RE/MAX Advantage
#116 - 150 Chippewa Rd., Sherwood Park, Alberta
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Edmonton Property Report
- August 21st, 2010
Envision Edmonton’s Campaign To Keep City Centre Airport Open Has $500,000 Price Tag
The fight to keep Edmonton’s City Centre Airport open continues, at a cost of at least $500,000. The money has come from several sources, from $50 donations given by the average working man to several thousands donated by corporations. An entire northern Alberta town contributed to the cause. But all of the donors want their names kept secret.
Envision Edmonton, the company heading the fight, has agreed to the anonymity. Some donors regularly do business with the City of Edmonton and did not want to risk being “punished” for their opinion on what is becoming a hot political issue. Donors that remain anonymous do not receive tax receipts for their contributions.
Envision Edmonton was created on June 18th just a week after Airco Aircraft Charter lost their bid for a legal injunction to keep the airport open. Ed Schlemko, president of Airco founded the society along with four others. These include Barry Breckenridge from Manulife Financial, Dea Braithwaite manager and flight instructor for the Edmonton Flying Club and Eugene Strilchuk who manages InfinitiAir. The Edmonton Flying Club is also trying for an injunction to keep the airport open.
The goal of Envision is to get the airport closure on the ballot in this fall’s city elections. At last count the organization only needed 8,000 more signatures to reach the magic number of 78,000. This is what is required to force a plebiscite on the airport closure. One argument is that the airport is a vital link to Alberta’s north. Air ambulances also use City Centre because it is closer to downtown hospitals. Angel Flight Alberta, a non profit organization that offers free flights to rural patients needing medical care, also operates out of City Centre Airport.
Edmonton Property Report
- August 9th, 2010
Long Time General Manager of Edmonton Opera Steps Down
After a seven year stint at the reins of the Edmonton Opera, Mary Phillips-Rickey will take her final curtain call in October of this year. She has been instrumental in keeping the organization viable at a time when similar publically funded venues have struggled to keep afloat. Phillips-Rickey is responsible for erasing the deficit that has plagued the Edmonton Opera for years.
The company is reorganizing its management tiers and is going in a somewhat different direction. Though Phillips-Rickey helped with the restructuring process, and is in agreement with the changes, she does not want to take on the role of chief executive officer. A search of international proportions is now on for someone to fill some very big shoes that surely will be missed.
Phillips-Rickey is no stranger to being a part of the production. She was part of the cast of La Boheme at the Winnipeg Opera when she took over the management job in Edmonton. It is a bit of a coincidence that the same opera will be on stage in Edmonton during the time she ends her service.
The production schedule for the 2010-2011 season includes not only La Boheme, running October 23 to 28th, but The Abduction From the Seraglio, on stage February 5th to the 11th and Tosca, running April 9th to the 14th.
Edmonton Property Report
- July 23rd, 2010
Edmonton Has Near Record Number of Homes On The Market, Prices Steady So Far
Somehow the numbers are just not matching in Edmonton. At the end of June there were 9,406 homes listed for sale on the MLS service. June sales were 37 percent lower than they were in June of 2009. But the average cost of a single family home is six percent higher than last year, and in all markets combined, two percent higher.
Larry Westergard, the president of Realtors Association of Edmonton believes that the market has not quite caught up with reality and prices will indeed start to decrease during the upcoming months. He believes that the prices are still strong because the consumer still has faith in the real estate market.
In June of this year, the average price of a single family home was $391,497. That is 5.72 percent higher than June of 2009 when the average price was $359,000. Condos had a slight dip in prices, coming in at $242,644 just under three percent lower than in 2009.
The prediction is for prices to slow for the latter half of 2010. This is normal, since Edmonton usually experiences a summer slowdown. Sales in the first half of the year were impressively strong as people tried to get into the market before interest rates swelled and tighter restrictions on mortgages went into effect. Things will ultimately balance out.
Edmonton Property Report
- July 5th, 2010
Oiler’s 1990 Draft Pick Remembered As a Very Bad Dream
The way the NHL draft works is that the better you do, the farther down on the draft pick list your team falls. In rather a reverse twist of fate, the teams that finish at the bottom get first pick at the cream of the current year’s draftee crop. Perhaps this is to keep the sport fair. It wouldn’t do to have the same few teams winning the Stanley Cup every year. You wouldn’t want to see a series of miss-matched games where one team is a proven power house and the other extremely understaffed. Not very exciting hockey, usually.
In 1990 the Edmonton Oilers had a dream season. They had just captured their fifth Stanley Cup in only seven years. But that success, and perhaps a bit of bad luck, ended up rewarding them with the worst NHL draft picks ever. All the draftees, 11 of them, that were chosen that day never once hit the ice for an NHL game.
Not that the players weren’t NHL material, it was just series of circumstances. Some players, drafted from other countries, never made it to Canada. Three examples are Roman Mejzlik, Richard Zemlicka and Petr Korienek who never managed to leave Czechoslovakia. Another player, a goalie named Power was the 143rd pick. After being sent to Seattle to play in the WHL, he had to head home because his father was diagnosed with cancer. Power ended up starting his executive career. 1990 was just not the Oiler’s year.
Edmonton Property Report
- June 15th, 2010
Edmonton Needs To Attract More Family Law Professionals
Chances are that if you are planning on being a lawyer, you won’t choose to practice family law. There is a negative perception of the family law field, that the cases dealt with are unpleasant custody battles, divorce cases and property issues. This particular field seems to repel most lawyers, sending them in search of law practices that are easier to navigate and are more lucrative. As a result, there is a shortage of family lawyers throughout Edmonton.
A short decade ago, family law practitioners were scrambling for work. Today clients often have a two week wait to see someone for an initial consultation. Many family law practices have to turn away clients because they are already overwhelmed with their case loads. Some of these clients end up going to court on their own, providing their own council, usually not a good scenario.
Alberta’s economy has appeared to draw those in the legal profession to careers in real estate, commercial or corporate law. That is after all, where the bucks are. Considering the cost of education required to become a lawyer that is understandable. But there is also the impression that those in family law constantly have to deal with emotional, unrealistic, greedy clients.
While yes, that does happen occasionally; most people do not want to go to court to deal with their personal issues. Most clients just want legal advice so they can get past a difficult time in their lives with as little scaring as possible. Those who practice family law do so because they find it rewarding, and because it is needed and they know it.
Edmonton Property Report
- June 4th, 2010
Pocklington Awaiting Sentencing
The former owner of the Edmonton Oilers, Peter Pocklington pleaded guilty to perjury during bankruptcy procedures in a United States courtroom on Thursday, May 27, 2010.
Pocklington’s plea is part of probation and home detention for six months, but is dependent on other duties including paying money owed, surrendering property and filing tax returns between 2006-2008 with United States tax authorities.
A court judge could sentence Pocklington to five years in prison, the maximum sentence.
In 2008, Pocklington claimed his assets totalled less than $3,000 and his liabilities were close to $20 million US. On May 27, 2010, he confessed to declaring bankruptcy without divulging his ownership of two storage units filled with his wife Eva’s property and assets, as well as his control of two bank accounts.
These charges were dropped when Pocklington made the deal to plead guilty to perjury. Still, he claimed the charges are a mistake due to his bankruptcy lawyer writing up documents incorrectly that lead to the perjury. He called himself a victim and said he plead guilty as the United States’ grand jury system is against accused parties.
FBI raided Pocklington’s Palm Desert home on March 11, 2009. Investigators had been looking into Pocklington’s finances after his bankruptcy claim because he gave $80,000 worth of furniture and artwork to settle with creditors.
The new deal does not require Pocklington to repay creditors who say they are owed money.
Edmonton Property Report
- May 14th, 2010
New Technology to Deter Theft in Construction Areas
Anyone considering helping themselves to construction materials might want to re-think that strategy. A brand-new tracking system is being implemented among Edmonton-area homebuilders.
In a joint venture among Operation Hands Off, Canadian Crime Stoppers, the Edmonton Canadian Home Builders Association and MicroDotDNA Technology Canada, all kinds of building equipment are being tagged with the technology. The imprinting will permit stolen goods to be recovered and returned to their rightful owners. It will also expedite the ability of courts to file charges against the thieves.
The MicroDotDNA program was unveiled May 11 at a construction site in south Edmonton. According to Sandra Young, president of the builders association, there is already a decrease in theft. Young praised the program, noting the importance of being able to recover property taken by thieves.
Representatives from Operation Hands Off demonstrated the workings of the technology. Imprinting can be done on items as small as nails and as large as major appliances and heavy-duty equipment. Through the use of laser-applied markings invisible to the naked eye, items may be identified easily.
The program maintains a database of tracking numbers and serial numbers. The database is accessible to law-enforcement personnel and homebuilders so they can identify stolen property and ascertain its real owners. Edmonton Police Constable Steve Sharpe said it is highly rewarding to be able to get stolen property back to complainants. Returning the items to the owners is essential to the process of the courts in filing charges for theft and possession of stolen goods.
MicroDotDNA Canada President Pat Cowman said that organized crime sometimes plays a role in construction site theft. He said it is not uncommon for materials to be stolen, then sold back to construction firms and homebuilders. Cowman also remarked that baiting sites, complete with imprinted goods, are part of the program.
Edmonton Property Report
Grande Prairie a Good Investment
Albertans have a strong investment potential right in their own backyard.
With a college linked to Athabasca University and the University of Alberta, golf courses, the largest privately-owned Rona in Canada, retirement facilities, a new aquatic and wellness centre and a median age of 29.6, Grande Prairie is a young community that serves over 250,000 people.
The median age for Albertan cities is 36 and for Canadian cities it’s 39.5. Grande Prairie also boasts an average household income of $117,138 and the third highest per capita income at $44,000 for cities in Canada over 30,000 people.
In 2010, Elaborate Homes will build 100 ready-to-buy-homes, with entry-level houses starting at $250,000. That $250,000 will buy a 1,200 square-foot four-level split or two storey-home with three bedrooms, a master ensuite, one half-bath and two full baths. Houses in more expensive neighbourhoods cost up to $500,000 for 2,100 square feet, three or four bedrooms, three bathrooms, a faily room, great room, living room and three car garage.
Homes are finished with tile floor in the bathroom, hardwood maple flooring in the dining and living rooms and granite countertops in the kitchen. Elaborate Homes also offers green features including low-argon windows, hot water tank furnaces and attics insulated to R-40 and R-50.
For Edmontonians, Grande Prairie is a short five hour drive but is also accessible by air, and offers a secure, solid investment for those who are wary of investing farther from home.
For inquiries, contact John Nagra at john@elaboratehomes.com or visit www.elaboratehomes.com.
Edmonton Property Report
Property Investment in Edmonton is a Smart Move
Interest rates are rising. Mortgage rules are being tightened. Rumours of a housing bubble are afloat. But Don Campbell is still convinced real estate is a great investment. As the Real Estate Investment Network’s president and author of four books on the subject of property investment, it appears he knows what he is talking about.
Campbell notes that you have more control over a real estate investment than you have over buying stocks or mutual funds. A home you can live in, even if that means staying in it longer than planned to ride out a weak economy. Rental properties still generate income. The mortgage gradually gets paid down giving you more equity in your investment. Playing the stock market is more of a roller coaster ride.
But both types of investments require research, even in such a hot ticket market as Edmonton. Campbell believes Edmonton is one of the best places in Canada to invest in real estate and has several holding in the area himself. He, as others, has taken advantage of the slow 18 months during the recession to pick up properties that will only increase in value. Lack of competition helped to bring prices down helping Campbell and others in the know lock on to properties for a fraction of what they would bring in the real estate boom days.
Campbell shares his tricks of the trade in his books, the fourth of which “81 Financial and Tax Tips for the Canadian Real Estate Investor” has just been released. Royalties from his books go to Habitat for Humanity.
Edmonton Property Report
Edmonton Trails Calgary in Commercial Real Estate Vacancy Rates
Edmonton is second only to Calgary in terms of commercial real estate vacancy rates on a year-by-year basis, per a new report issued by CB Richard Ellis. Total vacancy rates increased from 6.5 percent in the first quarter of 2009 to 10.6 percent during the same period in 2010.
In spite of the significant increase in vacancies, commercial real estate in Edmonton is exhibiting strength, as prices for crude oil stabilize. According to CBRE’s Senior VP and Managing Director Dave Young, Edmonton fared better than other major Canadian markets. Young said that in the long run, the area is well positioned to leverage growth in the future. Despite the fact that it was certainly affected by the 2008 economic meltdown, commercial real estate in Edmonton is relatively health, Young said.
Downtown office rents are down between 15 and 20 percent versus a year ago, but are still higher than they were in 2005, according to Young. He predicted that during the next several years, some 150,000 feet will occupied. Vacancies may grow during 2010, but at a lower rate than Calgary has experienced.
Two new buildings in downtown Calgary are adding some 2.7 million square feet to commercial real estate space for next year, and they will contribute to the city’s vacancy rate, according to the CBRE report. There was an oversupply of space for most of 2009 as well as the first quarter of 2010 in Calgary, as total vacancy rates grew from 7.5 percent in the first quarter of last year to 10.1 percent in the same period of 2010.
Edmonton Property Report
BMO Opens Branch in Edmonton’s Belmont Town Centre
A new BMO Bank of Montreal branched opened March 15 at Edmonton’s Belmont Town Centre on 137th Avenue NW. The $1.2 million branch is managed by Stacey Vanthuyne and her team of nine employees. The staff provides financial advice in seven different languages. In addition to English, help is available in French, Cantonese, Mandarin, Portuguese, Hindi and Arabic.
Lynda Taylor, who serves as BMO’s District VP for Northern Alberta, said that the new branch represents BMO’s commitment to expand its array of locations in Alberta. Professionals at the branch will help residents of the Belmont area in investigating mortgage options, evaluating retirement plans and offering general financial counsel. Currently, BMO has a five-year, fixed-rate mortgage product with a 3.75 rate and a 25-year amortization period. Taylor said this mortgage would help customers reach their goals of becoming mortgage-free in a shorter period of time with lower interest and the security of a fixed rate.
Taylor noted that people considering buying their first home can take advantage of BMO’s First Home Essentials Kit that offers a helpful guide to making that first big purchase. She encouraged those buying their first home to lock into the attractive rates the bank offers.
The bank features full access to commercial banking services, two 24/7 automated banking machines, a drive-through area, as well as wheelchair accessibility. The building is powered by clean energy provided by Bullfrog Power. This energy comes from renewable resources such as low-impact hydroelectricity and wind power. BMO is currently purchasing energy from Bullfrog to power its 64 locations in New Brunswick, Nova Scotia and Prince Edward Island. The bank also owns and operates 78 properties in Alberta, British Columbia and Ontario.
Edmonton Property Report
Non Stop Fights to Frankfurt, Germany Available in Summer of 2010
Travelers bound for Frankfurt, Germany this summer will be able to fly out of Edmonton International Airport on a non stop weekly flight on Air Transat. Many Edmontonians visit Frankfurt each year, whether for business or pleasure and this is welcome news for those doing the flying and those selling the tickets.
In 2008 Air Transat offered charter flights to Frankfurt. While the service was well received, scheduled airline service gives passengers more flexibility in their bookings. The new flights are scheduled to begin June 15th and end September 28th. Flights will leave Edmonton International on Tuesdays and return from Frankfurt on Wednesdays. Calgary International Airport already has daily scheduled service to Frankfurt with Lufthansa.
Edmonton International Airport’s vice president of marketing, Peter McCart said this flight addition will give a needed boost to the tourism in Edmonton as well as in Germany and throughout Europe. The travel industry was one heavily affected by the iffy economy of the last couple of years.
Another plus for having non stop service to Frankfurt is that the city’s airport is a major European hub with flights arriving and departing from the majority of the European Union nations. Frankfurt services more than 100 airlines that travel to 300 cities and 109 countries around the globe. This is a perfect complement to Edmonton’s position as a major hub for Canada’s northern regions and its predicted expansion to points beyond.
Edmonton Property Report
Edmonton City Centre Airport Site to Become Museum Mall of Edmonton? Why Not?
Edmonton City Centre Airport is due to close, eventually. The city council has made its decision. But what to do with this spacious bit of land conveniently close to the downtown core? Why not turn it into museum central?
If the executive director of the Alberta Aviation Museum, Tom Hinderks, has his way that might just happen. The man has been mulling the idea over for the past few years. The two huge hangars could serve as the perfect venue for many small local museums to set up shop in one location. He even has visions of providing on site transportation between museums in nostalgic fashion via antique cars, trains or streetcars. Imagine that, time travel without benefit of a time machine.
Rather than compete with Fort Edmonton Park, which focuses on local history up to the Depression years, this new museum complex would continue the story from that point forward. Between the two facilities, the history of the area, from the early fur traders to the era of the 737 jets could be told. The idea has great tourism potential.
Development of the more than 600 acres of space is still in the think tank stage. On the plus side, the entire development could probably be created for around $10 million, taking into consideration the pooling of resources for marketing and promotion. Also on the plus side, 3 of the city council’s 11 cultural directives for the decade of 2008-2018 target the advancement of museums in the city. Who knows, perhaps someday Edmonton will have the Canadian equivalent of the National Mall in Washington DC, home to several much visited museums, including the Smithsonian. What is that expression? If you build it they will come? Bet they will.
Edmonton Property Report
- January 27th, 2010
Cold Lake Wants to Collect Oil Revenue Taxes, or Fold
The City of Cold Lake is threatening to disappear. No, aliens are not going to swoop down from a hovering space craft and beam everyone into orbit. The city may just request to be absorbed back into the Municipal District in Bonnyville and it will just cease to exist. It all comes down to oil revenues and how they are shared within the province of Alberta.
Right now Cold Lake is broke. They have roads that need serviced, an arena that needs built and a sewer system that is in need of an upgrade, not to mention the millions of dollars in debt on the books. The city’s mayor Craig Copeland is concerned that though the nearby oil development has brought more traffic to Cold Lake, the city is not getting adequate compensation for the taxing of its facilities.
The mayor is asking the province to implement a revenue sharing plan to benefit his 13,000 town that serves as a retail hub for north eastern Alberta and its oil industry. This goes entirely against the grain of existing policies, even considered a “taboo” in the province. But, if such a plan is not put into action, Cold Lake’s city council wants to dissolve the city.
Reaction in the town is mixed. While most retailers appreciate the increase in business the oil companies have brought to Cold Lake, the disparity between the money municipal districts collect from energy industry outfits and the cash resources available to incorporated cities is worrisome.
All Cold Lake can do is increase taxes and decrease their budget, neither of which is beneficial to the town. Last year Cold Lake shaved $1 million from its annual budget and increased taxes by 5.5 percent. There is still not enough cash to effectively operate the town.
Copeland either wants to dissolve the town or see 25 percent of the taxes paid by the oil industry funnelled into Cold Lake’s empty coffers. No doubt the outcome will be very much rooted in the political climate in Alberta. This should be interesting.
Edmonton Property Report
- January 14th, 2010
Urban Village Life in Canada Still In Its Infancy
Urban village life is struggling to catch on in Canada. Edmonton’s Terwilligar Towne is the area’s first foray into this green type of community and is getting mixed reviews. The concept is a series of smaller apartments, condominiums and semi-detached homes all built around central open spaces. All the units in the community are connected by walking trails that lead to parks and stores encouraging residents to stay out of their cars.
Those who live in the development seem to be happy with their eco-friendly community. But the concept is proving to be a hard sell for most of the city. Terwilligar Towne also suffered a bit of a set back when Edmonton approved a major commercial development on an arterial roadway near the urban village. Businesses were opting to lease in the larger setting rather than in commercial space within the community.
St. Albert is also considering the urban village concept for some of its recently annexed lands. City council has approached some local developers about the concept but though most liked the idea, they feared the market isn’t there yet. People move to the city because of its large lots and homes and open spaces and trying to reverse that mind set will take time.
One urban village has been under development by Genstar. Called the Northwest Urban Village Centre it envisions roughly 900 people living in low-rise apartment structures and compact semi-detached houses all with their own commercial hub offering shops and services. The village is designed to be pedestrian friendly and have easy access to public transit. It has been four years since council approved the project and there have been delays due to a re-alignment of Ray Gibbon Drive but the development is slowly coming together.
Edmonton Property Report
Stelmach Speaks about Climate Change Summit in Copenhagen
Premier Ed Stelmach recently acknowledged that Alberta will be centered around a debate about climate change, but there will not be any ground-breaking international agreements, he says.
He explained that the environment minister, Rob Renner, and Prime Minister Harper will be part of the Canadian contingent attending the summit.
The premier is steadfast in his opposition to a cap-and-trade system in order to reduce carbon emissions. He swears that no one is going to put an additional price on the cost of energy in the province.
He also proclaimed that there would be no increase in taxes through the recession for Albertans. He reminded listeners that no jurisdiction has ever solved the problem of a recession through higher taxes, and he just won’t have it for his province.
Stelmach believes that leaving the money in the pockets of the consumer is the best route to economic recovery. He also reminded the crowd that the only jurisdiction in North America with no debt is Alberta. He also plans to work more with the federal government to gain more money for each person for health care costs.
Edmonton Property Report
LRT Expansion Plan Draws Strong Public Opposition
Dozens of citizens showed up at the public hearings for the LRT expansion project to protest the plans. Seventy people showed up to debate the project, and over 50 of them spoke against the proposed new routes.
The new project would be Edmonton’s largest expansion to the city’s transit system since the 1970s. LRT wants to build 25 kilometres of new track at a combined cost of more than $2 billion, but the project has not been approved yet. It would almost double the size of the existing system.
People in the area seem to be absolutely opposed to changing the street scape for a new transit system. Not only would the project have a negative effect on the physical layout of the city, business owners claim that the project would drastically cut down on vehicle traffic by almost 60%, which would be a devastating blow to businesses in the area. Also, people are opposed to it because it would demolish large areas of parking.
Citizens are claiming that the project would devastate the area and create horrible safety conditions for travelers, but the West Edmonton Business Association thinks the project would bring more shoppers to west Edmonton.
Bob Boutilier, transportation general manager is confident in the plans that the city development experts have recommended, and he says the city will be working with residents to address concerns over the detrimental impact of the project.
Edmonton Property Report
Real Estate Report Predicts Weak Demand Could Slow Market Recovery
Although the Canadian real estate market did not suffer setbacks as those experienced in the United States, real estate experts predict a generally slow recovery from the 2008 economic slump. Per a report issued by PricewaterhouseCoopers in conjunction with the Urban Land Institute, Canadian real estate losses are ten to twenty percent below values achieved two years ago.
PricewaterhouseCoopers spokesman Chris Potter advises that his firm will give most real estate-related investments a fair rating at most. He cites weak demand as a factor in dampening cash flow in all real estate segments. Stricter banking regulations in Canada prevented the housing meltdown seen in the U.S. However, data from the 2009 Emerging Trends in Real Estate report indicate that Canadian realty experts are still concerned about the aftershocks of the U.S. recession. This report predicts a continuing buyers’ market, and expects relative stability in the condominium and hotel sectors.
Lori-Ann Beausoleil, also employed at PricewaterhouseCoopers, advises that many condo developments, particularly in large cities such as Vancouver and Toronto, will be put on hold until pricing is more stable.
Of the major markets in the Emerging Trends survey, Vancouver ranks the highest in potential for investment and development. Toronto comes in third in the study, with concerns issued over the city’s numerous new and unoccupied condo and office towers. Ranking at the bottom end of the study is Calgary, which is still suffering from overbuilding in both the residential and commercial spheres.
Edmonton Property Report
Airports Authority Sued Over City Centre Redevelopment
Efforts by the Edmonton Regional Airports Authority to redevelop City Centre Airport have been challenged by a regional carrier. Airco Aircraft Charters, a City Centre tenant for 22 years, has filed a lawsuit, asserting that the authority is violating a 25-year lease. Airco also alleges that the authority’s decision not to renew Airco’s operating license constitutes oppression, and bears no relation to Airco’s overall performance. The airline signed its latest license agreement with City Centre Airport in 2008.
Airco is seeking to protect its sublease by filing a temporary injunction, which would prohibit the authority from altering its lease until 2054. A permanent injunction is also sought to prevent such activity on the part of the authority until 2054.
Airco Aircraft Charters was established in 2008 following the 2007 bankruptcy of Peace Air. It is the only carrier with scheduled flights and charter services from City Centre to Grande Prairie.
The airline’s owner, Mary Anne Stanway, chairs the Kingsway Business Association, which has been lobbying against a reduction of services at City Centre. Following a referendum in 1996, a majority of scheduled flights were relocated from City Centre to Edmonton’s International Airport.
Edmonton Property Report
Not Enough Homes for Sale in Many Canadian Locations
According to a survey by Royal LePage there are not enough homes available for sale in southern Ontario and other Canadian locations. Since the recession has loosened its grip, home prices are normalizing and sales are up due to low interest rates and affordable pricing.
A two storey home in Canada goes for an average of $409,335, up 0.1 percent over the same period last year. Bungalows averaged a 0.06 percent increase, pricing out at an average of $341,146 and condos rose 0.09 percent to price out at $243,748.
Because of the shortage in available houses bidding wars have started in such locations as Toronto, Montreal, Moncton, Calgary, Edmonton, Victoria, Vancouver, St. John, N.B. and St. John’s N.L.
The price corrections in 2008 were more significant in Western Canada, and British Columbia and Alberta have seen a slower recovery than in the Atlantic Provinces. Quebec and Ontario’s recovery even produced a slight gain over the previous year.
Edmonton Property Report
Canada’s Growing Real Estate Market
Canada’s housing market should see considerable growth in the final quarter of 2009, according to reports released by real estate firm Re/Max. The report cites low interest rates, suppressed demand, and greater affordability as reasons for the recovery that is now underway in the Canadian real estate market.
Vancouver, with housing sales up 14 percent from last year, is leading the way in the Canadian real estate market recovery. Re/Max contributes much of the activity in Vancouver to first-time buyers, who previously could not afford housing. The average housing prices in Victoria are down about 5 percent from 2008.
In Alberta the housing market is recovering as well, despite continuing economic concerns from the uncertainties in the oil and gas industry. Housing sales in Calgary are on par with 2008 levels while in Edmonton they are up by 6 percent. Average housing prices in Alberta are down 5 to 7.5%.
In Saskatchewan, Manitoba, and Ontario as well as in the Atlantic Provinces the average prices of homes have actually increased. The greatest increases are being seen in the Atlantic Provinces, boosted by recent successes in the oil industry, they are seeing average prices up as high as 18 percent.
Edmonton Property Report
Canadian Housing Turning Around
The Canadian Real Estate Association is reporting that the housing market in Canada is turning around and last July showed the largest year-to-year increase in two years. This group is based in Ottawa and they represent over 100 boards from coast-to-coast.
The actual numbers reported for last July amounted to 50,270 units sold, an 18.2% increase from the same time last year. This was also the first time sales had broken 50,000 units in the month of July ever. This trend is due to the popularity of a five-year, fixed-rate mortgage that can still be had for less than 4%. Variable rate mortgages are also still holding at 3% and expected to stay there until at least next summer.
Dale Ripplinger, president of The Canadian Real Estate Association, was quoted as saying, "The difference in the resale housing market now, compared to the beginning of the year, is night and day and nowhere is this more evident than in the West.” He continued with the fact that, “Homebuyers recognize that interest rates and prices have bottomed out, and are taking advantage of excellent affordability before prices and interest rates move higher."
Some cities are faring better than others. At the top is Vancouver, whose sales were 90% up from last year while Toronto and Edmonton were at 28%. Ottawa, as a whole, saw growth at 11.5%.
