Hmm... looks like Calgary housing prices went down 1.9% from a month ago.Posted by GM on Thursday, June 17th, 2021 at 11:03pm
GM: Calgary is in a lot of trouble. Their downtown is way too overbuilt, and consolidation in the oil industry means that they will continue to lose jobs, regardless of the price oil. Meanwhile, Edmonton just approved a $1.3 billion green hydrogen plant, which will create thousands of high paying jobs over the next few years. Calgary is going to struggle, unless they can get away from oil. and into green energy, like Edmonton is doing. Combine that with the NDP polling in majority territory, meaning it's likely that the civil service hiring freeze and pay freeze will be reversed, I think in a few years, Edmonton home prices will eclipse Calgary's.Posted by Tom on Friday, June 18th, 2021 at 1:29am
I can't believe you said Calgary is in trouble, compared to Edmonton. Calgary high paying jobs, tech sector is booming, and more people will relocate there compared to Edmonton. When housing prices start to go up, normally it's the high tech sector and Calgary is beating us down.
Where is our high tech sector?
We're certainly diverging in terms of our house prices, which are still heading upwards. No real tech jobs here; we're a government job town, so the private sector plays less of a factor to Edmonton's economy and home prices compared to Calgary.Posted by Tom on Friday, June 18th, 2021 at 2:50am
I'm pretty sure you want houses prices to go up here, always bullish. Government is cutting jobs, while private sector increasing jobs. A good example is Texas, Elon Musk moving and bunch of other tech companies going there, Texas real estate prices taken off. Infosys is the big one, expect more, multinationals to pick Calgary over Edmonton. If not tech, what is catalyst for the real estate to move up here?
We've never really been driven by private sector jobs, since we have so few here compared to Calgary. As I said earlier, we have billions of dollars in clean energy projects. There was an article recently about how Edmonton is going to boom with jobs because of it. I don't like Calgary's chances long term, considering the $170+ carbon tax will crush the demand for oil and gas. As most people say, green energy is the future, and hence I think house prices will be insane soon.
"Over and above the immediate job creation that this project will bring to our region (2,500 during the two-and-a-half-year construction period and 30 long- term permanent positions), this will enable the development of jobs in downstream green technology markets."
2500 jobs, Infosys 4,000 jobs and what about all the other tech jobs. Calgary is going big on tech, future growth. There is no way clean energy is going to outpace high tech sector, eventually, you will see Microsoft, Google, Apple. The huge reason companies choosing Calgary over Edmonton because of mountains. We are almost $80-000-$100,000 cheaper and top area Mount Royal compared to Glenora, gap is even larger. Not sure if you have seen the houses in Mount Royal, up a hill, so much more prestigious compared to Glenora.
Sara, do you think we can hit $500,000 average for SFD this fall once the economy is open and booming again?Posted by Tom on Friday, June 18th, 2021 at 7:12am
No, I don't think we're going to see prices go that high. Prices usually peak in early summer and I think that will happen again this year. There are a lot of listings still coming on the market so even though demand remains high, there is plenty to choose from and the multiple offer frenzy is becoming less common.
China became a superpower from polluting their entire country. Edmonton already saw the boat sail and even back then they did the exact opposite green energy programs when they should have been pumping every last barrel out of the ground and aborting any and all feasibility studies. Profit is the way of the future and green energy is the opposite of what Edmonton should be doing.Posted by Tony on Saturday, June 19th, 2021 at 2:44am
You have to look at the quality of jobs too. Those 3,5000 hydrogen jobs are better paying than the lower paid Infosys jobs.Posted by Tom on Saturday, June 19th, 2021 at 2:49am
That should say 2,500 higher paying hydrogen jobsPosted by Tom on Saturday, June 19th, 2021 at 2:50am
Tony: I don't care what China does, since Trudeau doesn't control them. I care that in CANADA, green energy is the future, and oil will be phased out according the Ottawa. And Edmonton is future of green energy. Calgary is going to continue to fall economically over the next decade to basically Winnipeg. Sure, a few high techs may slow it down, but Edmonton, traditionally the underdog, will surpass Calgary soon.Posted by Tom on Saturday, June 19th, 2021 at 2:52am
Have to chip in here. I lived in Edmonton for over 20 years and Calgary above 10, and Toronto almost 5 years now.
Edmonton: Too cold, nothing to do there, except Edmonton Oilers in the '80 years, those were the days
Calgary: High tech jobs, high paying jobs. More stuff to do with younger populations, Banff is an hour away. Weather is much nicer.
House Prices in both cities crashed lately. 4 or 5 years ago, my condo was sold at $290, now worth $180. My house sold for $520K now worth $480, though SFH has recovered quite a bit. In the same while, my house here in Toronto double in price. Go Figure.
In the short term, Oil price will recover, but oil companies won't be going crazy. Yes, Edmonton has more government jobs, but money has to be coming from somewhere. I see Alberta is less important overall in Canada compared to 5 or 10 years ago. World is moving to a totally different direction because of COVID.
Building condos isn't really going to create prosperity. People will be employed while they're being built, but after that.... nothing.
You have to create something that people around the world want to buy, not just housing. That's why Texas and Arizona are booming. They're building things to sell to the world.
There isn't much of that going on here. We used to sell oil, lots of it, to the world, but Trudeau destroyed that. Now we have some green dream, much like Ontario had. It nearly bankrupted the province.
Jason: I can tell you haven't been to Edmonton for a while. We now have the tallest sky scraper in Canada (outside of Toronto), and there are seven new condos that will break ground this year downtown under a new City of Edmonton tax grant program (see link). Plus several condo building currently under constructions, and about eight more planned for 2022. There will be cranes building high rises every few blocks downtown next year. It could be the biggest building boom Edmonton has ever seen, and taking place all downtown. At this rate, considering how overbuilt Calgary's downtown is, Edmonton will surpass it in terms of downtown office towers and condos there are. And as you said about high oil prices not likely to create new jobs in Calgary, Calgary and Edmonton are completely separate trajectories over the next five years.
I feel you're stuck in an old way of thinking. Knowledge-based economies don't SELL anything physical. We go on laptops and do stuff to make money. THAT's the future, not digging up oil or rocks to sell. We've moved on.Posted by Tom on Monday, June 21st, 2021 at 2:23am
I think your missing the point, green energy only for rich. How many electric cars road, expensive, $10k to swap out battery after warranty, charging stations, solar panels, $20k, electric lawnmower for $500, 1 battery, 20-25 mins. Climate change, pipe dream, unless costs come down, 80 percent, maybe chance. If Edmonton real estate boom, need to pump all oil ground create jobs, not go backwards. We have such a huge workforce, what about having lots of factories making PPE, not Ontario. Even hydrogen project creates 10k jobs, not enough. Calgary in the last few years, probably created way more tech jobs and that's why they have outsold us by 2-1.
Tom, how are tons of new high rise condos going to help Edmonton real estate values? From the monthly update “there are 16 months of supply of highrise condos on the market right now.” Sara is goin to have make a new months of inventory meter that is a full circle reaching all the way up to 24 months at this rate.Posted by Still Employed in AB on Monday, June 21st, 2021 at 6:13am
With thousands of people moving downtown in the next few years, downtown will explode with life. That is positive for attracting people to Edmonton, as people love huge cities like Edmonton will soon become. That means more demand for housing.Posted by Tom on Monday, June 21st, 2021 at 6:16am
By 2030 when the carbon tax is a minimum of $170 per tonne, I can promise you that only the rich will buy gas powered vehicles. There's no way your average person will have money to spend $2.50 a litre to fill an ICE truck or SUV. I think ICE vehicles are going to die quicker than you think.Posted by Tom on Tuesday, June 22nd, 2021 at 4:30am
Two $20 billion microchip plants built in Phoenix in the last couple of years. Selling microchips to the world. Lots of knowledge-based employees there for this. What does Edmonton have for knowledge based businesses? Lime? Skip the Dishes? Walmart? Sorry, I don't see Edmonton becoming any sort of technology hub. Just more and more wasteful government offices. Places that don't produce anything the world wants. All supported by taxpayers, of which there are fewer and fewer every years.
And if you think the government-run hydrogen plant is going to be cost effective and not a huge drain because of the inevitable government cost overruns, I've got a solar powered bridge to sell you.
I agree with "Still Employed in AB".
Producing more of something and glutting the market does not cause the price of that item to go up.
Sure, there are a few examples of manufacturing in North America. But with other countries like China producing at a lower cost, I wouldn't count on Canada attracting manufacturing plants anymore. We need to focus on clean energy and technology to create jobs here. Also, why do you hate government so much? Civil servants keep Canada functioning. In Alberta, public sector jobs have been the big growth area in the last 18 month (health care, education, civil service, etc). The private sector might rebound a bit in 2022, but it's on a slow decline even prior to Covid, that I think will continue.Posted by Tom on Thursday, June 24th, 2021 at 5:56am