Posts Tagged ‘economy’

Edmonton 2013 Sales Up 8% in Robust Local Housing Market

Monday, January 13th, 2014

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Sales of residential property through the Edmonton Multiple Listing Service® (MLS®) System in 2013 in the Edmonton CMA were almost eight percent higher than in 2012. From 2011 to 2012 the number of sales increased 6.2%. There were 17,055 residential sales reported in 2013 as compared to just 15,812 in 2012.

Sales were up in all residential categories with 10,487 SFDs sold in 2013 (up 3.4%) along with 5,059 condominiums (up 14.7%) and 1,144 duplex/rowhouses (up 18.2%). First-time buyers accepted the condo lifestyle as a way to get into the housing market. Compared to 2012, the percentage of SFDs sold dropped from 64% to 61.5% of total sales while condo sales increased from 28% to 30%.

The higher sales numbers were driven by the strong local labour market, continuing low mortgage rates, and a stable pricing environment. The 12-month, all-residential average price in 2013 was $350,208, a modest 2.95% increase over the 2012 price of $341,891. Median prices increased from $331,000 from $323,000, only a 2.48% lift, indicating that there was increased activity at the mid-market price point this year.

“REALTORS® report that there has been a shortage of lower-priced homes all year which has pushed value conscious buyers up-market or into condos,” said REALTORS® Association of Edmonton, President Greg Steele. “New home builders are trying to fill the void by building more condos and single family homes at lower price points.”

The all-year sales-to-listing ratio was 69% with average day-on-market at 53 days. The active market was highlighted by a year-end inventory of just 3,049 properties: a drop of 1,000 from the month previous.

During the month of December, the price of a single family detached property rose 4.4% from $405,826 in November to $423,544 in December. Condo prices dropped 2.4% in December to $234,967 while duplex/row house prices shot up 9.8% to $358,978 (following a marginal uptick the month previous).  Overall, the average all-residential prices was up just 1.1% to $350,208 when compared to the previous month. December sales (adjusted for late reported sales) were: SFD – 471, condo – 271, duplex/row house – 45, and total residential sales 805.

“Now that the hectic holiday season is over, listing and sales activity will pick up as it always does,” said Steele. “Buyers are urged to take advantage of the low mortgage rates while market conditions are favourable and to consult with their REALTOR® about the advantages of a resale home or condo in any of the communities in or around Edmonton.”

Source: Realtors Association of Edmonton

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz

Edmonton is job central in Canada

Tuesday, December 10th, 2013

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EDMONTON – Just how hot is the Edmonton region’s jobs juggernaut?

Well, consider this: “Over the past year, fully one of every 10 new jobs created in Canada has been created in the metro Edmonton region,” says John Rose, the City’s chief economist. “That’s truly remarkable.”

With a population of 1.2 million people, this region accounts for just 3.4 per cent of Canada’s 35 million residents. Yet it generated new jobs at a pace on par with a region of 3.5 million people, roughly the size of greater Montreal.

The latest monthly jobs figures, issued Friday by Statistics Canada, show the Edmonton region gained 3,000 new jobs in November, reversing a decline of the same magnitude in October.

Over the past year, the region has gained nearly 18,000 new full-time jobs. Alberta created 78,100 new jobs, accounting for nearly 44 per cent of Canada’s total employment gains.

Although the local unemployment rate ticked up — to 5.1 per cent in November from 4.2 per cent a year earlier, due to a big surge of newcomers — it’s still among the lowest in Canada. Alberta’s jobless rate sits at 4.7 per cent, second lowest behind Saskatchewan’s 4.1 per cent rate.

“We’ve had absolutely remarkable employment growth in the Edmonton area over the course of 2012 and 2013,” says Rose, who was on hand Thursday for the Economics Society of Northern Alberta’s (ESNA’s) 2014 outlook conference.

“We’ve seen a very significant run-up in full-time employment, and that has more than made up for the fact that part-time employment has been falling. Quite frankly, I wasn’t feeling too optimistic about November, because we’d had such strong growth. But to see growth return after the dip in October is excellent.”

It’s not just the pace of employment growth that has Rose excited. It’s also the key factors that are driving it, and what that’s likely to mean for the year ahead.

“The gains in full-time employment and the significant run-up in incomes is beginning to feed through to the consumer side of the economy. So we’re seeing employment growth beginning to pivot away from manufacturing, construction and professional services to sectors like retail, personal services and education. There is such momentum now that we can be very confident growth will continue in 2014.”

Rose expects GDP growth of just under four per cent for the Edmonton region next year, and between three and 3.5 per cent for the city proper, which is more heavily reliant on the steady-as-she-goes government, health and education sectors.

That’s light years above the anemic growth rates for Canada as a whole. The Bank of Canada expects national GDP growth of just 2.3 per cent for 2014, while Stefane Marion, National Bank of Canada’s chief economist, is calling for growth of just 2.2 per cent next year.

Alberta’s economic engine shows no signs of sputtering. Despite the usual angst over oil prices, pipeline bottlenecks and project cost overruns, the province remains Canada’s economic star.

“We don’t have the final GDP numbers for 2013 yet but we’re probably tracking real GDP growth at 2.8 per cent or maybe three per cent, and I actually see that picking up a little bit to maybe 3.5 per cent in 2014,” said Todd Hirsch, ATB Financial’s chief economist, who was among the headline speakers at the ESNA conference.

Although no one expects oil prices to soar — both Marion and Hirsch say the price of West Texas Intermediate, the benchmark U.S. grade of light crude, will likely trade between a low of about $85 US and a high of $100 US a barrel in 2014 — the weaker loonie is expected to boost cash flows and keep drilling programs and oilsands projects on track.

At the same time, manufacturing — a key sector in the Edmonton region’s economy — is expected to pick up, particularly if one or more of the proposed new oil pipelines finally gain some traction. But if they don’t, Rose warns that the current upbeat outlook for the provincial economy could change quickly.

“If we don’t get some good news on one or more of the four major pipeline proposals that are out there, I think you’ll see a very soft and squishy 2015 for sure, and it would raise question marks in terms of our growth profile as a province over the next five to six years.”

Although Canadians will go to the polls in 2015 — giving the Harper government a strong incentive to achieve some progress on its energy infrastructure agenda — Rose is skeptical that the Obama government will okay the proposed Keystone XL pipeline to the U.S. Gulf Coast.

“The really bad news is that we’ve got mid-term elections in the U.S. next year, so my concern is that politicians in the U.S. are going to punt decisions on Keystone XL beyond the elections, because they may perceive it as a no-win situation from an electoral point of view. If so, that would be unfortunate to say the least.”

 

Source: EdmontonJournal.com

IMF sees Bank of Canada hiking rates in second-half 2014

Wednesday, October 9th, 2013

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OTTAWA (Reuters) – The International Monetary Fund expects Canada’s economy to grow slightly more than 1.5 percent this year and 2.25 percent next year while it sees the Bank of Canada refraining from interest rate hikes until the second half of 2014.

In its World Economic Outlook on Tuesday, the Washington-based lender’s forecasts for Canada were slightly lower than the central bank’s projections in July of 1.8 percent and 2.7 percent growth in 2013 and 2014, respectively.

However, Canada’s central bank is due to update its outlook on October 23 and Senior Deputy Governor Tiff Macklem made clear last week the numbers will be downgraded after he sharply cut the forecast for third-quarter growth in a speech.

The IMF linked Canada’s growth prospects directly to the U.S. recovery, which it says will strengthen exports and business investment as domestic consumption cools. The forecasts assume the U.S. government shutdown is short-lived and the U.S. debt ceiling is raised promptly.

“The balance of risks to Canada’s outlook is still tilted to the downside, emanating from potentially weaker external demand,” the report said.

The accommodative monetary policy in place in Canada since the 2008-09 recession remains “appropriate,” the Fund said, predicting gradual tightening to start in late 2014 from the current 1.0 percent rate. Analysts in a Reuters poll forecast a first rate hike in the fourth quarter of next year.

Canada’s record-high household debt earned it a mild warning from the IMF, which said the trend could amplify any shock to the economy.

It also identified big provincial budget deficits and debt as a vulnerability, without naming specific governments.

(Reporting by Louise Egan; Editing by James Dalgleish)

Source: Money.ca.MSN.com

Canadian Consumer Confidence at Highest Since 2011

Wednesday, October 2nd, 2013

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Canadian consumer sentiment climbed to the highest in more than two years as employment rose and the housing market remained buoyant, according to the new Bloomberg Nanos Canadian Confidence Index.

The index, a weekly measurement of the economic mood of Canadians, rose to 59.75 in the period ended Sept. 27, from 59.23 the previous week. That’s the highest since March 2011 for the index, which tracks consumers’ perceptions of the strength of the economy, job security, real estate and their financial situation.

“September remains above average in terms of positive consumer sentiment in Canada,” said Nik Nanos, chairman of Nanos Research Group, the Ottawa-based polling company.

The data reflect recent improvement in economic reports. Job security among Canadians rose this month after Statistics Canada reported Sept. 6 that the economy added 59,200 jobs in August, the second highest total this year. Data this month also have shown the number of Canadians receiving jobless benefits is falling.

“Modest improvements in housing finances and the Canadian labor market are the primary factors for the best reading of the index in over a year,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York.

The index has two sub-indexes: the Bloomberg Nanos Canadian Pocketbook Index on personal finances, and the Bloomberg Nanos Expectations Sub-index on future views. The data in the indexes date to 2008 and is based on phone interviews with 1,000 consumers, using a four-week rolling average of 250 respondents. The results are accurate to within 3.1 percentage points.

Pocketbook Survey

The Pocketbook Index, based on survey responses to questions on personal finances and job security, rose to 61.37 from 60.55. The difference between the share of Canadians who report their jobs are secure and those saying they’re not secure rose to 59.1 percentage points last week, the most since March 2011.

The expectations index, based on surveys for the outlook for the economy and real estate prices, rose to 58.13 from 57.91 as more Canadians predicted home prices would rise.

The improvement in attitude comes as the Bloomberg Consumer Comfort Index, a separate gauge of consumer sentiment in the U.S., rose for a third straight week.

Canada’s economy grew at its fastest pace in two years in July, Statistics Canada reported today, with the 0.6 percent advance reversing the prior month’s drop.

The country’s output is poised to accelerate at a 2.1 percent pace from July to September, after slowing to 1.7 percent in the second quarter, according to Bloomberg economist surveys.

Housing Rebound

Concerns that Canada’s housing market will cool rapidly are dissipating. Canadian home sales rose 2.8 percent in August from the previous month, the Canadian Real Estate Association reported Sept. 16. Sales have increased for six consecutive months at an average pace of 2.3 percent, the most since January 2011.

The Bloomberg Nanos gauge of Canadians’ view on real estate strengthened this month, with 38.1 percent polled predicting increased real estate values in their neighborhoods, up from as low as 34.5 percent in August. Twenty-one percent of those surveyed said they are better off financially over the past year, the highest reading since June.

The youngest age groups, and lowest income earners, are showing among the biggest confidence gains, according to the polling results. Consumers in Ontario led gains over the past week for the Bloomberg Nanos index.

Store Sales

Statistics Canada reported last week the nation’s retailers boosted sales in July by 0.6 percent, adding to evidence the nation’s economy is rebounding.

Statistics Canada also reported today that industrial product prices rose 0.2 percent in August, while raw materials prices increased 0.9 percent.

Elsewhere in the economy, Bank of Canada Senior Deputy Governor Tiff Macklem will give a speech tomorrow in Toronto on “Global Growth and the Prospects for Canada’s Exports.”

Western University in London, Ontario will release its Ivey Purchasing (IVEYSA) Managers Index for August at the end of the week, with economists forecasting a reading of 53.5 from 51 in July.

 

Source: bloomberg.com/news

Mortage Rates Are On The Rise in Edmonton

Monday, June 24th, 2013

Mortgage rates are on the rise. If you have been thinking about buying you might want to do sooner than later.

We’re seeing most all lenders now up to the 3.19% 5yr fixed term rates or higher on pre-approvals.   The bond markets are still showing signs of movement, so it could go up a bit from here.  If you are thinking of purchasing, refinancing, or renewing within the next 90-120 we encourage you to do a pre-approval and get a rate hold locked in through us.

If you are seeking an approval on your purchase, refinance, or renewal, then there are a couple non-preapproval lenders that can offer a slightly lower rate on approvals only.  Also, if your financing closes or can close in 30 days or less you can obtain a quick close discount closer to the 2.99% range right now.

If you are thinking about buying a home within the next 4 months you should call in to get pre-approved to lock in today’s interest rates.

For more information call Chita at 780-932-2225 or visit: http://www.edmontonmortgagesource.com/

Edmonton and the Rest of Alberta economy continuing its ‘impressive boom’

Tuesday, March 19th, 2013

Any dark clouds that are currently hanging over Alberta will clear by 2014, paving the way for strong business and consumer activity, says a report by RBC Economics.

The bank’s latest Provincial Outlook, released Tuesday, said the province’s economy will continue its “impressive boom” through 2013, after leading the country’s economic growth in 2012, despite facing challenges.

RBC forecasts a provincial real GDP growth rate of three per cent due to strong crude oil production as well as high levels of capital investment, employment and population growth. This will be second in the country behind the 5.1 per cent growth expected in Newfoundland & Labrador.

RBC is predicting Alberta will lead the country in economic growth of 4.2 per cent in 2014.

In December, RBC forecast growth of 3.5 per cent this year for the province. The forecast for 2014 has remained the same.

“Even though the province recently announced a $2 billion budget deficit, Alberta is unquestionably in the midst of an impressive economic boom – particularly with capital investment fuelling manufacturing and wholesalers’ sales. Attractive employment opportunities are also bringing new migrants to the province, boosting population growth and in turn, consumer spending,” said Craig Wright, senior vice-president and chief economist at RBC. “As the economy continues to thrive across the majority of key industries, Alberta will remain at the top-end of Canada’s economic growth rankings this year.”

Economic growth in the province in 2011 was 5.1 per cent followed by 3.5 per cent last year.

Todd Hirsch, senior economist with ATB Financial, said Alberta’s economy is moderating somewhat.

“So I think we will see probably a slower year for growth than what we saw in 2011 or 2012,” said Hirsch. “A lot of that of course prompted by those softer energy prices and maybe a little bit of pullback by the provincial government. But I think we’re still going to see kind of a nice moderate healthy level of growth of around 2.5 to three per cent.

“Going forward beyond that it gets trickier and we don’t really do forecasts beyond 2013 but I would still see 2014 as a pretty good year … It’s not going to feel quite like the boom years of 2006, 2007 either. We’re just going to have nice healthy moderate growth.”

RBC said there are a few weak spots in Alberta’s economic outlook. Investment intentions in the oil and gas sector are essentially flat for 2013. RBC said Alberta’s energy developers’ plans are being weighed down by rapidly rising energy production in the U.S., pipeline bottlenecks and the ‘bitumen bubble’, all of which contributed to lower crude oil prices in Canada relative to global benchmarks late in 2012.

“Weaker than expected oil prices put a multibillion dollar hole in Alberta government’s revenues, and led to a 2013 provincial budget that detailed renewed public sector spending restraint,” said Wright. “Still, any pullback in capital spending will be short-lived as pipeline issues are addressed and crude oil price relationships normalize.”

RBC trimmed its real GDP growth forecast for Canada to 1.8 per cent through 2013, following softer-than-expected growth in 2012. For 2014, it is forecasting 2.9 per cent growth across the country. In December, it forecast growth of 2.4 per cent this year and 2.8 per cent in 2014.

“After boasting a relatively strong economic performance over the past several years, Canada’s economy hit a speed bump in late 2012,” said Wright. “That said, financial conditions continue to support growth. As confidence recovers, business spending should accelerate, albeit at a less rapid pace than we saw in the early days of expansion.”

 

Source: Calgary Herald

Local Housing Market Continues to Grow – REALTORS®

Monday, February 4th, 2013

Edmonton, February 4, 2013: Year-over-year average prices and sales were up for most types of residential property in the Edmonton Census Metropolitan Area (CMA) in January. Single Family Dwelling (SFD) average prices were down 1.93% from December but up 7.7% when compared to January 2012. Condominium prices were also down (-3.1%) month-over-month but up 1.7% year-over-year. The all-residential price was up year-over-year at $328,525 (up 2.5%). The average price for an SFD was $399,832. An average condo was priced at $216,139, while a duplex/row house was priced at $328,351 on average. The all-residential average price in the Edmonton CMA was $328,525 as compared to $320,482 in January 2012.

The 2013 year started off with a residential sales increase of 27 (25) units over the previous year. There were an estimated 921 (853 reported) residential sales in the Edmonton CMA and an estimated total of 1,084 (1,005 reported) sales of all types of property. SFD sales were down 1.4% from a year ago at 536 estimated (496 reported) sales. Condo and duplex/row house sales took up the slack with an estimated 286 (265 reported) condo sales (up 30.7%) and duplex/row house estimated sales of 64 (59 reported) units (up 24.9%).

“If there is an impending national housing crash, it is not evident in Edmonton,” said President Darrell Cook. “The number of price reductions is 4% lower than the same month last year.” The number of residential properties in the City of Edmonton that sold at or over list price rose from 9% in January 2012 to 12.6% this year. “This indicates that homes are appropriately priced for the market and that more home sellers are holding firm to their asking price,” said Cook.

The average days-on-market was 74 and the sales-to-listing ratio ended the month at 47%. There are currently 3,743 residential properties in inventory in the Edmonton CMA. This is lower than the five-year average for January (4,324) but still represents a 4.4 month supply at current sales levels.

REALTORS® changed their statistics reporting format this month. Sales and average price figures are given for the Edmonton CMA which includes the City of Edmonton and about 40 surrounding municipalities as defined by Statistics Canada. Then, because sales in the City of Edmonton account for about 75% of all sales, the figures are given for Edmonton only. Finally, communities and counties outside the CMA are not forgotten. The number of sales for each municipality along with average/median prices and total value of sales are provided in the Total Board section. All three reports are attached.

“All real estate is local,” said Cook. “It is important that we provide statistics that are relevant to each specific location. REALTORS® can provide their clients with more granularity or more specific details at the neighbourhood level.”

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Highlights of MLS® System activity

January 2013 January M/M % Change Y/Y % Change
SFD2 average3 selling price – month $399,832 -1.93% 7.68%
SFD median4 selling price – month $376,600 2.16% 6.38%
Condominium average selling price $216,139 -3.11% 1.71%
Condominium median selling price $208,000 0.00% 1.96%
All-residential5 average selling price $328,525 -3.50% 2.51%
All-residential median selling price $315,000 -1.56% 1.61%
# residential listings this month 1,812 121.79% -11.09%
# residential sales this month 853 36.04% 3.02%
# residential inventory at month end 3,743 7.16% -12.24%
# Total6 MLS® System sales this month 1,128 34.77% -0.53%
$ Value Total residential sales this month $325 million 33.29% 3.98%
$ Value of total MLS® System sales – month $374 million 29.01% -0.96%
$ Value of total MLS® System sales – YTD $374 million 29.01% -0.96%

1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses.
6 Includes residential, rural and commercial sales

source: Realtors Association of Edmonton

 

Are Edmonton Real Estate Values On The Rise?

Wednesday, July 18th, 2012

The Edmonton Real Estate market continues to be robust. As
of this morning July 18, 2012 there were 3,076 single family dwellings listed
on MLS with the Realtor’s Association of Edmonton. This level of inventory is a
very healthy.

In the past 30 days there were 941 homes sold. For this time
of year this is a very healthy and strong number. This would give us a listing
to sales ration of 3.27:1 which is well below the 4:1 ratio needed for a
neutral or balanced market.

With a 3.27:1 listings to sales ratio I expect there to be
continued pressure for valuations to continue to rise. I think that in the next
30 days we will see how much of an impact the new mortgage rules that came into
effect July 09, 2012 will have on the real estate market in Edmonton.

If you are thinking of buying you will probably save
yourself thousands of dollars by buying now versus waiting a few months. Call
me today if you would like some help to find your next home. Serge @ 780-995-6520.

To view and search all MLS listed homes visit us at
www.edmontonhomesforsale.biz

February Edmonton Housing Prices Rise with Sales – REALTORS®

Monday, March 5th, 2012
Edmonton, March 2, 2012: The REALTORS® Association of Edmonton reports that housing prices were up in all housing categories in February in the Edmonton area. The all-residential average1 price, at $329,911, was up 3.7% from January and up 5.7% when compared to the same month last year.

“Average prices in February were higher than the year-long average price for last year,” said REALTORS® Association of Edmonton President Doug Singleton. “Buyers seem to have confidence and REALTOR® offices are reporting solid traffic. This is lifting prices up and they are already higher than at the same time in the past two years.”

In February, the average price of a single family detached (SFD) home was $375,268, up 3.1% from the previous month. The average price of a condominium in February was $234,973, up 8.5% from the January price. This is higher than all months except May of last year. Duplex and rowhouse properties sold on average for $306,491; a 1.4% improvement from the previous month.

Year-over-year prices were also up in all categories. Single family properties were up 4.8%; condos were up 1.7% and duplex/rowhouses were up 0.2% from the same month last year.

Sales and listings by REALTORS® on the Multiple Listing Service® System in February were both up from January and the sales-to-listing ratio recovered from 36% in January to 46% in February. This indicates that less than half of the residential properties listed were sold and provides fresh property options for buyers who may have been looking for several months. Sellers should be pleased to see that the average days-on-market in February was 54; down from 65 in January.

There were 5,976 residential properties in the local MLS® System at the end of January. Although the inventory was up from last month, it is lower than a year ago when there were 6,389 properties available for sale on the MLS® System.

“Nationally the housing still appears to be soft,” said Singleton. “But the local market is much more robust. Consult your local REALTOR® for the most comprehensive local market information. REALTORS® are here when life happens.”

Source:Realtors Assc. of Edmonton

The Status of the Edmonton Real Estate Market – January 03, 2012

Tuesday, January 3rd, 2012

I would first like to wish everyone a Happy and Prosperous
New Year! As it can be expected the market of the last 30 days has been slow
because of Christmas and New Years take our focus from real estate and towards
the holiday festivities.

Currently there are 1,790 single family dwellings listed on
the market in Edmonton proper. That lower inventory level that we have seen in
the last few months as people let their listings expire and come off the market
for the holiday season.

In the past 30 days there were 367 single family dwellings
sold. This reflects the season slow down that we would expect.

This gives us a listings to sales ration of 4.87:1 which
normally would indicate that there would be downward pressure on valuation.
However the seasonal slowdown is giving us a ratio that might not really be
indicative of the real market situation. I think that over the next 2 – 4 weeks
we will see this ratio change significantly as the buyers come back to the
market. I also expect that when they do we will probably see increasing
pressure for valuations to rise.

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.