Edmonton Investment Property

Premier Redford Has Hands Full With Pipeline Issues

Premier Alison Redford is hoping that Canadians will come together and support Alberta’s oil industry. At present the newly crowned leader is feeling the heat, not only from opponents of the proposed pipeline from Alberta to Texas in the United States, but from politicians in Ontario and Quebec that have done little to help promote Canadian oil. There is also opposition to another proposed pipeline connecting Alberta oil sands with the West Coast, intending to transport oil to tankers for export to Pacific Rim countries.

The Keystone XL project is the one intended to cross into the United States. It was delayed earlier in the month by President Barack Obama, pending environmental studies. Another pipeline route is being considered and it is unlikely that the project will get started until early 2013. Redford noted that Alberta, as a whole did not do enough to market the project

Regarding the West Coast pipeline, there have been some 5,400 complaints from various environmental and other groups. Part of the issue is that, unlike the Keystone Pipeline, the Gateway project must pass through British Columbia. Redford is willing to listen and work with those who oppose the projects. Even so, as for now the premier is optimistic that both will eventually come to pass.

Edmonton Investment Property

Retire Happy, Comfortable and Already Enjoying Life

We would all like to retire sooner than later and with enough assets to make that retirement comfortable. Investing in real estate is one way to go, as long as it is done wisely. It is also important to realize that goals change over time, whether self imposed or influenced by outside factors.

Murray Wood, a real estate investor, realized that his goals had indeed changed. Wanting to manage his time better, he changed his investment strategy. Rather than trying to keep buying properties, he cut back on spending altogether and is now on a path for a comfortable retirement without having to spend all his time working in the meantime. Wood is now more focused on the quality of life, rather than the things he acquires along the way.

By working smarter, not harder, Wood has time for family outings, for golf games with his buddies and for impromptu vacations. He is enjoying life now, rather than waiting for retirement. Yes, Wood still has to put in time at the office and manage his investments, but he is, as they say, taking time to smell the roses. It is an intoxicating scent and is significant of a lifestyle that is within the reach of many.

Edmonton Investment Property

Capitol Power Playing Close to Home Thanks to U.S. Utilities Price Rise

It was only last year that Capital Power of Edmonton spent $670 million on purchasing three gas-fired Northeastern United States power plants. Word was that more were going to be obtained, but now, thanks to a changed market place south of the border, those plans are on hold. Utility prices are going up in the States, and that means more competition for those plants. That means a higher price point to purchase.

Investors tend to look at things in on a timeline basis. Usually they will aim for a five-year horizon and move if it looks like in that time-span those assets will have increased in value. With a higher price point, it is more difficult to compete and to project a profit. Brian Vaasjo, who is chief executive with Capital Power, noted that the window of purchasing assets at low rates has closed. The company won’t be moving forward until the market bottoms out again. A California power plant was recently sold for twenty percent more than expected. That was the first hint of a change in the market.

The three power plants already purchased by Capital Power are not performing as well as expected. The firm expected to make $55 million by the end of 2011, but now estimates the figure will be between $29 and $33 million. Prices for power in the Northeast are depressed. Since Alberta’s energy products are doing much better, Capital Power will concentrate its efforts on the home market for now.

Edmonton Investment Property

Canadian North Has Abundant Resources, and Challenges

Canada’s North is a mystery to many living in the more populated parts of the country, as well as to those beyond national borders. Yet this remote area holds roughly 30 percent of the world’s available natural gas resources and several prolific diamond deposits. Taking advantage of these resources will have to be done with respect to both the native wildlife and the First Nations people that call the North home.

There are noticeable ecological changes, specifically the gradual melting of the permafrost and the ice sheets. These have provided food and a method of transportation for both wildlife and man. First Nations people often have few economic opportunities or employment prospects, but what a significant number of these groups have are land-claim agreements. That puts them in the proverbial driver’s seat when any kind of development or project is being considered. Known for their reverence for the land, First Nations peoples will insist that any ventures also show respect for the natural world.

Northwest Territories, Nunavut and the Yukon all have mining projects underway. Near Rankin Inlet, a gold mine is being worked by Agnico-Eagle Mines Ltd, providing employment for 1,600 and benefiting Nunavut. In the last five years the company has poured $1.8 billion into the project, with nearly half that going to local vendors and suppliers. If the First Nations people in these areas get access to better education, they can find even more opportunities waiting for them.

Edmonton Investment Property

Last Phase of Anthony Henday Drive to Start May of 2012, Bylaw in Works

The final phase of the Anthony Henday Drive Project is about to get underway. Right now Strathcona County Council is working on getting a bylaw passed that will allow the closure of some roads next to Highways 216 and 16 as well as in the utility transportation corridor.

The Municipal Government Act, Section 22 allows for road closures by bylaw. This means that for the duration of the closure, Alberta Transportation will not have to provide maintenance for the roads as long as they remain closed, saving a considerable amount of money. Closing the roads also makes the completion of the project easier. After Henday Drive’s Northeast extension is finished, the responsibility of certain roads will be transferred back to Alberta Transportation.

Council has already had three readings on the matter and they are in the final process of creating the bylaw. One of the items brought up before council was a concern about Colchester Elementary School, and whether the road closures will have any impact on that location. The resident that asked the question was reassured the school would not be affected. Construction on this section of Henday Drive is expected to begin in May of 2012, with an expected completion date of November of 2016.

Edmonton Investment Property

Edmonton Makes its Operating Budget from More Than Property Taxes

The city of Edmonton has many more ways to raise money besides your yearly tax appraisal and bill. Much of that cash comes from various types of real estate ventures. Edmonton sells excess land, rents out store fronts and even rents out homes on property they own. They also have a hand in the stock and bonds game.

Property taxes, both commercial and residential, make up less than half the $1.8 billion the city needs to operate each year. By investing in different ventures, that means that you tax bill is half of what it could be. Edmonton collects dividends, farms out services, such as tunneling expertise from the city drainage department, and charges for various other services.

As far as real estate, Edmonton has its own listings on the MLS (multiple listing system) used by real estate professionals. The city actually acts as its own broker, with a “City of Edmonton” logo posted on all its available properties. Some properties are small, big enough to build only a couple of houses or an apartment, and are listed publically on the MLS.

But there are the vast acreages of land on the city’s outskirts that draw the most interest, and bring the most cash. Lotteries are held on these. The winners of the preliminary lottery advance to the final. Winners of the final lottery are able to bid and buy on these large plots of land, suitable for housing or office developments.

Edmonton Investment Property

Refinancing Mortgages Take Hit after New Rules Take Effect

New mortgage rules went into effect this past March and one of the effects was a drop in the number of home refinances. The number of people breaking old mortgages and seeking new ones, usually to take advantage of a lower interest rate, was decreased by 40 percent. The Canada and Mortgage Housing Corporation just released its second quarter financial report that revealed this information.

The change in rules limited the amount a home could be refinanced for. The maximum was 85 percent taking the loan-to-value ratio into account. Before March the rule was 90 percent. Another change was the limiting of the maximum amortization period to 30 years rather than the previous 35. While the buying of new homes has not decreased significantly, the refinancing market has taken a considerable hit.

Another change was mortgage insurance dropping some 10 percent right after the change in the rules. By June the drop went down an additional five percent. CMCH also noted a 13 percent decrease in insured mortgage volumes from 2010. That volume is also 20 percent less than anticipated for the current year. Altogether, bank officials are pleased with the moderation brought to the housing market by the implementation of the new rules.

Edmonton Investment Property

Gary Mar In Favour of Private Health Care System

Gary Mar wants to be premier of Alberta. One of the ways he is trying to do that is by pushing for private health care to service the wealthiest of Albertans. Mar believes that not doing so keeps the province from taking advantage of a great economic opportunity. He noted that such health services could be offered and still be cognizant of the Canada Health Care Act, and, per Mar, many of the province’s wealthy citizens are already traveling to other provinces and beyond to get more timely service. That in itself proves the two systems could co-exist.

Mar, once Premier Ralph Klein’s health minister, notes that the private system can complement the public one. Other provinces are already doing so. He cited the Cambie Surgery Centre in Vancouver that does arthroscopic surgery as well as the Shouldice Clinic located in Ontario that specializes in hernia repair operations.

Mar also argues that wealthy people are allowed to buy vacation properties and other expensive items without government approval, why should they be forbidden from spending money on their health needs? They just go elsewhere to get taken care of.

On the other side of the argument is Dr David Swann, the Liberal Leader. He contends that if a private system is enacted, many doctors will leave the public system for the more lucrative private sector. That would further tax the public system which is already short of health professionals. Alberta residents who were not part of the elite would have to wait even longer for their treatments.

Edmonton Investment Property

Canada’s Manufacturing Sector Has Healthy July

Manufacturing in Canada this past July did quite nicely. Things are picking up, with new orders coming in, even though the numbers are held back somewhat by the strong loonie. RBC just released its Canadian Manufacturing Purchasing Managers Index this past Tuesday. Assisted by Markit, a financial services firm, their figures showed that he index increased from 52.8 in June to 53.1 in July. That figure has been above 50 for the last ten months. That indicates growth and expansion.

Paul Ferley, who is a chief economist with RBC, noted that the rise in this index number as well as the overall improvement in business conditions mean that the manufacturing sector in Canada is doing quite well. But the high loonie may quell some of that forward movement during the last half of 2011.

Also noted in the report was the increase in the July employment numbers in the manufacturing industry. Of the 400 executives surveyed, some 18 percent noted they hired because of the increase in orders. But it also showed that the July job growth was the lowest in the last seven months.

Edmonton Investment Property

Canada Sees Rise in House Sales, But Slight Decline in Prices

This past June saw home sales increase throughout Canada, with two exceptions, Toronto and Vancouver. The Canadian Real Estate Board believes this means that the market in Canada is holding up quite well. The sales rose some 2.6 percent when compared to this past May. The average price was down a bit, by 0.9 percent.

CREA thinks that the mortgage rules may have something to do with the slight decline in price, as it affects affordability. It is possible that the Bank of Canada will continue to tighten the country’s purse strings through the fall, so the decline in prices may continue.

An average sales price this June came in at $372,700 per home, which is 8.7 percent higher than in June of 2010. The high home prices in Vancouver still have some effect on the national average, but the market in that area has been slowing down. In June, the sales figures for Vancouver were 1.7 percent lower than in May. Sales in the million-plus category, mostly in West Vancouver, have slowed a bit.

Some areas of the country did quite well. Victoria, Hamilton, London, Ottawa, Montreal and Calgary all saw major sales increases. The Toronto real estate market remained fairly stable. The only place close to being considered a real estate bubble is Vancouver. Economists predict that prices will drop by about 10.2 percent within the next two years, and sales will see a 15.2 percent decrease over that same time period.

Edmonton Investment Property

Edmonton Keeps Adding More Housing Developments

Edmonton is growing houses. The question is, is that growth fast enough for the expected economic and population boom that many believe is just around the corner? There was a time where pocket communities out in the suburbs barely got a glance. They sort of just existed, quiet hamlets of humanity, whose inhabitants had to venture into the big city for most goods and services.

Along came Anthony Henday Drive. Drivers trying to find a shortcut on the way to Calgary saw the tops of homes from the side of the highway and the interest in moving out of town peaked. Some of the developments are still pockets of homes with little services, such as Castlewood, which has only about half of its homes sold. There are plans for a strip mall, but that won’t happen until it is profitable to put one in. But it does make for a quieter, more back to nature lifestyle.

Some developments, such as Summerside, located on Edmonton’s southern edge, were completely planned before they went up. This particular one has a beach, lake, coffee shops, grocery store, banks, and more in a self-contained pedestrian-friendly community designed to encourage community interaction.

A few on Edmonton’s council concede that not all the outlying neighborhoods had the best pre-planning. But as already developed areas are being looked at, more suburban enclaves are going up. West of Anthony Henday there are already eleven more neighborhoods already under construction. More are expected to start sometime in 2012, along the northeastern edge of that roadway. All this at the same time the city is trying to make Edmonton’s downtown core a more pleasant place to live.

Edmonton Investment Property

Anthony Henday Drive Construction to Be Completed by 2016

The ring road project known as Anthony Henday Drive is scheduled to be finished by the fall of 2016. Construction on the last nine kilometers will start sometime in the summer of 2012. In March, the field of companies that put in their bids was narrowed down to the top three, Edmonton Connect Partners, Capital City Link Group and the Alberta Roads Consortium. The group that comes up with the lowest net value will get the contract. Heather Kaszuba, who is with Alberta Transportation, noted that the winner will be announced sometime in 2012.

Upgrading the interchanges in that sector is needed to handle the increasing traffic flow, which will be even heavier once the ring road is completed. Construction will include building the roadway from Whitemud Drive to Manning Drive, rebuilding the Yellowhead Trail east of Sherwood Drive to the eastern end of the North Saskatchewan River and rebuilding the section of the Sherwood Park Freeway that is just west of 17th Street.

So far the project, which will be 90 percent complete by this November, has cost $2.5 billion dollars. The final cost won’t be known until the winning construction company has been chosen. The Anthony Henday Drive project covers some 27 kilometers, most of it six to eight lanes wide, nine interchanges, two North Saskatchewan River bridges and eight railway crossings. It is the largest highway project underway in Alberta.

Edmonton Investment Property

Some Edmonton Homes Build During Boom Missing Final Inspection

Apparently, some 4,000 to 5,000 homes that went up during the building boom never got their final inspection from city officials. Most of these are in the southwest and southeast sections of Edmonton, and a great many are already occupied. The city is trying to right this wrong by notifying homeowners in the affected properties. They are sending city inspectors to the homes to talk to the residents personally. A note will be left if no one is home.

Edmonton city officials note that the problem came about because of the desperate need for housing and that builders were ramping up the pace to keep up. When it came time for the final look over, there were not enough city inspectors to do the final check. Edmonton’s chief building inspector advised that residents should not be too concerned about the missing inspection. Other inspections done before the home’s completion, such as for plumbing, electrical, foundation and framing would have been done before the final.

If homeowners want to see if their home did have that final inspection, they can look at the electrical panel, which is usually in the basement. If a home has been looked at there will be a sticker on that panel stating that it had passed its final look over. The city also advised that some of the homes may have indeed had an inspection, but there is no record of it.

Edmonton Investment Property

Stelmach Contributes to Getting Alberta Ready for Next Boom

The last time an economic boom hit Alberta, the province wasn’t ready to deal with the influx of people moving in. Premier Ed Stelmach, who is about to finish his stretch as Premier, has taken steps that makes sure that the province is prepared for the next boom, which is coming. He noted this in a speech given at a conference of the Urban Development Institute Alberta.

It turns out that this preparation, which includes a 20 year plan for the capital that includes upgrading and adding to the infrastructure for the expected growth in population, will most likely be Stelmach’s legacy. He is happy with that, since it was the result of poor planning that stirred him to aim for the premiership in the first place.

Stelmach noted that one place that is going to be focused on is Fort McMurray. The Alberta government has already planned a new community in that oil sands town. It will be called Parsons Creek and will provide housing for 24,000 residents. Some 8,000 homes will be built, with 13 percent of those being set aside for affordable housing. Sales are already brisk, roughly one year ahead of the building schedule.

In Edmonton, there has been a focus on increasing affordable housing and reducing the need for homeless shelters. Funding has been put into over 10,000 low income properties throughout the greater Edmonton area. Also being funded is a new park and ride terminal in neighbouring Sherwood Park and an expansion of Edmonton’s LRT line, costing $497 million.

Edmonton Investment Property

Edmonton Firms Awarded for Innovative Products

The Edmonton Economic Development Corporation announced its 2011 achievement award winners this past week to some very innovative companies. Stantec, Master Flo Valve and Cleankey Inc were so honoured. All have come up with creations that not only are creative, but are marketing well on a global scale.

Stantec is an architectural and engineering consulting firm that works on projects with an environmental eye. It has some 10,000 people employed that telecommute, with Edmonton being the head office. The company grew out of Stanley Technology Group, founded by Don Stanley, a former hockey player for the Edmonton Mercurys in the 1950s. He could have turned pro, having helped that team win the 1950 World Hockey Championship. But Stanley decided to go to Yale instead, and that was the beginning. Today Stantec has evolved into a multinational architectural and engineering company.

Master Flo Valve Inc is another firm that won the award. This company manufactures subsea chokes and their control valves in a south Edmonton plant. The items are then shipped to offices worldwide for sale, including countries like the United States, France, Scotland, Brazil, Malaysia, Indonesia and the United Arab Emirates. Master Flo also won the Leadership Excellence Award.

Cleankeys, also given the Innovation Excellence Award, created computer keyboards that are easy to clean and perfect for use on technical equipment in hospitals. Since keyboards are known carriers of germs, having one that can be wiped clean in ten seconds is a big plus. The keyboards also have a place in internet cafes, call centres and libraries, virtually anywhere that keyboards are shared. The market for these keyboards is world-wide.

Edmonton Investment Property

Possible Merger in the Works for Toronto and London Stock Exchanges

It is possible that the Toronto Stock Exchange, operated by the TMX Group and the London Stock Exchange Group will merge. This would create a mega-firm worth $6 billion and trade more than 6,000 companies. Whether this happens or not depends on Ottawa’s blessing. Any deal involving the merger or takeover of a Canadian owned company that has a value in excess of $299 million must have approval from the Federal Government.

If the merger goes through, investors on both sides of the Atlantic will have better access to both markets, especially concerning investments in real estate trusts (REITs). Milton Lamb from Colliers International, a Toronto firm, notes that Canadian investors will benefit the most because of the limited investments currently available within the country.

British investors may be attracted because REITs in Canada are less expensive that in the U.K. Lamb advises that Canadian REITs trade in the 5 to 6.5 percent range while in England the trade figure is 3 to 5 percent. The merger is not expected to affect Canadian commercial real estate investments.

Others fear too much foreign money investing in Canadian owned REITs. Countries in Europe, Asia and the Middle East have been waiting to pour money into Canada because it is stable, and this would be their way in. Currently they must buy an asset in Canada in order to invest.

Edmonton Investment Property

Premier Ed Stelmach Stands Ground on Infrastructure Spending

Alberta Premier Ed Stelmach was guest speaker at a fund raiser for the Progressive Conservative Party in Strathcona this past Wednesday. Among the items discussed were the landowner rights and the provinces economic growth. He also took a direct hit at those from the opposition parties that were criticizing the just passed budget.

Roughly 200 people were there to hear Stelmach vow that he would not stop the infrastructure building because it is needed by the province, even though the reserve funding must be tapped to do so. He noted that the provinces operations are balanced including those for education, social services, senior programs and health care. The only thing the reserve is being tapped for is that infrastructure.

Stelmach also estimated that for every billion Alberta puts into its infrastructure, 10,000 new jobs are created. If the reserve were not tapped to do the estimated $3.4 billion of improvements, that would mean the loss of 30,000 jobs. The opposition was also chided for criticizing the funds allocated to build the Sherwood Park Hospital and the Archbishop Jordan High School, among other health and education facility improvements.

Lastly the premier addressed comments concerning the Alberta Land Stewardship Act along with the Land Assembly Project Area Act. Opposition has been stating that landowners would be loosing property rights. Stelmach advised these were scare tactics and simply not true.

Edmonton Investment Property

Plans for City Centre Airport Development Revealed

Five architectural design teams including one from Vancouver, Perkins + Will, are competing for the chance to design the redevelopment project for Edmonton’s City Airport lands. On February 15th those designers unveiled their designs, all showing innovative technology and people pleasing open spaces.

The plan is for a mixed use development with homes for 30,000 people, its own LRT station, parks, ponds or lakes and pathways throughout that discourage the use of cars. The development is four kilometres from Edmonton’s city core, making it an easy commute for those working in the city. The idea is to have an urban feel, but have the convenience of being close to restaurants, shops, theatres and all else that a city environment has to offer.

Also planned is to have the development self-sustainable. Using a combination of solar, recycling and other green technologies, this green development will be environmentally friendly. Edmonton has studied cities in Amsterdam, Germany and Sweden that use similar concepts. The infrastructure, roads, etc. are already in place so that is a plus.
Other plans are to set aside 50 acres to expand the Northern Alberta Institute of Technology.

The development is expected to take 25 years to complete and will be done in segments. Estimates for the initial phase are roughly $204 million. The city is expected to get some of this back by the increased tax revenue in the high density area. People wanting to get a look at the proposals may do so by logging in to the City of Edmonton website.

Edmonton Investment Property

Flashy New Epcor Tower to Open In Edmonton, Effect on Downtown Unknown

Edmonton’s long awaited Epcor Tower is due to open shortly. It is big, sleek, classy and already has half of its available 600,000 square feet of office space spoken for. But no one is really sure what affect all this added space is going to have on the business real estate market in the city’s core. The best guess, by Cory Wosnack who is with Avison Young’s office leasing department, is that there will be one million square feet of available office space up for grabs.

Epcor, the namesake of the tower and a principal tenant, is moving out of another 200,000 square foot tower in the city core. The Justice Department, also set to move into their flashy new digs, will leave 70,000 square feet of vacant space behind. Even though the tower is already theoretically half full, all the city is doing is redistributing the current tenants, not generating any new interest. And that, as they say, is the problem.

Part of the issue is that Edmonton is seen as a government town, which is logical considering it is the provincial capital. Almost half of available office space is taken up by government entities, whether federal, provincial or local. Unlike Calgary which is full of energy and oil firms, Edmonton has a hard time attracting new firms. That seems a bit puzzling since Edmonton is much closer to the oil sands. Time for a bit of creative marketing.

Edmonton Investment Property

Stelmach Announces Retirement from Premiership of Alberta

Ed Stelmach is stepping down from the top political job in Alberta. Rather than call an early election, the premier just decided to retire. This gives a clear path to choosing a new Conservative leader who can helpfully put the Tories back on track. Some in the party are looking for someone like the former Premier Ralph Klein.

Stelmach, who is a 59 year old farmer from Lamont was well liked, sincere in his beliefs and compassionate, but the relatively shy man who wasn’t all that comfortable with the press had a rather tumultuous run. He actually was a surprise winner in the leadership race, beating out Jim Dinning, one of the seasoned Tory reps and Ted Morton, a newcomer that leaned decidedly to the right.

Attempting to create a more transparent governmental environment, Stelmach’s first bill was to create a registry for lobbyists. That was in 2006. In 2008 Stelmach and his cabinet went against the transparent grain by approving a raise for themselves in a private meeting.

Other issues that plagued Stelmach’s tenure were the changing of the royalty structure for oil revenues and the revamping of the health care system. The latter was his biggest downfall. Stelmach did away with the regional health authority offices and created a sort of “super-agency” to oversee the entire province. The uncertainty and mismanagement of that idea eventually eroded support for the project and the man behind the idea.

Edmonton Investment Property

Fur Starts to Fly in Council Meeting Over Katz Arena Proposal

The debate on the arena complex project for downtown Edmonton is heating up. The number of work items needed doing is also increasing. The city staff will be busy in the next month, preparing reports on everything from seat licenses to the community revitalization levy (CRL), a little understood tax that is intended to bring in some cash for the project.

There are public meetings to be scheduled, discussions with Katz and Northlands, a company involved with the current arena complex, and requests to the Katz group for financial records. Edmonton city council also wants Katz to put his guarantee of funding, some $200 million between the arena and the complex area, in writing. Daryl Katz, owner of the Oilers has already pledged the funding.

Councillor Linda Sloan, one of the most vocal about getting the financial records from Katz, brought up the unspeakable name of Peter Pocklington. He was involved with building Rexall Place and all did not go smoothly. The then owner of the Oilers threatened to move his hockey team, using that as leverage for approval of the project. Edmonton ended up taking most of the financial risk on that project. Sloan just wants to make sure Edmonton is not going to end up being responsible for the entire $450 million needed to build the downtown arena.

Katz has not threatened to transplant his team. The Katz Group has hosted open houses, hired designers and consultants and has spent a considerable sum of money on the project. Revitalizing this 16 acre area in one of Edmonton’s most run down neighbourhoods would be a big plus. It is expensive, and council just has to be cautious in the spending of tax payer dollars. If anything goes wrong, council and its members will be the ones in the arena hot seats.

Edmonton Investment Property

China Is Becoming A Major Player In Alberta’s Oil Sands

The world is changing. At one time the United States was the biggest consumer of fossil fuels. That title now goes to China. The capital, Beijing, with a population of roughly ten million people, puts an additional 3,000 cars per day on its already clogged streets. These cars all need fuel. Lining up to get it is an everyday occurrence. And where exactly does this giant of a country intend to find the gas and oil to fill up all of those thirsty tanks?

Alberta. China has had its eye on the oil sands in the northern part of that province for some time now. It has wasted no time in putting money into projects designed to extract and process the plentiful oil and gas energy reserves. PetroChina has already invested $1.9 billion in the Dover and MacKay River projects, part of the Athabasca Oil Sands Corporation. They now own a 60 percent share of those two reserves.

There is no doubt that finding a customer as lucrative as China is profitable for Alberta. The struggling economy of the United States has encouraged the province to look elsewhere for customers. China seems to be the perfect solution. But is there a hidden danger in letting a foreign country buy out the lion’s share of any part of Canada’s resources?

The fear is that China will ultimately end up with controlling interest in the oil sands. That brings up the question of sovereignty. Should a foreign power be able to call the shots in companies that are on Canadian soil? If China owns controlling interest in a Canadian company, is it still Canadian? These questions, as well as those about environmental conditions in the growing superpower, should be kept in mind before we sell off more of Canada’s natural resources than is politically and/or economically wise.

Edmonton Investment Property

United States Retailers Looking To Canada for New Customer Base

The retail market in Canada is a hot one at the moment and businesses in the United States can hardly wait to get a foothold in their northern neighbour’s mall space. Some brands have been on the Canadian landscape for years, including Wal-Mart, Home Depot and Best Buy. Victoria Secret joined the ranks of the immigrant businesses last year by opening their fancy lingerie stores in Toronto and Edmonton this past year.

Canadians have similar backgrounds and tastes, and for the moment, more money to spend. Canada did go into recession along with the United States and many parts of the world. The difference was that Canada’s recovery was much quicker, with some markets, such as real estate, seeing almost record sales as the economy started to improve. Economy in the United States is still iffy, at best. And, since U.S. brands are popular with Canadian consumers, the smart business move is to relocate…north.

This exodus has helped make the retail real estate market the hottest in the commercial sector. In the first nine months of 2010, retail space was the most actively traded in the business market. The retail sector also showed the largest improvement over the same time period in 2009. To put it in numbers, $3.8 billion worth of retail space changed owners during the first nine months in 2010. This is 31 percent of all investment dollars traded in Canada. That figure is also a 207 percent improvement over the same nine months in 2009. Currently there is no reason to believe the market will slow anytime soon.

Edmonton Investment Property

October 2010 Home Sales Show a Healthy Rise

Canada’s Multiple Listing Service showed that October home sales increased by 4.6 percent over sales in September. This is the third month in a row that has shown an increase in sales activity. As a result, sales are 13.3 percent higher than they were in July which was the least productive month in 2010. The figures also put 2010 sales figures mid-way between the sales numbers posted between the latter part of 2008 and 2009.
What does all of this mean? The most obvious answer is that the Canadian housing market is getting back to pre-recession normal.

If we compare October 2010 with the same month in 2009, sales are 21.6 percent below what they were in that very hot month. This October the average price across Canada for a home bought in 2010 was $343,747. That is up roughly a percentage point from a year ago. October was also the fourth consecutive month that the average home resale price has remained on par with 2009 levels. This indicates a balanced market.

Housing starts are expected to slow for the remainder of 2010, and perhaps decrease somewhat in 2011, to keep current inventory moving nicely. 2010 is expected to finish out the year with about 186,200 starts. 2011 figures could be anywhere from 148,000 to 202,300 units, averaging 174,800 for the year. Employment numbers are up and mortgage rates remain low, increasing the demand for housing. The decreased start numbers are intended to get the market back in line with predicted long term population growth.

Edmonton Investment Property

Edmonton’s Housing Market Expected to be Smooth and Steady Into the New Year.

Edmonton’s housing market is expected to remain relatively stable throughout 2011. Employment numbers and the amount of people immigrating to the city have remained fairly flat and though a cautious optimism about the economy does exist, people are being more careful about how and where they spend their money. That means shying away from big ticket items, like houses, at least for the time being.

Still, the Canada Mortgage and Housing Corporation is not predicting any huge declines next year. Rather, 2011 will be more of a stabilizing period after the drastic lows of the recession and the crazy hot markets of late 2009 and early 2010. The expectation is that 2012 will be the year when home-ownership demand will really start to improve.

Housing starts in 2010 are a vast improvement over 2009. Across Edmonton, the year will finish with about 10,000 homes underway and/or complete, a full 50 percent more than last year. Starts will most likely remain stable throughout 2011. The economy will continue to grow, but the higher prices, higher mortgage percentage rates and the amount of resale homes already on the market will cut down on the need to replace and/or add to inventory.

It is currently a buyer’s market and the CMHC expects it to stay that way into the early part of 2011. Winter is a typically slow season in the Edmonton market anyway, so increased activity is not really anticipated until spring. Average MLS prices, which will end the year in the $330,000 per unit range, are expected to see a slight improvement by the middle of 2011.

Edmonton Investment Property

New Edmonton Housing Community Has Eco-Friendly Features

Many housing developments have names that are inspired by nature, but are anything but eco-friendly. However, the company building Larch Park at Magrath contends that the new community will support the environment.

The development, to be located in southwest Edmonton, will consist of 28 hectares and will overlook the Whitemud Creek Ravine. It will be constructed to conserve an adjoining 28-hectare nature habitat, the Larch Sanctuary. The sanctuary contains a natural-wetlands area as well as an old forest.

Melcor Developments presided at an October 14 groundbreaking event. The company’s VP of community development, Peter Daly, said that Melcor is aware of the public’s increasing concerns about environmentally-friendly construction. Daly said that costs surrounding eco-sensitive housing were initially very high, but they have come down in recent years.

When building the community, Melcor, as well as partner company Arctos & Bird Management Ltd., sought advice from environmental organizations such as the Sierra Club and the Edmonton and Area Land Trust. The objective: Reduce the impact on the local ecology while constructing the homes.

Larch Park will be higher in density versus comparable neighbourhoods, thereby using less arable land. Typical communities construct approximately nine homes per acre. However, Larch Park will include 13 to 15 homes per acre. With smaller lots, homes maxing out at 3,200 square feet and multi-family housing, the development will favor existing land over construction.

The Whitemud Creek near the community will see more protection than usually offered with a housing development. Streets will be a bit more narrow to allow better drainage of stormwater. Even lighting will be more environmentally friendly, since street lamps will utilize LED lighting instead of incandescent bulbs.

Edmonton Investment Property

Alberta Studying Ways to Change Casino Funding

Casinos bring in a substantial amount of money to Alberta’s charities. The province was considering changing the way the gambling moneys are doled out, but shelved the idea because it appears that the charities would be the ones caught short. Almost $200 million per year is distributed to organizations per year.

Alberta has 7,000 charities that have the right to run casinos and each is assigned to a specific region. Every three months, casino profits in that region are pooled and divided between charities in that region that held casino nights. Part of what that report/proposal was to accomplish was changing the borders so that the money would be more equally distributed.

As an example, in Edmonton there are five casinos and 336 charities for each one of them. In neighbouring St. Albert, there is one casino and 420 related charities. The more charities per casino, the longer each one has to wait to hold a casino night. In Edmonton the average is 22 months. In St. Albert, it is 28 months. This means that St. Albert’s charities get less money per organization in every three month period.

Since it was determined that the shelved report, though it had merit, would do more harm than good, government officials are going back to the drawing board to see if they can come up with another plan.

Edmonton Investment Property

Edmonton Neighbourhood Damaged In June Explosion Still In Ruins

Three months ago an Edmonton neighbourhood was rocked by an explosion that killed four people and destroyed and/or damaged a number of homes. The blast was attributed to a buildup of natural gas and propane in one of the homes and it just went up. So far the city has not started to help with the clean-up.

Edmonton says that the clean-up, repairs and tear down of non salvageable homes will be between the individual insurance companies and the home owners. The city has agreed to clean up debris from behind the homes, which it should start doing next Wednesday, but it will not touch the three completely destroyed by the explosion. The city will be putting dumpsters in the area to make the clean up easier on homeowners.

Private contractors have just started making repairs. Ray Dupris, who is working on five or six of the properties, believes that it will take several months to complete repairs. The windows alone, which will take up to eight weeks to arrive, won’t go in before temperatures start to drop significantly.

Edmonton police are continuing investigation of the incident. The blast originated at 18011-91 A Street. That home belonged to Dwayne Poirier, who died in the blast. His death was ruled non-criminal. The other three deaths, Jeanne Cathleen Heard, Brad Winter and Craig Huber, are being classified as homicides.

Edmonton Investment Property

More Affordable Senior Units Being Built at Emmanuel Home in Edmonton

Low income seniors in Edmonton will be getting some more affordable housing. The Emmanuel Home project, supported by $2 million in funds from the Canada-Alberta Affordable Housing Program, has just had its ground breaking ceremony. Parliament member Peter Goldring from Edmonton East presided over the event.

Emmanuel Home already houses 106 residents in its 93 units. The addition, which will add 56 one and two bedroom units, is expected to be finished by the end of 2011. There is already a waiting list for these and other homes within Edmonton. 22 of the new Emmanuel Home units will be affordable housing units.

This project is part of the Government of Canada’s commitment to help the homeless. In 2008 a five year plan was developed to provide funds to build new social housing units and associated facilities. Alberta’s role is to build 11,000 affordable homes by the end of 2012. It is on track to reach this goal by supporting the building of 8,700 units during the first three years of the project.

Funding is coming from a combination of federal and provincial sources and is not limited to seniors. Singles and families that are having a rough time, either with or without substance abuse problems are being aided by the five year Economic Action Plan. Edmonton, with a significant homeless problem, is getting a considerable amount of project funding.

Edmonton Investment Property

Long Gun Registry Endorsed by Police Officials – Goes to Parliament in September

There is currently a debate going on in law enforcement offices across Canada. At stake is the continuation of a registry that keeps track of long-gun owners across the country. On one hand, Supt Brad Doucette from Edmonton has illustrated their usefulness, particularly in an incident in the city’s Workers Compensation Building last year. One frustrated citizen walked into the building, fired the weapon and then held some workers hostage at gun point. Police were able to look him up on the registry to see what kind of weapons he owned.

On the other side of the argument are Const. Randy Kuntz of Edmonton and Chief Rick Hanson of Calgary. They both believe the registry only shows legally owed long-guns. Those who intend to perform illegal acts are not likely to get registered.

Prime Minister Stephen Harper has already committed to doing away with the registry. The Conservative opinion is that the registry penalizes legal long gun owners, primarily bird and big game hunters. But the majority of law enforcement agencies want to see the registry maintained and actually held a vote on the issue at their annual conference in Edmonton.

Cost is a consideration. It runs almost $4 million per year to maintain the registry, almost peanuts compared to the initial billion dollar start up cost. But the money factor is a consideration only after the public and police safety issue. The private member’s proposal will come before Parliament this coming September.

In 2007, police handed out 460 parking tickets during both festivals combined. Two years later, that number increased to 817. The Edmonton Folk Festival alone racked up 340 parking tickets and 55 warnings by the time the venue wrapped on Sunday. Most were $50 tickets issued for parking in an alley, too close to an intersection, fire hydrant or stop sign.

Both events are held in the south side of Edmonton and the streets are patrolled by officers on bikes and in cars. The number of police officers on duty is increased during both events. The Folk Festival had six officers assigned to its venue and the Fringe is scheduled to have four.

The biggest problem is festival goers parking in residential areas, taking spaces away from the residents. While temporary “Do not park” signs are not really enforceable, an effort is made to deter people from parking in front of someone’s house. Officers are hesitant to cite since they aren’t sure if the car belongs to a resident. The Cloverdale district has solved that issue by having resident IDs issued. Only drivers with that specific document will be let into the area during the festival.

Edmonton Investment Property

Edmonton International Airport Most Efficient Small Airport in Canada

Edmonton International Airport was just named the most efficient of the small airports in Canada, taking the top honor from Calgary. Between 2001 and 2008, the facility managed to increase its revenue from non-aeronautical tenants and agencies by 144 percent.

This is according to a report released this past Thursday from the Sauder School of Business in British Columbia. Edmonton also placed fifth on the same report among airports in North America that service fewer than 15 million passengers annually. Vancouver took the fifth spot on the same report in the larger airport category.

Having a healthy income stream from sources other than airline tenants helps airports be more efficient. The supplemental income allows airports to decrease landing fees and counter space rental, which makes those facilities more attractive to the air industry. The additional income also keeps the airport afloat during rough economic periods.

Each passenger is charged an airport usage fee on each segment of a flight. Every time that a passenger touches down and/or changes planes, that fee is charged. The lower rates enjoyed by airlines at efficient airports eventually trickles down to the passenger through lower ticket prices and supplemental fees such as this.

Edmonton Investment Property

Edmonton Market at Odds with National Stats

Edmonton was one of only three cities to report an annual decline in new housing prices. Nationally, new housing prices have increased 2.9 per cent year-over-year, but Edmonton’s housing prices have continued to fall since July 2008. Drops have been up to as much as 12 per cent every month when compared to previous year prices.
Charlottetown and Victoria also saw annual new-home declines, 1.6 per cent and 3.9 per cent respectively.

Senior economist Todd Hirsch said Edmonton’s new-home prices rose in the first half of 2010 but expects they will again cool. Buyers rushed to beat rumoured increased interest rates and tighter mortgage restrictions in the first half of 2010, which may have left larger inventory and fewer buyers in the second half.

Still, Edmonton residential building permits rose six per cent in May, a possible sign that more construction may occur in the near future.
On the resale side of Edmonton’s housing market, condo prices fell two per cent from 2009’s second quarter to $199,667. Two-storey homes rose 5.9 per cent to $347,914 and bungalows rose 6.2 per cent to $320,857.

Nationally, housing prices rose in May by 0.3 per cent, the eleventh straight month of price increases. Edmonton prices remained steady, while Regina prices increased 3.4 per cent, Oshawa and Toronto prices rose 0.7 per cent and Calgary prices rose 0.3 per cent.

Edmonton Investment Property

Canada May Have New News Network Come January 1st

It looks like Canada will be getting a new television news outlet. It appears this new Sun News might be modelled after the controversial Fox News found south of the border. Perhaps not as radical, but it is a given that the new network would love to have Fox News’ ratings. Certainly it promises more lively coverage and debate than provided by mainstay CBC. There might even be a bit of right wing conversation wafting over the airwaves.

The vice president of the proposed network, Kory Teneycke is promising to take on the issues of political correctness, and from the sounds of it, the opinions of journalists in its competing markets. The actual format is still under wraps, but rumour is that it will be a combination of the aforementioned Fox News and Quebec’s French Language station the LCN. Considering that the parent company of this new station is Quebecor Media that is not much of a surprise.

The launch date for the network is January 1st. All of this depends on whether Sun News will get regulatory approval. Apparently that is a very big if.

Edmonton Investment Property

Edmonton Landlord Fined For Providing Substandard Housing To Tenants

Sarra Real Estate Ltd. and its owner Suresh Agarwal faced charges that he violated the Public Health Act’s housing regulations. He was accused of leaving tenants without heat in temperatures that dipped to minus 13C, not providing them with hot water and in general providing an unhealthy living situation.

The first complaints dated back to 2003 when tenants advised of no hot water for a three week period in August of that year. Inspectors have visited the building a number of times in the past few years. They found violations such as windows with exterior security bars that could not be opened from the inside, mould in kitchen cupboards and plumbing issues. There was also a laundry room reeking of urine and windows and doors that could not be closed or locked.

The fine for the negligence was $20,125. Agarwal pleaded guilty to the charges which somewhat mollified prosecutor Rob O’Neill. The prosecutor did note that it was a sad state of affairs that the courts had to force the defendant to make his nine unit apartment liveable.

In his defence, Agarwal’s lawyer Jessica Flanders advised the court that the building is in one of the city’s roughest neighbourhoods where property is not always respected. She also noted that if the tenants could not pay rent that at times it was difficult to keep up with the utility payments.

Edmonton Investment Property

China Makes Big Splash With World Expo 2010 As Edmonton Contemplates Bid for 2017 Venue

Edmonton wants the World Expo to come to town in 2017. The city is planning on bidding for the honour, citing an energy and sustainability theme. But taking a look at Shanghai’s World Expo 2010 that just opened May 1st has been an eye opening experience for the city’s mayor, Stephen Mandel.

China’s offering covers 5.28 acres and 190 countries and 50 international organizations will be in attendance. Canada spent more than $58 million on its pavilion, and even hired Cirque Du Soleil from Montreal to perform. China is spending $4.2 billion to host the event.

Labour costs are much cheaper in China, so perhaps that isn’t a fair comparison. Neither is the way that China procured the venue space. They displaced thousands of residents and bulldozed their homes to make room for the Expo. That sort of thing would never fly in Canada.

Edmonton would also be bidding on a smaller expo, known as a recognized expo which limits the venue to a maximum .25 square kilometres in size. Edmonton is expected to build all the Expo structures and provide free pavilion space to participating countries.

China’s Expo 2010 is a registered expo, which means there is no size limit and visiting countries must build their own pavilions. China basically told world business partners to show up if they wanted to continue to be business partners.

Edmonton’s bid to host World Expo 2017 would be $2.8 billion. This would include financing the new Waltersdale Bridge and needed new buildings on the University of Alberta’s southern campus.

China’s Expo is huge and when making a direct comparison, Edmonton’s proposal does seem minimal. But when comparing the two, it is important to use the philosophy of comparing “apples to apples” for a balanced viewpoint. Taking the two countries economies into account as well as the direct opposite in political viewpoints, the gap isn’t as wide as it first appears.

Edmonton Investment Property

Not Enough Parking An Issue For The LRT System

More LRT stations are being built to encourage people to take public transit, but people are still driving from their homes to the closest LRT. The problem? Not enough parking spaces.

In Malmo Plains, the community is being forced to gather signatures on a petition so parking regulations can be changed to require permits to park on residential streets. The new Southgate Station opened, but without a parking lot, residents are worried all of their street parking will be taken over by commuters.

Permit parking is an inconvenience. Each year residents must re-register their vehicles. Getting a new car means getting a new permit. And residents expecting visitors must get temporary permits for them to park. But it is either this or having no place to park at all.

Southgate Centre does not anticipate much of a problem because of the LRT riders. They have a parking/security force that keeps track of how long vehicles are left in their lots and will issue tickets ($40.00) to those overstaying the five hour limit.

Other LRT stations do have park and ride lots, but in some cases with a minimal number of spaces. Century Park has 1,230 stalls; Clairview 1,372, Belvedere counts 780 and last of all Stadium has 468. Most of these are filled early in the day.

Taking the bus or walking to an LRT station is preferable, but some people can’t or don’t want to do either. Edmonton is trying to get people out of their cars, and in some ways is succeeding, as evidenced by the number of cars in the lots. Improving bus schedules to make the ride to the LRT faster and more efficient will help.

Edmonton Investment Property

Housing Starts Decrease Contrary To Expectations

March marked the first fall in three months for Canadian housing starts, according to Canada Mortgage and Housing Corp. Housing starts are units within a certain time frame on which construction has started and units are divided into three categories: apartment buildings over five units large, townhouses and condos, and single-family homes.

Despite seeing a rise in starts in January of 7.5 per cent and a rise in February of 6 per cent, starts in March fell 1.5 per cent. Actual numbers decreased from 200,400 units in February to a seasonal adjustment of 197,300 units amidst expectations of another increase.

It is expected that rising mortgage rates implemented by banks on March 29 has impacted the amount of starts. Mortgage rates have been at a record low of .25 per cent since April 2009, as The Bank of Canada encouraged buyers to invest in property and assist the country in recovering from its first recession since 1992.

While starts on new singles units actually rose 6.9 per cent to 97,700 units, urban multi-family homes dropped 15 per cent to 77,500 units.

BMO Capital Market predicted that as interest rates rise, starts will decrease from 191,000 units to 170,000 units in the January-to-March period.

Edmonton Investment Property

2010 Property Assessments Garnering Fewer Appeals Than In Years Past

Edmonton recently passed new legislation that doubles the time frame given to homeowners to dispute their annual property assessments. Instead of a thirty day window, homeowners now have a full two months to contest the city’s figures. That may be one reason that the number of appeals being received by the City of Edmonton has declined so drastically. Rather than the 3,860 appeals filed in 2009, to date the city has received 519.

It could be that more homeowners are agreeing with the assessment figures. Given the state of the economy in the last couple of years, homeowners and city officials may be closer in their opinions of property values. Assessments are based on what a property was worth on July 1st of the preceding year. July of 2009 was not a remarkable period for real estate values.

Residents could also be using the longer appeal time to use other means to work out their differences in opinion. Some homeowners are using private appraisers for second opinions. Others are taking advantage of the city’s new website that explains the assessment process in more detail. Homeowners can also look at the valuations of other homes in their area to see if their figures are in line with the ones on that official notice from the city.

For the most part, homeowners and city assessors seem to be in agreement on valuation numbers on the current assessments. It has been a rough couple of years in the real estate market and the numbers reflect that situation. Commercial appeals have been down as well. In 2009 there were 2,142 assessment appeals filed. In 2010 the number currently sits at 1,888.

Edmonton Investment Property

Employment Numbers for 2010 an Optimistic Improvement Over 2009

Edmonton employers are planning to be cautious when hiring this spring. While 16 percent of employers plan to add staff, another 12 percent plan to cutback on the payroll that they now have.  The result is a net four percent employment outlook.  This may seem slightly discouraging, but in reality, 72 percent of employers are holding their employee numbers steady which is a good indicator of labour market stability.

The Edmonton business community is used to seeing a bit of a slow down in the second quarter, partially because of the transition from winter to the warmer season. Many companies wind down a bit during this time of year, intentionally.  But the numbers are better than in second quarter of 2009 which had a three percent net employment estimate.
Western Canada is showing the most optimism in the mining and education fields, which average net employment outlet numbers at 15 percent.  The construction industry was also healthy, with a ten percent outlook figure.

Though employers throughout Canada as a whole are not as optimistic about the second quarter as they were about the first of 2010, the net employment outlook number remains at seven percent, which is six percentage points higher than the same time last year.  Things may be a bit slow, but we are headed in the right direction.

Edmonton Investment Property

Edmonton International Airport Has a Slow 2009, But Added Flights Spell Future Flying Success

Edmonton International Airport had three years of high flying success.  Then came the recession and the resulting numbers from 2009 are reflective of the economy as a whole. Canada’s fastest growing airport saw almost an 8 percent decrease in domestic passengers in that year and a one percent drop in international travelers. In 2008 6.5 million passengers passed through the airports gates.  In 2009 that number dropped to 6.1 million.

Passengers arriving into Edmonton from the United States increased by 6.3 percent to break the one million mark for the first time.  There are 10 United States destinations that have non stop service from Edmonton with over 40 arriving and departing flights a day, so that is a good incentive to “Fly Edmonton.”

Even with those numbers, Edmonton continued to add non stop service to more locations, including Costa Rica, Liberia and Huatulco, Mexico. Continental Airlines added a non stop flight to Houston this past November, expected to be a lucrative and popular flight. Houston is a hub for connecting flights to Central and South American countries.  Continental Airlines is also part of the Star Alliance that includes Lufthansa and Air Canada, giving Edmonton more access to global air coverage.

Edmonton International appears to be successfully getting the word out on its 50 non stop service destinations. A common practice in Edmonton was to buy tickets in town and then drive to Calgary because they offered better connections or service to places not offered through Edmonton’s Airport.  The number of people making that drive to Calgary is down 10 percent.

Airlines are also sweetening the pot and WestJet is among them. In the spring, seasonal service to Maui, Hawaii will start. The airline now offers service to San Francisco, California, Cancun, Mexico and Kamloops, B.C. on a year round basis.

Edmonton International is, in turn, doing what it can to keep its airline partners happy. A $1 billion expansion project is in progress to double the number of airline gates.  The more available gates, the quicker the flights get in, serviced and boarded. That makes the airlines very, very happy.  It seems to please the passengers as well.

Edmonton Investment Property

Real Estate Listings in Edmonton Double as Confidence in Industry Grows

Edmonton property owners, encouraged by the incredible rebound in sales by the end of 2009, are once again listing their homes on the market. Some listings also came from people who have been advised that their new homes, under construction, have finally been completed or nearly so.  This brings the number of market listings for January to 2,199, almost double from that of December 2009 which listed 1,118 homes on the market.

January sales of single family homes did decrease by 6.8 percent.  At least part of this can be attributed to the fact that buyers did not have that much to choose from. Now, with more availability, February is predicted to be a stronger sales month.  Even so, sales in January 2010 were 21 percent higher than in January of 2009.  That is cause for optimism.

The additional listings also kept the real estate market on more of an even keel.  It was feared that the lack of inventory might turn the industry into a seller’s market, thus increasing home prices to an unaffordable, perhaps inflated, level.

Pricewise, single family homes averaged $367,747 per unit, up about 4 percent from last year and just a fraction higher than the $366,761 from December of 2009.  Condos averaged out at $239,006 per unit which showed a 0.1 percent increase over last year.  Listings were on the market for an average of 57 days.

Edmonton Investment Property

Resale Real Estate Market in Canada is Healthy
The Canadian Real Estate Association announced on Tuesday that Canada’s resale real estate market is continuing its upward trend. In August 42,483 homes were sold, making the monthly sales 18.5 percent higher than for the same month in 2008. August sales were not quite as strong as those in July, with the number of units dropping from 42,666 to 42,426.

Economists are cautiously warning that the market performance would most likely slow as home prices keep rising and the market stabilizes. Interest rates continue to be at low levels. Three quarters of the local markets experienced a growth in resale property. Vancouver’s increase was 117 percent over the same period last year. Toronto followed at 27 percent and Calgary at 17 percent. Montreal’s gain was 9 percent and Edmonton came in at an 8.6 percent increase. Sales rose by more than 15 percent in June, July and August over the same period in 2008.

Prices are on the rise as well, aided by the increased interest in Canada’s higher end home markets. CREA reported that the average national price was 11.3 percent higher than in 2008, topping off at $324,779 in the month of August. The market showed a 5.3 percent increase in prices throughout 2009 as compared with the same time period in 2008.

 

Edmonton Investment Property

The cost for police services will show up next spring on Edmonton residents’ tax bills.

In order to hold tax hikes to no more than five percent, three to fund city operations, and two for neighbourhood fix-ups, legislators agreed to the increase as part of the budget for 2010.

Mayor Stephen Mandel said Edmonton residents should know that the budget for the police force requires about 25% of city tax funds. The police budget is one of the city’s largest costs at $217 million.

Some officials are worried that police, library and some development agencies might not receive the funds they need to operate fully if they have to stick with the three percent increase. Some suggested that service cuts could arise due to the constraints.

Coun. Amarjeet Sohi said, “I think what will happen is we will fund the most popular, the most citizen-demanded areas, but we will not have any money for other items.”

City manager Al Maurer said council will look at extra services that require more funding than the three percent will provide and will decide if they warrant additional funds.

The city’s 2010 draft budget will be available Nov. 10.