Edmonton Realty Report

Closing Edmonton’s City Centre Airport Might Be Profitable Move

The debate over the closing of Edmonton’s City Centre Airport will no doubt be going on until long after the final decision has been made. Now CBC News has offered their voice to the fray. The organization has calculated that keeping the airport open would cost about one million dollars a year. Conversely, re-using the land for something else, such as the proposed ecologically friendly neighbourhood/business use, would bring in a net revenue in the hundreds of millions. Looking at it from this perspective, the decision appears to be a no-brainer.

Surprisingly, this cost comparison has not been a major part of the considerations. Rather, officials and others have been going back and forth over issues. Major concerns include airport convenience for government members and executives versus a new green community that would revitalize the downtown core. Thought the airports operating cost is offset by its earned revenue, the $1.3 million per year for loan repayments and upgrades is a net loss. If the City Centre is closed and repurposed, officials estimate the net profit could be between $91 million and $486.

A considerable sum of money would be needed for cleaning up contaminated soil. No doubt the facility, which by its very nature would use an extensive amount of solvents, gas and oil products, has had a spill or two. Over the years this would be expected. City workers are already collecting soil samples for analysis. Similar sized airports in Texas and Colorado that have shut down have had to spend from $30 to $75 million to clean up their land parcels.

Though the closure has already begun, with one of the airport’s two runways shut down early this month, the Envision Edmonton group is still working to keep the airport open. They have started a petition in hopes of getting the matter on the ballot in the fall elections.

Edmonton Realty Report

Campaign Hopes to Increase Support for Upgraders

The Alberta Industrial Heartland Association (AIHA) is trying to build support for and raise awareness about the importance of bitumen upgrading with its new public campaign.

According to AIHA’s new release, resources processed in Alberta will fall from 70 per cent to 40 per cent by 2020 if current situations continue.

Neil Shelly, AIHA’s Executive Director, said there are many benefits of upgrading raw bitumen locally. Upgraders pay large tax sums which would keep surrounding tax levels reasonable, and the upgrader taxes would also create alternate revenue which would add to Alberta’s gross domestic product (GDP).

Shelly estimates two million extract barrels of bitumen could generate $25 billion per year, and locally-upgraded bitumen would double that number to $50 billion—money that would go to Alberta’s economy.
Job creation, spin-offs from local businesses, new revenue from various taxes and incomes and new or improved community programs and services could also be potential benefits.

Shelly also said that by-products are produced during upgrading which could become the foundation for an entire petrochemical industry, adding an extra $25 billion per year.

The Bitumen Royalty in Kind program began last year, and construction on the North West Upgrader will start next year.
AIHA has been in discussion with the Alberta government regarding the situation, but due to extreme activity, including the economy and fluctuating oil prices, no solution has been reached.

More information on the campaign, Refine it Where we Mine It, is available at www.refineitwherewemineit.ca.

Edmonton Realty Report

Katz Playing A Slick Game With Edmonton Oilers Arena Talks

Is Mr. Daryl Katz playing hardball with the city of Edmonton and using the Oilers hockey team as the projectile? The man is obviously a financial genius, having turned one drugstore into a chain hundreds of stores strong. Was is simply a strong bit of entrepreneurial skill and luck that made the man his millions, or is there a darker side that surfaces when the master finds the ship is not sailing in his direction?

Katz is in the middle of a negotiation with the City of Edmonton about the building of a new hockey arena complex for his team. Negotiations are not going to plan; his plan. All of sudden there is rumour that Katz has a sort of understanding with the city of Hamilton as they negotiate a four year deal seeking the right to move an “NHL” team into their Copps Coliseum. No specific word that it is the Oilers being “moved” but most people in Edmonton can correctly add two-plus-two. And the answer is sowing the seeds of unrest through the city. It wasn’t all that long ago that a Mr. Pocklington tried to send the Oilers south of the border…to Texas.

Katz may be using this as a scare tactic, or not. As far as the negotiation with the city, so far, much of the available information is conjecture, garnered from interviews and through the media. For all his promises of money towards the arena, $100 million at last count, Katz and company have yet to present a formal written proposal even thought the meeting with the city on the subject is this month. Katz appears to be playing a serious game of cat and mouse, not only with the city and its budgetary numbers, but with the public’s hockey sensibilities as well.

Edmonton Realty Report

Edmonton Property Owners Looking At 5 Percent Tax Increase Next Year

It looks like Edmonton property owners will be looking at a five percent tax increase next year instead of the 10.5 percent previously predicted. The lower figure works under the guidelines the city council just approved at their Wednesday meeting. Making cuts in spending and increasing some city fees will make up the difference.

One item some members of council are having a problem with is an increase in transit fares. It does seem rather odd that in a time where Edmonton is trying to encourage more people to take public transit, they make it more expensive to do so. More people are riding but the transit service level is remaining the same. Will the additional fees mean better service?

In 2007 the city agreed on a five year plan that would have transit fares go up in 2011. This would include the annual senior and monthly commuter passes. The final phase of the five year plan takes place in 2012. At that time monthly passes would increase by $30.00 to $89.00 per month. Single ride fares would go from $2.50 to $3.00. Council is considering speeding up that timetable to bolster city revenues. No decision has been made as of yet.

The five percent tax increase will be divided between city services, receiving three percent and the fund to repair the infrastructure throughout Edmonton. Not all counsellors were happy with the budget/tax guidelines that were passed, thinking that perhaps the figure is far too low for the services that Edmonton is responsible for.

Edmonton Realty Report

Stony Plain Road to Make Way for LRT

Edmonton city council members are at odds over the recent decision to narrow Stony Plain Road. City council decided Wednesday, June 9 to reduce Stony Plain Road from two lanes in both directions to one lane in both directions.

The decision comes ahead of the Light Rail Transit (LRT) western expansion, set to be running by 2017. The LRT will run along 104th Avenue and Stony Plain Road from 156th Street to Grant MacEwan’s west university campus.

Residents had expressed concerns that Stony Plain Road would be widened to accommodate the LRT, which would have meant demolishing businesses and homes along the road.

Councillor Kim Krushell voted in favour of the reduction and said the decision makes sense as the LRT is meant to reduce car traffic.
Krushell said there may be an increase in traffic, but the city won’t take away entire downtown communities to accommodate that traffic.

Councillor Karen Leibovici doesn’t agree with the decision, calling it short-sighted. Leibovici said the projected population for the next 30 to 40 years may mean the city will have to provide more capacity.

Council said that if Stony Plain Road turns into a continual gridlock, they may then reconsider widening the road.

Edmonton Realty Report

Alberta Housing Affordability Improves

In 2010’s first quarter, Alberta was the lone province to show an increase in affordable housing said a report released by RBC Economics Research.

RBC Housing Affordability gauges in percentages with lower readings indicating a more affordable property. If a property shows an affordability of 50 per cent, the total ownership cost including utilities, property taxes and mortgage payments is equal to 50 per cent of an average household’s monthly income, pre-tax.

Alberta housing affordability increased in the first quarter for all property types. Condominiums dropped to 21.9 per cent (a decrease of 0.4 percentage points), townhouses dropped 25.4 per cent (a decrease of 0.1 percentage points), bungalows dropped to 33 per cent (a decrease of 0.4 percentage points), and two-storey homes dropped to 36.9 per cent (a decrease of 0.6 percentage points).

Calgary housing, however, continued its increase in prices with properties in the first quarter showing a nearly-equivalent reading to income. Townhouses increased 0.2 percentage points and two-storey homes decreased 0.5 percentage points.

Across Canada, detached bungalow affordability was rated 73.4 per cent for Vancouver residents (an increase of 4.8 percentage points from the last quarter), 49.1 per cent for Toronto (an increase of 0.4 percentage points), 40.3 per cent for Ottawa (an increase of 0.3 percentage points), 39.7 per cent for Montreal (an increase of 0.9 percentage points), 36.5 per cent for Calgary (a decrease of 0.3 percentage points) and 32.0 per cent for Edmonton (a decrease of 0.5 percentage points).

Edmonton Realty Report

Norman Kwong Honored at Legislature, Portrait Unveiled

Outgoing Lieutenant Governor Norman Kwong has referred to his life as living the “Canadian Dream.” When he was appointed as Alberta’s Queen’s representative in 2005, he recalled that his father, a Chinese immigrant, lived in Canada for 40 years before he was even allowed to vote.

On May 10, Kwong’s official portrait was unveiled, showing the onetime football standout and successful businessman wearing his traditional morning suit. The portrait also included representations of Kwong in his younger years. Kwong said he was humbled that his name and likeness are on the walls of the legislature.

In recalling his term in office, Kwong noted that although he has been the first person of Asian descent in many achievements and offices, he never tried to position himself in that way. He said that he might be a role model, but he did not set out to be one. He said that his one hope is that he continued the tradition of Alberta lieutenant governors and did the job well.

Calgary-born in 1929, Kwong’s birth name was Lim Kwong Yew. He acquired the nicknames “Normie” and “China Clipper” during his years as a star with the Calgary Stampeders as well as the Edmonton Eskimos. Kwong achieved a milestone in 1948 by being the first Asian player in the Canadian Football League, as well as being the youngest person ever to play on a championship team. After his astounding football career, Kwong entered the real estate business and made a fortune. Kwong racked up another milestone in 1989, when, as a Calgary Flames part-owner, he became the first person in Canada to have won the Stanley Cup as well as the Grey Cup.

In 1998, Kwong received the honour of being received into the Order of Canada. Paul Martin, prime minister in 2005, appointed Kwong to be the province’s lieutenant governor. Current premier Ed Stelmach commented that Kwong brought dignity, warmth and humor to his post. Stelmach cited Kwong as well as his wife, Mary, as being ceaseless promoters of the province.

Edmonton Realty Report

Albertans Are Buying Bigger Boxes Of Chocolate, And More.

Albertans are buying more chocolate, among other things. Bernard Callebaut, owner of 30 retail chocolate outlets in Calgary and across Alberta can attest to the change in spending habits, bolstered by an improving economy. He is so confidant that he is opening up two new stores this year, one in Banff that will also sell hot chocolate and ice cream and one new location in Calgary.

StatsCan just released a report showing that Albertans spent almost $5 billion in the retail sector in February of 2010. This is a one percent increase from January in the same year and a 5.9 percent jump from February of 2009.

While consumers are still being value conscious, they are confident enough to increase cash outlay on needed and sometimes wanted items. Retailers across the province are seeing more customers in their stores and more sales. There has been a steady but slow growth in the retail industry over the last six months in Alberta, but sales figures are still seven percent below what they were before the recession started.

Looking at the retail trade on a national level, Canadians spent just over $36 billion in February of 2010. This is a 0.5 percent increase over January of this year and a 6.4 percent increase from February of 2009.

Canada’s retail spending has increased for the last three months, largely helped by new car sales. Alberta contributed the most to the sales numbers of car dealerships, having a one percent growth in sales for that resale sector.

Edmonton Realty Report

Edmonton Real Estate Rebounding From Recession Hit

It's a good time to be a tenant in Alberta's capital. At least it is according to commercial realtors Colliers International.

Their figures show that Edmonton's downtown office vacancy rate sits at 7.47 per cent. This is considerably higher than during recent boom times when rates sat well below 4 per cent.

The higher vacancy rate has lead to a drop in rates for those leasing space in Edmonton's premier properties. Savings as high as $5 per square foot have been reported.

It's not all bad news for landlords. Despite the recent drops in rents, they remain higher than they were 5 years ago.

Additionally as oil prices rise, and Alberta's economic fortunes rise with it, vacancy and rental rates will stabilize. According to CB Richard Ellis, Edmonton should see steady growth over the next few years.

Nationally, overall vacancy rose to 10.1 per cent from 7.5 per cent year-over-year in downtown and suburban office markets. But the increase in the vacancy rate slowed significantly in the 4th quarter of 2009. With a more promising employment picture nation-wide, experts hope that the worst of the recession is over, and are looking forward to some growth in the coming year.

Edmonton Realty Report

Children of the Emerald Isle Move West – To Edmonton

The Guinness may not be as good as that of the old Sod and green beer not found at all at all in the Irish Homeland, but Alberta continues to attract immigrants from the Emerald Isle eager for work and a Canadian adventure. Many of these Irish wanderers are ending up in Edmonton.

The current immigration pool from Ireland consists of well educated and skilled young people under the age of 35 who cannot find work in their native land. Ireland was hit badly by what is being called a global recession. A recent visit to Edmonton by Ireland’s deputy prime minister spurred interest in the area. Ever since there has been a vast increase in the number of work visas sought to come to Canada, specifically to Alberta’s capital region.

Half a world away these new residents will celebrate St. Patrick’s Day in local fashion. Edmonton has an abundance of authentic Irish pubs complete with the dark oak polished bar, the fireplaces and the live Celtic music. Some examples that make the Irish feel at home are Ceili’s and the Druid in the downtown area and O’Byrnes on trendy Whyte Avenue.

Though live shamrocks might be a bit difficult to find in Edmonton, the Irish spirit will be out in full force to celebrate the day dedicated to the patron saint of Ireland. The city will be awash with green, the Celtic harps and the fiddles will have their strings caressed and the soulful bodhrans (Irish drums) will keep time with their haunting beat. Poems will be read and tales will be told and the Guinness, and yes, the green beer, will flow. After all, it is a true Irish-Canadian party. Sláinte!

Edmonton Realty Report

Report: Edmonton Realty Market Uncommonly Balanced

Although many Canadian housing markets may suffer from tightened inventories this year, Edmonton will not be one of them, according to a new report.  The report, issued by ReMax Market Trends, contends that buyers across the country are scrambling to buy homes before interest rates start to climb.  The result: There will be fewer homes for sale.  However, per the report, conditions in Edmonton are more balanced.  Home prices are still not at the 2007 peak levels and have reached a plateau.  Opportunities abound at levels of price.  

According to the report, Calgary, Saskatoon and Edmonton tend to be balanced, with a reduction in the glut of residences that occurred after the real estate meltdown.  The inventory has returned to more normative levels.  There is a 26 percent decrease in active listings versus January of this year.  The number of Edmonton home sales increased 21 percent during the same period to 884.  The average sale price of $314,783 remains stable.

In his annual forecast issued in January, Larry Westergard, president of the Realtors Association of Edmonton, noted his concerns that home prices could rise due to an under supply of listings.  

The market in the $300,000 to $350,000 range is being driven by first-time buyers.  However, buyers moving up to more expensive homes are also accounting for a good portion of the sales.  The report also states that while condominium sales have been healthier recently, there is still an oversupply of units.  

The forecast for the spring: A strong market and increasing confidence in the market among consumers. 

Edmonton Realty Report

Katz Group Expects City and Province to Fund Arena

The Katz Group wants the City of Edmonton to pick up tab for the new Edmonton Oilers arena, while they would simply invest $100 for the neighboring sports and entertainment complex that is to be built along side the new arena. 

Bob Black, vice-president of sports and entertainment at the Katz Group explained that the city could fund the project by borrowing money for the construction of the arena, which they would then own.  The property taxes they would collect from the rest of the development could be used to easily pay back the loan.

The Katz Group says they expect the federal and provincial governments to help fund the infrastructure needed for the project, including the LRT station connection.  The Katz Group envisions shops and restaurants, along with two office buildings that will be connected by a pedestrian bridge to the $400 million dollar arena.

Black told that Building Owners and Managers Association the group's investment will include two hotels, a casino, and a student residence, along with a community rink that could double as the Edmonton Oilers practice ice.

He urged city and provincial officials to seriously consider the plans because the project is an opportunity for Edmonton, and the project needs to be Edmonton's vision.  He says its more than an opportunity, but it is the future of the great city at hand.

Daryl Katz, the Oiler's owner has already pledged $100 million to show his support of the project.

Edmonton Realty Report

Smog in Edmonton

In Edmonton, a pocket of polluted air has been trapped by sharp temperature changes, and the health officials have warned people who have problems breathing to avoid being outside.  Just Wednesday, the Alberta Environment issued the warning about the quality of the air.  It could really affect people with breathing problems.

Alberta Health Services' Associate Medical Officer of Health for the Edmonton zone, Dr. Keays, claims that the air quality is not a threat to people in good health.  Rest and stay inside, she advises for people with respiratory illnesses.

The air quality as of Wednesday was rate as 'fair' by city officials, and they say that the smog was trapped between a layer of warm overlying air and cooler air underneath.  Not to mention, the wickedly cold weather caused people to use higher-than-normal amounts of energy.

Edmonton Realty Report

Historic Brewery Deemed Historical

Locals feared the worst when a magnificent, historic, brick brewery was closed two years ago.  Some people thought the property might be doomed.  Time and time again, distinctive works of historic architecture are demolished by selfish developers, for nothing more than a quick profit, stealing years of memories from the local community.

Thankfully for the local residents, two and a half years after the closure of the plant/brewery, it is still standing as a remarkable piece of local architecture.  The Alberta Culture and Community Spirit recently deemed that the two oldest buildings on the site, dating from 1913 and 1924 as historically significant. 

The brewery will now be eligible for special historic designation by the province.  Any demolition of the two structures has been frozen.  Molson sought support from the province for the special designation.  Vancouver-based investment firm, Anthem Properties, is in close talks with the city because they have an option to purchase the entire brewery land parcel.  They are also working closely with provincial officials and heritage planners to find ways to preserve the buildings.

If the buildings are designated heritage sites, the site is eligible for grants and money from the heritage restoration fund.

Edmonton Realty Report

Bank of Canada Is Keeping an Eye on Real Estate Financials

The Bank of Canada is on the lookout for a real estate bubble, but so far is seeing no signs of financial spending getting out of hand. The increase in sales toward the end of 2009 was driven by many factors including low interest rates and lower housing prices and an optimistic view of economic recovery. The upswing in the real estate market has indeed helped to pull Canada’s economy out of the recession, but the Bank will remain vigilant in its scrutiny of the market.

David Wolf, an adviser for the Bank of Canada does not feel that raising interest rates to slow the market is a good idea. He is concerned that it would slow economic recovery within many industries across the country and do more harm than good. Interest rates are expected to increase sometime later this year.

The Canada Mortgage and Housing Corporation released a report showing that housing starts are rebounding nicely, with 174,500 starts in December as opposed to 164,800 in November. Quebec showed the highest increase at 17.8 percent. Atlantic Canada was a close second at 15 percent followed by British Columbia at 8.7 percent and Ontario at 2.9 percent. The Prairie Provinces experienced a decline.

Residential building permits for December also had improved numbers showing a 9.1 percent gain over November. Led by British Columbia and Ontario, according to Statistics Canada residential permit numbers are almost up to pre-crash levels.

Scotia Economics released their report as well, showing an estimated 465,000 MLS home sales in 2009, a 7 percent increase over 2008. Average home prices increased by about 4 percent over 2008. Average sales price worked out to about $315,000 per unit. Scotia predicts a healthy first half of the year and a slight cooling trend once the mortgage rates start to increase.

Edmonton Realty Report

ReMax Confirms Strong Expectations for Edmonton’s Market in 2010

A new national report has recently stated and confirmed that the residential real estate market in Edmonton should continue to see modest price increases throughout 2010.  The report also says that the market should also see a solid increase in the number of sales during 2010, compared to 2008 and 2009.

The ReMax housing market outlook estimates that in 2010, the Edmonton market will see a three percent increase in average home prices compared to the previous year.  The report says that ReMax expects to the average home price in Edmonton to settle at about $330,000 by the end of the year.

ReMax also expects to see a two percent rise in the number of homes sold in the region during 2010, and they see inventory levels remaining stable throughout the coming year.  They even think that it will be a seller’s market in the year to come, with first-time buyers taking a significant number of homes off of the market due to the favorable conditions relating to interest rates and tax credits.  They also expect demand for condos to remain constant due to the affordable prices that are available.

 

Edmonton Realty Report

Son of the condo king

Raj Dhunna is a young student at U of A. He is also the project manager at Regency Developments. This is a real estate development firm that his dad owns.  The firm has three major downtown condo’s under development.
The most unique and just about completed is the Quest. It has 22 stories and is sitting on the corner of 104th Avenue and 105th Street. Quest looks like the chic high-rises of Yaletown, in Vancouver.

The building is 50% sold and they are entering in to 2 to 3 contracts a week just because of the unique and modern look the Quest has. Another one of their new condo sites is the RK East. It is going to be a three tower site with 935 units. It is located on the former Levi Strauss factory spot. Construction has not begun, but it has council approval. The planning is ongoing and construction should begin in 2010.

The project will start in phases. There will be three towers and underground parking. There will be over 100,000 square feet of retail space available, also. The hopes are that the project will aid in the revitalization of the area and help it grow like the west side.

Regency Development’s third project, The Pearl, has yet to be approved. It would be built on Jasper Avenue West, just beyond the Illuminada towers. Since it is a 35-storey tower in a part of the skyline dominated by low-rise buildings, it is likely to meet some opposition. The plans for the Pearl as of now are a bit sketchy but it will no doubt consist of larger units with commercial space on the main floor.

Regency development believes that the river valley is Edmonton’s crown jewel and that, if you are going to lure professionals and Edmontonians to live in the city, you need to use the river valley to your benefit. It is a good place to live and people should avail themselves of the quality of life it has. They believe that’s what their projects accomplish.

Dhunna gives his parents praise for his hard work ethic. His father has built everything from custom homes and small townhouses to these multi-storey condo towers. The elder’s previous business was called VIP Homes. Regency Development was founded in 2008.

Through diligence, honesty, and hard work, Dhunna has seen his father’s efforts prosper. From building custom homes to high-rise towers is a long way for a man to come. Dhunna says his father gives the credit to hard work. That is what his father believes in most all, he expresses, hard work. And family, he adds that his father says he could have never achieved what he has without the support of family and friends.

Edmonton Realty Report

Interest Rates Holding Steady

The Bank of Canada has successfully kept its lending rate at a stable 25% at the close of 2009. The trendsetting rate of the Bank, which is set at 25 percentage points higher than the all night lending rate, remains at 5 percent.
It recognizes that up-to-date statistics points in the direction of global convalescence, and that the economy has taken a turn for the best when compared to previous statistics. Although the economy of Canada is on the rise there are still expectations of a weak recovery in terms of historical standards.

It kept things under wrap as far as the prediction for economic growth in Canada is concerned for this particular year while at the same time keeping its predictions unaffected for next year. It also decreased its estimations for the upcoming growth for the economy in 2011. In its September announcement to keep interest rates at an even keel, the Bank of Canada forecast that price increases would return to its 2% goal for second quarter of 2011. It has since moved the target date out to the 3rd quarter of 2011.

It’s obligation to keep interest rates at bay in anticipation of the second half of 2011 will be based on the viewpoint for price increases. Since there isn’t any signs of inflation picking up any sooner than what was predicted, the Bank repeated its commitment to keep interest rates at a steady kill. Based on the viewpoint of inflation, the overnight rate goal is predicted to remain steady until the close of second quarter of 2010 for achieving the inflation target.

It pointed in the direction of the speedy rise in the Canadian dollar over recent weeks as a risk to the recovery of the Canadian economy, saying that the heightened unpredictability and a show of persistent strength in the Canadian dollar are all working against growth and more in terms of subduing inflation pressures. The Bank therefore predicts that the domestic economy will continue to see growth even at the expense of vulnerable net exports. The Bank is also expecting the productivity gap to close in the 3rd quarter of 2011, a quarter later than expected for the July when it predicted production to reach its capacity in the middle stages of 2011. It is fair to end that the interest rates are holding pretty steady for the Bank of Canada and things look pretty promising.

 

Edmonton Realty Report

Henday Freeway Construction Continues

Although construction was supposed to be complete on the Anthony Henday Dr. ring road by the end of October 2009, constructions crews are gearing up to work through the winter in order to complete the $1.42-billion project by April or May of 2010.

According to the deputy project manager for the company building the freeway system, the project is on schedule, aside from a few minor disruptions. As long as the weather does not disrupt the work in progress through the winter, Flatiron-Graham-Parsons is confident the Anthony Henday Dr. roadway will be completed by spring of 2010.

Delays have been attributed to some issues with the safety of the bearings on the bridge. The bearings will have to be replaced, but most of the ground work on the foundation has been completed. Project manager, Mark Basher, says crews are ready to being pouring cement to complete the bridge deck for the flyover portion of the roadway. The final paving has already started on parts of the roadway. The project is nearing completion.

When completed, the Anthony Henday Dr. roadway will stretch 21 kilometers, including eight interchanges and five flyovers. The roadway has been built in order to drastically reduce traffic in the area.

Edmonton Realty Report

Real Estate in Canada: The More Reasonable Alternative

Although Canadian real estate has started to increase in value, dream homes are tons more affordable than those in the United States. This is not to say that lower end homes in the U.S. are more affordable, but one looking to get more bang for their buck has a better chance in Canada than in the United States.

A report released recently by Coldwell Banker stated that the average price of a 2,200 square foot home, 4/2.5 in the U.S. goes for about $2.1 million (high end region) and $112,675 (low end region); in Canada, the same home would cost $1.3 and $158,667 respectively.

People will be amazed by these numbers and now, first time home buyers and people looking to own a large, high-end home with just a fraction of the cost will be able to do so in Canada. The total difference in average between the higher-end homes in the United States, as compared to Canada, is a whopping $2 million. This staggering figure just goes to show you that you do not have to move overseas to live like a king with the American dollar!

Edmonton Realty Report

Canadian Real Estate Market

Even though Canadian home sales fell slightly in August, resale home figures show an increase of 18.5 percent over August of last year from numbers provided by the Canadian Real Estate Association (CREA).

Douglas Porter, the Bank of Montreal’s deputy chief economist, says the housing market remains strong, especially in British Columbia and Vancouver in particular. In Vancouver resale numbers have climbed over 100 percent on a year to year basis. Low interest rates have inspired consumers to buy homes.

Whether the housing market will continue to gain is a subject of debate. CREA says the market should continue to increase. Millan Mulraine, economist at Toronto-Dominion Bank, believes the housing market will be slow for the rest of the year.

However, there will be fewer homes to choose from because Mr. Porter noted that there has been a decrease in new listings, which has led to an increase in home prices. In fact, 20 of the 25 largest markets in Canada are reporting housing price increases. The major cities experiencing a drop in prices are those associated with the auto industry and gas industry.