I’m excited about some news and I wanted to share it with you! For those who own a home already or looking to buy soon, I’m happy to say Alberta and Edmonton is heading for another boom.

If you are THINKING about buying a home or rental property… NOW is the time. I don’t need a crystal ball to know what’s brewing. Just take a look around and read the news articles.  If you don’t trust the columnists/reporters just visit the Alberta Treasury Board and Finance website. A heading for their article is “ Alberta’s economy enters 2014 firing on all cylinder.” What does this all boil down to? Well, the components to create a perfect storm are aligning and the end result will be a new boom in Alberta!  Here are the components we are experiencing:

1)  The dollar is devalued… This means oil is produced in Alberta and paid with Canadian dollars. When sold in the higher U.S. dollars, this is a hike in profit for the oil producers.
2)  Job growth and full employment. Developers out east are viewing Alberta as favorable place to set up shop. We have projects that are delayed simply due to lack of qualified workers. So, not only will Alberta attract people from outside of province, but also out of country.
3)  Net migration into Alberta last year is 43,000 according to Robert Kalcic, Senior Economist with BMO Capital Market. This year that number will be higher.
4)  Low volume of homes sales. Many, we see now have multiple offers.
5)  Close to all time historic low interests

So, let’s add all of that up: low volume of homes, high demand = higher prices or higher rents…The Perfect Storm. So, if you missed the boat, or were too young during the last boom you may want to act now. Dorothy, hold onto your slippers we’re in for a ride!

What an exciting time to be in Alberta! Give me a call to discuss your financing options.

Here are links to the news articles and data that I’ve extracted my information from:

http://www2.canada.com/edmontonjournal/news/business/story.html?id=ab10cab1-c242-44f4-99db-bf23a39ac9c4

http://www.edmontonsun.com/2014/03/14/hicks-on-biz-a-boom-is-happening

http://www.theglobeandmail.com/report-on-business/economy/housing/alberta-housing-market-set-to-
surge-bmo/article17493280/

http://globalnews.ca/news/1220698/migration-to-alberta-is-exploding/

http://www.finance.alberta.ca/aboutalberta/economic-trends/current-economic-trends.pdf

Written by Chita Metcalf – Contact her today to get yourself pre-approved for a new mortgage.

The Mortgage Group

Phone: 780-932-2225

Website: www.EdmontonMortgageSource.com

Most people feel confident about the basics of home security. For example:Keep all doors locked. Have a light on in the house while away. Never hidea key outside in an obvious place, like under the mat.

• Yet, almost a million and a half properties get burglarized in North America each year. So how can you prevent that from happening to your home? Here are a few less known home security basics:

• Actually, never hide a key outside. Thieves know all the hiding places. Instead, make sure all family members have a key.

• Two-thirds of home burglaries occur during the day. So be extra vigilant about making sure doors and windows are locked while you’re away during the day.

• Surprisingly, most thieves are not daring. They are 2.7 times more likely to target a home without an alarm system

•Thieves will attempt to force entry through sliding-style doors and windows first. So make sure these have a locking bar or extra bolt lock.

• Surprising, 40% of household burglaries do not involve forced entry. The thief is able to slip in through an unlocked window or door.

• Don’t show off possessions! An imported racing bike parked next to the garage, or expensive audio equipment clearly seen through a window, is an invitation to burglars.

• Take a look at the lighting and landscaping around your property. Are there spots where a thief could easily hide? If so, make some changes.

• When planning a trip, have a trusted neighbour pick up newspapers, flyers and anything else that may accumulate at your door. Your local police department may have more tips and special programs for keeping your home secure. Give them a call.

To view the complete report with specifics on your region click on the following link: http://www.edmontonhomesforsale.biz/view_special_reports.php

With the worst of the recession over, residential real estate markets in major Canadian centres are poised for growth in the final quarter of 2009, according to a report released today by RE/MAX. 

The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has made this recession one of the shortest on record.  Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well-underway.  Percentage increases in unit sales from January to August 2009 were led by Vancouver, (up a substantial 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2 per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and Toronto (up 1.8 per cent to 58,421).  Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 per cent year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to $239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto (up 0.3 per cent to $385,978).  Nationally, average price hovers at $312,585, up 0.5 per cent over one year ago.

 The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again.  In terms of its impact on the resale market, by historical standards, this recession was one of the mildest.  The resilience of bricks and mortar has been demonstrated time and again.  While there may still be some challenges down the road, the worst is definitely behind us in the housing industry.

 The recovery of Canada’s resale housing markets speaks to the tremendous value Canadians place on the importance of owning a home.  The number of Canadians overall who own a home has increased since 1981 from 62.1 per cent to 68.4 per cent, with some markets posting even higher homeownership rates — Calgary (74.1), St. John’s (71.5), and Regina (70.1).  Significant gains have also been made over the same period in markets such as Ottawa, where levels rose from 51.4 per cent to 66.7 per cent, and Toronto, where levels rose from 57.3 to 67.6 per cent.

 Public sentiment can perhaps best be illustrated by a recent Angus Reid Omnibus Survey* that asked the question “In which do you feel more comfortable investing your money?  The stock market or real estate.”  Out of 1,000 respondents from coast-to-coast, 77 per cent chose real estate. The results of the RE/MAX Bricks and Mortar Report are clearly representative of this national dynamic at work.

 Markets are heating up across the country as purchasers take advantage of affordable prices and rock bottom interest rates.  Those who missed the boat in years past have found that sitting on the sidelines can be a costly move.  Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the Fall and possibly into early 2010.

 Over the past thirty years, the Canadian residential real estate market has experienced three major downturns – 1981, 1989, and 2008.  While there have also been regional fluctuations throughout the years, return on investment over this period has been substantial, with Vancouver, Victoria, Toronto, Regina and Ottawa leading the country in terms of price appreciation.

The overall stability of real estate as an investment has also played a role. Markets like Halifax-Dartmouth, Regina, Ottawa, Winnipeg and London have provided steady returns (especially in recent years), with minimal fluctuation.

 * The Angus Reid Omnibus Survey was conducted on September 15, 2009 and yields a margin of error of +3.1 per cent, 19 times out of 20.

New in Canada’s Economic Action Plan

Through Canada’s Economic Action Plan, the federal government will introduce a First-Time Home Buyers’ Tax Credit (HBTC) to help with the purchase of a first home. This measure is expected to cost $30 million in 2008-2009, $175 million in 2009-2010 and $180 million in 2010-2011. 

About the Initiative

The HBTC will assist first-time homebuyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time homebuyers, who must also save for a down payment.

The $5,000 non-refundable HBTC amount will apply to qualifying homes acquired after January 27, 2009, and will provide up to $750 in federal tax relief.

A qualifying home is generally considered to be a housing unit located in Canada that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence no later than one year after its acquisition.

Any unused portion of an individual’s HBTC may be claimed by the individual’s spouse or common-law partner. When two or more eligible individuals jointly purchase a home, the credit may be shared but the total credit amount claimed cannot exceed $5,000.

How It Works

First-time homebuyers purchasing a home will be able to claim the HBTC on their income tax returns, starting in 2009. Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met. 

Who Is Eligible

First-time homebuyers are eligible. An individual is considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of the home purchase or in any of the four preceding calendar years. Special rules apply for the purchase of homes that are more accessible or better suited to the personal needs and care of an individual who is eligible for the Disability Tax Credit. In these situations, the HBTC can be claimed, even if the first-time homebuyer requirement is not met. 

How to Find Out More

For more information, please visit the Department of Finance Canada website or the Canada Revenue Agency website.

I’m not sure if you were aware but we offer free very informative special reports for buyers, sellers, and investors! To see what reports we have available, click below and you can select which ones you would like to have e-mailed to you.

 <<Click here for a copy of this Special Reports>>

 The report below will be updated every Friday and is supplied by TD Canada Trust’s Lee Politano.  This report has valuable information for both buyers, sellers, and investors.  To see the full report click on the above link and have it e-mailed to you. 

Stay ahead of the game and keep informed by tuning back here and checking out the new report every Friday!