Another all time high for this time of year! With Alberta's economic growth red hot right now, I predict more records will be broken.Posted by Tom on Thursday, May 11th, 2017 at 9:16pm
"Red Hot" Bahahahaha. Tell that to all the people out of work. The only thing getting hotter is people wanting to sell and move away!Posted by Ron on Friday, May 12th, 2017 at 2:53am
Lol. Tom... love the enthusiasm.
Gone for now are those who previously predicated a looming market crisis using semantics from the 1960s, as predictions after predictions used to come in about how the "socialists" would ruin Alberta's economy. (the funny thing is, our most conservative governments would be considered slanderous communists in the USA),,... where are all those who spout these simplistic ideologies from the left and right?
Bottom line.... throw out your finance and economic textbooks from the 1960s through to 2017.
As Alberta's birth rate continues to lead the nation, the "household formation rates" (and all that goes with the formation of a household) in the urban cores will continue to show impressive numbers, almost equal to those of an emergent economy. But this is beyond simple demographic backed explanations.
Tom is right.... record highs.... more to come.
Renegotiate NAFTA is worse to Canada than Maxico, business moving from Canada to Mexico now, it's too early to be optimism.Posted by Sharon on Friday, May 12th, 2017 at 6:29am
Honestly, oil probably isn't going to come back. But we don't need that, at this point we're diversified. We're leading the country in growth this year, and probably next, without oil prices participating.Posted by Tom on Saturday, May 13th, 2017 at 4:31am
Alberta PC is actually nothing more than NDP with a "conservative" word in the name. If you look at their CO2 management project, all their fiscal management, and indication of adding PST, that's downright socialism and nothing conservative.
As for WR, they are the real conservative. But obviously most Albertan don't like conservative.
I'm not sure about the average price of all houses sold, but according to teranet, the identical house was worth more in April 2015 and 2016 than it is right now, down 2% in one year, and about the same in 2008, all in nominal dollars. Adjusted for inflation, the same house is worth a 15-20% less than in 2008.
Not so sure our economy is red hot. It's turned around from the 2015-16 free fall. You have bigger stones than me if you're prepared to bet heavily on big home price increases. There is sooooooo much investment that has been pulled out of Alberta over the past couple years. To say we've diversified is wishful thinking; our Oil sector has merely shrunk, and other industries have not sunstantially grown to take its place. I dunno, I'm seeing things out there I haven't see in many many years. There's a lot of people hurting, and it's not getting better quickly.
If you look at all the mature neighbourhoods, especially top end ones and get prices from even last year, the prices have appreciated like crazy. Just drive around Westmount, Inglewood, Glenora, University and you will see new half lot infill selling /sold for $600,000 +. If you don't believe me, just talk to any realtor and they will tell you.
The problem with real estate you can't buy new houses, half duplex (neighbour next door) and condos (no land) and expect to make crazy money. Buying a new car is like buying a new house. As years pass by you will depreciate the building, it's the land that goes up. New subdivisions, a developer can open a new phase, so how can you expect to make lots if money then?
My strategy has always been to buy a decent house and get it for lot value or cheaper. It is much harder to come by, but if you are patient, there is chance.
The Edmonton housing market peaked in price way back in the summer of the year 2007. Resale condos and resale townhouses are still down about fifty percent from 2007.Posted by Tony on Sunday, May 14th, 2017 at 3:59am
LOL! You make me laugh, Tony. So what you're saying is a townhouse that is $250 k today was $500 k in 2007? I never noticed that high a number for a townhouse in 2007. Where do you get these numbers from?Posted by Wally on Sunday, May 14th, 2017 at 4:44am
Resale townhouses that were $260,000 in 2007 now sell for $130,000 the exact same ones. Either you're too young or you don't remember very well. The numbers are all there.Posted by Tony on Monday, May 15th, 2017 at 2:31am
I'd like to live my life with less money, instead of take risk to earn more or lose all.Posted by Sharon on Monday, May 15th, 2017 at 5:16am
We can find examples in both directions.... a typical bungalow in Crestwood/Parkview sold on average for $422k in 2007 and $445k in the past 6 months. Westmount was $370k in 2007 and $446k now. Strathcona semi-bungalows were going for $420k in 2007 and $465k over the past 6 months. Each area and property type will be different. Your townhouse case could have other factors at play, perhaps there was a large assessment to fix some major problems in the complex, and the owners financed the assessment by increasing condo fees.... that'll bring your value down real quick. I have checked a few areas and have seen the average for townhouses in 2007 in the west end around $250 and around $220 today, and in the University $350k in 2007 and $320k today.Posted by Sara MacLennan on Monday, May 15th, 2017 at 5:56am
Sarah, awesome commentary to set the record straight. The Westmount for $446,000, I think is too low. Any 1,200 sqft home in Westmount people are probably asking closer to $500,000.
I still think Westmount is still undervalued at that price because anywhere in the world, the first district to downtown, the prices are probably 1.5-3X compared to the average price.
The reason, I like real estate so much besides making money is you can see what works in another mature market and use that knowledge to your advantage.
Based on Sarah #, you need to buy houses, no condos in mature areas if you want to make $$$Posted by kenny on Tuesday, May 16th, 2017 at 5:44am
Wildrose would be running this province if their leader/traitor had not crossed the floor to join the Conservatives at the last minute, abandoning her party and all of her party's supporters.
So they're now branded as untrustworthy.
How exactly is Alberta more diversified? Do you mean less people working, more on EI and welfare? That's more diverse, I guess.
"Resale townhouses that were $260,000 in 2007 now sell for $130,000 the exact same ones. Either you’re too young or you don’t remember very well. The numbers are all there."
That's a blatant lie. As Sara reported, $248k is the average price for condo, and townhouse is always more than that.
If you are a student or an entrepreneur, a condo may make sense if you put your saved time to good use. But 95% won't.Posted by wsn on Wednesday, May 17th, 2017 at 4:26am
regardless of when and where, buying a detached home is ALWAYS better in the long run than a condo or townhouse. That was an advice I got some 20 years ago (based on history of 30 years before then) and it holds true today too. It's the land that goes up in pricePosted by a common guy on Wednesday, May 17th, 2017 at 6:36am
That's true in a normal real estate market but the price of resale apartments is so low in Edmonton it would make sense to buy apartments by the dozens. If you look at New Brunswick or PEI resale apartments cost $160,000 not $80,000 like in Edmonton and home prices are half of what a detached home costs in Edmonton. The golden rule Canada wide is never buy new always buy resale.Posted by Tony on Wednesday, May 17th, 2017 at 9:52pm
I sold 4 townhouses last year that I bought in 1990 in Edmonton. Back in the summer of 2007 all 4 of them would have fetched DOUBLE what I sold them for last year. You obviously never bought and sold real estate in EdmontonPosted by Tony on Wednesday, May 17th, 2017 at 9:58pm