Thursday, December 17, 2009 - Public Transit for Edmonton

While every major city in Canada hosts public transit to and from its airport, it is Edmonton who does not.  Even with the new LRT system opening next spring, the commute to the airport will still be over twenty minutes by bus, while many other cities offer public transit from its closest transit hub.

Sherwood Park and St. Albert subsidize a daily bus service to Edmonton to off set the lack of public transit in Edmonton.  A Century Place and International airport bus service would only cost Edmonton tax payers about a quarter of a million dollars annually.

The public-transit system would cut down on the number of vehicles that need to be on the road.  It could free up airport parking and relieve congestion around the airport.

Not only would such a bus system provide all of these benefits to the community, the vision of a downtown arena could be tied in with the 2017 Expo proposal.

Monday, December 14, 2009 - Average Resale Prices On the Rise

For the fourth month in a row, overall home prices across Canada continued to rise according to a report released by Statistics Canada.  The index tracks the average selling price of all sold homes in Canada, and the average price rose almost 0.5% in October versus the previous month.

Quebec City saw the average selling price for homes sold within the city rise over one percent.  The city leads the nation with year-over-year price increases of over seven percent.  Cities across Canada, including Hamilton, Sudbury, Thunder Bay, and Vancouver, saw higher and expected increases.

Edmonton and Charlottetown were the only cities in Canada that saw a decline in average home sale prices through October.  Despite the strength seen in these numbers, the overall year-over-year figures for average prices are still down about two percent.

The good news is that the country saw a second straight quarter of increasing mortgage activity after three quarters of decline.  Also, the Canadian Real Estate Association reported that the national resale selling price is up over twenty percent in year-over-year figures.

Although the robust activity in the housing sector can be seen as a positive economic indication, the Bank of Canada recently released a report that warns against rising levels of household debt.  They mention that even with the strong recovery, personal bankruptcies have reached a level not seen since in twenty years.

Tuesday, December 8, 2009 - 2009 Edmonton Urban Design Awards

The Edmonton Urban Design Awards selected the new design of the Ukrainian Canadian Archives and Museum of Alberta as one of its ten winners for best design of 2009.  The project, designed by HIP Architects and David Murray Architect, is still awaiting federal funding.

Although the project has not been funded yet, there should be no shortage of skilled workers to assist with construction of the unique project.  The museum is seen as an important part of downtown revitalization.

The Quarters, a new proposal to rebuild the downtown area east of 95th Street, also received the Edmonton Urban Design Awards distinction with an award of merit.  The awards have been hosted since 2005, in conjunction with the Mayor’s declaration that the city must not settle for any crappy buildings being built in the city.

Mayor Stephen Mandel now claims that the awards event has created a higher level of quality for architectural projects in the city.

Thursday, November 26, 2009 - Edmonton Sees Recovery Signs

The statistics from the Canada Mortgage and Housing Corporation showed that Edmonton saw a 55% increase in housing starts for October 2009 compared to the same month in 2008.  These are great numbers and it is the fourth straight month that the number of new starts has surpassed year-over-year figures.

After only seeing 612 new starts in 2008, there were over 940 new starts in the metro area.  Although the number suggest that there is more activity in home building, the total number of starts so far this year trails the total of that first ten months in 2008 by 24 percent.

For the first ten months of 2009, new construction on single-detached homes was up more than 30% from the same period in 2008, so there are some signs of strength in the housing market.  Multi-family housing starts were down 10% in October from a year ago.  There is an oversupply of condominiums on the market.

Overall, the real estate market is showing sings of a recovery in prices as the CMHC’s data showed a 5.4% increase in new home construction.

Saturday, November 21, 2009 - First Time Home-Buyer Advice

Learning all the different types of real estate loans and finding the right agent can be a complicated task.   Taking on the real estate market for any first-time buyer can  be a daunting endevaor, but with the right education, it can be an satisfying experience.

 A good staring point for any real estate rookies is to attend a seminar geared twoards first-time home buyers.
First-time buyers are in an excellent position as of late because they are the ones who are expected to help the market out of the slump.  The federal government has extended the $8,000 tax credit for first-time home buyers.  The government has also included a $6,500 tax refund for any homeowner who buyers a new primary residence.

The tax credit has led to an increase in demand, and brokers across the country see business picking up around the office, not normal for such a late time of the year.

A report from the National Association of Realtors in the United States showed that home sales have risen over the past months from 5.09 million homes in August to 5.57 million in September.  Even with the up swing in activity, first-time home buyers are still having loads of difficulty obtaining a loan because lenders are scared to lend, although it is not impossible to get a loan with a solid source of income.

Wednesday, November 18, 2009 - Poll: “Fair” Government Response to H1N1, but Media Hype Not Acceptable

If you ask Canadians about how their government has dealt with H1N1, most will respond that it has done a fair job. However, Canadians are also quick to say that the media is overly critical of the government’s performance with regard to swine flu.

According to a poll released by Harris-Decima, approximately 25 percent of the 1,000 people surveyed assigned a “good” rating to the response to H1N1 provided by three levels of Canadian government. At least a third of the respondents believe the government is doing a “fair” job. Another third of those polled gave a “poor” rating.

Ratings of the government’s performance varied significantly by province. For example, 61 percent of respondents from Alberta assigned a “poor” evaluation to how the province’s handling of the virus. Albertans seemed to be especially critical of the perception that Calgary Flames team members and family members quickly received a vaccination, while most citizens waited in long lines to receive one. Ratings also varied by age group, with approximately a third of respondents age 18 – 34 providing a “good” rating. That rating was provided by only 21 percent of respondents aged 50 and older.

The poll also surveyed Canadians about swine flu media coverage. About 65 percent of those polled across various demographic segments believe there is too much media hype. Among political parties, respondents who describe themselves as Conservatives expressed stronger views of media overreaction than those with New Democratic, Green or Liberal affiliations.

Friday, November 6, 2009 - Preserving Edmonton’s Garneau Theatre Building

A deal has been approved by the Edmonton City Council to preserve the building of Edmonton’s Garneau Theatre. According to the deal, around $547,000 will be given for renovation of the building. The structure will be protected as a historic site. It is a landmark of the 109th Street and has a signature marquee. The structure after renovation would look similar to the building when it was constructed in 1940. The renovation work will be completed by next year. John Day is the owner of this building.

The building has a movie house which is on a one year lease. The movie house is being run by the Magic Lantern Theatres. The retail space in the building contains a coffee shop, food store and two restaurants which are owned locally. The renovation work includes improving the roof, repairing lobby, restore brick walls, restore colors and undoing the earlier changes to the building.

According to the deal, the city resources will be used and in exchange would be given the ability to build bigger. Legally, the current or future owners of the building cannot demolish it since it is designated as a historic resource. The owner of the building John Day wanted to create space and extra income by adding another floor when he bought the building in 2007. After talking with community officials he accepted the current deal.

The budget for the renovation work of the building is estimated to be around $3.2 million. It also includes mechanical upgrades, electrical upgrades and interiors. The people who wanted the Edmonton’s Garneau Theatre building to resemble the way it was in 1940 will be happy with this deal. Plus the people who didn’t want the big building at the site will be happy as well.

John Day’s plans have thrilled all the people; including Martin Kennedy who is a member of the Preserve Garneau community group. He feels that the Edmonton’s Garneau Theatre building is being preserved so that future generations can also enjoy. All the people at Edmonton are excited about hearing this good news. Thus Edmonton’s Garneau Theatre building has laid the foundation for other rundown buildings to be preserved and renovated so that future generation can also enjoy.

Monday, October 26, 2009 - National Housing Market Picture

According to the Canadian Real Estate Association’s latest report, home sales in Calgary have increased by 12.4% in September. Average home prices have also increased, rising 1.1% to $394,835. With the number of new listings down more than 25%, further gains in home prices could be seen since the market is losing inventories

Edmonton’s market did not fare as well. Although modest gains in home prices were seen, with the average home price inching up 0.7% to $327,235, existing home sales fell 1.4%, which is not nearly as good as Calgary.

Home sales are strong across Canada. Vancouver’s sales saw a surge of 124% from year-over-year figures. Victoria also posted strong sales with an increase of 50%.

Canada’s housing market is coming back with a bang! Home sales were up 20% in September, while the prices on the deals were up 15%. The gains are far from modest.

The CREA has already claimed that national sales have been on the rise, citing the fact that 135,182 houses were sold between July and September. This accounts for an 18% increase from year ago figures.

Friday, October 16, 2009 - August Increase Not As Much as Predicted

After a 0.3 percent increase in Canada’s real estate prices in July, August only managed a 0.1 percent rise. The expectation for the month was 0.2 percent. The weaker markets of Victoria, Vancouver, Edmonton, Calgary and Saskatoon, all booming until the slide in 2007, have had the largest decline in prices. The market is showing signs that it is recovering but prices for homes across Canada are still 3.1 percent lower than in 2008.

The market rebound has mostly been felt in the resale home market. New home prices are still fairly weak, but single family home construction starts did increase in August, as did building permit values, rising to 7.2 percent.

A few builders in British Columbia and Alberta have been offering lower prices, incentives and bonuses to stimulate sales. New housing prices in Hamilton, Ontario saw the biggest monthly decrease. Builders in Hamilton are also cutting prices in hopes of gaining sales.

Quebec City, St. John’s and Regina have seen the largest price increases. In Quebec the increase is attributed to the higher cost of materials and increase in the cost of labour. St. John’s saw builders bringing their prices up to par with city land values. Houses in St. John’s average 7.5 percent higher than in 2008.
 

Tuesday, October 6, 2009 - 2010 Tax Bill Police Line Item

The arrival of next spring’s tax bills will give residents of Edmonton a look at what the city spends for its police force. City councillors approved adding a separate line on the tax bills so tax payers will have some idea where their dollars are going. The police budget in Edmonton is currently $217 million and accounts for roughly 25% of the city’s tax dollars.

Not all were in favour of the disclosure. Councilman Don Iveson opposed the issue. Since the change did pass, he is suggesting separate line items for other city expenditures.

It is expected that tax increases of 3% are to be expected in the 2010 rates for city operations. Taxpayers should expect an additional 2% for neighbourhood rehabilitation. Officials from the Edmonton Economic Development Corporation, as well as those from the police and fire organizations are worried that 3% is not enough and that cuts in services my be a possibility.

Councilman Amarjeet Sohi voiced concern that some programs will not receive needed funding. Al Maurer, the city manager says that services that cannot be covered by the 3% increase can be brought before council for a vote on whether or not to spend the additional monies.

Wednesday, September 30, 2009 - Edmonton Sublet Space

Despite the recession, Edmonton’s sublet office market is quite healthy. The city has the lowest vacancy rate in all of Western Canada at 8.3%. Its office real estate sector has tripled in size over the third quarter of 2008. Other cities across Canada are not faring quite as well.

Calgary’s office vacancy rate went to 13.1% in the third quarter, affected at least in part from the slump in the gas business. Most of Edmonton’s increased vacancy rate is due to engineering firms and survey companies that were very busy over the last few years starting to pull back a bit.

Vacancy rates will most likely increase in 2010 and 2011 as the addition of more office space is expected. Edmonton is replacing the old Epcor building with the new Epcor Tower in 2011 which will add to commercial space available in the downtown core.

Commercial real estate vacancy rates rose across Canada for the third quarter in a row. Nationwide the available office market space went from 6.5% to 9.4% when compared to 2008. It is thought that the lack of new white collar jobs and addition of new inventory into the sublet market are contributing factors in the trend. Vancouver, Calgary and Toronto saw the biggest rise in vacancy rates.

Friday, September 18, 2009 - Good News for Alberta Developers

The Canada Mortgage and Housing Corporation has issued a new housing forecast for the Alberta market. Jeff Roberts, a Desjardins analyst, feels that the forecast is positive for housing developers in the region.

Mr. Roberts notes enhanced affordability in these markets, along with improved single-family housing predictions in key cities in Alberta in both 2009 and 2010. This means that developer Genesis Land Development Corporation, along with Melcor Developments Ltd., are considered to be sound investments at this time. Mr. Roberts expects to see further strengthening in sales of lots for Melcor and Genesis.

Single-family home construction is expected to take a 33% jump in the next year, a considerable increase from the previous forecast. In Calgary, this is reflected by an anticipated 3,000 new homes in 2009 and 4000 in 2010. CMHC is looking for 2,650 new homes in Edmonton this year, as opposed to the previous estimate of 2,000. The previous forecast of 2,600 new constructions for next year has jumped to 3,200.

The strong Alberta economy should also play a part in apartment rentals, and improve the financial position of Mainstreet Equity Corp. and Boardwalk Investment Trust, although CMHC has not modified its forecast in this regard.
 

Friday, September 11, 2009 - How Is The Market Doing?

In Edmonton during the month of August, residential sales were lower than in the previous month of July. However, the sales were still higher than those in the previous August. 1,673 houses sold in August 2009, while 2,277 houses sold in July and 1,541 houses sold in August 2008. Charlie Ponde, president of the REALTORS® Association of Edmonton, declares that even though fewer houses were sold in August, he still trusts in the strength of the Edmonton housing market.

For instance, in July a Single Family Dwelling was worth an average of $372,741. The price dropped to $366,788 in August, a 1.6 percent decrease. The prices of condominiums also dropped less than one percent decrease, with condos selling for $244,265 in July and $242,035 in August. These same condos were worth $251,048 in August 2008. Duplex and row houses suffered a decrease of 3.3 percent since last year – these properties were worth $329,207 in August 2008 but only $318,321 in August 2009.

Ponde says not to worry – this is the way a housing market normally operates. Prices always tend to fluctuate from year to year. As long as there are no radical price changes, all is well. The most reassuring things about the current market are the strong supply of houses and good levels of sales activity.
 

Friday, September 4, 2009 - Stability returns to resales - Home market ’balanced’ despite dip in August

While sales have leveled off a bit in the Edmonton area from the busyness of June and July, most Edmonton realtors® are still seeing signs of a more steady marketplace.  Still a strong market, residential sales dipped a little bit to 1673.  That was still an increase of 8.6% from the same time last year.

Both sellers and buyers seem to be more content with the market these days, a telling sign that a level playing field is emerging.  The Edmonton market is still being driven by low borrowing costs and prices that are still down from the peak of the boom.  Selling price of single family homes dipped a bit in August to $366,788, which is not unusual for the summer months.  That is down $2402 from 2008, which might be a little surprising.

Condominium values also dipped a little, down a little under 1%.  The average Edmonton condo is now priced at $242,035.  Duplexes and row houses were at an average of $294,007 over the last month.

The market is quite healthy, prices changes aside.  There is a healthy balance between buyers and sellers, and the prices do historically fluctuate slightly downwards during the summer months. 

Saturday, August 23, 2009 - Edmonton Sports Fields a Disturbance to Area Residents

Edmonton residents are irritated by the continuous racket, traffic, and poor conduct of sporting groups at a local park. The city, which closed the park a year ago to address the problem, decided to re-open it this summer. Residents complain that the facilities are on the outside boundary of the park, allowing their home lives to be affected by noise and traffic.

While sports groups need places to play, most homeowners prefer that those fields be far away from their residences. The debate became more heated when the city began double-booking the fields, meaning more traffic and extended hours. Residents of the neighborhood claim the noise lasts well into the night, and that they cannot park in front of their houses anymore.

The city does not plan to cut back on sports, and it has also rejected a proposal to move the fields farther from the residential neighborhood now affected. However, there will be increased monitoring of the area and leagues will be educated on the effects of their behavior. Alcohol has been banned on the site, but noise is likely to remain an issue.

Wednesday, August 12, 2009 - Canadian Home Prices Coming Down

It’s official. Statistics Canada recently announced that new home prices are falling in Canada. Between May and June, prices dropped by two tenths of a percent; that’s 3.3 percent less than in June of last year, the largest such drop in 18 years. The last time Canadians saw this kind of price drop was in November of 1991.

This price drop came as a surprise to market analysts, who had expected no change in new home prices from May to June, even though the drop was the ninth consecutive such monthly reduction in Canadian new home prices. The trend shows a slow but steady turnaround in economic conditions, bringing the dream of home ownership into the realm of possibility for more families and individuals.

Western cities, for the most part, have continued a recent pattern of falling new home prices, despite real estate increases in the last few years. Edmonton has experienced a modest .8 percent drop, Calgary an even more modest one tenth percent drop. Victoria new housing prices have dropped by one-half of one percent, and Vancouver’s had an almost ten percent drop.
 

Tuesday, August 4, 2009 - Housing Starts In Edmonton Continue To Increase In Volume

More home builders are experiencing an increase in production these days, according to recent reports.  Over the past quarter, local home builders have seen about a 50% increase in the amount of consumers visiting their lots, which is leading to an increasing number of sales and volume in building.

The new home market always mirrors the resale market in some ways, and most are putting the recent increases to facts like prices have dropped more than 20% in the last few years as well as the recent record low mortgage rates.  It’s interesting to see that builders are now back to building on spec, which the market has not seen for some time.

Most of the builders were forced to lay off some of their employees during the recent crunch, but that trend has been reversing.  However, most companies are keeping new hires down to a minimum as they try to navigate the current increase in demand a little better than the last boom.

Wednesday, July 22, 2009 - Immigration helping the home market

Two of the nations biggest institutions are reporting positive signs in Canada’s real estate market, one of those signs being financial and the other based on recent immigration to the country.  New home construction is up for the month of June, which is continuing it’s recent increases.

Scotia Economics recently issued a report which indicated the recent immigrants are one of the primary factors for the recent increase in demand.  More and more immigrants are purchasing homes, and actually the amount of immigrants that own their own home has gone up 4% over the last few years.  People born in Canada have also increased their home ownership ratio, but only by 2%.

Due to the fact that the nation has a relatively older population and low birth rates, it is increasingly apparent that the real estate market will continue to be influenced by immigration. 

Vancouver and Toronto have maintained their domination as a destination for new immigrants, while cities like Edmonton and Calgary attract a smaller portion of immigrants, although still a significant amount.

Tuesday, July 14, 2009 - National Sales Go Up In The 2nd Quarter

The nations resale market made a strong recovery in the 2nd quarter of the year, increasing from the same period during 2008.  According to recent reports, the largest factor is an increase in the amount of homes being sold in the most expensive areas of the country which is somewhat surprising. 

The actual increase in sales volume was 1.4% when compared with the 2nd quarter of 2008.  This represents the first time since the end of the housing boom that volume has increased year over year.  Most people who sat aside late last year due to the economic downturn returned to the market seeing that the worst of the recession is in the past.

Western Canada continues to dominate growth, with Vancouver leading the way nationally.  Sales were up 39% locally in Edmonton, and the national average price of a home was up about 0.5% from this time last year.

Monday, July 6, 2009 - Market Sales Reach Near Record Levels In June

Plenty of consumers came back into the property market last month as over 2500 homes exchanged hands during the month of June.  This represents a local record for June activity and is the 3rd most active month in Edmonton’s real estate history.  It’s another positive sign that the worst of the economic downtown is in the past.

Largely due to the number of first time buyers getting into the market, the recent increases can be attributed to a few different factors.  Record low mortgage rates are one of the driving factors currently.  With some people getting rates as low as 3.79% and with prices being as low as they are when compared to the height of the boom, many are not suprised at the level of activity during June.

Activity during the first 6 months of the year was slightly better than 2008, but this is largely due to the recent spike in sales.  The first 3 months were somewhat bleak for the market as a whole, but the spring more than made up for it.  With prices inching up over the last while, it’s probable that we will see a very active summer as well.

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