Edmonton Property Report - December 15th, 2011

2012 Expected to Bring Balanced Real Estate Market

As we head into the New Year, those who are selling real estate are finding that they are in the driver’s seat. In 2012, according to the Canadian Real Estate Association, or CREA, the market for the most part will be in balanced territory.

November of 2011 marked the third straight month that sales saw increases. In 60 percent of all local markets, activity showed an increase. Home prices increased an average of 4.6 percent compared to the same month in 2011, yet that is the lowest increase since January of this year.

CREA president, Gary Morse, noted that despite the dismal global economy, Canadian real estate has remained stable and resilient. Places like Halifax and Darmouth saw record sales in November, and Newfoundland saw a 12 percent increase in prices from November of 2010.

On the national front, sales in November of 2010 did go up, but the price gains were higher, and the market hotter. Now it seems we are in a slow and steady climb. Helping this picture is the low interest rates, which are expected to continue for some time. The new mortgage rules seemed to have strengthened the market and created economic stability.

Edmonton Property Report - November 30th, 2011

Edmonton Gets First Co-Housing Complex

Edmonton will soon have its first co-housing community. Seven families so far have signed up for the condo project that offers residents their own homes in addition to communal space for kids to play and group facilities to hold community gatherings. Known as Glenwood Co-housing, the idea is a home within a close-knit, village-like neighborhood.

The project will break ground sometime this winter near 156th Street in the Glenwood neighborhood. The complex has ten units, large enough to have a community feel, but small enough to afford privacy when wanted. It is a happy medium between the condo lifestyle and a typical neighborhood street home. Units are owned, not rented, and the complex is run somewhat like a condo strata.

The first co-housing projects came about in Canada about ten years ago and they are catching on. British Columbia has more than a dozen of these communities, and there are more in Quebec and Ontario. In the United States there are more than two hundred of these complexes.

A Danish import, the idea came about during the 1960s, when communal living was the thing to do since it was environmentally friendly. Though an easy sell in Europe, it was tough changing the mindset of North Americans who were so used to privacy and single family home life. But, it seems that, especially now in a tighter economy, this idea of friendly, communal living is catching on.

Edmonton Property Report - November 24th, 2011

Redford Taking Second Look At Legislation for Land Use

New Alberta Premier Alison Redford is already being criticized for breaking campaign promises. She is however, taking a look at legislation for land use that has proven controversial. The original Land Assembly Project Act lets the government hold on to private lands in case they are needed for projects having to do with public infrastructure. That act was introduced in 2009 and drew skepticism right off the bat.

Jeff Johnson, who is Infrastructure Minister, introduced Bill 23, called the Land Assembly Project Amendment Act this past Monday. The intent was to make the original legislation a lot clearer and perhaps easier to swallow. But Danielle Smith, the Wildrose Party’s leader, is skeptical about the amendment as well.
Smith insists that the change was proposed to get around certain provisions in the original act having to with compensation and legal recourse, thereby limiting both issues. The amendment would spell out what type of projects would be covered by the act, thus perhaps limiting a landowner’s ability to seek fair restitution in court.

Johnson, on the other hand, insists that landowners are given more power through the amendment. Redford has her hands full, because the two sides are at a virtually impasse on the subject. There is also a statement from Johnson himself that notes the amendment was Redford’s idea. Time will tell.

Edmonton Property Report - November 1st, 2011

Edmonton Arena Soap Opera Continues

The Edmonton Arena discussion is fast becoming one of the city’s longest running soap operas. The issue of building the future home of the Edmonton Oiler’s did come for a vote this past Wednesday, and actually passed by a 10-3 margin. There were amendments put into place by Coun Tony Caterina, who is not in favor of the project. But this doesn’t mean this is a done deal.

One sticking point is that neither the provincial or federal governments have offered any money towards the project. Originally, the plan was to have the government put in $100 million, and that without it, the arena plans would be scrapped. If the feds truly do not plan to participate that means that the city would have to try and find funding elsewhere, perhaps by asking the Katz Group to put in an additional $100 million. The alternative is to do a whole lot of cost cutting. Neither of these options is particularly appealing.

Behind the scenes, it is thought that the province will end up finding the money somehow, possibly by circumventing funds destined for infrastructure refits, such as the LRT upgrade or the sewer system. That would defer money intended for public services and may turn out to be a bad idea politically. So for now, as of October 31st the city will be the proud owners of a piece of land in downtown Edmonton, which someday, may actually be home to the arena.

Edmonton Property Report - October 19th, 2011

Edmonton Area Mayors Learn About Affordable Housing Options

Some 14 mayors from areas surrounding Edmonton got together to brainstorm ideas about affordable housing. Areas specifically targeted were Fort Saskatchewan and St Albert, both in dire need of affordable entry homes. The problem is that the idea is not being embraced by either community, according to Gale Katchur, mayor of Fort Saskatchewan.

It is a different mindset than in the current generation. The trend was for single family homes, large lots and a modicum on privacy. Residents are not welcoming multi-family units or row houses in such areas, even though they know this type of housing is needed. But the areas with the larger, single family homes are often financially out of reach for those starting out or people in certain occupations that simply don’t make enough to qualify.

These are the same communities that welcomed more Tim Horton’s, Wal-Mart’s and retail malls. But these businesses need workers and these workers need someplace to live. During the boom time of the mid 2000s, employees had to be brought in from Edmonton because the local homes were out of their reach. That is not fair, nor does it make for a healthy community.

One of the things these mayors learned is that affordable housing can be very attractive. One company, Landmark Building Solutions, keeps costs down by building pre-fab sections of homes at their warehouse, then finishing the homes on site. It takes much less time, and the end product is appealing. But it is not the mayors that need convincing. It is the mindset of the established residents in the relevant communities.

Edmonton Property Report - October 11th, 2011

No Housing Bubble Seen In Canada Housing Market

Canada is not experiencing a housing bubble according to Jim Flaherty, the Canadian Finance Minister. There is no need for government intervention at this time. Certain markets, particularly Vancouver are attracting a lot of attention due to the rising prices and the extremely hot market, but that is more the exception than the rule.

Both Flaherty and Mark Carney, the Governor of the Bank of Canada, have had their eye on Vancouver. They also have advised Canadians to reduce their debt loads to be better able to handle it when the inevitable rise in interest rates comes. When asked at a New York news conference about the Canadian market, Flaherty noted that there is no clear evidence of a housing bubble in the country’s real estate concerns.

Flaherty also noted that the incredibly low interest rates have increased demand for real estate in Canada, and that is expected. The recent tightening of mortgage lending laws this past spring has slowed that demand slightly, which is also the norm. Household debt remains an issue in the country, and there may be reforms down the line on that front.

Home prices on resales in Canada have gone up between 5.7 and 7.8 percent comparing 2011 to 2010. Vancouver is a notable exception. Its resale housing average has increased by some 17 percent, largely due to the number of $1 million-plus homes sold to mostly foreign investors.

Edmonton Property Report - September 23rd, 2011

Canada and United States Working On Greenhouse Gas Agreements

David Jacobson, the United States Ambassador, stressed that Canada and the United States must be on, or close to, the same page as far as controlling carbon emissions and keeping the environment healthy. If either country puts a price on carbon fuels use, such as additional taxation, it may drive investors to do business in the country without such taxes, or with lower taxes. That doesn’t really help either nation.

The key is to not give one country a competitive advantage over the other. As far as greenhouse emissions go, that is about the touchiest of subjects. The controversy about the new pipeline into the United States from Alberta is proof enough of that. But Jacobson is convinced that the countries will be able to get in sync. Meanwhile he notes that President Obama will not be releasing any energy proposals this year at least.

But the progress on the North American agreement to improve trade and security practices, implemented this past February, is going ahead, at least in areas where it is easy for the two nations to come to an agreement. This includes the agriculture and food industry, as well as auto manufacturing. The idea is to make it easier for certain items/people to cross the border without dual inspections, while at the same time being vigilant as far as terrorism goes.

As far as that Keystone pipeline, it is still under review, with a decision expected by the end of 2011. No doubt there will be other pipeline and energy transmission issues to be considered in the future, including possible joint ventures in the Canadian Arctic. Officials are being especially tightlipped about that idea, but that isn’t really all that surprising.

Edmonton Property Report - August 31st, 2011

Gary Mar Holds Meeting in Sherwood Park

Gary Mar, who is seeking the Progressive Conservative Party leadership, took his campaign to Sherwood Park this past Friday. He hosted a meet and greet at the local Smilie’s Village, complete with refreshments. It is one of the first stops as he takes his message to the people of Alberta, and listens to their concerns as well.

Mar was born in Alberta, but is descended from immigrants that found their way to Canada over a century ago. His family was looking for a better life and their hard work made that possible, with each successive generation doing better than the last. Now this son of immigrants just might end up Premier of Alberta.

Currently he serves as the U.S. Minister Councillor. In this role he has first hand knowledge of the financial troubles now seen south of the border. It is concerning because of the effect the health of the U.S. market has on the Canadian market. This is particularly true for Alberta, where 90 percent of the provincial exports end up in that country.

At the Friday gathering, Mar met with people that he grew up with, and who, through the years, supported his family’s business ventures. Iris Evans, MLA from Sherwood Park, was also at the meeting, supporting Mar. Two of the most important promises made were the commitment to get the new Sherwood Park hospital up and running, and delay the Heartland transmission line for further study.

Edmonton Property Report - August 18th, 2011

Housing Sales Expected to Increase in Alberta over Next Couple of Years

The Canadian Real Estate Association is expecting an increase in MLS sales in Alberta through the rest of 2011 and through 2012. Prices are also expected to start rising. CREA expects that sales will go up some 7.3 percent this year alone, with 53,350 units changing hands by year’s end. In 2012, an additional 6.8 percent increase is expected with some 57,000 sales made. These two sales increase are the highest expected nationwide for the next couple of years.

Sales prices are expected to go up some 1.5 percent by the end of 2011, to an average of $357,500. In 2012, an additional increase of 1.8 percent is expected, bringing the average price of a home to $364,000 per unit by year’s end.

Looking at things on a national basis, CREA is expecting sales to increase by some 0.9 percent by the end of 2011, topping out at 450,000 units. In 2012, the agency is expecting a decrease of 0.7 percent, or the moving of some 477,700 units. Pricewise, CREA expects MLS prices to go up by 7.2 percent by the end of this year to $363,500 average per home. But, in 2012, the market is expected to remain flat, increasing by a mere $100 per home.

Tanya Eklund, who is a RE/MAX representative in Calgary, advises that sales have increased this year, but there is still enough inventory on the market to keep things favouring the buyer. She is expecting a stronger fall market, and an even stronger 2012 thanks to the upswing in the province’s energy sector.

Edmonton Property Report - August 3rd, 2011

Alberta to Generate Electricity Using “Synfuel”

Over half the electricity produced in Alberta still relies on burning coal. According to the provincial government there is roughly 37 billion tons of coal still available for mining within Alberta. But there is also some 620 billion tons of what is known as “stranded coal.” Until recently this coal has been considered worthless because of it inaccessibility.

That was before the concept of coal gasification came into play. By using recycled water and oxygen and adding it o the coal, it changes the substance into a gas. That gas is then drawn to the surface and then the carbon and other particulates are removed. This makes “synfuel,” a combination of natural methane and hydrogen, as well as mixture of synthetic hydrogen and carbon monoxide. This newly formed fuel can then power generators and other types of engines.

In 2009, the Alberta Energy Research Institute gave a research grant to Swan Hills Synfuels, totaling $8.8 million. The company built a demo coal gasification system, the first of its kind in North America. Now that it has proven itself to be a viable idea, the Alberta Government has granted that firm an additional $285 million towards expanding that project.

The project is expected to cost $1.5 billion in total and should produce enough energy to create power for 25 percent of Edmonton’s homes for at least 40 years. The plant is expected to create 300 megawatts of power once it is up and running at peak capacity. This is considered a more environmentally favorable option because creating synfuel releases only a third of the greenhouse gasses as coal-fired electricity generation.

Edmonton Property Report - July 22th, 2011

Donations, Local and Otherwise

Canadians are a generous bunch; there is no doubt about that. The question is, are we more charitable, at least as far as everyday items go, when those items or the money for such items stays within Canada? Or, to take it to more of an extreme, when that donation stays within our immediate community?

If there were no such thought process, then why do some charities go out of their way to let you know that anything donated stays local? This is not the emergency type of relief that was seen coming in to help Haiti and victims of the Japanese earthquake, or other such disasters. These locally based charities seek money or everyday items.

One Sherwood Park organization that puts up a sign about donations staying local is Tools for Schools that collects school related items. Food banks and Christmas bureaus make sure everyone knows that all donations stay local. Nor is there anything wrong with the practice. It is nice to know that you are helping the community. But there is also the possibility of developing an insular mindset. Are we donating to help those we know, which is admirable in itself, or are we donating to better mankind in general?

Edmonton Property Report - July 20th, 2011

Commercial Building Permits Up in Alberta, Residential Slows a Bit

Keeping track of building permits gives market analysts some idea of what the construction picture will be in the three to six months after the filing of those permits. In Alberta, the first part of 2011 has proved promising, particularly for the month of May. During that month, $1.1 billion worth of permits were issued. That is a 22.7 percent increase over this past April, and a 12 percent increase over May of 2010.

Non-residential building permits played the starring role in this gain, accounting for $526.5 million, almost double the dollar value from the month before. Residential permits brought in a higher dollar figure, $577.3 million, but were down 8.2 percent from April of 2010.

Comparing the first five months of 2011 with the same time period last year, the result is only a slight gain, 0.8 percent. But, compared to the 2009 figures, issued permits were up 27.6 percent. Commercial building permits alone showed a 26 percent increase over 2010. The biggest surge was in February 2011, most likely helped by all the permits needed for the Calgary airport revamp. There is still plenty of housing availability in Alberta, causing the slow in residential permits.

Edmonton saw a slow down in sales for June, compared to April, because of a slight increase in that city’s inventory. In May 1,857 homes changed hands, while in June that number dropped a bit to 1,768. But this June did better than June of 2010, which saw only 1,619 homes sold. Prices remained fairly flat, averaging a residential price of $315,000 for all housing categories combined.

Edmonton Property Report - July 8th, 2011

AESO Works to Make Edmonton Alberta’s Electrical Hub

The Heartland Transmission Project, a plan to build a 500-KV electric transmission line near Edmonton, has had its share of controversy, and it is ongoing. Even so, the Alberta Electric System Operator or AESO, is fighting to keep Edmonton’s status as an electrical high-priority locale for at least the next ten years, and hopefully much longer.

The way they are doing this is by planning significant upgrades in the electrical infrastructure. These upgrades will enhance the delivery of electricity throughout Edmonton and beyond. This means safely and reliably managing the Alberta Interconnected Electric System, as well as the provincial systems in place.

The Industrial Heartland generates roughly 34 percent of Alberta’s electricity. The need for electricity in the Edmonton area is expected to increase some 33 percent over the next ten years, thanks to increased commercial and residential growth. This produces an increased demand on the power generated in the Industrial Heartland, with less left over to transfer elsewhere in the province.

The northeastern part of Alberta, notably the area around the oilsands, would be severely impacted if power needs could not be met. Upgrades to improve the amount of electricity generated, as well as in the delivery systems, are greatly needed. The City of Edmonton also needs its aging electrical infrastructure replaced. Part of AESO’s upgrade plans includes the building of another transmission line through St Albert and northeast Edmonton. Also in the plan are improvements to existing lines between Edmonton and Wabamun, as well as those near the University of Alberta.

Edmonton Property Report - July 5th, 2011

Alberta Government Contributing to Carbon Capture Project Funding

The province of Alberta has committed $865 million to the Quest Carbon Capture and Storage Project (CCS). In a locale that depends heavily on the energy industry, particularly concerning the oilsands, it makes sense that Alberta would make a sound investment in an environmentally friendly endeavor. CCS is a new technology that is proving to be most effective in cutting down the amount of greenhouse gasses that are emitted from fossil fuels.

Premier Ed Stelmach announced the funding this past Friday at the Scotford Upgrader, located just outside of Fort Saskatchewan. The funds solidify an agreement between Canada, Alberta and the Shell Oil Company which has invested significantly in the province’s oilsands. The intent is to reduce the nation’s carbon footprint.
The Quest system works because it stores greenhouse gasses deep within saline formations. These formations provide a more long-term storage solution. At the Scotford Upgrader, this means that almost a million tons of carbon dioxide will be captured, or stored, each year rather than being released into the atmosphere.

Shell currently produces 225,000 barrels of oil each day, thanks to the Athabasca Oil Sands Project’s expansion. Other participants in Quest include Marathon Oil Canada Corporation and Chevron Canada. The only negative remarks came after the announcement of some bonus offset credits granted for a few of the projects CCS is pursuing.

Edmonton Property Report - June 25th, 2011

Sherwood Park Retailers Have Profitable April

Sherwood Park’s retail stores had a very successful April. In fact, Statistics Canada released a report noting the entire province of Alberta had the best April monthly, as well as annual, growth rates in the nation. The province had $5.2 billion in sales during that month, a 1.6 percent increase from March of this year, and a 7.4 percent gain over April of 2010. Across Canada, retail sales in April amounted to $37.4 billion, a 0.3 percent increase over this past March, and a 3.6 percent increase from April of 2010.

The director of the local Chamber of Commerce, Todd Banks, noted that the increase in shoppers, and sales, was noticed. Banks spoke to many of the town’s retailers, and though the late spring slowed down sales a bit, once the sun came out shoppers made up for lost time. The month was sporadic, but ended up being profitable. Sherwood Park Mall has been doing exceedingly well, and Sherwood Park Dodge saw a 22 percent increase in sales this April, when compared to April of 2010.

Alberta is also one of the fastest growing provinces in the nation, having increased its population by roughly 200,000 over the last three years. The improvement in the economy is also encouraging people to shop. The boost in the energy sector has made a big difference. The fact that the government is committing more funds for projects throughout the province is also encouraging.

Edmonton Property Report - June 17th, 2011

Josephburg Airport Has a New Name

Warren Thomas served as county councilor in Strathcona County for 16 years. He’s been retired for a while now, but this past Saturday he saw the Josephburg Airport newly minted as the Warren Thomas Aerodrome. After all, this was the man responsible for the airport existing in the first place.

Thomas was left speechless by the unveiling of the new sign. Though he had officiated at many of these types of events, being on the receiving end is a bit different. He did note that it is a lot more fun being named for something while you’re still alive and around to enjoy the event.

Not everyone was onboard with his airport proposal, including Coun. Jacquie Fenske, who admitted as much during her speech at the event. But she, and others, were convinced when it became evident that the facility could really benefit the growing community. Now Fenske is working to get a customs clearance facility for the airport, making it a true international service. RCMP officers are located nearby, and they are able to handle a customs desk, but she knows it will take a while for approval.

Thomas as well as others is impressed with how the airport has grown over the years. Hangars are constantly being added and traffic warranted a second runway, which opened not too long ago. Celebrations included activities for adults and children, an aerial show and a trip aloft for Thomas with Dave Quest, pilot and MLA from Strathcona.

Edmonton Property Report - June 10th, 2011

Transmission Line Projects in Alberta Needed According to AESO

Alberta is growing. To keep up with that growth, the Alberta Electric System Operator (AESO) had confirmed that new transmission lines and projects are needed to keep up with that growth, including the disputed Heartland line that is set to be built near Sherwood Park. The price tag for the improvements, about 60 percent of which are regional, is roughly $13.5 billion. Almost half have gone through the approval process with the Alberta Utility Commission (AUC). The remaining 40 percent of the projects, taking some $5.2 billion, concern four critical transmission systems that are now in the AUC hearing process. Strathcona County residents will pay about 50 cents more per month on their energy bill to fund all projects.

Shan Bhattacharya, who is a vice-resident of the transmission division of AESO, again emphasized the need for the Heartland project. These transmission lines are the core of the project, taking the major load through the rapidly growing north east. He notes that without the lines, development will be stunted.

The AESO has already calculated that there will be an increase in power needs of 3.2 percent per year for the next ten years. Energy needs have already increased 32 percent over the last decade. Bhattacharya stressed that without Heartland and the other transmissions projects the threats of rolling blackouts was very real.

Edmonton Property Report - June 2nd, 2011

Alberta Arts Days Feature Site in Strathcona County This Year

One of the featured sites for Alberta Arts Days will be in Strathcona County this year. The event will be from September 30th to October 2nd and will be overseen by the Arts and Culture Council of Strathcona County (ACCSC). Some 49 communities from around the province will be sending 69 groups to the five sites at the province-wide festival, including entertainment venues on all three days and a main stage event. Alberta Arts Days is part of the Canada-wide Culture Days celebrations.

The festival is in its fourth year, and while ACCSC has participated each of these years, it is the organization’s first time as host. Carol Gibney, who is the group’s spokesperson, advises the event will be highlighting participation by families and children. Past celebrations have included activities such as mural painting, stained glass, weaving, quilting and drum circles. These have had great response in the past and will most likely be part of the current festival.

The ACCSC received a grant of $20,000 for the event, which allows more flexibility. Plans are to add a variety show, a section on aboriginal art appreciation and other art forms such as hip-hop dance and tie-dyeing demonstrations. All forms of the arts will be represented, from musicians to theatre groups to poets and photographers. Gibney hopes to feature as much local talent as possible.

Edmonton Property Report - May 26th, 2011

Edmonton-Sherwood Park MP Appointed to Cabinet

Prime Minister Stephen Harper is reshuffling his cabinet after the recent election. One new appointee is Tim Uppal, an MP from Edmonton-Sherwood Park. His assignment will be minister of State for democratic reform. Now in his second term as MP, he is pleased about the appointment, and happy to be noticed and considered qualified for the position.

Uppal already has three goals already outlined on his agenda. First is for fair representation for everyone in the House of Commons. Second is to eliminate per-vote taxpayer subsidies, and the last is to create Senate reform.

The representation issue will take into account the fact that Ontario, Alberta and British Columbia, which have rapidly growing populations, will be getting more seats in the House of Commons. Uppal wants to make sure that provinces with declining or stagnant populations keep the same number of seats they have now.

The Conservative government also wants to eliminate the $2 per vote tax subsidy paid to political parties for each of their members that votes during a federal election. The feeling is that funding should be generated from other sources. As far as the Senate, Uppal wants to change the current system where members are chosen by the prime minister to a system where the public votes for the senators they want to represent them. Stephen Harper has apparently agreed to appoint the candidates chosen by the people. Another goal of the Conservatives is to help Canada completely recover from the recession.

Edmonton Property Report - May 20th, 2011

Edmonton Real Estate Looking for Positive Growth Thanks to Oil Sands

Edmonton’s real estate market health very much depends on the health of the oil and gas industry in Alberta. The energy industry drives the province’s economy. If oil and gas prices are decent, then that trickles down into money spent in businesses, restaurants and in renting and/or buying homes.

Jed Downie, who is an oil patch specialist, is pleased by what he sees in the latest home pricing survey conducted by Royal LePage, a leading real estate company that has been doing business in Canada since 1913. The Bank of Canada takes great stock in the survey, and it helps the bank get a handle on what the market trends are across the country. The latest survey notes that home prices are stabilizing after the recovery period from the recession. The cities in Alberta are expected to be the strongest performing locales in the real estate market this year.

The key is the rejuvenation of the oil patch. That means more oil produced, more exports and more jobs to see that the process continues. Jobs attract new residents, who will need housing. People who are already homeowners might want to upgrade their properties, putting more starter homes on the market. The survey did predict that the average home price in the Edmonton area will increase by 3.3 percent by the end of this year. Sales are expected to increase by 9.1 percent in that same city.

Edmonton Property Report - May 11th, 2011

Elk Island Catholic Schools Thinking Ahead

Elk Island Catholic Schools is looking for community input on a plan to revamp the district and plan ahead for the next 20 to 25 years. Last April the board of trustees and Chris Diachuk, the superintendent of the district met to discuss options for the future. One item under discussion was how to use the old Archbishop Jordan Catholic high school once the new one is up and running in September of 2012.

One idea was to move both the elementary and junior high grades from the Our Lady of Perpetual Help into the old high school. But rather than act upon it alone, the board opted to put the topic out for public discussion. This may have something to do with the feedback board members were getting while they were campaigning last fall for the board elections. The public very much wants a voice in things.

Other items open for discussion are creating a dedicated middle school, changing the grades offered at specific schools and possible boundary changes. Diachuk wants to know how the community feels about these issues. Sometimes community feedback results in something new. An example is the change to a four day school week at the Our Lady of Mount Pleasant Catholic School in the Camrose area.

The board also discussed the fact that almost 43 percent of the district’s students were having classes in portable buildings that were intended to be a temporary measure. Some of these structures are between 35 and 40 years old. Other schools are having issues with staff and parent parking. Plans are to hold focus groups and public meetings in the fall.

Edmonton Property Report - April 29th, 2011

Strathcona County Mayor’s Speech Addresses Hot Topics

Linda Osinchuk, Mayor of Strathcona County, gave her State of the County address this past April 20th. In that speech were comments on current projects, including the building of the county hospital and the Heartland Transmission Project, still in the proposal stage.

The hospital was the first item addressed. There have been concerns that work on the structure has stalled, but according to the mayor that is not the case and it will be completed on time. Phase One already has a noticeable structure coming up from the foundation. As far as Phase Two, the province has already granted $69 million in funds for that part of the project. Osinchuk went on to recap the construction of Phase One, beginning with the September 2010 installation of the grade beams. The building envelope was started in March and the completion date is set for sometime in late 2012. The hospital will be open in 2013.

The Heartland Transmission Project continued to be the elephant in the room. This controversial plan intends to put 500kV power lines in the current transportation utilities corridors that go right through Strathcona County. Meeting on the proposed lines started this past Monday. At issue is the placement of the lines, if they will be overhead or underground and if they are safe.

A number of daycares, schools and homes fall within 800 metres of that utility corridor, which was intended to accommodate the current 240kV lines. As there might be safety and health concerns, the mayor and other groups are pushing for underground lines if that is the route the Alberta Utilities Commission decides on. Osinchuk advocates that if the lines go in, and are buried, that the entire province shares in the cost, rather than leave Edmonton and Strathcona County to pay for it.

Edmonton Property Report - April 18th, 2011

First Quarter Housing Starts Down in Strathcona County

Like in many communities around Alberta, housing starts in Strathcona County have drastically declined. This March there were 81.2 percent fewer starts than in the same month in 2010. Breaking it down, single family homes saw 11 starts in March of 2011 compared to 44 last year. As far as multi-family structures, March of 2010 saw 20 starts, while this year there was only two. That means a total of 12 homes were started this past March compared to the 64 in the same month of 2010.

The first quarter stats are no better. From January until the end of March in 2011 there were 35 single family home starts, compared to 114 during the same period in 2010. Only eight multi-unit houses got their start in 2011, compared to 35 in the first three months of 2010. That is a 71.1 percent decrease for the quarter.

Fort Saskatchewan is also struggling, but doing slightly better with a 64 percent decrease in homes started comparing March of 2011 to that same month in 2010. Translating that into numbers, March of 2011 had 9 starts, while last March counted 25. The first quarter of 2011 also saw a 56.1 percent drop from 2010. In 2011 there were 30 single family homes started, compared to 64 in the first quarter for 2010. Counting both single and multi-family home starts, there were 36 starts in Fort Saskatchewan for the first quarter of 2011, compared to 82 starts in the first three months of 2010.

The Canadian Mortgage and Housing Corporation were not surprised at the drop because of the high number of homes already on the market. The CMHC expects housing starts to remain at relatively low numbers throughout 2011 and then pick up in 2012.

Edmonton Property Report - April 14th, 2011

Heartland Transmission Project Public Meetings Begin

Public meetings for the highly contested Heartland Transmission Project began this past Monday at the Edmonton Expo Centre. Though the project, and the route it would take, has not yet been approved, there were concerned citizens set on expressing their concerns, some of which involve health issues.

One resident, Gillian Jobs runs a daycare facility next to what would be the preferred route for the high voltage transmission lines. She is concerned that parents would not want to bring their children to her centre because of the possible health problems. Jobs would literally be run out of business.

Some of these potential risks include heart disease, Alzheimer’s and, of most concern to parents, childhood leukemia. These health concerns have repeatedly been voiced by a group called the Responsible Electricity Transmission for Albertans (RETA). The group opposes the lines. The company behind the project, EPCOR, countered with the argument that there is no proof for those claims.

EPCOR also stressed that the preferred route going near Sherwood Park has the least impact on the area. The route makes use of the existing Transportation Utility Corridor. A decision will be made by the Alberta Utilities Commission 90 days after the hearings are complete.

Edmonton Property Report - April 6th, 2011

Strathcona County Considers Power Line Buffer

The possibility of the Heartland Transmission Project running its 500kV power line just to the west of Sherwood Park is getting Strathcona County council to think outside the box. What if the county created a buffer zone that would prohibit such lines within that buffer zone?

It is a thought, and a motion brought forward by Coun Vic Bidzisnki at the latest council meeting. His idea calls for creating a buffer zone that would not allow any power lines that would carry a 240kV or higher current. Good idea, but it isn’t clear whether the county would have jurisdiction over what the province wants to do. Robyn Singleton, the Chief Commissioner explained that it was the same principle as the railroad. She does not think Strathcona County could have the buffer zone, even if put in place, stand up.

But, advised Singleton, council could pass such a measure to get the province’s attention. Nothing like a little press and controversy to make officials know you mean business. Peter Vana, the associate commissioner advised that though the county most likely cannot regulate the power line itself, it can have a say in the uses from that power line.

Council is going to investigate the issue of a buffer zone to protect the county. Meanwhile council did vote to approve the burying of the power line, if it does end up going near Sherwood Park.

Edmonton Property Report - April 2nd, 2011

City of Edmonton Reveals Arena Levy Zone Map

The City of Edmonton unveiled a map showing the area affected by the proposed Community Revitalization Levy in the downtown core. If it is imposed, this levy would bring in about $125 million to help pay for the new arena complex, expected to cost some $450 million. The area is between 97th Street and 109th Street between 102nd Avenue and 106th Avenue. It includes the warehouse district, a planned condo complex called Aurora set to go in north of 105th Avenue, and, if it goes ahead another tower for Manulife Place Phase 2 located on 102nd Street.

If the plan is approved, some of the money generated could be used for other projects within those borders. The levy is intended to bring in enough cash over a 20 year period to cover the $160 million the city needs to borrow for both the arena and surrounding infrastructure. Once the levy expires, the additional construction will bring in some $30 million annually in property taxes.

Even with the levy, there would not be enough cash generated for the first ten years to pay the mortgage on the arena. This could be offset by increasing the ticket tax at Rexall Place from the current seven percent to perhaps nine or ten percent for that decade. There is an existing tax that is expected to provide funds to pay another $125 million to be taken out by the city.

Daryl Katz, owner of the Oilers, has already promised $100 million towards the cost of the arena itself and another $100 million to go to the surrounding buildings. Katz is still in negotiations with the city regarding these and other funding options.

Edmonton Property Report - March 28th, 2011

Strathcona County Housing Starts Fall Short of 2010 Levels

Concurrent with housing start decreases in February for Edmonton, similar declines occurred in Fort Saskatchewan and Strathcona County. Starts for single-family homes were down by more than 50 percent in Strathcona County in February versus January. Construction began on only 13 homes last month, as opposed to 27 houses in January. Versus a year ago, construction on single-family dwellings was down to 26, as compared to 39 in February 2010.

The multi-family home category also witnessed a shortfall in starts versus a year ago, declining from 16 last February to six this year. The starts are also 50 percent lower than the number (12) reported for January.

Total housing starts in Strathcona County are down by 65 percent versus February 2010.

Fort Saskatchewan’s numbers reflect similar downward trending, as construction on single-family and multi-family homes fell by 60 percent. Building began on 18 single-family houses and four multi-family residences in February, but a year ago, construction was initiated on 35 single-family dwellings and ten multi-family homes.

For the months of January and February combined, the number of starts fell by 63.5 percent versus the same period a year ago.

According to the Canada Mortgage and Housing Corporation, a 26-percent shortfall was reported in the construction of single-family homes throughout the capital region of Alberta.

Conditions are expected to improve, however. Per Richard Goatcher, a CHMC senior analyst, the decrease in construction is attributable to currently large inventories of homes for sale. Once that excess inventory is sold, construction may pick up, resulting in somewhat higher levels of new-home construction.

Edmonton Property Report - March 21st, 2011

Economy in Northern Alberta, and Across Canada Healthy

Canada is seeing the best economic growth of all the developed countries in the world. This is according to Jason Kennedy, who is the federal Minister of Citizenship, Multiculturalism, and Immigration. He admits that Canada is still seeing the effects of the recent global recession, but we have it far better than most.

The recession of the 2008-2009 years, started in the United States, was the worst since the Great Depression in the 1930s. International banks, insurance companies and the auto giant General Motors were teetering on the verge of collapse. Canada saw the shallowest recession of all the G8 countries affected, and recovered faster than any other country around the globe. We have seen almost a half million jobs created in the last 18 months, mostly private sector, full time positions. Unemployment rates are lower than in the United States. This hasn’t happened since the end of World War II.

Considerable investments were made in Alberta, particularly in the Edmonton region, not to mention in northern Alberta near and at the oil fields. This has paid off, with Canada showing the largest growth in the G8 member countries for the past year. That trend is expected to last for at least the next two years. Canada is getting top marks from Economist Magazine, the World Bank and the Organization for Economic Co-operation.

Edmonton Property Report - March 11th, 2011

Phase 9 of Summerwood Development Approved

The Summerwood development keeps growing. Stage 9, which is all semi-detached family homes, just passed the approval process even though the density is a bit higher than the norm. This phase has 34 houses being built in a space that normally would hold 31.

But this is a neighborhood with mixed housing. Retirees don’t necessarily want a house with a large yard to maintain so they are content with a semi-detached home. In Summerwood, the semi-detached houses are still pricing out at about $500,000. Even with that price tag a group of residents came forward to protest the duplexes being built. They voiced their concerns about increase in traffic, crime and undesirable people moving in. The concern was also that some of these homes might be rented out rather than lived in by the owners.

Apparently the problem is that the original marketing for Summerwood did not mention the multi-family units, even though that was always the plan. Brad Armstrong, land manager with Qualico Community Land Development apologized for the mistake.

Summerwood will eventually contain a mix of single family, apartments and semi-detached housing. The company will make sure to keep the lines of communication open with city council and residents and minimize the effect of the new development on the community.

Edmonton Property Report - February 25th, 2011

Real Estate Market Affected by Many Factors

For most people, their home is their biggest investment and the biggest part of their net worth. In North America, the average homeowner has almost one third of their wealth tied up in real estate. To see how that investment is doing, there are four factors to keep an eye on in the real estate market.
Demographics have a big influence on real estate. This is the study of the race, age, gender, income, population growth and migration trends in a neighbourhood. Take the baby boomers, those people born in the 20 years after the end of World War II. This group is headed for retirement. Some will buy second homes, others will downsize. One decision takes a home off the market, the other swaps one for another.

Interest rates are a biggie. If interest rates are low, then more people can afford to get into the market. It costs less to mortgage a home then more people buy, increasing the demand and price of available homes. A healthy economy also means a health real estate market. Health is established with a favorable GDP, low unemployment, prices for other products and how much is being manufactured for export.

Governments also make policies that affect real estate. They can implement tax credits, subsidies or deductions that may be taken against income tax. These items act as incentives for people to buy homes, increasing demand, which may temporarily increase real estate prices. In 2009 the United State initiated a tax credit for first-time buyers to stimulate the economy. The program jump started their flagging economy.

Edmonton Property Report - February 17th, 2011

Grants from BP Energy Encourage Environmental Studies

For years now the BP Energy Company has been funding a program called A+ For Energy that provides grants to teachers that want to engage their classrooms in studies concerning the environment. This can be anything from recycling to studying renewable energy sources and how nature benefits from their use.

Tony Sykora explained the procedure. Teachers submit projects that they want to use the grant money for. The ideas have to be environmentally friendly and be a positive, engaging experience for the students. Approved projects receive a grant of $10,000. Teachers may participate in the grant program year after year.

Holy Spirit Catholic School received two of the BP grants this year. This Sherwood Park school has $20,000 to use towards educational projects. This same school has received four grants within the last four years. Cathy Hinger and Rita Astalosch, both 4th grade teachers were two grant recipients. Linda Miller, the music teacher got one of this year’s grants as well as another in a previous year.

The grants are one way that the private sector can contribute to education. They are also an incentive for teachers and others to come up with creative options that would make learning fun for kids. Succeeding in getting one of these grants is exciting for the entire school.

Edmonton Property Report - February 9th, 2011

Regina Takes Top Spot for Home Price Increase in Re/Max Study

Calgary may have gotten most of the press during the last decade for its hot housing market, but when the numbers were crunched, it was Regina, Saskatchewan that saw homeowners getting the largest rate of return on their homes. In 2000, the average cost of a home in Regina was $94,518. By 2010, that average soared to $258,023. That is a 173 percent increase over that decade.

Other areas across Canada that saw substantial price increases were Saskatoon, Saskatchewan that saw prices go from $112,567 in 2000 to $296,293 in 2010, an increase of 163 percent. Toronto, Ontario saw a 77 percent rise in price, topping off at $431,463 in 2010. Montreal, Quebec, that saw prices at $297,621 by the end of that decade realized a 145 percent increase. Vancouver, British Columbia saw the average price of a home go to $675,853, an increase of 128 percent. Back in Alberta, Edmonton started out the decade at $124,203 and ended up with an average home price of $328,803 by 2010, increasing values by 165 percent.

Calgary’s average home price went from $176,305 to $398,764 over that period, or a 126 percent increase. Those in the know are still of the opinion that buying a home in Calgary is still a good investment, particularly if you go into that investment thinking long term.

Edmonton Property Report - February 3rd, 2011

The Gap in Oil Prices between Canada and the United States Continues to Grow

The United States is Canada’s largest customer when it comes to buying oil. That may have been a great idea in the past, but now the contracted price, based on the U.S Benchmark in New York, is costing Canada about $10 per barrel. The March Brent benchmark, which is calculated in London and covers two thirds of the world oil production, is $98.56 per barrel. The United States benchmark is $87.02.

Reasons for the gap include an oversupply, particularly in Cushing Oklahoma. This automatically causes import prices to go down. On the other hand, prices in the European market are rising because of the extremely cold winter on that continent.

China could be a lucrative market for Canadian oil, and not one that should be overlooked. In 2010 that country’s oil and related products consumption was 12 percent higher than in 2009. That country’s economy continues to grow, meaning even more of a need for energy. Alberta has been trying to build a pipeline from the oil sands to the British Columbia coast so that it would be easy to ship oil to Asia, but so far environmentalists and First Nations groups have opposed the idea.

In spite of this the Commodity Price index did rise 5.5 percent comparing this past December with the same month in 2009. Oil and gas products led the way. The agricultural sector gained a healthy 8.2 percent during the same time comparison. Meat, sugar and oils were more expensive. The increased production in the agricultural field means an increase in the price of potash for 2011. Potash is a key ingredient in the making of fertilizer.

Edmonton Property Report - January 27th, 2011

Winter Driving Requires A Bit More Preparation and Lots of Common Sense

Strathcona County, like much of Alberta, is in the middle of a very snowy, very cold winter. And it’s only January.. As expected, motorists are finding it more difficult, if not impossible at times, to get from point A to point B. The Alberta Motor Association has some tips for you to make your winter driving experience a bit more bearable.

Most cars sold in Alberta offer a block heater. This keeps your engine oil warm in extremely cold temperatures. Plug in your car if the temperature falls below -15C. Otherwise your oil takes on the consistency of unbaked fruitcake batter and your car may not start. A tester called Plug Alive will let you know if your engine block heater is working.

Keep your gas tank full and your tires at the correct pressure. This keeps the gas lines from freezing and keeps you from running out of gas and getting yourself stranded. Dress warmly and have a survival kit in your car including food, water, flashlight, candles and blankets. Carry a shovel just in case you need to dig yourself or someone else out of the snow and kitty litter to give traction on icy spots. Be sure and keep your cell phone charged and carry a spare key just in case you get locked out of your car.

Don’t drive if weather conditions are too extreme. Sometimes you can just tell by looking out the window. Or, you can go to AMA’s website or their twitter account for the latest information on road conditions. If you must go out, take it slow and keep a look out for emergency crews and vehicles that may be working on the roadway.

Edmonton Property Report - January 25th, 2011

Strathcona County, Edmonton Area Expecting Positive Economic Numbers in 2011

The news at the monthly luncheon meeting held this past Wednesday by the Sherwood Park and District Chamber of Commerce was good. In Strathcona County, as well as in the rest of Canada, economic outlook was promising. So says the manager of the Strathcona County Economic Development and Tourism Department, Gerry Gabinett.

According to the Canadian Chamber of Commerce, businesses throughout the country can expect roughly a three percent growth during the coming year. In the Edmonton metro region, that growth is expected to be about four percent. Alberta showed an increase of 2.9 percent for 2010, in spite of the less than stellar economic climate.

As far as Stratchcona County goes, the positive economic past performance and future predictions are the result of that areas increasing population. As of 2009, there were 87,998 people counted in the census. That is a 6.7 percent increase since 2006, and 22.2 percent higher than in 2001.The county also has the highest average household income within the capital region, coming in at a bit over $109,000. The average for the entire region is a little over $70,000.

In 2006 Strathcona County had some 47,515 people in its workforce with 31,365 jobs filled locally. Since 21,245 residents worked in Edmonton and a few thousand more in other areas, that meant that Strathcona County was, and is, providing employment for people in other parts of the capital region.

Edmonton Property Report - January 19th, 2011

Edmonton Cancels Green-Light Traffic Tickets Due To Technical Glitch

Derek Wright forgot to pay his traffic ticket. He got it for speeding up to make it through a green light that was going to change. An intersection safety camera captured his car’s license plate and that, as they say, was that. But, in a surprising reversal of policy, his $154 ticket, as well as all others issued in similar circumstances, has been cancelled. He happily tore it in two in the presence of a photographer from Sun Media, an organization that helps people fight traffic tickets.

Sun Media is about to get very busy. Edmonton’s transportation department, as well as the police, have admitted finding a glitch in the system. First discovered in July, the camera/speed detection system was not recording the speeds of the targeted vehicles correctly, they were much too high. City officials went to the manufacturer and the problem was considered fixed, but not so.

As a result, anyone that got a ticket from as far back as July had their citations cancelled. For those who have already paid the fines, the Crown Prosecutor’s office is looking into who deserves a refund. Red light running tickets and speeding tickets recorded outside of intersections are not included in the mass cancellation.

Agencies like Fight That Ticket, which helps clients fight unfair tickets is showing surprise at the move. One of their traffic court agents, a Steve Mitchell believes this will encourage more people to fight radar tickets. The technology leaves much to be desired, and that makes the work of agencies such as Mitchell’s a whole lot easier.

Edmonton Property Report - January 7th, 2011

Housing Prices in Canada Expected To See a Steady Increase

Royal LePage is predicting that Canada is in for a strong real estate year. Prices are expected to continue to rise at a steady pace, while sales are expected to be about the same as 2010. The real estate firm predicts a three percent rise in average home prices, working out to roughly $348,600 per home.

LePage’s survey also showed that in the last quarter of 2010 housing prices rose between 3.9 and 4.6 percent. Breaking the prices down by property type, a detached bungalow showed an average price of $324,531, a 4.6 percent increase over the third quarter in 2009. Two-storey homes, standard category, came out to an average of $360,329 or a 4.4 percent increase. Condos averaged $226,746, or a 3.9 percent increase.

The steady increase in prices and the still low mortgage rates are keeping buyers interested. The possibility of higher mortgage rates in the latter half of 2011 may stimulate more sales as people try to get in under the wire. Roughly 60 percent of sales are expected in the first six months.

Alberta is most likely to have the healthiest increases as the oil-rich province gets back on track with production, leading to increased employment opportunities. Real estate price are expected to rise 5.4 percent in Calgary and 3.3 percent in Edmonton. Sales should rise 6.7 percent and 9.1 percent, respectively.

Edmonton Property Report - December 22nd, 2010

Ed Stelmach Dispels Rumors of California Connection to Heartland Powerlines

Premier Ed Stelmach did his best to squelch the rumors that the reason for installing more power transmission lines was not to sell electricity to California. At a Chamber of Commerce meeting in Sherwood Park he emphatically denied the concept and had no idea where it had come from.

Stelmach emphasized that the lines were needed as part of Alberta’s infrastructure. Roughly 30,000 businesses that belong to the Chamber throughout Alberta are in favor of the lines, stating the need for increasing transmission capacity is already there. The Premier also explained that 80 percent of all electricity used in Alberta went to the industrial sector.

He further went on to say he understood the concern about rising electricity costs, both from residences and some businesses. Stelmach assured the luncheon group that the lines would be constructed and funded in such a way to keep the costs from skyrocketing and having to push too much of that cost on to consumers.

He noted the recent cold snap in Calgary last month where the temp was -30C. The power consumption of that city almost set a new record. This is why, Stelmach noted, the lines are needed and that they need to work perfectly. The population of Alberta keeps growing, and even without a bone-chilling cold snap, power consumption in the province will just keep going up. The current lines, installed in the 1980s, are really not going to be able to handle the load.

Edmonton Property Report - December 16th, 2010

Alberta Looks Towards Asia For Natural Gas Exports

Energy Minister Ron Liepert was at an energy conference in the United States last week and Texas announced that it has discovered a new shale gas field. This new find is expected to produce cheaper gas, and in vast quantities. This is just the latest in United States gas finds that threatens to eliminate Canada as a supplier to that country.

Liepert believes that the logical step is to start looking for new markets in Asia. The best way to do that is to amalgamate the oil industries in Alberta, Saskatchewan and British Columbia and approach Asia with a united western front. If Canada can convince Asian markets that we can produce a reliable source of product, and they show interest, then it will be easier for private oil companies to find investors. Those funds would be needed to build pipe lines and terminals on our end and to further exploration for new product.

Looking overseas for new customers is of vital importance to the future of our gas industry. Natural gas prices are expected to remain on the low side for roughly the next three years and with the United States continuing to find gas deposits, the market in that direction is starting to look pretty grim.

The price point for LNG, or liquefied natural gas, is twice as high on the Asian market as it is in North America. It does cost more for the long distance shipping of the gas from Canada, which does eat into the profits. One facility, Kitmat LNG that is owned by the Apache Corporation and EOG Resources Canada is undergoing its regulatory review. Eventually this plant could ship out 10 million tons of LNG per year though a British Columbia port.

Edmonton Property Report - December 10th, 2010

Higher Housing Inventory Causes Edmonton Housing Starts To Slow

Edmonton’s housing starts slowed this past November after showing a remarkable recovery after the recession. The slow down actually started in October when home listings started to go up and at the same time sales were slowing a bit. But this past November, with a 20 percent decrease from November of 2009, showed the biggest drop in start numbers.

In total, 755 homes were started this November, compared to 938 in the same month in 2009. Single family homes saw the biggest drop, 25 percent, with 453 homes being started. Multiple unit projects fell by 9.3 percent, from 333 to 302 homes. Apartments saw a significant increase in starts, with 173 units started this year compared to 63 during November of 2009.

Despite this, 2010 was considerably busier than 2009. There were 9,401 starts by the end of this November, compared to 5,505 during the same 11 months of 2009. Single family homes, when compared year to year were up two-thirds over 2009. In 2010 there were 5,753 starts in that category. Multiple unit starts, 3,648 this year, were up 77 percent.

Throughout the province there were 17,600 homes started this November, down from the 21,300 logged in October. From January to October of 2010, the average number of monthly home starts per month was more than 25,000.

Edmonton Property Report - November 30th, 2010

Commercial Real Estate Investors Deterred by Canada’s High Property Taxes

High property taxes are dissuading possible investors in Canadian commercial real estate, according to newly released research. The study, conducted by Luxembourg-based Taxand, shows that owners of commercial real estate in Canada pay higher taxes than anywhere else in the world. Per Taxand, the taxes represent a huge 53 percent of property rentals.

Keith O’Donnell, who is the chair of real estate for Taxand, said that Canada’s astounding rate is a result of high tax levels, inclusive of both real estate and income taxes.

Coming in second in terms of commercial real estate taxes is the U.S., with a rate of 41 percent. Norway places third, with a 36-percent rate. On the low side, Finland is the winner, charging only 8.99 percent in commercial real estate taxes.

Gerry Divaris, a vice president at Cushman & Wakefield’s property tax department, said that the system is clearly ill, and that nobody has the guts to repair it. He said he was not surprised by the results of the Taxand research, as investors have been voicing complaints that Canada is expensive for conducting business. Davaris advised that Canada certainly has its benefits relative to other countries, but the tax situation detracts from those benefits.

Divaris noted that in the Toronto area, residential properties are taxed at one percent, but commercial properties are levied with a four-percent tax. He said that it is understood that homeowners do not desire tax increases, but that commercial properties suffer. The issue, he said, is that if businesses fail, there will be a reduction in the number of jobs people need in order to pay for their homes.

Edmonton Property Report - November 25th, 2010

Industrial Real Estate Market in Edmonton Holding Steady

At the end of 2010’s third quarter, Edmonton’s industrial real estate market posted a 4.4 percent vacancy rate. According to real estate agents from Avison Young, this number means that the market is showing signs that it is stabilizing. It is virtually the same as the prior quarter. The firm also stated that demand is slowing increasing, with developers once more showing interest in building new projects.

Large land deals negotiated during the first nine months of 2010 have already brought in more money than in all of 2009. One deal with Western Asset Management saw 92 acres of industrial land, already serviced, change hands. The intent is to build 400,000 square feet of space on the site as soon as possible.
The commercial real estate market in Edmonton also saw a more active third quarter, showing $1 billion worth of sales, a 56 percent increase over the same time period in 2009. An Avison Young principal advisor, John Ross, believes that the Edmonton market is holding quite a bit of capital. These assets are attracting investors from both the private and public sectors. It is not uncommon to see multiple bids on a property.

The office rental market did show a 1.3 percent increase in the vacancy rate over this year’s second quarter, going to 9.6 percent for the third quarter. An additional 75,872 square feet is up for lease in the third quarter because of the decline. That sector is favoring the tenants, with competition for those renters driving down the lease rates, which are expected to drop by 10 to 15 percent over the next year.

Edmonton Property Report - November 12th, 2010

Edmonton Housing Starts Decline, but on Track to Surpass 2009 Totals

Although they at healthy levels this past spring, new-construction home starts in Edmonton have declined, with starts at a level not seen since June of last year. According to a report issued by the Canada Mortgage and Housing Corporation, construction initiated on 755 housing units in October, versus 947 homes in October 2009.

In spite of this decrease, the growth seen earlier in the year helped to increase the overall ten-month number of new-home starts to 8,646, as compared to 4,567 home starts in the same period of 2009. Per Richard Goatcher, senior marketing analyst in Edmonton for CMHC, the housing industry should be on a path to approach the ten-year annual housing start average, as recorded for the years between 2000 and 2009.

Another industry expert foresees a slowdown in the number of new-home starts: Todd Hirsch, an ATB Financial senior economist, reported that housing starts in Alberta have perked up since hitting lows last year, with a 58-percent increase in starts through October versus the same period last year. However, the housing starts for 2010 peaked in March, with more than 30,000 new homes, and the number of current starts is trending at a considerably slower rate, Hirsch said.

Hirsch said that a large percentage of the housing-start slowdown is due to the forward buying that took place during the first six months of this year. Many people were anticipating that interest rate increases would occur in mid-year. Although the significant rate hikes have not occurred, there has been a decline in the number of possible homebuyers.

Hirsch noted that although housing starts may continue to be weaker throughout this year, and into early next year, there could easily be a rebound. Population growth and a stronger employment market should pump up demand for new homes later in 2011, Hirsch said.

Edmonton Property Report - November 8th, 2010

Edmonton-Area Home Prices Remain Unchanged Despite Drop in Sales

Despite an almost 30-percent drop in the number of home sales in October, Edmonton home prices remain stable versus a year ago. According to Multiple Listing Service data released November 2, 1,077 transactions occurred for residential units in October. In addition to the sizeable drop versus last year, the number represents a nine-percent decrease from September.

Larry Westergard, president of the Realtors Association of Edmonton, said that the absence of rising sale prices takes the market back to its position of last year. Westergard said this situation was not anticipated. He said that he anticipated a slight increase in prices, but the situation reflects a continuing level of high inventory. The number of homes for sale is not permitting much in the way of heightened sales prices.

As a result of these market conditions, the REA has decided to revise its pricing forecast for the end of 2010 to show a lower year-versus-year sales price. Originally the association predicted that the year would end with prices increasing some 4.5 percent to five percent versus year-end 2009. Contributing to the more modest forecast is predicted sales activity in November and December, which is typically lower than in other months.

The average residential unit sold for $317,422 in October, down some three percent versus October 2009. The average single-family home sold for $365,691, showing a very minor shortfall of 0.39 percent. The median single-family home price of $345,000 represented a three-percent decrease versus a year ago.

Condo sales prices were also stable versus October 2010, having fallen a slight 0.91 percent versus October to $235,893.

The number of listings started to decline, as there were 7,689 homes on the market in October, in comparison to 8,602 during September. Richard Goatcher, Canada Mortgage and Housing Corp.’s senior market analyst in Edmonton, said that the market is experiencing a cooling trend, with year-versus-year sales shortfalls that started occurring in the second quarter of this year. Those declines continued through the end of September, and are not expected to stop in the fourth quarter.

Edmonton Property Report - October 28th, 2010

New Oilers Arena: Intentionally Lying Low in Election?

While the future of Edmonton’s City Centre Airport is a hotly debated item in the current election campaign, another downtown issue is not receiving the attention it should. The district earmarked for the new Oilers arena deserves more scrutiny, and it is hiding in the shadow of the airport struggle.

From the beginning, the decision to convert the airport’s land into a housing community was fraught with contention. Emotions have run high on both sides, and many thousands of dollars have been spent in trying to convince the public of the value of either the airport or the residences. Unless all incumbents are swept out of their positions October 25, the airport will be redeveloped.

A new brochure produced by the City of Edmonton describes the residential community. The only verbiage it contains regarding the airport is that the design will be true to the airport’s heritage.

After the final decision on the airport comes the next contentious issue. Financing arrangements are being made for the arena district, with the city and the developer, the Katz Group. Should things progress, construction might begin in January of 2012. Decisions have been made on most of the major aspects of the arena.

However, the Canadian Taxpayers Foundation has urged that the arena be put on the agenda for the election. Scott Hennig, the Foundation’s director in Alberta, mailed a questionnaire to all of the candidates. In it were questions about fiscal accountability, and most focused upon the arena. Of all the candidates, only five, all incumbents, responded to Hennig. They all contended that they did not receive, or would not accept campaign contributions from the Katz Group.

Two of the incumbent councillors, Tony Caterina and Don Iveson, responded to the CTF that they would push against the public’s having to fund the arena project, even in the proposed Community Revitalization Levy. Mayor Stephen Mandel supports the CFL, saying that the taxes generated by the new arena district would assist the city in paying off the arena construction loan.

Edmonton Property Report - October 19th, 2010

Edmonton Luxury Home Sales on the Rise

Despite the cooling in Edmonton’s housing market, sales of luxury homes are heating up.

According to the ReMax Market Trends Report Fall 2010, released on October 5, sales of homes priced over $700,000 rose 26 per cent over 2009. In August 2009, 190 upscale properties sold and in August 2010, 240 upscale properties sold.

In the first eight months of 2010, fifty-five homes sold at prices over $1 million dollars.

The report predicted that the end of 2010 will be stable with no major fluctuations in prices and sales. Sales to date fell to 11,773 units, a 14 per cent drop over last year’s 13,694 sales.

Inventory levels are up fractionally over 2009 but still down from 2008 and 2007, and the sales-to-listing ratio is down from 2009’s 59 per cent to 47 per cent, but up from 2008’s 42 per cent.

Average property prices rose only four per cent from $320,289 to $332,789.

ReMax’s report covers the developments and trends in 19 major cities across Canada, and found 11 of those markets were ahead of 2009 levels in their January to August year-to-date sales. In all cities, housing prices were up, but only Greater Toronto Area, Winnipeg, St. John’s, Sudbury and Vancouver saw double-digit increases.

The report called the required 20 per cent down payment detrimental for investors, but said the market overall is balanced.

Edmonton Property Report - September 28th, 2010

Application Blocked for Hope Mission Apartment Project

An Edmonton municipal board denied an application from Hope Mission to construct a downtown apartment building for recovering drug addicts and homeless people. The building would have contained 52 suites.

Warren Champion, president of the Central McDougall Community League, said that two main concerns regarding the proposed construction were a lack of parking facilities as well as an already large amount of social housing in the area. Champion said he hoped that there might be a better way of providing housing to alleviate stress in communities such as Queen Mary Park, McCauley and Boyle Street.

A common theme among inner-city dwellers is that social housing needs to be distributed more equably throughout the Edmonton area. Concentrating lower-income housing tends to increase the possibility of certain neighbourhoods becoming ghettos.

Champion said that of his community’s population, more than 50 percent of the residents live under the poverty level. Champion said that had the demographics been a bit more toward middle-income, he would not have had as many concerns regarding the development. He noted that the busy student population at Grant MacEwan University would have contributed to an already crowded area.

Typically, a minimum of 60 parking spaces are required at apartment buildings the size of the proposed Hope Mission project. However, Kelly Rowe, community relations coordinator for the organization, said that most of her clients are not able to afford autos, let alone insurance and licences.

Rowe said that the project’s goal would be to provide temporary homes for people undergoing a 12-month rehab program, as well as homeless people receiving government assistance. She said that Hope Mission had intended to start construction on the building in the fourth quarter of this year.

Edmonton Property Report - September 21st, 2010

Greg Christenson New Head of Alberta Canadian Home Builders’ Association

Greg Christenson is taking over the reigns of the Canadian Home Builders’ Association-Alberta as of today. He will serve as president and brings with him prior experience as chair of the strategic planning commission for the same organization but on the national front. He is also president and co-owner of Edmonton based Christenson Developments Ltd. His firm specializes in building urban villages and condo developments encouraging healthy, active lifestyles. He lives in one of his own projects.

Christenson has been developing multi family complexes for more than thirty years. He has a penchant for creating stable communities and attracting and then keeping communication lines open with governmental agencies, non-profit groups and other builders of a like mind.

Christenson is coming on board at a time when Alberta is poised to increase its population, its employment base and then ultimately, its need for new housing. Housing starts in themselves create more employment, so that is a win-win situation on many levels. One of his goals is to help attract a stable, family oriented workforce and keep them healthy and well housed.

The outgoing president is Deep Shergill and Christenson acknowledged his contribution and his desire to follow through on what has already been accomplished. The University of Alberta civil engineering graduate has been involved in the building trade and related industries since 1979 when he joined forces with his father in their designing and building firm called Chris Con Builders.

Edmonton Property Report - September 16th, 2010

Alberta’s Unemployment Rate Edges Up a Bit, But New Hiring Is Around the Corner

The number of full time jobs in Alberta increased by 10,900 province-wide this past August. But then the number of part time jobs went in the opposite direction, loosing 4,700 positions since last March. That gives Alberta a 6.5 percent unemployment rate as of August, up 0.2 percent. In addition, there were 1,300 more people looking for work.

Most of the jobs lost in August were in the real estate, finance, social care, health services and in manufacturing. We are still ahead of August of 2009 when the unemployment rate was 7.3 percent. Since then Alberta has come up with 29,000 more jobs. The province’s working force has also increased by roughly 13,500 people.

Across the nation, the employment rate was static in Manitoba and was falling in both Saskatchewan and British Columbia. These stats are courtesy of the Albert Federation of Labour. Gil McGowan, the federation’s president, is not happy with the figures and it appears that Alberta is experiencing the slowest employment recovery in the nation. When you take into account part time workers that really want full time work and workers that are in jobs where they are overqualified, the unemployment rate in Alberta is 9.2 percent.

But it does appear the unemployment numbers will soon improve. A recent Manpower survey showed that employers in Calgary, Red Deer and Edmonton were planning to hire during the fourth quarter of 2010. According to the study, none of the firms questioned were planning to lay off staff.

Edmonton Property Report - September 9th, 2010

Man Uses Facebook to Announce Edmonton Mayoral Candidacy

Only six weeks before Edmontonians elect their mayor, another person has announced his candidacy. Dan Dromarsky, age 32, declared his intention to run for mayor via his Facebook page. He sought to “friend” 75,000 people. However, as of September 2, only people “liked” or were “friends” on Dromarsky’s page.

On his Facebook page, Dromarsky noted that while he wants to run for mayor, he also wanted to assess the potential of social media. He commented that people expend fortunes on campaigns, but he wanted to demonstrate that this is not necessary to connect with constituents.

Other mayoral candidates include incumbent Stephen Mandel, Daryl Bonar, a lieutenant in the Canadian Forces and real estate investor, as well as Don Koziak, a local businessman.

Bonar announced his intent to run for mayor back in May. He appeared August 30 at a boxing club in north Edmonton, addressing key campaign issues and to attack his opponents in the race. Bonar said he wants to address concerns of the area’s small businesses, outline a crime-fighting program and introduce ways to reduce financial burdens on students. He acknowledged that he has never been involved in politics, but said that this would actually benefit the city, as well as city council. He noted that no city councillors are currently campaigning for mayor. He also cited what he referred to as his proven record of community involvement and leadership as vital attributes to his candidacy.

The four candidates are entering the home stretch to generate votes, as the mayoral election will be on October 18.

Edmonton Property Report - August 21st, 2010

Airport Plebiscite Group Will Not Release Donor Names

Efforts to force a plebiscite to prohibit city council from closing Edmonton’s City Centre Airport are becoming expensive, as well as laden with privacy concerns. Donors range from blue-collar employees to wealthy individuals who have contributed as much as $20,000.

Chuck Allard, who chairs the Envision Edmonton group, says that the campaign to save the airport has democracy as its core principle. He is not releasing the names of people, organizations, unions and even towns that have thus far contributed to his effort. He advised that many of the donors fear repercussions from local government officials. The contributions are not tax-deductible, in any case.

Allard said that he wants to ensure that Edmonton-area residents are able to vote openly on the airport issue. He compared the current price of his initiative to that of a mayoral campaign.

At the time of this writing, approximately 8,000 people needed to sign petitions that require a minimum of 72,000 signatures to compel a plebiscite. In addition to commissioning ten people to solicit with petitions, Envision Edmonton released radio ads on its campaign. Until August 17, the organization had offered payment of 80 cents per signature to some community organizations, but public criticism forced withdrawal of this practice.

The Envision Edmonton Opportunities Society was born June 18 of this year, shortly after Airco Aircraft Charters was prohibited to obtain an injunction that would keep the airport from closing. Ed Schlemko, Airco’s president, is one of Envision Edmonton’s founders, along with Allard. Other founding members include Dea Braithwaite, Barry Breckenridge and Eugene Strilchuk.

Edmonton Property Report - August 16th, 2010

Unwanted Tickets Distributed at Music Festivals

Attendees of the Edmonton Folk Music Festival and Fringe events will be getting tickets, and more tickets, the latter being those for illegal parking. In the past few years, the number of tickets for parking violations has increased greatly, from 460 in 2007 to 817 last year.

The number of tickets issued could increase this summer, following 340 notices of violation notices as well as 55 warnings. These were distributed during the festival that ended August 8. Josh Puchailo, acting coordinator of parking enforcement, said that officers are free to roam in cars and on bikes. He said that most of the $50 tickets were issued for offenses that include parking too close to stop signs, fire hydrants and intersections.

Puchailo said that the rise in tickets is concurrent with the staffing increase: Some six officers patrolled the area during the folk festival, and about four will be in place for the Fringe.

Dave Kinsman, who is a traffic control general engineering supervisor, said that parking restrictions stated on portable signs are unenforceable. Areas where these signs are seen include Bonnie Doon and Strathearn. Kinsman said that his team tries to keep non-resident parkers out of the neighbourhoods, but it can be difficult to determine residents versus visitors. Identification cards are provided to Cloverdale residents, so they can pass through gatekeeper volunteers. Kinsman noted that a similar program could be implemented for people who live at the top of Gallagher Hill. However, given the number of access areas to the hill, it would be difficult to manage such an effort.

Edmonton Property Report - August 9th, 2010

Rents To Rise In Edmonton As Real Estate Sales Slow Down

The Edmonton real estate market is showing signs of becoming a buyers market. Housing prices fell in July as buyers started to take their time shopping for and placing offers on an increasing number of listed homes. Single family home prices decreased by 3.1 percent and condos dropped 1.5 percent.

Almost 93 percent of homes sold in July went for less than their asking price. Of those, 40 percent had already lowered their original listed price. The average price of a condominium was $240,032 in July and a single family home went for $378,979. Townhouses and duplexes averaged $304,032 per sale. At the end of July there were 8,892 properties listed.

At the same time the vacancy rates in the rental market are decreasing. Apartment owners are starting to drop the incentives needed to attract clients earlier in the year and are considering increasing rental rates as early as the latter part of 2010. Rental rates are still lower than those in 2009. The average two bedroom apartment went for $989 in 2010 and $1,105 during 2009. The spread for one bedrooms was less, $843 per month this year and $862 in 2009.

In the commercial real estate sector, the industrial market is holding steady with a 3.5 percent vacancy rate. The office rental market is still quite soft with owners offering incentives to attract tenants. The vacancy rate was at 8.6 percent at the end of June, up slightly from the 2009 year end 7.9 percent. Lease rates remain fairly stable at roughly $23.00 per square foot.

Edmonton Property Report - July 5th, 2010

NAIT LRT Line Stays on Schedule

Alberta has announced that Calgary and Edmonton will both be receiving $800 million in transit funding. The province also released its guidelines for municipalities to apply for the Green Transit Incentive Program (TRIP). The program is meant to equal one-half of Alberta’s funding to reduce greenhouse gas emissions.

The announcement means that the 3.1 kilometre NAIT LRT line will be finished in 2014. Edmonton’s transportation general Bob Boutillier said he will immediately put out contracts for construction work and ordering 10 LRT cars so they can arrive by 2013.

Parts of the $725 million project are underway, including a $45 million tunnel under Epcor Tower, property purchases and design engineering. The route will connect Churchill station and will stop at new stations at NAIT, Royal Alexandria Hospital and Grant MacEwan University.

LRT lines to Mill Woods and Lewis Estates will also receive funds, but will need further assistance from the federal government, similar to what Toronto, Ottawa and Vancouver received.

All three Edmonton LRT routes will cost approximately $3 billion.

City councillors recently approved more LRT expansions, including a downtown line linking southeast and west LRT routes, a northwest route through City Centre Airport, a west route on 153rd Avenue, a north route on 113A Street and a park-and-ride at the Edmonton-St. Albert boundary.

Funding will be made available after projects begin; $70 million will be available this year. Other Alberta municipalities will have the opportunity to take some of the $400 million transit funds for their own uses.

Edmonton Property Report - June 24th, 2010

Suspicious Father’s Day Blast Kills Four

A house exploded in a north end Edmonton neighbourhood this past Father’s Day and so far there is no explanation. Four people died in the blast that police are treating as a homicide until the incident can be investigated. Two of them were in a house just to the north of the one that blew up. The force of the blast turned their home into a charred foundation, killing Bradley Winter and Craig Huber in the process. The other two victims have yet to be identified.

So far Edmonton Police have not found any evidence of a drug lab or explosive weapon, but the case will remain open. Houses just don’t blow up without cause and criminal act or no, other residents need answers.

There could have been more victims but residents joined forces to rescue people from neighbouring homes, including the one to the north that was totally destroyed. Bradley Winter’s fiancé and her son were pulled from inside the home. Police and fire evacuated 40 residents from homes around the site and they won’t be able to return until the area is deemed safe.

This is the biggest explosion in Edmonton since the one in 1989 that was caused by a natural gas leak and that killed one person. Thirty five homes were destroyed or damaged.

Edmonton Property Report - June 16th, 2010

Family Law: A Dysfunctional Practice?

Attorney Dawn Nelson’s entire practice is devoted to Legal Aid family law clients. Many others in the legal profession either have avoided or abandoned practicing in this area of the law. The perception, sometimes valid, is that family law is a high-stress practice full of nasty divorces, child custody fights and battles over assets.

Indeed, there appears to be a dearth of family-law attorneys in Edmonton. Just getting a consultation can take weeks. Lawyers are often compelled to reject cases simply because their schedules are full. In turn, would-be clients appear in court without any counsel, which is a risky thing to do.

Marie Gordon, a family-law attorney in Edmonton said that the situation in her area of law has changed dramatically. In 2000, family-law practitioners were actively seeking clients. Now, schedules are booked among those still practicing family law.

Nobody is certain of how many attorneys are currently in this field, or how many were practicing a decade ago. Gordon contends that many attorneys formerly in family law have moved into better-paying areas such as corporate, commercial or real estate law.

There may also be a perception among law students that family law is not as prestigious as other areas in the legal field. Some law students apparently see family law as having more to do with counselling, as opposed to traditional law practice.

Gordon said that perceptions about troublesome family-law clients are generally untrue. She said that the great majority of the people she works with need good advice and a better understanding of their rights in legal cases. Nelson says she feels good about working directly with people and helping them improve their lives.

Edmonton Property Report - June 10th, 2010

Empire Marble & Tile Building Façade to Get New Life

An Edmonton developer is using a unique approach to combine history with new construction at a Jasper Avenue location. The façade of the Empire Marble & Tile Company building will not only be retained, but will be covered with a glass curtain wall to protect it. The developer, Redleaf Enterprises, is trying to retain as much as possible of the 1919 structure in its new presentation centre.

According to Redleaf’s Joe Martins, the new facility will showcase information about a number of high-rise developments the company plans to build. The properties slated for construction are a few blocks away on Jasper, as well as in Oliver. Martins advised that his company uses money from investors in China to underwrite new developments.

The walls of the Empire Marble structure will be used in a larger building that will use some of what was the Wigger Draperies facility. Not all of the Empire Marble building can be salvaged, however, because of its poor condition.

The building is on Edmonton’s list of historic resources. Technically, it deserves conservation but is not legally protected from destruction. Heritage planner David Holdsworth said that negotiations were conducted to save as much of the structure as possible.

Holdsworth noted that the building is well designed, with unique brickwork and tile details. He said that the curtain wall might make it a bit more difficult to see the edifice, but will not harm the building. Martins said that the preservation effort will cost his company an unplanned $1 million, and the presentation centre’s permit is good for only five years.

If economic conditions continue to improve, Redleaf may build a condominium tower on the land occupied by the presentation centre, which might mean complete destruction of the Empire Marble façade. Holdsworth hopes that some elements of the original structure might be retained.

Edmonton Property Report - June 2nd, 2010

Ottawa and Edmonton Both Looking to Revitalize Their Downtown Cores

Edmonton is in the early stages of putting together the Downtown Arena District plan, headed by the Katz Group. This plan is intent on revitalizing a part of Edmonton’s downtown that could definitely use a facelift. The idea of building a new arena for the city’s hockey team, the Oilers along with shops, parking, office space and whatever else a billion dollars can buy has its attractions, and its hurdles. It appears that Ottawa, though on a smaller scale, is planning on a revitalization of its own.

Ottawa’s path to development is not without hurdles of its own. As private and public entities jockeyed for position, the architects steadily worked on their presentation, which was unveiled this past Thursday, complete with promotional video. The reaction to that video, though not a complete turn around from when the project was first conceived, was of slightly subdued, abject admiration.

The Ottawa project, expected to come in somewhere in the high $300 million range is called the Lansdowne revitalization effort and has some challenges that Edmonton does not have to face. The Ottawa project had to incorporate the historic Aberdeen Pavilion into the plan as well as an existing canal side parkway into the new concept.

The vote to approve Ottawa’s development is on June 28th. While the vote is not a given, judging from the reactions to the proposal it has a good chance of passing the test. Edmonton is just at the beginning of their process. They just might want to take a look at Ottawa and learn from their experience.

Edmonton Property Report - May 14th, 2010

Edmonton Receives Grant To Build 300 Homes For The Homeless

Edmonton’s campaign to fight homelessness got a huge boost on Tuesday when the province announced that it has received $29 million in grants to build 300 homes for the less fortunate. These homes will be built in six neighbourhoods, Westmount, Inglewood, Parkdale, Canora, Jasper Place and Central McDougal. Each community will have between 11 and 60 new suites built.

One of the first grants went to Boyle Street Community Services to build a 60 unit apartment building in Central McDougall in the downtown core. The $5.9 million dollar gift will allow the group to build permanent homes for people they have been taking care of for over 40 years. The complex will be called Les Mitton House and the development company will be Leston Holdings, a company that has been working in the city for over 25 years.

The idea is not just build the homes and put the people in there, but to guide them back into the way of living a normal, healthy, adjusted life. Tenants, which will most likely move in by early 2011, will get regular visits from social workers and volunteers and help with routine living chores, such as registering with a doctor or getting groceries. Much as a new home is welcome, it does come with a bit of culture shock and such aid is needed for a successful transition.

Funding for the Les Mitton House comes out of the $100 million the province has put aside for its Housing for the Homeless Program started in 2009. The ultimate aim is to end homelessness in Alberta by the year 2019.

Edmonton Property Report - May 7th, 2010

Non-Profit Groups to Get New Home on Land From City

At its May 3 meeting, Edmonton’s City Council issued land at 4803 58th Avenue
for a new not-for-profit center on the city’s south side. Two organizations, the Christmas Bureau of Edmonton and Santas Anonymous, are proposing the construction of a $21 million building to be called the Jerry Forbes Centre for Community Spirit.

The proposed venue would be 6,300 square metres in size, and would include space for offices, meetings, workshops and warehousing. Other volunteer groups would rent some of the space in the building. For most of the past ten years, Santas Anonymous has conducted business with warehouse space donated by other companies. According to Debbie Walker, project leader for the new building, Santas Anonymous has managed to lease space until its 2011 Christmas campaign.

Walker also said that more than 60 other organizations are interested in using the new centre. She also said that the new venue would not need funding from the City of Edmonton for its operating expenses. Construction may begin in May of next year and, pending accumulation of sufficient capital, would be complete by next November. Funding is expected to be provided mostly from the City of Edmonton as well as from the federal and provincial governments.

The land, which is valued at $3.2 million, will be provided by the city for $1 each year. At an upcoming meeting to adjust budgets, city councillors will decide whether to allocate some $2 million that is requested to build the centre. Councillor Amarjeet Sohi said she believes the project is positive and important. She noted that the project is an example of how the city is changing how it works with not-for-profit organizations.

Edmonton Property Report - April 28th, 2010

Homeowners Wise to Invest in Energy Conservation

When Dnestrianschii planned and designed his home, he ensured it had options for various, cost-effective energy sources to prepare him for future fluctuations.

His domestic hot water and the garage and basement’s in-floor heating are supplied by a natural gas boiler, and the upper floor heating is supplied by a forced air furnace. In case gas prices rise, Dnestrianschii has piping installed and a spot selected for a wood pellet boiler. More piping is prepared for heat storage and can accommodate an 80-gallon water tank.

Additionally, he built his roof ready for solar panels to heat water or generate photovoltaic electricity.

This preparation seems to be an escalating trend. Leigh Bond, with Threshold Energies, said people’s interest in ensuring their new homes are ready for future energy supply changes is rising. Preparing the roof for solar panels is a common request.

Bond is beginning to implement the option for geothermal heating by including a sleeve assembly when he pours housing foundation. While the cost runs about $1,500, Bond said it saves homeowners an expensive addition.

Builder Peter Amerongen also said that he is often asked to run conduits to roofs in case owners want to add solar panels at a later date. He encourages clients to triple-pane windows, insulate walls and the basement floor with a minimum R40 insulation and ensure airtight construction.

And while these options may tack on costs to an already-tight budget, Amerongen advises homeowners to consider investing in conservation to save themselves thousands later.

Edmonton Property Report - April 21st, 2010

Edmonton Oilers Takes First Step On The Road To A New Hockey Mega Arena

The Edmonton Oilers NHL hockey club have decided it is time to end the speculation and submit a formal proposal for their new arena. The rezoning application has been completed and the $70,000 fee has been paid. This is the first step in the bringing to life of the $1.4 billion dollar project.

The project is not just an arena. The 16 acre plot of land on the northern edge of Edmonton’s downtown core is also slated for a practice rink, two condo buildings, two hotels, two office towers and two residences designed for students. There will also be plenty of retail space for lease and room for 4,000 cars to park. As of now the plot of land holds a casino and parking lots. The improvements will help with Edmonton’s plans to revitalize the downtown core.

The proposal, submitted by the Katz Group, whose president is the Oilers’ owner Daryl Katz, will also change the city skyline if approved. Part of the application is to get approval for towers that are as high as 60 storeys. That is twice as high as Edmonton’s tallest building.

Now comes the meetings and the public discussions and the figuring out of who is going to pay for the project. It is not known if there will be enough information for the proposal to be a concern for candidates in the general election later this year. Public meetings could be held as early as this July.

There is not expected to be a great deal of opposition from Edmontonians as long as the project does not increase property taxes. The idea of a new arena with all of its additional structures is appealing, as is the chance to give that plot of land on 104th Avenue a much needed face lift.

Edmonton Property Report - April 15th, 2010

Housing Starts Slow in Canada For The First Time in Three Months

For the first time in three months, housing starts in Canada showed a decrease according to the Canada Mortgage and Housing Corporation. Most of the slow down was in the multiple family project market.

While the urban multiple family home starts decreased by 15 percent to 77,500 units, the single family home market, also in urban settings, saw an increase of 6.9 percent translating to 97,700 units being started.

Housing starts were expected to hit 205,000 by the end of this past February, but the actual numbers worked out to be 197,300 units. It is predicted housing starts will continue to slow, particularly in the third quarter as interest rates rise. The mortgage rate has already started to rise with the first round of increases implemented on March 29th led by Royal Bank and Toronto-Dominion.

Canada has been enjoying some of the lowest mortgage rates in several decades which helped the country’s economy bounce back so quickly from its most recent recession, the first since 1992. The Bank of Canada has had its key rate set at 0.25 percent since April of 2009.

Edmonton Property Report - April 7th, 2010

Closure of Airport bad news for business

Edmonton aviation businesses are appealing against the city’s decision to close City Centre Airport. The newly formed umbrella group, Aviation Edmonton, representing businesses located at the airport, has asked for an injunction that would keep the City Centre open for the duration of its lease with Edmonton Airports. The lease runs until 2052. A ruling by the Court of Queen’s Bench will decide on the issue this month.

Jeff Foster, who runs a maintenance business at City Centre Airport, and is President of Aviation Edmonton, says if the airport closes he will be forced to move his business to Springbank airport in Calgary – something he would prefer not to do.

Because Springbank is a general-aviation airport, it would be a better location for his business than Edmonton International. Last year, Springbank built another new hangar, the fifth in as many years, and is one of the busiest airports in Canada.

Bruce Ritchie is another businessman at City Central Airport wondering about his future. As president of Centennial Flight School, Ritchie needs to locate his business where it is accessible to customers. Springbank is an option. And, so is shutting up shop. Other airport businesses may also close down if the airport closes.

Airport businesses are not the only ones who will suffer if the City decides to close the airport. Local hotels would immediately lose 50% of their customers, says Phil Milroy, a local real estate developer. This would represent at loss of $500,000 a year to his company.

Edmonton Property Report - March 30th, 2010

Alberta Is Helping the Homeless, One Housing Unit At A Time, And It’s Working

Craig Richardson has a new life, thanks to Alberta’s new take on helping the homeless. The one time drunk has been sober for seven months, is living in his own place and is taking advantages of the support services funded by the provincial government.

The Mustard Seed is an important player in this project. They are getting $12 million from the provincial government to build 112 more housing units for the homeless in Calgary and Edmonton. That money comes out of some $100 million that were earmarked for the provinces ten year plan to end homelessness in the project, started in 2009.

Another $7.3 million will go to the Hope Mission so that organization can build another 52 units. Progress has been good during the first year of the “Plan for Alberta: Ending Homelessness in 10 Years” that was passed on March 16th of 2009. Since that date, over 1.300 homeless people have found permanent housing, nearly 500 of those in Edmonton.
The program has resulted in an 11 percent drop in the use of temporary shelters province wide in the last year, a further measure of success.

Instead of being a drain on society, at an average cost of $100,000 per individual when health, police and emergency issues are taken into account, a formerly homeless person can become a contributing member of mainstream society. Even the initial outlay, somewhere in the neighbourhood of $35,000 per person to supply housing and social services, is far below the current cost to sustain the status quo.

Financially the plan is just good old common sense. Morally, it is just the right thing to do.

Edmonton Property Report - March 24th, 2010

Children’s Services Minister Orders Reassessment of Over-Capacity Foster Homes

More than 100 Alberta foster homes are over capacity, according to the province’s ministers of children’s services. Yvonne Fritz made this announcement on March 17 to the policy field committee on health, adding that during the next two months, the residences will be reassessed.

She advised that the 100 homes constitute four percent of all 2,500 foster homes in the province, and that those 100 foster families are caring for more children than allowed by their licenses. Fritz requested her staff to look into these homes for verification of the extra children, as well as to ascertain that the children’s needs are being met. When the staff’s report is ready, which is to be by May 27, Fritz will share the results with the public. She is currently receiving updates on a weekly basis as to how many children are being placed in homes already over capacity.

At present, most foster homes are licensed to allow two to four children. An additional license is needed to accommodate more children. Fritz noted that some families request additional children so that siblings can be kept together.

Fritz said that fatal or life-threatening foster-care events from the past few years did not initiate this reassessment. Fritz’ predecessor, Janis Tarchuk, revealed last year that an aboriginal male toddler almost lost his life due to head injuries while in foster care. Although Tarchuk pledged to reveal the resulting inquiry, no findings have ever been released. Other incidents have plagued the system: A 13-month-old boy was fatally injured after being shaken violently by his foster father in November 2005. Head injuries delivered by his foster mother claimed the life of a three-year-old boy in January 2007. Most recently, a four-year-old girl was discovered dead as a result of head trauma in January 2009.

Rachel Notley, NDP house leader, said she does not think that the replacement of Tarchuk with Fritz will make much of a difference for foster children. She expressed her concern that the situation may worsen, not improve.

Edmonton Property Report - March 16th, 2010

Bank of Montreal Opens New Service Friendly Branch in Edmonton

The Belmont Tower Centre in Edmonton is the home of the Bank of Montreal’s new Alberta branch. The new branch is one of the most state of the art banking operations in the country offering service in seven languages and a fixed 3.75 percent five year mortgage with 25 year amortization. The building is also environmentally friendly, being greenly powered by Bullfrog Power, as are the other 142 branches across Canada.

Nine financial advisors between them speak English, French, Mandarin, Portuguese, Hindi, Cantonese and Arabic. By having such a diversity of languages, BMO hopes to reach out to and service the many cultural enclaves of Edmonton’s diverse neighbourhoods.

The branch will be offering counselling and programs such as the BMO SmartSteps product, which helps clients save money by charging lower interest and fees and minimizing tax output. BMO is promising to provide experienced in-house experts to help with establishing and maintaining commercial accounts and provide deposit services. Two 24 hour automated banking machines, one a drive thru model, will be available. All portions of the bank will be accessible by the physically challenged.

BMO has been a fixture in Edmonton since 1903 and an active community partner. The company donates to many local organizations annually, such as Stollery Children’s Hospital, Alberta Heart Institute and the United Way for the Alberta Capital Region.
 

Edmonton Property Report - March 9th, 2010

The Gem Theater Is Gone From The Edmonton Landscape

Gem Theatre, a 97 year-old building once located on Jasper Avenue, has been demolished by the City of Edmonton after a ten-year dispute that simmered between the city and its owner. The dispute was over the disrepair of the building, and inadequate disclosure about the building’s state at the time of purchase.

It was 1999 when Oliver O’Connor, an Edmonton realtor, purchased Gem Theatre from the City of Edmonton for $77,500. At the time of purchase, the city alleges that O’Connor had agreed to provide a letter of credit and have an engineer conduct a report on the state of the roof. In addition, the city states that O’Connor was to make various building repairs and restorations including preserving the front of the building. He didn’t.

O’Connor filed a suit against the City of Edmonton for $520,000 based on allegations that the city improperly represented the building’s market value, distorted the truth regarding the number of counteroffers, and covered up the building defects.

In his 2001 counterclaim, O’Connor argued that there was inadequate disclosure of the building’s condition, and that if full disclosure had been made at the time of purchase, there would have been a “material effect” on his purchase decision. 

In the end, the city has lost a 97 year-old piece of history, and the implications on future land deals are being considered. The dispute between the City of Edmonton and O’Connor was tied up in court long enough that the heart of the matter, the Gem Theatre, was ultimately destroyed.

Edmonton Property Report - February 27th, 2010

Edmonton Fashion Week Gets Makeover, Including Name Change

Fashions change, and so are several aspects of Edmonton Fashion Week.  Not only will the event’s magazine be re-launched in March, but the event will now be known as Western Canada Fashion Week.  

According to Sandra Sing Fernandes, who is the organization’s executive producer and creative director, Fashion Week is attracting designers from Vancouver and Calgary.  Due to the growth, Fashion Week needs to encompass its current activities and constituents.  

Fernandes said that Edmonton will continue to receive much of the focus, and that Edmonton-based designers will receive priority on showcases.  She hopes that showcasing designers and buyers from other areas will generate attention for local talent.  She said that cross-promoting is of great benefit to the Edmonton participants, noting that people in the fashion industry are supportive of each other’s efforts. 

Fashion Week, which has been in operation since 2001, will return April 1 through 8 to the TransAlta Arts Barns.  Many noted designers will participate, including Edmonton’s Laura Dreger and Kelsey McIntyre.  Michael Kaye, an Edmonton native based in New York City, will present his own collection titled “Ladies Who Lunch.”  Also participating are Jason Matlo of Vancouver and Joeffer Caoc of Toronto.  

Rising stars in fashion will also get a chance to be in the show by way of the Emerging Designer Contest.  One recipient will win an internship at the New York studios of Kaye.  Also, Beryl Bacchus, a Toronto designer, has agreed to be a mentor to nascent designers through an incubator program hosted by WCFW. 
 

Edmonton Property Report - February 19th, 2010

Patience, Dedication, Practice and Sacrifice Pave the Road to Olympic Gold

It is possible that being athletically inclined is genetic. Kathy Gregg, a speed skater, competed in two Olympics under Canada’s flag.  She met her husband Randy in Lake Placid in 1980 who was also competing at the games. Randy was once an Edmonton Oiler, involved in another sport that required him to be fast on his skates.

This is where it gets interesting.  Three of their four kids have a penchant for speed skating.  The fourth, still sports minded, prefers baseball. Jamie, age 24 and Jessica, 21 are competing in the Vancouver 2010 Olympics in speed skating.  The 2014 Olympics may very well see their daughter Sarah, who is in training, show her stuff on the icy oval.

Other kids get into sports just because it’s there. Something sparks their interest, like what would it be like to bungee jump out of that tree? Sometimes that perhaps ill thought bungee jump turns into an Olympic or NHL career.  

No matter how kids and young adults get involved in the sport of their choice, the hours of practice require patience, sacrifice and dedication, all of which build character in other aspects of their lives. Parents also have to sacrifice their time, and often their money into their child’s quest to be the best in the sport they love.

If the stars align and the faith is held, it is possible that all that dedication and sacrifice will lead to a spot on the Olympic team.  Better yet, it may even lead to gold.

Edmonton Property Report - February 15th, 2010

City Ups Firm's Contract for Fast-Track Service

With the hopes of a successful bid for the 2017 Expo, the engineering consultation firm received an untendered contract increase for $2 million if they can fast-track the LRT planning.

Several council members are upset and asking why the contract boost wasn't put out for bids to other possible designers.  The believe that the work should be postponed anyways until the funding for the entire project is secured.

Some of the council members feel that it is absolutely foolish that the city would continue to spend money on planning when the capacity to build the project does not even presently exist.  Doing all the design now is pointless if the line won't be built for five to ten years.

The consultation firm, CH2M Hill, is supposed to produce the proposed station locations and track alignments with in the corridors that were approved by the city council last year.  There has already been a report last year, by city auditor, that raised questions about the single-source contracts, especially how they challenge the public service transparency.

Other city council members responded with the fact that CH2M Hill is a world-class firm that has not only done extensive work for the LRT system, but they work with countries around the world to help implement state-of-the-art transportation services.

Edmonton Property Report - February 9th, 2010

Modest Economic Growth Predicted for Edmonton in Next Five Years

The local Edmonton economy will see a rebound this year after experiencing its first loss since 1991.  This prediction is offered by the Metropolitan Outlook of the Conference Board of Canada.  

Growth of 3.2 percent is estimated, and the organization expects that the gross domestic product for the region will increase at an average of about four percent in the years between 2011 and 2014.  This modest rate of growth compares with a GDP decline of about two percent for 2009, which is the largest decrease in the region’s record books.

The prospective recovery for Edmonton puts the market on equal footing with Kitchener, Toronto and Vancouver.  Growth for these cities is estimated to be a respective 3.3, 3.5 and 4.5 percent.

The GPD for Calgary is predicted to recover from the first recessionary period it has experienced since 1989.  Growth of approximately three percent is anticipated, with vitality in the sectors of services, retail sales and consumer goods.

According to Mario Lefebre, who is the director of the government’s Centre for Municipal Studies, there were four cities in Canada that experienced any kind of economic growth last year.  The markets were Saint John, Halifax, Regina and Winnipeg.  Lefebre said that Canada’s major cities are on track for economic recovery this year, but the rates of recovery will not be consistent.

Of the markets poised for growth, Vancouver has very strong prospects not only because it is hosting the Winter Olympics, but also because its home construction industry and consumer spending are expected to exhibit growth this year.

The recovery for Edmonton may take more time, according to the forecast.  The city’s job forecast is expected to be somewhat weak, as unemployment may rise to 7.5 percent during this year.
 

Edmonton Property Report - January 29th, 2010

Slumlord Illegally Evicted Tenants From Filthy Rooming House

A slumlord in Edmonton illegally evicted tenants and created extensive damage to his own rooming house so he could sell the property for demolition. Giovanni Canonaco, age 76, has been charged with 31 counts with the Public Health Act.  Canonaco has owned the property at 9223 110A Avenue since August 1978 and put it up for sale in October 2009.

A visit from inspectors in January 2009 discovered rooms that did not have running water. Bathrooms in the rooming house were in such filthy condition, they beyond the point of repair. A number of windows were either missing or broken.  Smoke detectors were not functioning.  The basement was cluttered with flammable contents. The fire escape was not at current code level.  Sinks in the house were leaking, and mould had developed near them.  Two longtime home inspectors advised that the building was one of the worst cases they had ever witnessed.

Prospective buyers of the property wanted it to be vacant, so Canonaco put up eviction notices for the tenants, most of whom were subsiding on Welfare and AISH.  One tenant was expecting a baby in three months, and another was handicapped.  When his tenants refused to leave when he ordered them to, he decided to take matters into his own hands.  Rob O’Neill, Crown prosecutor, said that the defendant removed a door from a suite until a tenant would finally move out.  He also threw tenants’ possessions into the hall and changed the door locks.  

A decision will be provided February 17 by Provincial Judge Paul Sully.

Edmonton Property Report - January 22nd, 2010

City of Edmonton Buys Hotel Site

The city of Edmonton plans to buy one of the area's most notorious hotels, which officials plan to incorporate into a major social housing project in the city.  For years, the site of the hotel has been attracting police and fire department support continuously as all the businesses in the area combined.

The hotel was always the center of problems, and last year the local officials canceled the hotel's night club license.  They told the hotel they could no longer operate because the officials believed that the hotel staff did not do enough to curtail suspicious behaviour and violence.

Police say the scene was so bad that the chances of serious injury or death could occur from violence of hotel patrons.  There has been a hearing set for discussion about the future of the site, but just a few days ago, lawyer for the company who owns the hotel says there is no need for talks because the city now plans to purchase the hotel.

The lawyer for the company says that the deal is already complete and that the city has until April 1 to wrap it up.  The property consists of a two-block area that will become part of the Boyle Renaissance redevelopment.  The new development is expected to add over 580 new subsidized housing units.

The master plan of the new site is still under consideration, and officials hope to have a master plan of the development by the end of April.

Edmonton Property Report - January 18th, 2010

Help for the Homeless and Less Fortunate Should be Citywide in Edmonton

The Boyle and McCauley neighbourhoods have been considered the rough part of town for generations.   Skirting Edmonton’s downtown area on the eastern and north eastern end these two areas started developing that reputation right around the 1950s.

Immigrants called McCauley home. World War II refugees, mostly from Europe, ended up in the area.  They experienced prejudice in other parts of the city and this neighbourhood became sort of a dumping ground for those with less than perfect English and foods and customs not readily understood.

The Boyle area was well known as an after hours party centre, filled with dive bars, low end restaurants and scores of prostitutes ready, willing and able to sell their wares. That particular form of entertainment is still available.

Today the combined Boyle-McCauley neighbourhoods are magnets for the homeless, drug addicts and those in need of mental care. The low income area has the highest crime rate in the city.  Even some of the homeless are leaving to pitch tents elsewhere.

What can be said, in a positive light, is that depressed property values have given families a chance to pick up some vintage homes at bargain prices.  There are enough of these new residents that they are becoming verbal about the state of the community.

Suggestions have been made that the homeless be made welcome throughout the city not just in depressed areas such as Boyle-McCauley. If the city focused on offering subsidized housing and social services in more parts of Edmonton, more of the homeless could be helped.  It would also keep parts of the city, like Boyle-McCauley from developing such unsavoury reputations.

Edmonton Property Report - January 12th, 2010

Local Bakers Find Success Among Suburban Sprawl

Bread is popular in Edmonton, and with various cafes and coffee shops snatching up every bit of property they can get, a few independent bakers continue to flourish in downtown.

Yvan Chartrand just purchased the Tree Stone Bakery on 99th Street from the longtime owner, Nancy Rubuliak, who is retiring.  They plan to keep the tradition of European breads alive, but also add a new line of pastries and croissants.

The bakery does not use preservatives and additives in their breads, and the owners try to use only organic products.  A wood-burning over will be installed by Yvan by 2011.  The demand for bread in Edmonton has driven new openings of three independent bakeries.  Among wide-spread suburban sprawl and outlet malls that define the landscape, small food establishments that help the area are a godsend.

Edmonton has seen the quality of its food supply fall over the past decade, as many food professions, such as butchers and bakers, seem to be lost.

A new local shop, the Tree Stone, is owned by a man who describes himself as sort of a gypsy.  After owning bakeries in Japan for seventeen years, he sold them to move to Edmonton and start a new business.  it is a welcomed addition to the starved food scene in Edmonton.

Edmonton Property Report - November 29th, 2009

Canadian Climate Change Plans

World leaders have recently tried to downplay global warming at APEC conference in Singapore.  The downgraded the gravity of the matter.  Its absolutely absurd to not act on the problem immediately for major emitters such as the U.S.A., China, or Canada.  The gravity of the matter has the potential to tear apart a country both socially and politically over the best solution.

If Canada is going to find a solution, the country is going to have to overcome the "me-first" society that exists.  All people must understand and accept as a plausible solution.  At this point, the absence of any plan has impeded any course of action because people have debated the importance of trying to prevent the effects of carbon emissions.  People know that the world must take action to prevent extreme damage to the planet.

There is a plan to follow in order to come up with a solution.  The plan devised at the conference only calls for Canada to cut its GDP by 0.1%.  It is good that the country has found a plan to help solve the problem and only have to cut 0.1% of its GDP.  But the plan is drastic, and it will not be accepted by everyone.  It would absolutely alter the current Canadian economy.  The plan, if implemented, will cause financial hardships on many areas.

The plan calls for a national cap-and-trade on carbon emissions to be implemented by 2011.  The plan calls for a price to be set on carbon, as high as $100 a tonne.  The plan is bigger than the U.S. proposal.  The plan calls for a tax, between $20-30 a tonne, and the money delivered from the tax would give the government the funds to green the Canadian economy.
 

 

Edmonton Property Report - November 21st, 2009

As the way things look now, the police force in Edmonton will have to cut over 100 jobs is they cannot meet their budget demands.  The Council has instructed city departments to increase budget expenditures by no more than three percent.

Chief Mike Boyd has said that the budget target is impossible to meet without slashing jobs.  If the job cuts cause the policing levels to fall below provincial requirements for policing grants, more than 100 more positions will have to terminated.  Losing 200 officers would be a huge blow to the quality of service that the department will be able to provide.

On the other side of the argument, people claim that the police chief is simply using fear tactics to get his way.  The job cuts will not be that drastic.  Its just absurd to think that the Council is going to allow over 200 officers to disappear.  It will not happen.

If the council needs the police department’s requested budget, a 5% property tax hike will jump to 6.5%.

Edmonton Property Report - November 16th, 2009

Advice for First-Time Home Buyers

Making the move from renting an apartment or home to purchasing your first home can be a harrowing experience – especially if you are a first time homeowner. Deciphering the various loan types and figuring out which agency does what can leave you feeling like you’re trying to break some top-secret code. For me, just dealing with the seemingly endless array of terms used by real estate professionals was a daily excursion into realms of confusion the likes of which I had never before experienced.

Because of my experience, I know how important it is that first-time home buyers have access to the best advice they can get before they wade into that final sales process. There is so much to learn in such a short period of time that getting some basic assistance to guide you through the process just makes good sense.

To begin with, did you know that the federal government is offering an $8,000 incentive – in the form of a tax credit – to anyone purchasing their first home? In addition, the government has also added a similar incentive, totalling $6,500, for anyone who currently owns a home and moves to a new house. These incentives are only good through April 30, 2010, however.

I advice anyone who asks about the tax credits to discuss them thoroughly with potential lenders and their real estate brokers. It’s always important to ensure that you actually qualify for these types of incentives before you get too far into the buying process. There’s nothing worse than miscalculating your resources and then finding out that your dream house is outside of your price range.

My second piece of advice is to keep your head out of the clouds. You may have heard that there are a tremendous amount of “steals” on the market today, because of the collapse of the recent housing bubble. Things are not always what they seem, however. In fact, in many regions of the country, certain areas of housing are actually seeing a rise in prices due to the decline in demand as the current economy forces people to put off their buying plans until their finances stabilize.

That is not to say that you cannot find a good deal; it may just take longer than you had expected.
When you do find a home that you’re interested in, be sure to bid at a reasonable level. If you bid too low, there is a real chance that the seller will not only refuse the bid but will be so insulted that he or she will shy away from dealing with you.

And don’t expect the lending process to be a walk in the park either. Your credit score has seldom been as important as it is right now – and even an excellent score may not guarantee you the loan you need. Your best bet is to work with a reputable real estate broker who can help you to navigate through the minefields of today’s home real estate market.
 

Edmonton Property Report - November 5th, 2009

Canadian Office Markets Skyrocket

According to a recent report that was released the office market in Canada has seen a steady growth over the past few months. This growth signals that the economy is moving in the right direction, and that things are on their way up. This will hopefully equal good news in the private sector. As many pointed out this is good news for all that are involved in the terms of spending. More places to spend money equals more money to spend. This is just how the cycle works.

According to many experts the rate that office space will be occupied is expected to hit an all time high in the next few months. There is some bad news, with the fact that the rate of vacancy is on a steady rise. Many in the industry attribute this to the fact that more space is being built than people can rent the office space.

While many agree that the recession is far from over, there are signs that the worst may be behind us as many places are starting to make decisions as to who to rent the space to on a first come first serve basis. This is the best kind of news that the people in the Canadian office market could have hoped for.

While some of the numbers are not as positive towards the worst of the recession being over, many of the numbers tend to agree within a decent range. Many experts also have tended to go along with the numbers saying that this is a significant sign that things are turning around.

Take that just five years ago the Canadian office market was in a massive boom, then in 2007 the market just feel right out from under people. Over the past couple of quarters the Canadian office market has seen a rapid growth. These numbers are due in a large part to the fact that consumer confidence is beginning to return which in turn is allowing more business to open up.

One person a year ago would be interested in a property, now five people are interested in the same property and therefore it is turning into a game of early bird gets the worm. While these number are encouraging there are those experts that warn that at the moment the office market is not stable enough just yet to hold itself up just yet.

Others in the industry see it differently, these experts see the glass as being half empty and see that the office market will continue to see a rapid growth as the months and years continue to go by. In the end the only thing that people will be able to do is sit back and wait to see if the trend continues or not. In the meantime many in the industry are enjoying the fact that they are having the largest office boom in several months. This trend they hope will continue to grow.

 

Edmonton Property Report - October 27th, 2009

Buying US Property with the Canadian Dollar: Is it a loony idea?

In October of 2009, the Canadian dollar neared parity with its US counterpart, something it hasn’t done since 2007, and before that, the 1970s. This news has many Canucks eager to purchase US real estate, but experts are divided on the wisdom behind such an investment.

When the loonie hit parity in 2007, Canadians jumped into the US market, which has since crashed. Hindsight shows the better investment would have been keeping the Canadian currency. This is one illustration used by Philip McKernan, co-author of a Canadian guide to buying real estate in the US, to discourage fellow citizens from impulsively buying property in the US now that parity is again in sight. He argues that buying just to get a good deal is poor motivation, though admits that if buying US real estate was in the plans anyway, there are many factors in your favor, but research is essential.

Other experts disagree, arguing that the strength of the loonie combined with the abundance of foreclosures makes the ideal investing climate. It may be difficult to obtain mortgages in the US, but if one can buy in cash or finance through a Canadian bank, now is the time to invest.
 

 

Edmonton Property Report - October 19th, 2009

Canadian Housing Market In Surprising Recovery Nation Wide

The real estate market in Canada is continuing to recover and improve, as this past August saw well over 40,000 houses purchased and sold. These numbers show an impressive 18 1/2% rise from statistics recorded at the same time last year. While these levels are encouraging, many housing and financial professionals are warning that this type of performance may not continue, as housing-related costs continue to grow. Proof of these predictions is found when sales figures from July are compared to August. A sales dip of almost 250 units is recorded as 42,666 homes were bought and sold in July, and only 42,246 in August.

Economists are agreeing that Canada’s escape from a harsh recession is almost miraculous. Unfortunately, this fantastic growth in sales may not last as prices rise along with the resale activity figures. The Canadian average home price has already risen 5.3 to 11.3% compared to the average recorded last August, depending on location.

Canada’s housing market has shown itself to be tough and not one to falter when the rest of the world’s real-estate markets are failing. Despite August’s slight stumbling when it comes to sales growths, expect an excellent year for buying and selling homes.
 

Edmonton Property Report - October 8th, 2009

Edmonton Housing Market for September

Even though MLS housing sales fell 1.45% in September when compared with sales in 2008, realtors® are not all that concerned. It was still the third best September ever for the industry. Sales in the residential market for September topped out at 1,704. In the same period for 2008 the count was 1,729.

Things are seen to be just evening out from the very productive summer season. The ratio of inventory available to potential buyers has evened out. Prices also took a bit of a jump, up 1.4% from the August figures. A single family home had an average price of $371,947 and condos evened out at an average $245,546 per unit.

If one compares prices to 2008, the average condo prices were 2.7% less and the single family homes were 2.7% more. Prices for single family homes have actually increased by about $20,000, rebounding nicely from the price plunge that ended this past February.

Year to date sales for 2009 are up 5.3% over the same period for 2008. The number of houses in inventory has decreased, from 6,445 to 6,032 and the average length of time a property is on the market is now 44 days, compared to 48 in August. All of these factors in addition to the low interest mortgage rates have created a healthy market.
 

 

Edmonton Property Report - September 28th, 2009

National Housing Market Looking Good

The Canadian home market seems to have seen its ugliest times, a report says. Though the market has been hit hard through the last couple of years, the report is forecasting improvement for the housing market in the final fiscal quarter.

There were a total of eleven different markets taken into account, and more than six of them reporter an increase in home sales. Likewise, almost three fourths of the surveyed markets have seen home values rise above their 2008 standards. The increase in sales can likely be tied to the lower mortgage rates and the decrease in home prices, according to Re/Max.

Among the highest rising markets was Vancouver, which saw its home sales boosted by 14% in the last eight months. Victoria saw a more than 7% increase, while Edmonton and Regina saw more modest boosts. Ottawa was much more static, but that was to be excited given the city’s ability to withstand the original financial downturn. Still, they have seen a slight increase in sales, as well.

At current standing, the average price of a Canadian home is $312,585, a price that represents a half point increase over the last eight months. Among the highest risers was St. Johns, where homes have risen all the way above $200,000. That represents a jump of more than 18%.

Edmonton Property Report - September 19th, 2009

Housing study favorable for Alberta developers

Desjardins Bank analyst Jeff Roberts has reported that a housing forecast just released by Canada Mortgage and Housing Corp. (CMHC) is favorable for developers constructing single-family homes in Alberta’s metropolitan areas. Mr. Roberts reported that based on significantly improved housing affordability and stronger lot sales in major Alberta cities, Desjardins believes two land developers concentrating on Alberta – Melcor Developments Ltd. and Genesis Land Development Corp. – are good buys.

CMHC is now predicting the construction of 3,000 single-family homes in Calgary by year’s end and 4,000 in 2010. This reflects a 33% jump over a forecast from last quarter. Edmonton single-family home construction is similarly expected to exceed recent expectations. Mr. Roberts added that lot sales for both Melcor Developments and Genesis Land Development have gained strength in recent months. He expects the trend to continue as the housing market rebounds.

As for apartment rentals, Mr. Roberts reported no major alterations in the CMHC forecast. He predicted that the generally robust Alberta economy would help keep realty investors in the black.
 

 

Edmonton Property Report - September 11th, 2009

New School Strategies for the Swine Flu

School officials in the Elk Island School District hope that new prevention strategies will help end the spread of the H1N1 virus. Students are being asked to physically distance themselves from other students, especially if they show any signs of illness.

In addition to encouraging hand-washing and covering sneezes and coughs, some of the new prevention strategies being used are dissuading hand-holding, hugging, sharing personal products and other close contact with students. Teachers have been asked, where possible, to keep the desks an arms length away from each other.

Critics of the new strategies believe that they could induce panic rather than prevention, but District officials don’t want to take any chances. 20 students were among the 47 confirmed cases of the swine flu in Edmonton this year.

North American health officials are trying to prepare for a second outbreak of the H1N1 flu virus. Even though there have been only 127 confirmed cases this year with seven deaths, the Public Health Agency of Canada projects that up to 138,000 people across the country will have to be hospitalized. They also believe that tens of thousands of those sickened by the swine flu could die.
 

 

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