My Edmonton Realtor® Report

I like to keep an eye on local reports and share them with you, to keep you informed on market conditions.If you ever want to add something to this, feel free to contact me on (780) 504-6674 or e-mail me at ryan@philipenko.com.

Edmonton Realtor® Report - Thursday, March 4, 2010 - Calgary and Edmonton Square Off Over Northern Alberta’s Flying Habits

Calgary and Edmonton have always managed to find something to argue about.  If it’s not who has the better hockey team, Flames or Oilers, or whether the Edmonton Eskimos or the Calgary Roughriders play better football, it’s always something.  Now the two cities are starting the airport wars.

It has long been known that Calgary’s International Airport has had the best selection of flights, and more of them, to more places than the Edmonton International Airport. The solution for many was to buy their tickets in Edmonton and make the drive to Calgary for their actual flight.  Needless to say, Edmonton is not entirely pleased with that arrangement and they are fighting back.

Launching a campaign called “Stop the Calgary Habit” Edmonton is promoting the use of their airport as more than a ticket vendor. It started with a downtown rally, a gift of tee shirts and a draw for a $4000 travel voucher to encourage locals to become Edmonton International Airport Activists.

Passionate Edmontonians carried banners with such slogans as “Stop the Calgary Habit” and “Heck no, we won’t go…through Calgary.”  All this is meant to stop the flood of some 750,000 northern Albertans from making the drive south to catch their flights.  It is also hoped that the campaign will draw the attention of airlines such at KLM and convince them to extend service to Edmonton. After all, if you provide the planes and the service, the passengers will come.

Edmonton Realtor® Report - Tuesday, March 2, 2010 - Gem Theatre Demolished, yet Lawsuits Continue

A now-demolished theatre on Jasper Avenue is the subject of ten years’ worth of contention between its owner and the City of Edmonton.  The Gem Theater, built in 1913, was torn down by the city over the weekend of February 19, because the city deemed the building to be a hazard to safety.  According to Councillor Ben Henderson, the building was in imminent danger of collapse, perhaps by an upcoming heavy snow accumulation.  

The structure was purchased from the city in 1999 by Edmonton real estate agent Oliver O’Connor, who paid $77,500.  In September 2001, a statement of claim was filed by the city.  The claim alleged that contingent with O’Connor’s purchase, he agreed to complete a certain amount of repairs and restorative work by the middle of 2002.  Among the actions apparently in the agreement were roof repair and the preservation of the theatre’s façade.  

O’Connor was required to provide the city with a letter of credit for $75,000 to initiate work and engage an engineer to evaluate the roof’s condition.  According to the city, no letter or engineering report was provided.  O’Connor neglected to make any repairs or restoration.  A portion of the city’s document states that the theatre would be lost as a historic property unless it could be rehabbed.  A lawsuit ordered O’Connor to perform the necessary renovations or pay $300,000 to the city.  

Denying the city’s charges, O’Connor filed a statement of counterclaim and defence in November 2001.  He alleged that the city of Edmonton was negligent in providing him with reports it possessed about the building’s real condition.  Had he known about the existence of the structural reports when he was going to purchase the theatre, the information would have had a substantial effect on his decision to purchase the property.

O’Connor’s statement discloses that after additional inspections were conducted on the building, it was found that several hundred thousand dollars’ worth of repair were needed.  The statement claims that the theatre’s structural problems were such that it would have been impossible to fulfill the contractual obligations.  O’Connor later sued the city of Edmonton for $520,000, contending a gross underestimate of repairs, concealment of structural defects and misrepresentation of property value.  The city has denied all of the above allegations.

 

Edmonton Realtor® Report - Saturday, February 27, 2010 - Controversy Surrounds Proposed Edmonton Gravel Mine

A proposed gravel mine for Edmonton has generated support as well as controversy.  A February 22 hearing regarding the development of Edmonton’s municipal plan drew an audience offering varying points of view.  

In September 2009, councillors gave approval to an amendment to the municipal plan, stating that the extraction of resources in the North Saskatchewan River Valley would be prohibited.  However, a faction from Kanata Metis Cultural Enterprises seeks to obtain gravel from some land in the southwest area of Edmonton.  Metis President Archie Collins said that the enterprise would become a source of revenue and employment for surrounding communities.  

Kanata seeks to extract gravel during a period of four to five years.  The site, consisting of 40 hectares, would then be converted to an interpretive centre and park.  Collins said that the land is currently not being protected, as it has been trespassed upon by quad riders and dirt bikers. 

Collins requested that the development plan draft be altered so that Kanata can deliver its presentation to Council.  The company purchased the property for $8 million last summer.

A number of groups were outspoken in their contentions that the mining project would endanger both people as well as a natural resource.  Roger Pogue, of an organization called Stop the Gravel Pit, said that his group aims to protect thousands of individuals whose safety might be at risk if the mine is permitted within Edmonton’s municipal boundaries.  

A second reading to the bylaw was given by Councillors.  The bylaw must obtain passage from the regional board before possibly being given ultimate approval this May.  Kanata is considering applying for the proposal even if Council does not approve the bylaw.

Edmonton Realtor® Report - Tuesday, February 23, 2010 - Propelled by Higher Car-Related Costs, Canadian Inflation Rate Rises to 1.9 Percent

The inflation rate in Canada rocketed to noteworthy levels in January, as prices for gas, vehicle insurance and cars nudged the national consumer price index to a height not seen in 14 months.  All indicators of inflation grew last month, including the consumer price index, which rose by more than 0.5 percent to 1.9 percent.  The core index from the Bank of Canada grew to two percent, and a 0.3 percent increase was recorded for the month-to-month basis index.  

With the hike in January, the annual rate has changed from –0.9 percent to 1.9 percent in a period of four months.  Derek Holt, economist with Scotia Capital, noted that the persistence of core inflation might influence the governor of the Bank of Canada to rethink his plan to maintain historically low interest rates until July.  Holt said that the governor, Mark Carney, might be concerned that prices did not decrease per anticipations in the 2008-2009 economic crisis, and that prices may exceed expectations as the economy recovers.  Holt said that the bank possesses a rationale to increase prices much sooner than originally planned.

Holt said that as the markets are performing better, job creation is beginning to increase.  Fourth-quarter 2009 economic growth is expected to approach a level of four percent.

Jim Flaherty, Finance Minister, announced tighter rules for those seeking mortgages, to prevent borrowers from getting too debt-laden, as well as to impede upon speculation in the real estate market. The next announcement scheduled from the central bank will be on March 2.  Statistics Canada will have released its latest gross domestic product report the day prior.

Edmonton Realtor® Report - Wednesday, February 17, 2010 - Alberta Housing Starts Slip a Little in January, But Still 52 Percent Better Than Last Year

Housing starts are up in Edmonton for the seventh month in a row.  Single family homes, town homes and semi-detached properties made up for the apartment starts, which did show a small decrease.

In January of this year Edmonton’s Capital Region had 577 starts, 164 more than in January of 2009. Single family homes led the way and it is expected the number of starts in this market will continue to grow as the economy improves.

In the multiple dwelling markets, 180 properties were started this past January, which is actually 32 percent less than in January of 2009 that showed 266 starts. This market is also expected to keep improving as rental and sales inventory decreases.

Alberta’s seven largest population centres showed a combined total of 1,271 starts in January 2010.  This is a 52 percent increase from January of 2009.  Cities with increased starts include Red Deer, Grand Prairie, Edmonton and Calgary.  Those that showed housing start declines include Medicine Hat, Lethbridge and Wood Buffalo.

Due possibly to the extreme cold temperatures and huge amounts of snow dumped on the province this last January, starts in the urban areas of Alberta were down 17 percent from December of 2009, numbering 21,100.

Still, analysts are optimistic that the positive building trend in the cities and towns of Alberta will continue as construction of new homes keeps pace with the recovering economy.

Edmonton Realtor® Report - Friday, February 11, 2010 - Explore the World Through Cyberspace With Street View, Starting With Alberta

Imagine being able to travel the Trans Canada Highway without leaving your driveway.  Or perhaps you want to check out the ski runs at Whistler-Blackcomb while sitting in your living room.  Maybe even take a peek at the Eifel Tower on your I-Phone.  All is possible.

This week nine Alberta cities and towns were added to the Google creation known as Street View.  They are Spruce Grove, Red Deer, Medicine Hat, Lloydminster, Lethbridge, High River, Grande Prairie, Drumheller and Airdrie.

Street View debuted in 2007 and has grown to include street images from 18 countries within North and Latin America, Asia and Europe.  Street Link only uses images that can be seen from public streets and blurs out license plates and faces.  If users find something they deem inappropriate, there is a “Report a Problem” link at the bottom of each image that can be used to request removal of the image.  

Street View is accessed through the Google Map or Google Earth Pages.  Visit maps.google.ca and use the zoom feature to get the closest view of the streets.  Or, you can use the “Pegman” icon, located on the left side of the map, by dragging it over any blue-lined street.  The system can also be accessed through Google Maps for mobiles.

Future endeavours for Street View include providing images of UNESCO World Heritage Sites.  Armchair travelers never had it so good.

Edmonton Realtor® Report - Friday, January 29, 2010 - Donation to Haitian Earthquake Victims

Founder of the Flaman Group of Companies, Frank Flaman, just donated $500,000 to disaster-relief organizations who are providing aid and care in the crippled country.

Flaman presented one check for $250,000 to Oxfam and another one to the Salvation Army on January 15.  Frank Flaman is known for donating his profits to local and international charities through his foundation.

He says as soon as he heard about the earth quake, he knew it was his time to donate and help.  He thinks that all these organizations down there trying to help are really doing a great job.  He wanted his contribution to make it there as soon as it could.

The Salvation Army spokespersons says that not only has the organization been providing care in Haiti long before the quake, but since the tragic event, they have been providing basic necessities to victims.

The Salvation Army also faced many damages and losses to their facilities in Haiti due to the earthquake.  The organization is presently analyzing how to best serve the needs of the victims in a ongoing relief effort.

As of the day Flaman made his donation, the Salvation Army has already received $1 million for Haiti relief efforts.

Edmonton Realtor® Report - Tuesday, January 19, 2010 - Olympic Torch Lights Up Edmonton

A sea of red and white greeted the Olympic Torch and its carrier for the last few minutes of its journey through Edmonton. That sea was a mere eddy compared to the oceanic flood of maple leaves and red and white clothing that lined the entire route of the Olympic flame’s fun.  Doreen Ryan, an Olympic veteran of the 1960 games lit the celebration caldron at Churchill Square to warm the spirits of those who braved the cold night air to witness history.  

Pat Quinn, coach of the Oilers and veteran of the Salt Lake City Olympics where Team Canada took hockey’s gold metal, took his turn carrying the torch. So did Owen Proctor, a local dad who missed his chance to carry the torch at the 1988 Olympics but went after the opportunity with gusto this time around.

Just as in any country that values free speech, there were protesters.  Not many, but they were there to voice their opinions about funding for housing rather than the games, or exactly who’s land the games were being played on. But these vocalized opinions were from a very tiny majority.

People waited for hours in the cold, some in toques and polar gear, others wrapped in the Canadian flag, the maple leaf dancing across their backs. Naturalized citizens stood shoulder to shoulder with the native born.  There was no difference.  All came out in support of Canada.  All came to watch the fiery light that has galvanized a nation and that has the potential to harmonize the world.
 

Edmonton Realtor® Report - Monday, January 11, 2010 - Vintage Loss, Housing Market Gain

As we turn the page on the calendar to switch from one year to the next, it is human nature to reflect upon our past. In Edmonton, the last ten years have seen its share of losses and gains.

In the loss column, the Arlington Apartments, a circa 1909 upscale address for the elite of the city caught fire in 2005. The building was not salvageable and in 2008 was torn down. Another vintage structure, the near century old Lessard House was demolished in 2006 to provide space for a high rise apartment complex. In May of this year, the trolley cars fell silent as the city council voted to shut them down for good to save money.

Not all vintage treasures were lost for good. The Alberta Hotel, demolished in 1984, is being rebuilt. Much of the material from the five storey property was saved and is now being incorporated into the new project adjacent to its original locale at Canada Place.

The city is growing, with 36 new neighbourhoods being approved, adding more than 51,000 houses to the real estate market. In 1999 the average price for a house in Edmonton was $120,254; in 2009 that figure rose to $318,482. The fastest growing areas were Terwillegar Heights with almost 9,000 homes added to its neighbourhoods, Heritage Valley with just under 7,000 homes and The Meadows and The Grange sharing honours for third place with each adding almost 5,000 homes.
 

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