posted information online. This is the same information attendees receive at open houses. People have the opportunity to submit comments and questions online.

Because Alberta’s provincial power grid hasn’t had major additions in 20 years, upgrades are needed to keep electricity flowing to residents of the province. Demands continue to increase; Alberta’s power system must respond. Legislation will expedite construction of several transmission lines. Opponents cite infringements on landowner rights. The final deliberation on Bill 50 will occur in the legislature after summer’s end.

Tuesday, July 7, 2009 - Medical Centres Face Staff Shortage

The Medical centers in and near Edmonton are always closing early, and this is if they actively open in the morning at all. The situation is leaving multiple people who are ill or injured frustrated and angry. It is also leaving them with longer and longer wait times, if in fact they can be seen by a doctor at all.

With only one physician in attendance, the clinic at Belmont was forced to shorten their hours, taking them down nearly 6 hours so that the clinic closes at 4 PM rather than 10 PM. This is not at all uncommon recently. Other Medical offices are also closing earlier, with many posting signs on their doors saying that they would not be in due to a shortage of doctors.

Emergency room physicians are unhappy with the situation as well, but have no real choice in the matter. Dr Louis Francescutti had to say of the situation..."It puts the patient in an awkward situation, they’re not going to take any chances, they’re going to go to the emergency department."

Patients are getting more frustrated with the waiting times while others will leave the scene, which is leading to more severe complications and treatments needed later.

Mike Pafiolis who was waiting to undergo treatment at the Medical Center at Belmont said "When you’re not sick, it’s fine, but when you feel like you’re dying, it’s hell," Pafiolis was at the time holding his sides as he paced, between vomiting.

"You get a guy in here with a broken ankle or something, he’s waiting for two hours if he’s lucky ... that’s not right," Bill Stolarchuk said, as he began to anticipate the many hours of waiting before he too could be seen.

There were not spokesmen available to comment on behalf of the many medical centers, owned by a private company that provides services on behalf of the government.

Pafiolis, in parting, had this to say with regard to the shortage of medical personnel "We’re planting trees and flowers on all our highways and people are in pain ... Priorities, come on. You have to pay the doctors,You have to keep them here, whatever you have to do. It’s life and death for some people."

Words to live by.
 

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