Edmonton Realty Report

Edmonton Does Well in Housing Affordability Study, Vancouver Not So Much

Edmonton took top honours in the International Housing Affordability Survey as far as Canadian locales go. In its category, places with populations in excess of a million people, Edmonton was the most affordable. Vancouver, no surprise, ranked as the most expensive. In fact, Vancouver came in second to Hong Kong, out pricing high-end locales like New York, San Francisco and London in England.

Conducted by Demographia, they survey relied on data from 2011’s third quarter. They calculated each city’s median multiple by taking the median house price and dividing it by that area’s gross median household income. Any multiple score that is over 3.0 means that city is unaffordable. A 5.0 means your area is severely unaffordable. Vancouver, Montreal and Toronto all ended up in the unaffordable category. Ottawa-Gatineau, Calgary and Edmonton all ranked moderately unaffordable. The United States, still recovering from the 2008 market crash had some of the most affordable scores, such as Detroit with a 1.4 and Atlanta with a 1.9.

The general thinking is that medium multiple scores should hover between 2.0 and 3.0 for good affordability. The issue is that in some places there are land use regulations that are restrictive, such as in parts of Australia, New Zealand and in the United Kingdom, which drives the scores up.

Edmonton Realty Report

Joint Planning Study Started By Edmonton, Strathcona County

An open house at the Strathcona County Community Centre this past Thursday was the first step in a Joint Planning Study, or JPS, being conducted by the City of Edmonton and Strathcona County. The idea was to find ways to work together in the areas of risk management and mitigation, drainage issues, and to work together in coordinating transportation options.

Both cities share a near 40 kilometre border, so in effect, what one city does affects the other. The idea is to work in concert, having better means of communication between the two local governments. JPS already has committees working together on the drainage and transportation issues, which is a good start.

Growth in both areas, in the area of population, the economic picture and geographic boundaries, has been at a similar rate during the last decade. The Capital Region, recognizing these items, has already initiated a plan that focuses on this exact spirit of municipal cooperation, known as the Capital Region Growth Plan.

Past trouble spots between the two communities include issues of land use, planning, drainage and transportation issues. In heavy industry issues, risk management was also a concern. The JPS is intended to smooth over these disagreements, making it easier to resolve issues fairly and amicably.

Edmonton Realty Report

2012 Expected to Be Solid Year for Canadian Real Estate

Re/Max, one of Canada’s front end realty’s seems to understand that to some the real estate market in the country doesn’t make much sense. But the company notes that the apparent conundrum is deceiving. Re/Max also noted that the average real estate price will continue to climb throughout 2012. Vancouver will continue to amaze, as its average house price will exceed $800,000 by the end of next year.

As far as the remainder of 2011, Re/Max predicts that the year will finish with a seven percent increase over 2010, as far as prices are concerned. Taken on a national basis, the average price of a home will be roughly $363,000. In 2012, nationally the price increase will average around two percent.

Sales are expected to see a three percent increase over 2010, with 460,000 homes changing hands by the last day of December in 2011. In 2012, that figure is expected to increase by some 4,500 sales. Michael Polzler, a spokesperson for Re/Max notes this is a sign of great resilience, particularly in 2011. The third and fourth quarters were particularly volatile.

Greater Vancouver is expecting a 16 percent increase in the average house price in 2011, compared to 2010. By December 31st of this year the average price is expected to hit $790,000. There are expected to be 32,700 sales, which is more than the 31,144 seen in 2010.

Edmonton Realty Report

Report Notes Decrease in Mortgages Since Spring Rules Change

Ever since the change in mortgage rules this past spring, the number of refinance mortgages has decreased, notes a third quarter report from the folks at CMHC. Initially that decrease was nearly 40 percent, which fell in with second quarter figures. By the time September rolled around, the decrease was about 25 percent off of the norm. That also translated into a 31 percent decrease comparing the first three quarters of 2011 with those of 2010.

New mortgage activity has also seen a decrease, as in the amount of insured mortgages, down some 11 percent, when compared to the first nine months in 2010. Household debt remains high, but steady and there is encouraging evidence that the debt is beginning to be paid down ever so slightly.

Some have criticized the government for the change in mortgage rules, making it more difficult for potential homeowners to get into the market. Curtis Cannon, who is a broker with the TMG, the Mortgage Group based in Prince George, British Columbia, likens it to when the rules were changed on down payments on rental property insurance. But the government noted that the rules were changed to prevent homeowners from using the equity in their homes like an ATM machine.

Edmonton Realty Report

Canadian Residents Are Worried About Debt Load

The people of Canada are worried about the amount of debt carried by citizens, according to a recent survey by the Canadian Association of Accredited Mortgage Professionals or CAAMP. They conducted an online survey that received 2,000 responses, roughly half already homeowners.

The survey requested respondents to answer several housing and mortgage questions, ranking each on a scale of one-to-ten. The statement about Canadians carrying too much debt got the highest score, coming in at 7.98. Nearly half the respondents, roughly 46 percent, gave the statement a nine or ten rating, showing strong agreement.

This survey echoes the words and warnings by a number of officials in government as well as some of the news media outlets. Will Dunning, the author of the report, noted that as of this past August, over $1 trillion is held in mortgage credit on residential properties. He is expecting that figure to grow even faster within the next few years.

On the other hand, one of the questions on the survey was whether or not Canada was seeing a housing bubble. That got sort of a neutral response, with an average score of 6.07. Most people answered with a four or five. But when asked if investing in Canadian real estate was a smart move, the average was 7.27. Only two percent of those responding gave low ratings in the one-to-two range.

Edmonton Realty Report

Edmonton Buys Arena Land, for $75 Million

The City of Edmonton just reached a deal to purchase the three pieces of land needed for the much talked about downtown arena. That deal was made with the Katz Group, the people behind the arena idea. The problem is, that land is going to cost the city $74.9 million rather than the $20 million discussed, at least in public.

Robert Moyles, spokesperson for Edmonton, advised that the figure is higher because the city purchased not only what was needed for the arena, but the surrounding parcels as well. The original seven-acre arena site, which also includes space for a public skating venue, did go for $24.6 million, not counting more than a million in legal fees and real estate fees. That is close to the original estimate.

The city also bought another 3.7 acres, just south of the original arena land, near the Greyhound station. That cost $33.6 million more. And there was the other five acres purchased, adding an additional $15.4 million to the bill. Moyles did note that the Katz Group has already paid $16.8 million to Edmonton to buy part of the land back from the city.

That purchase seems to be a cooperative gesture until you look at the details. The city council did approve the arena to go forward last Wednesday, after Coun. Tony Caterina put an amendment to the original proposal. The Katz Group would have to agree to put in at least $30 million in the development of those extra parcels around the arena. Apparently the buying of that south parcel legally fulfills the requirement, though that was not the intent. I guess we just have to stay tuned for the next chapter in the arena soap opera.

Edmonton Realty Report

Occupy Wall Street Movement Told Get Used to Economic Reality

The Occupy Wall Street movement that is sweeping across the United States will be expanding to Canada. The idea is to protest against the North American Banks and big business in general, for their overall greed in a time of economic downturn. They call themselves the 99 percenters, meaning that they are the 99 percent of Americans that are being financially stomped on by the wealthiest one percent.

But a chief marketing strategist for Russell Investments, Steve Wood, said that the 99 percenters should just get used to it. Wood is from New York, and made this statement at a show for financial advisors in Edmonton. His contention is that the world borrowed too much money over the years and now that money must be repaid, by everyone.

Wood then went on to note that it is doubtful that anyone will be getting a pay raise for the next two centuries. Whatever you earned in 2007 is probably going to be your best year for the foreseeable future. Forget the Christmas bonus. Your gift is that you are not going to be fired.

Wood believes that by taking such measures, the United States will be able to lead the world in a very slow recovery. Future generations are just going to have to get used to the idea of working more to get less. He blames the government, a lagging education system and the population itself, but not the one percenters, not at all.

Edmonton Realty Report

Equifax System Allows Landlords to View Credit Reports Online

Landlords will now have the ability to do credit checks online for potential renters, thanks to a new program by Equifax. Dubbed a tenant screening system, it allows landlords to pull credit reports to help them decide whether to rent or not.

Officially known as the Equifax Tenant Selector, the landlord keys in certain information form the rental application and the selector indicates whether to accept or decline that person. The landlord must have the permission of the person and that person must be applying to rent property. Other uses are considered illegal.

Privacy concerns, as well as issues with identity theft have already been raised. Potential renters are often refusing to provide credit reports for this very reason. But Equifax advises this problem has been solved because the reports can only be viewed, not printed, thus will not be transferred to any other party. The landlords will just get a code advising if and why the prospective tenant came back as declined. The entire system is meant to increase security, make it easier for landlords to vet clients and making the whole process more cost efficient.

Edmonton Realty Report

Examining Edmonton’s Financial Balance

Watching all the financial turmoil in the United States and in Europe does make one question how Canada is faring in all this. Recent statistics from the USA reveal that no new jobs were created in that country for the month of August. That’s not so great because that means less cash to pay for imported Canadian goods.

There are also questions about how the real estate market in Edmonton and Strathcona County is doing, and if there will be a hike in the interest rates anytime soon. Not likely, at least that’s what we are told now. Back in July, economists thought it was almost a given.

This past Wednesday, the Bank of Canada did advise that it wasn’t planning on raising its benchmark rate until the second half of 2012. That is potentially good news if you are in the market for a house, not so good because such a move means the economy is experiencing a fairly fragile recovery.

Canada did see a lag in its economic growth during the second quarter of 2011, but that is not expected to happen again in the third quarter. The final half of the year is expecting a growth rate of about 1.5 percent. As far as real estate, in Edmonton things appear to be stable. The average August Sherwood Park home sale was $417,023, which is almost $28,000 higher than the average in August of 2010. Twenty six homes were sold this August compared to last.

Edmonton Realty Report

Regional Transportation Plan Decision Delayed Until Next Council Meeting

Strathcona County council has decided to hold off on putting the final stamp on the Capital Region Board Integrated Regional Transportation Master Plan, or IRTMP for short. It will delay approval until August 30th, the next scheduled meeting. The stated reason was that some councilors believed they did not have enough resident input on the idea.

Coun. Jacquie Fenskie was one of those who preferred to wait, citing that some of her residents may not even know about the plan. It is summer vacation time after all. Robyn Singleton agreed, noting that at present this is the best transportation option available, but that the plan has some items that need looked into.

The plan includes needed upgrades to certain roads, as well as building additional routes. On the list are finishing the part of Anthony Henday Drive that runs from Highway 16 west to east, connecting Ray Gibbon Drive with Highway 2 at Cardiff Road, building a new bridge near Fort Saskatchewan that would funnel traffic from Highway 28A to Highway 21, and extending Highway 627 to run between 199th Street and Anthony Henday Drive.

Twenty-five separate municipalities will have to work together to make the IRTMP a success. After the August meeting, the plan goes to the Capital Region Board for approval. That is expected to happen on September 8th. It is expected to take some 35 years to fulfill all aspects of the IRTMP.

Edmonton Realty Report

Aquatic Strategy Put on Hold after Misfired Letter

A letter regarding an adjustment of a property line between the Glen Allen Recreation Complex, or GARC, and the Wes Hosford Elementary School went out prematurely. The result was a mass state of confusion. It appears that the changing of that property line had not yet been decided. The change was to give more parking spaces to the GARC.

To confuse the issue even more, recipients were advised to visit a website that listed five options for aquatic centres. One of these was the expansion of the current GARC. The way the letter was framed, it appears that this expansion was a done deal. In reality, the GARC option is just in the planning stage.

As a result of the ill timed letter, the expansion has been tabled until the public has had a chance to comment. The Aquatic Strategy’s website now has blogs set up for the public to voice their opinion. There will also be an open house on September 7th at the GARC’s Sports Grill. All five options will be presented at that time.

Some of the Sherwood Park residents that live near the GARC were very concerned about the letters that went out July 19th. For one thing, it gave the impression that the property line change was already a given. For another, this letter went out when many people are away on vacation. These people would have lost their chance to speak up. Of special interest are a grove of trees that lie between the GARC and several residences. It is important to homeowners that these trees remain standing. They provide a bit of a buffer for the homeowners and are a bit of open green space that should remain untouched.

Edmonton Realty Report

Proposal for Arena Tax Does Not Fly

Hector Goudreau, Alberta’s minister for municipal affairs, advised that the people of Edmonton will not be seeing a tax raise to pay for the city’s proposed downtown arena. That structure is expected to cost $450 million and as of yet there is no clear plan on how to pay for it. Taxing the citizens is not going to be the solution. Part of the reason why is that taxing for such a project may set a precedent. If it’s OK for this project, then why not for the next, and the next?

The plan for the arena includes the premise that the province of Alberta or the federal government will pay for $100 million of the costs. The provincial government and Premier Ed Stelmach are reluctant to fund the project. The idea to generate a tax came from Ted Morton in the Tory leadership, asking for a referendum for generating the money. That would mean adding one percent to the GST for about two years, enough time to generate the $100 million.

This sort of thing does work in the United States, but not in Alberta. The towns and cities cannot charge its residents any tax other than property tax. Goudreau is putting it back in the hands of the Edmonton local government, advising them to perhaps use part of the money they get via the Municipal Sustainability Initiative. Danielle Smith, with the Wildrose Party, is against the tax because in essence people are being taxed to support a private business. She thinks Edmonton should perhaps run a lottery to raise the funding. That would give residents a choice on whether or not they wanted to participate.

Edmonton Realty Report

Electricity Rates Raised for Summer Season

Residents of Strathcona County will see their power bills go up again this summer. It is a normal occurrence, rates normally going up in summer and winter because of increased demand. Rates will be going up from 6.82 to 9.86 cents per kilowatt hour.

That is unless you have a contract with a power company. Those that do not are automatically put on the Registered Rate Option which changes from month to month. In April that power costs went to 11.45 cents per kilowatt hour. That increase was not only because of electricity demand, but because at Wabamun two of the generators had failed.

As more people move into Alberta and/or industry requires more power, then demand will go up, as will rates. The average use for a typical family runs roughly 600 kilowatt hours per month. That means an increase of about $20 per month for the current rate hike comparing the July bill to June’s. But that doesn’t take into account that many people are on vacation, or just use less power in general, such as barbequing rather than using a stove to cook.

On Epcor’s website, www.epcor.ca the company has tips on how to reduce power usage and your bill.

Edmonton Realty Report

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 Realty Report

Lawsuit Filed Against Bosco Homes and Province of Alberta

Two boys escaped from Bosco Homes, a youth home facility, on May 31st of 2009. Both 14 at the time, they are accused of murdering Barry Boenke and Susan Trudel the next day, June 1st. The families of the victims have filed a lawsuit against the youth home as well as the province of Alberta. They are alleging that negligence led to both deaths.

The families are asking for $900,000, of which $200,000 is for the loss of value suffered at the Boenke estate. Bosco Homes faces a charge of not supervising the children in its facility. The province is being sued for not assuring that Bosco was staffed with trained, qualified staff, or that procedures for dealing with potential violent youth were not followed. The president of Bosco Homes, John Watson, had no comment. Neither did Bruce Armson, a director of Bosco Homes’ group care services.

The two 14 year olds were caught during a traffic stop made by Edmonton Police. The vehicle they were driving belonged to the victims. Later the RCMP from Strathcona County found the bodies of the victims at Trudel’s property. The boys will appear in court in September, both charged with first degree murder. Their names are being withheld due to their age.

Edmonton Realty Report

Strathcona County Councilors Discuss Meeting Regulations

Discussions are underway at Strathcona County regarding the issue of what can and cannot be discussed at council meetings that are open to the public. The idea is to balance transparency of council actions with security on what are need to know issues. Coun. Bonnie Ridell placed a motion that there should be better guidelines to distinguish the two issues. She is asking that the county administration weigh in as to what is legally allowed to be discussed behind closed doors.

The Municipal Government Act allows for items that fall under the Freedom of Information Act as well as the Protection of Privacy Act, to be discussed in open meetings. Other issues such as land transactions, legal privilege and items concerning human resources are also permitted to be in open session. Riddell is asking for more specific definitions of what is and what is nor permitted.

Motions regarding county formed task forces, specifically pertaining to guidelines and security, were also placed by Roxanne Carr, another councilor. She believes that the RCMP reports about security for the third floor offices in the new community centre be made in open session. Coun. Jason Gariepy does not agree, believing that having such information put out in a public forum compromises security. The matter is up for discussion.

Edmonton Realty Report

Rob Sproule Releases Artistically Bent Second Gardening Book

Rob Sproule’s second gardening book is hot off the presses. “Gardening with Colour” is intended to inspire gardeners of all skill levels to beautify their homes by exercising their green thumbs. The author attempted to make this book more reader friendly than his first book “New Annuals for Canada” that came out about a year ago. Rather that write for “those more in the know” the current book is meant to be read like a novel, only with lots of photos.

This might appeal to younger people who when moving into their first home are considering starting their own garden. Or, these same young people may have inherited an established garden with that new home and want to know how to keep it up. Their green thumbs might be non-existent. “Gardening with Colour” is meant to encourage and guide those novice gardeners, as well as inform and entertain those who are old hands with seeds and a watering can.

So far the book is a hit, having been on the non-fiction best seller list in the Calgary Herald for the last three weeks. It is part garden manual, part artistic instruction. Sproule covers garden design, how colours relate to one another and how texture and form add interest in a garden. Basically, it is about how to view that plot of land in the backyard as an art form, and how to bring it to life.

Edmonton Realty Report

Elk Island Public Schools Sees Program Cuts and Eliminations

The Alberta Education budget has meant severe cuts for the Elk Island Public Schools (EIPS) many programs. The Enhanced English Second Language Program and the CTS Evergreening Program are both being discontinued. Grades four through six will see larger class sizes thanks to cuts in funding.

The EIPS chairperson, Lisa Brower, commented that the CTS Evergreening program cancellation was expected, since it was designed as a one time affair. It helped with putting equipment and programs in schools that were being left out. One example is the updating of the cosmetology laboratories in some of the districts smaller, more rural schools. Fort Saskatchewan Junior High and Lamont School got cosmetology equipment for the first time.

The ESL program was not intended to be a one time item. These classes are for foreign born students that needed help in the English language. Though funding for the Enhanced program was cut, the schools still have the standard ESL funding, which for this part of Alberta is sufficient.

Brower was more concerned about the higher class sizes in the fourth through sixth grades. Teachers will have less one on one time with students, which could impact learning. The teachers and staff will have to find a way to achieve the same high quality results with a lot less cash.

Edmonton Realty Report

Hearings on Transmission Project Bring Out Supporters, Opponents

A Sherwood Park day-care center operator is worried about the effects of a proposed high-voltage power line. Gillian Jobs’ day-care center is on the potential route of what would be the Heartland Transmission Project.

On April 11, public hearings were initiated on the possible project. Jobs expressed her fears that her business would be devastated, due to the possible unwillingness of parents to expose their children to the proximity of electrical towers. Jobs commented that many of the basic elements of her life are at risk, including her home, health and livelihood. She said that if there is even a slight chance of health problems that might result from the presence of the towers, they should not be constructed.

The public hearing will offer opponents and supporters of the project to air their view. The Alberta Utilities Commission will be responsible for an ultimate decision on the power line. After the end of the public hearings, the Commission will be allocated 90 days in which to evaluate the information presented, and ultimately announce its decision. An organization called Responsible Electricity Transmission for Albertans, or RETA, has been busy in a campaign to oppose the project. John Kristensen, a RETA member, said that high-voltage electrical towers present significant risks to health. These risks include Alzheimer’s disease, childhood leukemia and heart disease.

EPCOR, which supports the Heartland Transmission Project, claims that there is no proof of heightened health risks in the presence of the towers. Tim LeRiche, an EPCOR spokesman, said that the Transportation Utility Corridor’s aerial line is the choice for least amount of impact for the Alberta area.

Edmonton Realty Report

Council Holding Open House Meeting For Gravel Mine Proposal

Kanata Metis Cultural Enterprises Ltd wants to operate a gravel mine on lands that it owns next to the North Saskatchewan River. The company notes that the mine, intended to be worked for five years, would create as many as 250 jobs and provide funding for affordable housing. The company is owned by a council that represents eight Metis settlements in Alberta.

The plan is to turn the 40 hectares located south of Ellerslie Road into a park and Metis heritage center after the five year extraction period. Scott Mackie, city manager for the planning department, notes that the land is former cropland, not an area in its natural state. He also advised there have been complains of four wheel driving and ATVing on the property. Details still need to be worked out, such as the mine’s operating hours, whether the operators will crush the gravel at the site or transport elsewhere, and which route the transport trucks will use. All this must be done before the city can properly consider the proposal.

Environmental groups and area residents are expected to oppose the idea. Kanata bought the land from the Qualico Company after it gave up on its 2007 mine proposal. In their case over 800 people showed up at the council meeting to protest. The North Saskatchewan River Valley Conservation Society, formed during the Qualico proposal has already sent a letter protesting the operation due to the impact on the residents and on the Edmonton watershed.

Another stumbling block is that the land must be rezoned. In 2010, council passed the Edmonton Municipal Development Plan that forbids extraction or mining anywhere in the river valley. The open house meeting will be April 7th from 5 pm to 8pm at Sister Annata Brockman Catholic School, located at 355 Hemingway Road.

Edmonton Realty Report

February New Home Starts Down in Edmonton Region

Fort Saskatchewan, Strathcona County and the city of Edmonton all saw a decrease in housing starts for the month of February. In Strathcona there 13 single family homes started, down from 27 in January. In the multi-home category there were six starts in February and 12 in January. Combined there were 19 starts in February 2011 compared to 54 in February of 2010.

Fort Saskatchewan saw 18 single family homes and 4 multi-family units started in February of this year. Last year during the same month there were 44 starts, roughly a 50 percent difference. Combining this years January and February starts showed a 63.5 percent decrease from the same time period in 2010.

Edmonton showed 489 starts this February compared to 642 in February of 2010. Throughout the capital region 360 single family homes were started in February, a 26 percent decrease from February of 2010.

Analysts are expecting those numbers to improve somewhat during March and April. Richard Goatcher with the Canada Mortgage and Housing Corporation, or CMHC, advised that last year’s inventories were more depleted, spurring new housing starts to keep up with what was then a hot spring selling season. This year things are more of a buyer’s market and adding additional inventory might decrease home prices. That would make the market far more unstable.

Edmonton Realty Report

Canada’s Most Affordable Province to Own a Home is Alberta

In the last quarter of 2010 Alberta made a name for itself as the most affordable province in Canada to own a home. In the city of Calgary, that affordability is the best it has been within the last six years. So says the Housing Trends and Affordability report put out by RBC this past Thursday.

The report notes that the recovery in the latter half of 2010, gradual and steady as it was, put Calgary in the position of pulling out of its recessionary slump that started back in 2007. Home resales have been increasing steadily since June of last year. What had been a buyers market has now reverted to a more balanced condition. But home prices continued to slump. The upside to this is that the homes became more affordable. The report also noted that Alberta was the only province that ended up with year over year price declines.

The still low mortgage rates also kept homes more affordable. Rates are expected to be raised sometime mid-year by the Bank of Canada. That and the implementation of new mortgage rules this March have caused an increase in sales. As the demand for homes increases the home prices will hold steady. The affordability measure for owning a home in Calgary during the last quarter of 2010 was 34.9 percent for a bungalow, and for a two storey standard home 37.0 percent. That is the percentage of an average income that it takes to buy and maintain that home.

Edmonton Realty Report

Strathcona County Again Talking About Snow Clearing Bylaw

The council for Strathcona County tried to pass a snow clearing bylaw in 2009 but the measure failed. They are again considering enacting such a law. Right now it is only at the investigative stage, with only a motion to look into the issue being enacted. The motion directs the administration to study how other municipalities deal with sidewalk snow clearing, what types of warnings and corrective measures are most effective and how do those same municipalities deal with seniors not able to get out and shovel snow.

The initiative was headed by Coun. Vic Bidzinski, who when the subject of seniors came up mentioned the Snowbusters programs. These are groups of people who help seniors and others not able to comply with the bylaw. Currently the country takes up to eight days to clear snow from sidewalks. Bidzinski wants the bylaw to give residents up to 48 hours. Bidzinski believes that most residents would comply.

Fellow Coun. Roxanne Carr is not all that excited about the idea, again mindful of the seniors in the community. But gathering the information could help create a bylaw that was fair and still took care of the problem. Coun. Jaquie Fenske wants to put the idea to a vote with the residents. Coun. Brian Botterill did note that he took a drive around the county after the last large snowfall and most people did have their sidewalks cleared within two days.

Edmonton Realty Report

Family Owned Department Store La Maison Simons Coming to West Edmonton Mall

La Maison Simons, a high profile clothing retailer based in Quebec City is heading west. A new branch of the chain will be opening a 100,000 square foot store at the West Edmonton Mall. The company president, Peter Simons is also looking into expanding into Vancouver as well as Toronto, a bit closer to home. The Galleries D’Anojou Mall in Montreal is also set to welcome their own branch. Simons, a fifth generation descendent of the company founder, is keeping his plans pretty much under wraps. The West Edmonton Mall’s owners aren’t granting interviews either.

La Maison Simons offers everything from designer labels such as Missoni to inexpensive T-Shirts with the Twik label going for a mere $10. It is this diversity that has made the firm a retail success story, sporting a “something for everyone” attitude. The range of products has also kept the firm viable during times when traditional department stores falter.

The company is privately owned so exact figures on revenue and worth are not available. Experts estimate that the flagship store in Montreal’s downtown does about $80 million in sales each year. La Maison’s reputation has had landlords from throughout Canada wanting the brand to move into their malls, starting as far back as 2006. Five years later, Edmonton has the honour of being first.

Edmonton Realty Report

Katz Group Asked To Provide Financial Information for Arena

The Katz Group, specifically Daryl Katz who just happens to own the Edmonton Oilers, is the main voice behind the proposal to build an arena/sports complex in the midst of that city’s downtown. The item is up for debate and one of Edmonton’s City Councillors, Linda Sloan believes that the same Katz Group should guarantee funds just in case a proposed tax scheme does not raise enough cash.

At issue is the fact that the Katz Group has yet to produce financial information supporting the promised $100 million for the shops and hotel and another $100 million for the arena itself. Daryl Katz has pledged the money, but the city wants it on paper. The Group was intending on submitting plans upon approval of zoning, still to be accomplished.

Even though a survey indicated that 59 percent of the population were in favour of the project, which would indeed breathe new life into a somewhat run-down inner core, it appears that council wants the figures in-hand before approval. Other information they are after concerns a ticket tax that would bring in $125 million and an additional influx of cash from the CRL, to the tune of $125 million.

More meetings and public hearings are on the books. The city hopes to have a decision on the arena complex by April.

Edmonton Realty Report

Five Creative Families Started an Edmonton Tradition

In the late 1960s five families in the Crestwood neighborhood decided to go all out with their Christmas decorations. They decked out their homes in hundreds of lights and the display attracted more than just the people down the street. Esther Matcham was one of the original decorators and has seen that five house display grow into an entire neighbourhood of 200 homes decking the halls, sidewalks, roof, lawns and any other available space. She is now a spry 93.

Matcham lived near the corner of 95th Avenue and 148th Street, right in the middle of what is now known as Candy Cane Lane. It started with a snowman made of plywood, now the official symbol of the yearly display. Another tradition the original five had was a light up party when they would visit each others homes and sing carols.

The Matcham’s yard was home to not only the snowman, but rows of candy canes and hundreds of lights. She used bleach bottle bottoms with colored lights inside to line the front walk, making them look like green and red gum drops. Candy Cane Lane now stretches some eight blocks, from 92nd to 100th Avenue. The lane has its own website and got national attention in 2004 when profiled on HGTV.

Tight economic times and the aging of the residents have meant that some homes have been kept in the dark. The community has stepped forward to purchase lights and people have volunteered to help with the decorating when needed. Candy Cane Lane also helps the Edmonton Food Bank. Viewers are asked to bring a food donation when they come to see the lights.

Edmonton Realty Report

Report on Proposed Edmonton Arena Complex Released

Oilers owner Daryl Katz, his company the Katz Group, Northlands Company and Mayor Stephen Mandel have been talking about building a new arena/entertainment/retail center in downtown Edmonton for some time now. This past July, city councillors asked for a detailed report on everything from building costs, ticket taxes, revitalization levies, legal and financial concerns and the future of Rexall Place, the current home of the team.

The report, just released this week, outlines the project. The site would be just north of 103rd Avenue on the western side of 102nd Street, including Jasper Avenue. It was selected because it is considered the best spot for such a large entertainment venue and it would help revitalize this part of downtown. Redevelopment of neighbouring areas such as The Quarters, McCauley and North Edge would be encouraged. Opponents to the location were concerned the development would empty out the existing downtown area. The architect, Barry Jones from Edmonton says the site is far enough away, and different enough, to eliminate that worry.

Benefits of the project, as named in the report, include helping the city council achieve some of the long term goals for making Edmonton more liveable. There are currently ten year plans for diversifying the economy and for giving the city a more modern feel so that more people will actually want to live in the city centre.

The city collected opinions from the public in November about the arena project and is still waiting for an additional report from city administrators. The money issue still has to be ironed out. Daryl Katz has already committed to spending $100 million toward the arena construction and another $100 million on surrounding projects.

Edmonton Realty Report

Canada’s Commercial Real Estate Investment Market Is on the Mend

Commercial real estate sales in the first nine months of 2010 have exceeded those for the same time period in 2009, by a sizeable margin. Over $12 billion USD changed hands this year, a 57 percent increase over monies earned in 2009. Toronto is proving to be the most active market, and Vancouver gets top honors for being the most expensive, according to a report from Avison Young.

The firm uses their Investment Market Monitor to track sales valued at more than $1 million USD. Types of sales include those in retail, industrial, office, open land and multi-residential developments. So far the retail market is the strongest, and Avison Young predicts that sales will top $16 billion USD by the end of 2010. The amount of sales in this sector accounted for 31 percent of the total investment dollars spent.

Office space so far has seen $2.3 billion USD in sales and accounts for 19 percent of dollars invested. Land sales brought in $2.1 billion USD and 18 percent of the volume. Industrial sales were also healthy, bringing in $2 billion USD and adding 17 percent to the sales volume. Multi-residential development projects accounted for $1.8 billion USD and 15 percent of the market share.

All of these figures are a sign that the commercial real estate market in Canada is improving. Borrowing costs are still low, as are prices. There is money available to lend and the bid-ask gap is narrowing.

Edmonton Realty Report

End of Year Home Prices in Edmonton Expected To Be Close To 2009 Figures

Even though MLS sales in Edmonton this past October were almost a third lower than the same month in 2009, the average price per home is holding steady. The Realtor’s Association of Edmonton showed 1,077 homes changing hands, 29.6 percent lower to be exact. September showed 1,187 homes sold. October was also the fifth consecutive month since April where sales dropped each month.

Larry Westergard, who is president of the realtor’s association had expected prices to be a bit higher than they were in October of 2009. Instead they are virtually the same, being driven by higher inventory and creating more of a buyers market. More to choose from, more bids at below asking price and more sellers eager to move their properties.

Based on all of this, the association is revising their end-of-year pricing forecast. The original thought was that prices would be 4.5 to five percent higher at the end of 2010 than at the end of last year. With only two months left in the year, and with November and December being traditionally slow sales months in the real estate trade, the new prediction is that Edmonton will close out the year almost on par with 2009.

Edmonton Realty Report

Subsidized Housing Projects Concentrated In Edmonton’s Already Crowded Inner Core

Edmonton is trying hard to house the homeless. It receives funding from the province to build subsidized housing as part of the affordable housing campaign, a five year program started in 2009. The problem is that the housing is going into 13 of the most over-crowed, impoverished, crime ridden parts of downtown. There is just not enough room or services to accommodate many more.

McCauley, Central McDougal, Boyle Street and Garneau, already areas with a high percentage of subsidized housing, 15 percent each compared to the city average of less than five percent, are adding 505 more residences. Taking that neighbourhood by neighbourhood McCauley will get a third of the units. That pushes that area’s subsidized housing rate to more than 61 percent. Central McDougal gets 112 units. This is an area where more than half of the people live below the poverty line. Boyle Street will end up with 188 units.

Whyte Avenue appears to be the dividing line. No subsidized housing is planned for south of that line in the city. Jonathan Denis, Housing Minister, is encouraging builders to submit applications in other neighbourhoods for mixed-use housing, but so far there have been no takers. It is a case of “not in my backyard.” Denis implied that if there are no proposals this year, they may tweak the application process. Meanwhile the city will go ahead with the developments as planned to take advantage of the funding.

Edmonton Realty Report

Pocklington Throws Temper Tantrum Outside Riverside, California Court Room

The saga of the Peter Pocklington bankruptcy fraud case continues in Riverside, California. Sentencing, originally scheduled for Tuesday the 12th of October got bumped until the 14th by Judge Virginia Phillips. It is now delayed until October 27th.

It seems his attorney Brent Romney filed a 78 page pre-sentencing report three weeks late. On top of that, when the first delay of sentencing was applied, he added more documents for Judge Phillips to go over, including character references and a biography of Pocklington. The judge was not happy and voiced her displeasure before rescheduling the sentencing yet again.

As Pocklington left the courtroom, his troubles seemed to multiply. He was served a subpoena on behalf of his creditors, that required him to produce all his financial documents to prove his monetary worth. Creditors believe that his assets have been moved to a Bahamian bank and that he is transferring money to his mainland account as needed. Pocklington threw a mini tantrum and tossed the documents to the ground.

Pocklington, former owner of the Edmonton Oilers and a native of London, Ontario, was arrested in March of 2009 on fraud and perjury charges regarding his bankruptcy filing. He pled guilty on May 27th this year as part of a plea bargain. Pocklington also owes $13 million to the province of Alberta for a 1988 loan to bail out his then owned meat-packing company.

Edmonton Realty Report

Choosing a Realtor: One of Your Most Important Home-Buying Decisions

Of the many decisions first-time homebuyers must make, selecting a realtor is one of the most significant. Although the market abounds with real estate agents, it is important to conduct research to ensure you are hiring the most competent person for your needs.

People often have unrealistic expectations when hiring a real estate agent. It is important to understand the entire home-buying process. Your realtor should function as your intermediary and representative, with your best interests in mind. According to Royal LePage’s Dan Harding, realtors are especially useful for first-time homebuyers because of their expertise of local market and mortgage activity. Particularly when working with transferees, realtors should be able to answer questions about specific towns and neighbourhoods, schools, shopping and home market value.

Many people find their realtors by way of word of mouth. Family members as well as friends may be able to recommend realtors that they like and trust. A real estate agent should return phone calls quickly, and stay on top of the most current listings. Your realtor should know the importance of keeping clients happy; a satisfied customer often turns to the same realtor when he or she is ready to trade up to a more expensive home. A good realtor should also keep your budget considerations in mind when suggesting and showing homes. The realtor should be able to recommend other service providers, such as moving companies and home inspectors.

As you go about shopping for a real estate agent, ask a lot of questions, and speak with many agents until you find the right person to suit your needs.

Edmonton Realty Report

Alberta Unemployment Shows Slight Gain, but Hiring Predicted for Fourth Quarter

Despite an August gain in full-time employment, Alberta’s unemployment rate grew a marginal 0.2 percent, to 6.5 percent with a seasonal adjustment. However, the unemployment rate is lower than the 7.3 percent figure reported for August 2009. Since that time, new jobs in the province grew by 29,000, and the labour force increased by 13,500 people.

Also in this information released by Statistics Canada on September 10, 10,900 people found full-time jobs in August, but the number of part-time jobs decreased by 4,700 versus 15,600 in July. The part-time job loss numbers represent the first time since March that part-time employment has declined. The number of people looking for work grew by 1,300 versus July. Of the jobs lost in August, many were in the manufacturing, social service, health care, leasing and real estate sectors.

Gil McGowan, president of the Alberta Federation of Labour, latched onto the unemployment data for Saskatchewan and British Columbia, noting the rates have fallen. He also commented that the rate has not changed in Manitoba. McGowan criticized the provincial government, claiming its hands-off strategy is not helping.

The Federation claims that the real unemployment rate for Alberta is 9.2 percent, when taking into account people who have stopped looking for work, or are involuntary working part-time.

Dan Sumner, economist for ATB Financial, said that in comparison with the rest of Canada, in which 334,900 jobs have been added since January 1, Alberta’s new jobs have picked up by only 8,600.

The picture for Alberta could look better, soon. According to data released the week of September 6 by Manpower, Alberta employers are near the top of the list in their intentions to hire people during the fourth quarter of this year. Employers in Red Deer and Calgary are also expected to increase their hiring, as well.

Edmonton Realty Report

Legal Five Finger Discounts in New Edmonton Store

Most times if you walk out of a store without paying for something you risk more trouble than you could ever imagine. At Edmonton’s First Free Store, it is the law of the land to help yourself to what’s on the shelves and then just wave goodbye on the way out the door.

This novel establishment is co-owned and operated by Benjamin Rider, Brandon Tyson and Russ Armstrong. The idea stems from a store that Armstrong opened in Port Alberni in British Columbia. The store quickly outgrew its community so Armstrong went looking for a larger city. He had settled on Calgary, but they after a chance phone call from Benjamin Rider, the store’s location was changed to Edmonton.

The idea is that people would pay a small fee for dropping off unwanted goods. Currently the fee is $2.00 per box. People shopping for items just peruse the store and take what they need. Donation boxes are set up throughout the store for small change, but paying or donating is not mandatory. The store also takes bottles, cans, unwanted gift cards and Canadian Tire money. They won’t take anything that needs more than one person to move or carry. This means that large pieces of furniture and big appliances are out.

The idea is catching on. The 118th Avenue store is already looking for a second location in the Sherwood Park neighbourhood. Consider all this as an effective way of recycling. After all, as they say, one man’s junk just might be another’s treasure.

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.