Edmonton MLS® Blog - Saturday, February 27th - Edmonton Fashion Week Expands Its Creative Boundaries

Edmonton Fashion Week, now known as Western Canada Fashion Week is set to open its spring show in style. The name change came about as a nod to the designers that come from Calgary and Vancouver that continually support the organization. Edmonton designers will still get first choice on the nightly showcases.

Attracting talent from both out of city and out of province not only gets the advertising word out to a larger audience but can serve as inspiration for aspiring artists thinking of making their mark in the world of fashion. There is nothing better than seeing a breadth of ideas to ignite that creative spark within.

The TransAlta Arts Barn is hosting the fashion week’s 10th season from April 1st to the 8th. Some of the expected participants include Laura Dreger and Kelsey McIntyre, two local designers, Jason Matlo from Vancouver, and Michael Kaye, an Edmontonian by birth but who is currently based in New York.  Joeffer Caoc, a noted designer from Toronto is also expected.  The Emerging Designer contest is on the program with the prize being an internship in New York with Michael Kaye.

Other exciting news in fashion includes the re-launch of the WCFW’s fashion magazine Phabrik on March 13th. The launch even includes a performance by the Citie Ballet.  Tickets are $30 with part of the proceeds going to the iHuman Youth Society.

Edmonton MLS® Blog - Tuesday, February 16th - Edmonton Voted to Close City Centre Airport – Now What?

Did the city of Edmonton put the cart before the horse by voting to close the City Centre Airport without first figuring out what to do with the land? Last July the city council voted to eventually close the airport, but they don’t appear happy with any of the suggestions to develop the property.

It has potential for a new downtown neighbourhood with easy access to the city core. This could provide future residents with easier commute times, perhaps even encouraging people out of their cars and into public transit venues making for a greener Edmonton.

But Mayor Stephen Mandel doesn’t think the ideas being tabled so far are creative or innovative enough. Council members have described their vision of affordable housing in a family friendly community setting, but the mayor wants more input.  An international competition for design ideas will start in March with the winner being chosen by the end of 2010.

The city has other problems. The Edmonton Flying Club, created in 1926 and a part of the City Centre Airport since it opened have no plans to vacate their space.  Their lease is valid for another 18 years.  Apparently the Edmonton Airport’s lease from the city doesn’t expire until 2052.  

Since the surrendering of the land before that date appears to violate the lease, both leases in fact, the Edmonton Flying Club is taking the City of Edmonton to court. Airco Aircraft Charters, another airport tenant, filed an injunction request last October to keep the facility open.

Edmonton MLS® Blog - Tuesday, February 9th - Number of Homes on the Market Doubles in Edmonton

Sellers have returned to Edmonton's housing market as the number of homes for sale has more than doubled, while average prices fell along with the number of home sales.  The market saw over 2,100 homes listed for sale in Edmonton, compared to just 1,118 in December 2009.

With such a hot market and all the talk about strong buying demand, many people hope the time to sell their home has finally come.  There are also a large number of people who are ready to sell their homes because they have built new ones, which are now ready for move in.

Although the number of sales in January is light compared to the number of sales in December 2009, the year-over-year figures show show market growth, with 154 more transactions this year.

The average price for a single-family home held steady at about $367,747, slightly higher than the average price in Dec. 2009.  Year-over-year figures show the prices up about four percent.

The sales to listing ratio was over forty percent, signaling that the locals can expect the growth in the market will be robust and continue to trend upwards.

Edmonton MLS® Blog - Wednesday, February 3rd - Olympic Torch Bearer Lives Green and Loves It

A Chetwynd torch bearer, Rebekah Posthuma, got her chance at the Olympic honour because of her family’s green lifestyle. The Posthuma family hasn’t had to pay an energy bill in more than four years.  They are totally off the power grid.

The Sherwood Park family has eight solar panels on the roof and a 13 metre tall wind turbine in their three acre back yard.  That turbine is expected to be joined by two more in the near future.  Rebekah’s father is adept at home improvement projects which has kept the cost of the improvements to less than $20,000.  The energy self sufficiency is worth it.

A back up generator is available just in case the sun and wind don’t cooperate, but its use has been minimal, roughly six hours a week in the winter and rarely during the warmer months.  In floor heating has been installed, which is more efficient than a furnace.  Energy saving appliances and light bulbs also keep things running smoothly.

Not only does the switch to green forms of energy benefit the environment, it has also saved the Posthuma family money. There is also the possibility that sometime in the future if more energy is created than the family can use, the excess can be sold to the city.

So much for the arguments that living green is neither practical nor affordable; developers, take note.

Edmonton MLS® Blog - Saturday, January 30th - Strange Bedfellows: The Central Bank and Canada’s Housing Industry

At a recent luncheon for the Edmonton CFA Society, financial analysts seeking Bank of Canada updates went away hungry.  The advertised presenter, Timothy Lane, did not appear due to personal reasons.  He was replaced by David Wolf, who is an advisor to Mark Carney, Bank of Canada governor.  

After his presentation, Wolf declared the following question-and-answer period to be off-the-record.  He declined to issue comments on other companies’ policies.  In the speech Lane intended to make, Wolf declared that a potential Canadian housing bubble is premature, yet attention should be given to the situation.  

If the housing market is tumultuous, the presentation highlighted the dangers between the ability of the Canadian central bank to set interest rates and the effect of the residential real estate industry on the entire economy.

Wolf claimed that the real estate debacle in the U.S. had roots in President Clinton’s policies that facilitated easy credit, and the Federal Reserve’s decision to maintain low interest rates.  He also said that housing could have a disproportionately large role in economic phases.

Wolf delivered a crucial point of Lane’s speech: The housing market remained more stable in Canada versus the U.S partially because of Canada’s more conservative mortgage environment.   

Last year, Wolf made headlines at the 2009 dinner for Chartered Financial Analysts.  At the time, as the chief of economics with Merrill Lynch Canada, Wolf made the direst predictions of the three speakers.  He spoke of an “economic tsunami,” and projected that the S&P/TSX index would close near 8,000 at the end of 2009.  The index actually surged to close the year at 11,746.

Edmonton MLS® Blog - Monday, January 25th - Police Execute Search Warrant

After a series of bombings on gas pipelines, Canadian police have conducted a full-scale search of Wiebo Ludwig's rural Alberta property. He is a convicted bomber. Although the police picked up new evidence, they have not filed any charges against Ludwig.

The RCMP spokesman employed to speak with media said that there are many details that he is unable to comment on due to the ongoing investigation. Last week, police of the RCMP executed a search warrant on the 300 hectare property around Hythe. The warrant was in connection to sour gas pipeline planned explosions near Tomslake, B.C.

According to Ludwig's lawyer, the police were looking for any information such as papers, plans, and dynamite. Ludwig was arrested at Grande Prairie during a prearranged meeting with the RCMP.

First, the RCMP said they would charge Ludwig in connection with the bombings, but twenty-four hours later, he was released from jail. The police say they are confident they arrested they correct suspect at the correct time.

Now, it is up to prosecutors to decide is there was enough evidence to pursue charges. When Ludwig was questioned by media about the search, he was quite surprised about of the status of the search warrant.

Police said they would be removing personnel and vehicles form the property as soon as possible, and they thanked all residents for their cooperation. Ludwig has a history of bombing pipelines, and he has led a campaign against the gas wells because he believes they pose health hazards.

Edmonton MLS® Blog - Tuesday, January 19th - Moderate Real Estate Growth Predicted for Edmonton in 2010

Slow and steady is the prediction of the Real Estate Association for Edmonton’s housing market throughout 2010.  Moderate growth in both average home prices and sales is predicted, though single family homes are expected to have an edge over the condo market.

It is expected that roughly 21,000 homes would be sold in 2010, which is just over a 10 percent increase from the 19,000 that changed hands in 2009. Average sales price per home is expected to increase by about 5 percent as well.  As we begin 2010, average home prices are $367,000 per unit.  By years end that number is expected to reach $385,000.

Condo prices are expected to remain flat.  New units being built have the available inventory at such levels that the current $244,000 average price per unit is not expected to waiver.

Interest rates are expected to remain the same through the first part of 2010 with a one or two percent increase expected in the latter months.  As long as the interest rates remain low and consumer confidence is on the positive side, sales are expected to continue.

Available residential inventory is on the low side with only 4,037 homes being listed with MLS at the end of 2009.  As prices increase it is expected more people will put their homes on the market, hopefully bringing it up to the preferred 6,000 unit inventory preferred for the Edmonton market.  Until then, sellers have a bit of an advantage in the real estate market.

Edmonton MLS® Blog - Wednesday, January 13th - No Plans to Raise Interest Rate But Other Lending Rule Changes Considered

Economists are worried that a housing market bubble is in the making. The real estate market has experienced an incredible turn around from the dark days of January 2009 and it is this success that has some money watchers concerned.

Home sales for 2009 are up 73 percent over sales in 2008 and prices for property have increased by nearly 20 percent.

Though some see raising the interest rates as a safeguard to inflation, the Bank of Canada has no immediate plans to do so. According to deputy governor Timothy Lane, the bank is concerned that by raising lending rates the entire economy might suffer an unnecessary blow. The real estate market is leading the economic recovery but there are other sectors that are still trying to gain momentum.

Other alternatives that could be considered that would have less of an impact on most other industries might be requiring a higher down payment and change mortgage and mortgage insurance requirements. The amortization period could also be decreased from its current 35 year norm.

At this point the plan is to leave mortgage lending rates alone until at least the last quarter of 2010 where a planned increase is expected. Until then, the Bank of Canada is leaving any changes up to Canada’s Finance Minister.

Edmonton MLS® Blog - Wednesday, December 16th - Edmonton property sales exceed 2008 figures

2008 was not a good year for global markets. This of course trickled down into the real estate market in the form of decreased sales and the virtual stagnation of the industry. In Edmonton, last November sales hit a ten year low when real estate figures only showed a total of 891 residential units sold.

The picture for 2009 was much rosier, with a total of 1,261 residential home sales resulting in a 41.5 percent increase in the market. In fact during the last half of the year, five of six months showed an increase in sales over the same time period in 2008. September was the slowest month but even then sales figures were tantalizingly close to last year’s numbers.

The real estate industry was rather tentative in its market predictions for 2009, estimating approximately 15,500 homes would be sold bringing an average price of $352,000 for a single family home. In reality, sales exceeded expectations. As of November 18,191 homes were sold with average prices roughly $16,000 more than predicted.

Low borrowing costs have played a major part in this real estate rebound. First time buyers are taking advantage of the situation, concentrating their buying efforts on condominiums, which are averaging $231,684 per unit, as well as lower priced single family homes.

Homes are selling faster this year as well. In 2008 a listing was on the market for an average of 63 days. This year listings averaged 48 days to be sold. Inventory of available homes has also decreased with a total at the end of November being 5,226 homes which translates into a 4 months supply of potential sales. Last year during the same time period there were 8,015 homes listed.

Edmonton MLS® Blog - Wednesday, December 2nd - Saving Police Jobs May Threaten Property Tax Cap

Edmonton’s chief of police says his department would have to eliminate jobs, including patrol positions, if the proposed 2010 city budget is approved. The city budget of $1.4 billion is constructed to limit departmental budget increases to three percent, with a goal to limit property tax increases to five percent. Police Chief Mike Boyd, who asked City Council for a ten-percent department hike, contends that the budget slash would eliminate key personnel.

Boyd estimates that some 80 percent of the police budget is personnel-related, so budget cuts would inevitably lead the elimination of some 100 posts. He also notes that if adequate levels of policing cannot be met, his department would be out of contention for provincial policing grants, thereby threatening another 105 jobs.

Police Commission Vice-Chair Bob Dunster says the $9 million requested by his department is needed to pay his staff once an agreement is reached in collective bargaining. Dunster also notes that about extra funding is necessary to pay for provincial taxes on the department’s $4.5 million pension plan.

Others accuse Boyd of using scare tactics. Edmonton Mayor Stephen Mandel says that City Council would never permit the loss of 200 police jobs due to a funding situation. If City Council approves the police budget as submitted, the five-percent property tax hike would increase to approximately 6.5 percent, and potentially more.

Edmonton MLS® Blog - Monday, November 23rd - What Happened to the Tax Cap?!

Despite the fact that there is supposed to be a cap on next year’s property tax, Don Iveson warned that the council will have to take special precautions in such unprecedented times.  The council is also responsible for make sure that city services are not neglected due to budget cuts.  This means that tinkering with the tax ceiling.

The administration plans to trim hours and maintenance at city-owned facilities.  They will also take steps to raise user fees in response to reducing the chance homeowners will see more than the 5% property tax increase that was supposed to be set in stone.

Departments across the province are warning that they are going to have to drastically cut the availability of their services in order to meet budget requirements.  The council’s budget plan will surely have to be leaner than past years.

At this point, the plan calls for a typical household to incur a $70 annual increase in property taxes.  This modest increase could pay for the proposed $1.4 billion budget.

Coun. Ron Hayter warns that departments such as transportation and social services would lose significant quality with another budget cut because these departments are already been stripped to the bone.
 

Edmonton MLS® Blog - Wednesday, November 18th - Advice for First-Time Homebuyers

Buying a home for the first time can be an intimidating experience. Anyone researching the ins and outs of real estate is confronted with unfamiliar terminology and acronyms like PMI, FNMA, FHA and others. There is a daunting array of mortgage types. The lending market is tight. Finding the right realtor can be a challenge.

Fortunately, the current housing slump offers advantages for first-time buyers, including an $8,000 tax credit available through April 30, 2010. Previous income limits for prospective buyers have been raised by the federal government to $225,000 per couple and $125,000 per individual. As a result of this legislation, first-time buyers are flocking to open houses and making offers.

John Giseler, a Coldwell Banker realtor in the Pittsburgh area, commented that of eight sales he made in October, five were conducted with people buying their first homes. Todd Stainbrook, president of Pittsburgh-based AJM Mortgage Inc., noted that potential buyers should be aware of stringent credit limits. He advised that buyers with higher credit scores are more likely to be approved for mortgages. Stainbrook recommended that buyers work with well-regarded realtors, who can guide people through the maze of financing, home showings, inspections and closing costs. He also believes that the more homework people do in advance, the better advised they will be to complete a successful transaction.

Edmonton MLS® Blog - Thursday, November 12th - Edmonton Resale Housing Market Sets Near-Record Pace in October

Edmonton resale home transactions during October achieved a level approaching the record set in October 2006. Multiple Listing Service statistics indicate the sales of 1,535 residences last month, representing an increase of 23 percent versus the same period last year. Although the transactions were down approximately ten percent from September, the sales follow a typical trend toward decreasing volume in the fall months.

Free-standing home prices decreased 2.2 percent in October versus September, but showed a negligible increase of 0.12 percent versus 2008. Selling prices for condominiums declined 3.2 percent last month, but remained at essentially the same price since last year. The average resale residential price of $318,969 for October fell 2.5 percent versus September. However, that price rose by one third of one percent versus the same period in 2008. The average single-family home sold for $363,964, and the average condo sale totaled $237,601.

Some 2,205 homes were listed for sale on Edmonton’s MLS® in October and 1,535 homes sold, establishing a 70 percent sales-to-listings ratio. Including transactions involving new-construction homes, a total of $490 million in residential sales volume occurred in Edmonton during October.
 

Edmonton MLS® Blog - Monday, November 3rd - Home Prices Rise Less than Expected

New housing prices are in and there’s a 3.1% decline from last year with the cities of Edmonton and Victoria leading the decline the West.

New housing prices rose a little bit more than expected in August as places like Hamilton, Edmonton and Windsor all reported monthly declines. The lackluster August statistics comes after prices saw an increase by 3% in the month of July according to the Canada Statistics that were posted. The latest reports reveal that housing prices are 3.1 % lower than what they were in the previous year. The largest decreases in the previous year were seen in the Western cities of Canada that was once considered to a booming city. But it has become apparent that prices are declining from their once remarkable output since 2007. Cities such as Edmonton is now being reported at 11.4%, Victoria is being reported at 10% while the city of Vancouver reported a 7.8% decline. The prices for Saskatoon and Calgary have also witnessed decreases.

With all the above places reporting decreases the overall real estate market is showing signs of recovery. As a matter of fact, the price for building permits have seen an increase of 7.2% as last reported in August and single family homes have also began to climb according to reports posted last month.

An economic strategist at TD Securities by the name of Millan Mulraine has stated that in spite of the obvious rebounds in the housing market of Canada and the impressive turnaround in present home prices over recent months, new home prices continue to be fairly weak. Nevertheless, the prices in the West continue to appear to be under pressure; therefore some builders have decide to offer little incentives for motivating sales as well as offer to lower prices and add bonuses while up against a market that’s obvious weaker.

The biggest monthly decline in new housing prices was evident in the city of Hamilton, where a number of builders sliced prices to promote sales; however, on a month by month basis the cities of St. John’s, Regina and Quebec witnessed the greatest increase in prices. In fact, various builders in St. John’s gave their prices an adjustment upward in order to be more in suit with the land value within the city limits.

In the city of Quebec, prices resemble a lockstep process on account of material becoming higher and the cost of labor; therefore many builders decided to move forward to more innovative styles of development by raising their prices as the shortage of accessible lots began to push the value of land upward in various regions.

Edmonton MLS® Blog - Friday, October 23rd - Edmonton Sees Modest Increase in Office Vacancy Rate

Edmonton, along with other major Canadian cities, is experiencing an increase in commercial real estate vacancy rates. However, the area is not nearly as negatively impacted as other major markets, according to data from Colliers International.

Chad Boddez, employed at the Colliers’ Edmonton office, notes that despite a hike in empty office space and pressure to reduce rents, Edmonton is relatively robust versus other North American cities. With a vacancy rate under seven percent, Edmonton is holding its own while other large cities are struggling.

Vacancy rates are the highest in Edmonton’s downtown government and financial areas. In the suburbs, the majority of surplus space is located in the west end, where 32,000 square feet of space is available for sub-lease.

Sizeable chunks of space are available in locations such as Scotia Place, Telus House, Commerce Place, Bell Tower and Royal Bank Building. Experts are keeping an eye on Edmonton’s south side. Home to many engineering companies, the area may experience a rise in vacancies in correlation with the flagging natural gas and oil markets. Commercial space available in Sherwood Park’s 28 buildings rose by 17,180 square feet in the third quarter of 2009 versus the second quarter.
 

Edmonton MLS® Blog - Friday, October 16th - Surplus School Lots Turned Over To The City Of Edmonton

The City of Edmonton will soon receive 18 vacant lots once intended for schools that could be used for affordable housing, libraries or parks. The approval for this transfer of property went through on Tuesday night as the public board declared the lots surplus.

Each site is roughly two to two and a half hectares and are located in neighbourhoods throughout the city. In each case, the number of kids moving into those areas did not meet expectations nor did those numbers justify the building of new schools. Eleven of the sites were intended for junior highs in districts such as Dunluce, Blue Quill and Lymburn. The remainder were slated for elementary schools.

The land will be purchased for $1.00. The city is responsible for meeting with various groups before deciding the best use for each district. The First Place Home Ownership Program is a possibility for at least some of the lots. It is already using surplus school sites to create low cost housing units aimed at first time buyers. Though the plan was met with some resistance in a few neighbourhoods, it has successfully provided the opportunity for home ownership for those previously unable to consider such a possibility.
 

Edmonton MLS® Blog - Wednesday, October 7th - Philippine Aid Effort in Edmonton

The Philippines is accustomed to vast amounts of rain and the resulting flooding, but the past few days have been especially trying. First tropical storm Ketsana killed 288 people and left damaged homes for three million residents.

Then, a few days later typhoon Parma arrived, killing 16 and causing landslides in two villages to the north. Trees and power poles fell under the assault and residents were forced to seek higher ground.

Eloisa Lau, an Edmonton resident of 30 years is helping to coordinate a donation effort. She has relatives in the Philippines, as do many in the local Philippine community. She is sending emails to thousands of people asking for help and these emails are being forwarded to thousands more. The supplies will be sent to the islands as soon as possible.
 

Edmonton MLS® Blog - Wednesday, September 30th - Real Estate Market Stats

The Re/Max Bricks and Mortar Report has predicted that the worst is over in Canada’s residential housing market. They are also forecasting an increase in the market’s fourth quarter. In more than half of the 11 markets surveyed, sales have increased. In seven of these markets, values have surpassed those of 2008, a record year for the sector. Increases in home affordability as well as lower interest rates have helped sales growth.

British Columbia continues to be a hot market. Between January and August of this year sales rose 14%. In Victoria, the provincial capital, sales increased 7.4%. Edmonton, Alberta saw a 6.2% increase and Regina, Saskatchewan was up by 5%.

Ottawa’s real estate market has remained steady throughout the economic downturn and showed an increase in sales of 2.4%. Ottawa has had a relatively stable employment rate, which helped contribute to the increase.

On the national front, the average cost of a home went up 0.5% from January to August. Average price is $312,585. St. John’s, Newfoundland showed an increase of 18.1% or an average price of $203,584. Other increases across the country include Regina, Saskatchewan at 6.4%, Halifax-Dartmouth, Nova Scotia 3.5%, Winnipeg, Manitoba at 3.5% and Ottawa, Ontario at 3.3%.

Edmonton MLS® Blog - Tuesday, September 22nd - The Ins and Outs of Loan Qualifying

Alberta’s real estate market is improving. As first time homebuyers are exploring the market, they are learning the ins and outs of purchasing their dream home. There is so much more to think about than putting that down payment to use and signing on the dotted line.

Getting pre-qualified lets you know how much you can spend. Looking at properties in your price range eliminates the disappointment at finding something you like and then discovering it is out of your reach. Shop for your mortgage at more than one bank, and let them know they are competing for your business.

Put down the largest amount of money you can afford. Down payments of more than 20% lets you avoid the bank’s insurance charge. Try not to borrow your maximum. Leave the door open for additional funds for home improvements.

As far as qualifying for that mortgage, be prepared to show your last two years income tax returns as well as information on loan or credit card balances you are already carrying. Getting as much of this debt paid down before you apply will make it much easier to qualify. Some banks will require a letter from your employer verifying your long term employment.
 

Edmonton MLS® Blog - Friday, September 18th - Safer Communiteis and neighbourhoods Act Closes Unsafe House

After 18 years of hosting suspected illegal activity, an owner of a house at 6707 32nd Avenue has been kicked out of his house for 90 days. The neighbours are thrilled at the prospect of no more noise, drugs, and young girls traipsing in and out at all hours of the day and night. The house was boarded up under Alberta’s new Safer Communities and Neighbourhoods Act (SCAN); this is the first house closing.

When SCAN went into effect October 1, 2008, two sheriff’s units were formed in the province to investigate possible illegal gang, drug and prostitution activities in neighbourhoods. Out of 402 public grievances received, 207 of those have been cleared up.

This particular house has been under surveillance since November. The owner was issued several warnings about possible actions being taken, and even a written warning was delivered in person. However, the owner did not heed the warnings, so the matter went before the Court of Queen’s Bench; the sheriff’s unit received a Community Safety Order to board the house up, put a fence around it, and make the owner leave the premises for 90 days. After that time period, the owner can return to the house.
 

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