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, July 22, 2010 - Edmonton Housing Market
This year, The Realtors Association of Edmonton predicted that housing prices will increases by 5 per cent, while the Canada Mortgage and Housing Corporation predicted prices next year, including condos, houses and townhouses, will jump four per cent.
Yet despite the predictions and the hot start in Edmonton’s real estate market this year, both sales and values seem to be levelling off.
Property values for single-family homes rose 7.5 per cent In the first six months of 2010, while sales jumped 10 per cent during the first four months.
President of the Realtors Association, Larry Westergard, said the initial spikes may have been a product of rising interest rate and mortgage qualifying fears.
In June 2010, single-family home prices rose only half a percent over May to $391,497. June 2009, prices reached $370,317 for single family homes. Single-family homes appear to be the only properties that rose, with condo prices falling 2.4 per cent in May to $242,644 on average, and townhouses and duplexes falling 4.6 per cent in June to $306,905 on average.
Residential sales have now dropped 37 per cent year-over-year, and the market is flooded with properties—9,406 of them. The number is just shy of the peak in 2007 at 9,913 before prices dropped.
Westegard said that while he would be more comfortable with an inventory of 6,000, it is traditional for housing prices in Edmonton to rise in the first half of the year and taper off in the second half.
Edmonton Realtor® Report - Saturday, July 10, 2010 - Liberals Ask For Cooperation To Defeat Tories, Unlikely To Get It
Ain’t politics grand? The Alberta Liberals are trying to convince the NDP and any other progressive, free thinking parties to join them in a quest to send the Tories packing. The party even went as far as placing an ad in both the Calgary Herald and The Journal asking for a cooperative effort to accomplish this task.
But, politics is not a gentle beast. Even though many Albertans are fed up with the current governmental leaderships, the individual “other” parties are reluctant to give up their identities, even if it is for the good of the people they are meant to serve.
The NDP is not interested. They want to do their own thing, and that’s that. Even the thought of a collective party with an entirely new name is out of the question. Even some of the Liberal party’s membership was not in favour of the idea. When the subject came up at the May general meeting, even though the motion passed, several members were visibly angered by the idea. One constituency president resigned.
This lack of cooperation does give the Tories an advantage. The Liberals know this and have put forth an idea to remedy this situation. Unfortunately the egos and tunnel vision political views of a few may sabotage the needs of the many.
Edmonton Realtor® Report - Monday, June 22, 2010 - Years Before the BP Disaster, There was Atlantic No. 3 in Alberta
Many people observing the catastrophic results of the BP oil spill in the U.S. have no idea that another devastating blowout occurred in Alberta in 1948. Hugh Leiper, an 82-year-old Calgary resident, worked on the Atlantic No. 3 rig when the rig suddenly began to spew mud. He and co-worker Cliff Colley immediately realized they needed to flee the area, and ran through the rig’s pumphouse.
As Leiper and Covey made their exit, a large bushing blew off of the rig, and almost trapped the two men. Then, shale and rock started flying out of the well, creating holes in the tin skin of the rig. Leiper said that gas and oil flew some 50 metres in the air that night, and some oil residue blew as many as eight miles from the rig. Incredibly, there was no loss of human life that night.
The Atlantic No. 3 and BP disasters are comparable in a few ways: Both of the blowouts happened when a decision was made to drill without the counterbalance of drilling mud. Both catastrophes needed hastily arranged capping solutions. Both created an outcry for the restriction of drilling, or at least better monitoring.
Six months went by, with up to 15,000 barrels of crude spewing each day, before the Atlantic No. 3 finally ceased to spew oil. The majority of the 1.2 barrels that spilled was under control by way of a pipeline. However, some of the oil escaped in a northward direction. Some of Edmonton’s drinking water was contaminated for a short time.
Edmonton Realtor® Report - Wednesday, June 9, 2010 - Housing Starts in 2010 Far Better Than 2009 Despite Minor Slowdown In May
Even though housing starts slowed a bit in May of this year, the new housing market is still enjoying an eleven month consecutive run of year-over-year gains. Todd Hirsh, who is a senior economist with ATB Financial, believes the residential construction market is falling prey to the rising interest rates and tighter mortgage qualification. The somewhat pessimistic global economic input is not helping things either. He thinks the real estate market in Alberta may be rather flat for the rest of 2010.
Even at that, the housing market in the province is a lot healthier than it was a year ago. In May of this year there were 989 housing starts in Edmonton. In April 2010 there were 1,407. Compare those numbers with the dismal 346 starts in May of 2009. Comparing January to May of this year to the same time period in 2009, the total start numbers are 4,428 to 1,462 respectively.
Single family homes have taken the lead in the start number tally. In the first five months of 2009, there were 849 starts compared to 2,554 during the same time period of 2010. Builders have been working steadily to increase inventory since the buying rush during the latter half of 2009. Multi-family home starts are also on the increase.
Edmonton Realtor® Report - Saturday, May 15, 2010 - Edmonton Arena Presentation Shares Little New Information
Edmontonians filled the lobby of the Art Gallery of Alberta, eager for information about the proposed downtown arena. The presentation ran from 11 a.m. to 8 p.m. on May 6, and attendees arrived from across the city.
Despite a positive reaction overall, very little new information besides drawings and traffic statistics was actually shared. Posters displayed general overviews, four new artist renderings of potential designs and information showing how downtown roads in rush hour could handle arena traffic.
Still, some Edmontonians don’t agree that the city should pay for the $400 million price tag, explaining that young professionals can’t often afford hefty taxes. Other people suggested dividing up the price tag evenly between the provincial and federal governments and the taxpayers.
Oilers owner Daryl Katz of the Katz Group proposed that Edmonton borrow the money and repay the loan with property taxes from the development. The complex could include $1 billion in office towers, housing, stores and hotels.
In spite of the early feedback, Vice President of The Katz Group, Bob Black, said it would take at least a week to analyze all attendee feedback. He pointed out that the turnout was good and that resident encouragement and excitement for the project is high. Black said the demand for project information is so high, in fact, that it is nearly insatiable.
Edmonton Realtor® Report - Friday, May 7, 2010 - Edmonton In A Hurry To Expand LRT System by 2016
Edmonton is in a hurry to expand its LRT system. The targeted date is 2016. The three line extension comes with a price tag of almost $5.8 billion for the 30 kilometres of track and associated stations and road upgrades. But the city is confident the project can be completed without raising taxes or sacrificing needed projects.
Edmonton is hoping that the province and the federal government will share in the LRT upgrade costs in an even three way split and is confident that the city’s third will be raised.
Stephen Mandel, city mayor, is considering using gas tax money for some of the LRT expense. Normally those funds are earmarked for road work and the city has spent quite a bit on surface road improvements and repairs. But it might be possible to funnel some of that cash into a project that will ultimately reduce the wear and tear on the roads. Indirectly, this means the funds are still being used as intended.
Another proposal the mayor put forth is an LRT levy to be added to property taxes, not technically a tax raise. Other options were to feel out the private sector for companies willing to build part of the expansion and then lease the completed lines back to the city for a set period of time. All options are currently being considered.
Edmonton Realtor® Report - Saturday, April 24, 2010 - Air Miles Sets Green Rewards Trend
Canadian households on average use nine separate loyalty program cards, a 50 per cent increase over Americans according to a study done last year.
But while members capitalize on points by redeeming for trips, entertainment and household items, stores collect information such as where people shop, how much they pay, what they buy and even who they are.
Clubs can’t sell a member’s information but often share data with clients and sponsors and use it themselves to decide what products to offer.
Air Miles became the first company to use that information in encouraging consumers to make greener choices. Six months ago, Air Miles began offering extra points for members who bought eco-friendly products. Several cities are even offering bus passes and electric scooters in exchange for points, and Edmonton made ground when it started doling points for riding the bus.
Approximately 250,000 bus passes were purchased in Air Miles’ first month of offering passes in exchange for points.
Ontario Power Authority hopped on the bandwagon last week when it began offering 20 Air Miles when households pledged to reduce phantom power, electricity spent when electronics and computers are left running. Even a Toronto apartment building was offering points for residents if they took their own hazardous waste to the proper landfill. They saw a 30 per cent rise in waste drop off.
But while it may feel good to be rewarded for going green, consumers need to remember where their information goes and decide if that’s worth the reward.
Edmonton Realtor® Report - Tuesday, April 6, 2010 - Basic tips for climbing the property ladder
Investing in property can be one of the quickest ways to increase your finances, but you need to keep basic points in mind. Otherwise, instead of ending up a big-time investor, you may end up with losses that take you years to recover from.
Start small. Invest smaller amounts in the beginning and make sure you bring in profit. This will help you understand the trade and move up to larger investments.
Consider the market conditions. While changes in the financial world may not directly impact property investments, these changes may limit potential buyers’ income, decrease their spending power and push housing prices down. No matter what the amount, review the market to protect your investment.
Location is a keyword in property investment. Even if your property is straight out of your dreams, it will remain a dream if your intended buyers find their workplace, doctor, children’s schools and other important facilities are far away. Remember who you are selling to and that residential and commercial location requirements are completely different.
Take care of taxes and legal issues before you begin. Meeting with professionals in tax and real estate can keep you clear of stalls. Once you begin on a project, any issues that occur can hold you up indefinitely, and this will cost you time and money.
Edmonton Realtor® Report - Monday, March 22, 2010 - Protect Second Homes With a House-Watch Service
A second home in the American Southwest can be a joy, but neglecting it while you are away can be a costly mistake. For example, a couple that closed their winter home in the Phoenix area failed to make arrangements to have the home checked periodically. The result when they returned for their winter stay? A water leak caused so much damage that the couple had to replace drywall, carpets, the lower cabinets in the kitchen and bathroom, as well as their baseboards.
Jill Yancy, who owns Phoenix-based While You Are Out, said that had the water leak been noticed earlier, it would have been fixed before thousands of dollars were incurred in repairs. Yancy is one of a number of companies that watch over vacation homes while owners are gone.
Many realtors, builders and lifestyle-community managers provide buyers with to-do lists when closing seasonal homes, and also provide referrals to companies who will periodically inspect the homes for problems. Ronna Bremer, an Edmonton native, purchased a home near Phoenix in 2009. She benefited from her realtor’s referral of a home-watch service, noting that problems in the Southwest such as heat and insect damage do not occur in Canadian homes.
Climate swings are common in the Phoenix area. Temperatures can experience a 50-degree range within 24 hours. The changes in temperatures can result in dramatic contraction and expansion of building materials. Cracks can occur, and repair costs can be high.
House-watch services offer home visits on a basis that ranges from weekly to bi-monthly. Services usually include inspections of the interior and exterior of the home, as well as a review of any vandalism or pest damage. While inside the home, the service providers check for any running faucets, washing machines or dishwashers. Toilets, air conditioning units and thermostats are checked. Mail can also be retrieved.
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 Stampeders 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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