“It could be the biggest rule change of all-time,” said Rob McLister, the founder of ratespy.com. The housing market has already been adjusting to changes in the insured market, instituted in 2016, which forced homeowners with less than a 20 per cent downpayment to qualify based on the Bank of Canada five-year qualifying rate as opposed to the one on their contract. That rate is now 4.84 per cent.Yikes. Here's hoping Benjamin Tal is right and they'll at least delay the impending rule change, that will make it much harder for people with more than 20% down to qualify for a mortgage. Have a great weekend! Posted by Liv Real Estate on
Looks like we officially set a new price record for this time of year!! Calgary is really starting to heat up, and considering we're generally six months behind Calgary, I think next spring is going to be hot.Posted by Tom on Thursday, September 7th, 2017 at 8:12pm
They need to bring in the OSFI stress test as soon as possible for the sake of the Canadian banks and the Canadian taxpayers who pick up the tab for all the mortgage defaults.Posted by Tony on Thursday, September 7th, 2017 at 9:00pm
Something tells me things are going to take a turn for the worse. Oil still below $50/barrel, higher interest rates, tighter mortgage rules... things have held up better than expected for a while, but we might be at a crossroads.
552 new listings last week with only 216 sales. This combined with 466 price changes and 565 expired listings. This is looking a bit scary.
High inventory, lower sales - but prices go up....Canada, ehPosted by Mike on Thursday, September 7th, 2017 at 10:39pm
It's not looking great in the short to medium term. We have an economy that is forecast to get weaker next year, probable deep job cuts to the civil service once the UCP gets in, stricter mortgage rules coming into effect, and higher interest rates.
On the other hand, the NDP has added tens of thousands of civil servants in the last two years in Edmonton, so that is allowing the housing market to hold up well so far.
Sara, couple of quick observations
"Yikes. Here’s hoping Benjamin Tal is right and they’ll at least delay the impending rule change, that will make it much harder for people with more than 20% down to qualify for a mortgage."
I think you meant to type people with LESS than 20% down.
also, the active listings seem incorrect, if you had over 500 expired listings this week
I don’t see Edmonton or Alberta's economy getting better anytime soon. It will only get better with a change of government. Socialism never creates a booming economy.
You don’t need to travel to far to see real growth and jobs in the west. Regina and Winnipeg are booming.
There are alot of people that want to come back to Alberta including myself but are in a holding pattern. We won't return untill there is change and real hope that the real west is free again!
If there is change? People will rush back again and Alberta will return to it's past glory days.
Keeping my fingers crossed!!!
She has it right Frank. The new rule requires those with more than 20% down to also pass the stress test, whereas previously only those with insured mortgages (under 20% down) needed to pass the stress test.Posted by Trev on Friday, September 8th, 2017 at 4:14am
I agree with you on "socialism never creates a booming economy". However, socialism didn't start from the NDP regime. It started when Ralph Klein stepped and Ed Stelmach became premier and spent $1,400,000,000.00 to inject CO2 into ground while at the same time keep our children in mobile shacks and called that school.
Hope the UCP can do better.
Rising rates, will likely mean stronger rental market. 18k people left the province this year 15k moved to AB. Still a buyers market, but over the comings years (pending market influencers) should see 2% appreciation.Posted by Garry on Friday, September 8th, 2017 at 9:48pm
Job opportunities are picking up in Edmonton, but the wages are still shit.Posted by arfmoocat on Friday, September 8th, 2017 at 11:53pm
That's what I would call Communist mentality.
The Chinese (or any other foreigner group) bought like 5% of Canadian real estate and made price went up 100%. Guess who own the other 95%? Canadians!
Be grateful when foreigners made you rich. I sure hope some Chinese, or Indian, or Arabian, or Russian millionaires coming to Edmonton to buy up that inventory.
Sorry with my last post. I forgot you are renting.
But hey, at least the foreigners will make your landlord rich, if they ever come to Edmonton.
Ha ha , I was always wandering who is to blame in 1.5 trillion in debt of canadians ? Now I know.Socialists! Dirty bastards , thay started this by 40 years mortgage! WSN , you forgot to blame rich immigrants and renters.Posted by Andrii on Saturday, September 9th, 2017 at 4:00am
Not that you had any credibility, but what ever you may of had got tossed when you made the claim "Winnipeg is booming". Not to mention bankruptcies are on the rise in Regina. The Alberta economy is doing pretty darn good considering oil prices are in the toilet. I live in Alberta and and am from Manitoba. I have many friends and relatives in Manitoba. Most of my friends are in the construction industry as I and I know for a fact that it's NOT booming. I suggest you quit being a partisan tool and start to give thanks for what you have.Posted by Stephen on Saturday, September 9th, 2017 at 6:06am
Basically the Chinese caused the entire mess just like they did to Australia and New Zealand. The sad thing is the stupid Millennials in Canada kept on buying at prices hundreds of years in the future. The Canadian Millennials must be the daftest breed of humans on Earth. Meanwhile virtually none of the American Millennials bought when home prices rose. Thereby lies the two problems which caused the entire fiasco.Posted by Tony on Saturday, September 9th, 2017 at 7:39am
Arfmoocat- you are right. There are a large number of families, likely numbering in the tens of thousands if not hundreds of thousands, whom will never again see earnings like they did in 2014 and prior. If you were physically robust and willing to work, $100,000 a year was a guaranteed income, and many people earned much more. Those jobs don't exist anymore, and if they do the labor market is much softer and earnings much lower. It's caused a big shift in income demographics and purchasing power. Look at how hard it is to sell a $700,000 home nowadays. Even worse, try selling a $700,000 acreage more than 15 minutes from a major center. The blue collar work away from home crowd making six figures is gone, and all the spin off that went with it.
The glory days of the oil patch are gone for good I'm afraid. Other industries will replace it over time, but never again will we see that type of earning power or job market for blue collar employees. It's sad really, but it's reality. Alberta was a pretty exciting place in those days. It's still a great place to live, but the swagger is gone and I personally believe it ain't coming back. A UPC government will help, but the macro-economics of Alberta and the world have changed for good.
We've already been in a flat market for almost 10 years and this means we're gonna be in a flat market again in the next 10 years. That'll be about 2 decades of flat price due in part to the correction after the bubble of 2007 and prior and also to economic conditions nowadays.
I've talked to a couple realtors in Edmonton and Calgary and they think as well it'll be a flat market for another 3 to 5 years.
Why invest in Alberta then? BC, although way more overpriced, would still be the place to invest in Canada at least in the medium to long term.
I am shocked by all the talk thinking UCP will bring wealth and better economy. You are dreamers.
The downturn of the economy started in previous government and it has not got much better due to, you know it, yes OIL prices. To think a UCP (a bunch of racists bigots) will lead the province to better days is as likely as the orange buffoon to the south makes America great again!
It is sad that there is a big void in the center in our political system and our choices are between the left and extreme right. Regardless, unless we diversify our economy we'll have this boom.bust cycles (and more booms than busts). Oil is a dying economy. Look at all car manufactures. We have to move on from that hope of return of good old days of that industry.
UCP will bring cuts, and especially Edmonton region will be negatively impacted.Posted by Mike on Monday, September 11th, 2017 at 6:52am
Agreed. We should be hoping the NDP win another majority if we want Edmonton's economy to not fall.Posted by Tom on Tuesday, September 12th, 2017 at 3:02am
@a common guy:
There is no extreme right in Alberta or Canada. Wildrose is like centre right IMO, they don't even dare to bring up the topic of private health care (not abolishing public health care). The UCP is really just at centre and not a right wing anyway.
The mess we are in is only partially attributed to the dependence on oil industry. The main issue is with our health care system. It demands funding growth of typically 5% when our GDP grows at 0-2%. If you ever learned your math during high school, you would know that it's only a matter of time before health care will cost us 100% of the social wealth. Right now it's over 50% of the provincial budget. This needs to stop and be capped. There must be competition for service. Otherwise, we will be doomed even if oil goes to $300.