Uncategorized 19 January 2022

‘Probably more activity than we’ve ever seen’: Edmonton real estate market staying busy and seeing increases

The aggregate price of a home in Edmonton increased by five per cent in the last quarter of 2021 to $428,400, as real estate demand continues to be sky high in the city.

Tom Shearer, an Edmonton-based broker and owner at Royal LePage Noralta Real Estate, said 2021 was a busy year for the local real estate market and momentum has carried over into the new year.

“There was just a phenomenal amount of activity, probably more activity than we’ve ever seen here in this city,” said Shearer.

“That, I think, has a little bit to do with the low interest rates, a little bit to do with people moving out of value, so going a little further out to a bigger house because they don’t need to be close to work anymore because they’re working from home, and I think a bit to do with just wanting to have lots of room around them.”

Edmonton saw an 11.6 per cent increase, its largest jump, in the price of a single-family detached home in Q4 to $469,900, according to Royal LePage. Shearer said the increase in this specific type of home is due to the affordable housing in the city.

“When you can afford to buy a single-family home with a double-car garage, or with your own piece of grass or that larger house, then you’re going to do it,” said Shearer, who added a similar home in Toronto could go for $900,000.

Shearer said two demographics have fuelled Edmonton’s real estate market this year — boomers and millennials. He said boomers have been moving around and downsizing, while millennials are starting to get into their active buying and selling cycle.

He said the COVID-19 pandemic has also impacted the market, with more people spending time inside their homes.

Those looking for to buy their next home should look into condominiums, said Shearer. The median price of an Edmonton condo saw an increase of two per cent this quarter, coming in at a price of $193,600.

Shearer said condominiums continue to be affordable and there are a lot of good deals in the marketplace right now — even in the downtown area.

“Eventually this pandemic is going to be over, eventually it’s going to be hard to commute to the downtown core and eventually people are going to want to be close to where all the action is, and I think the light at the end of this tunnel is a vibrant downtown in this city and I think the earlier you get in the better,” said Shearer.

Shearer said the Edmonton real estate market has not escalated out of control like some other areas and it is currently a stable market to invest in. He said it’s rare an extremely busy year is followed by another one, but he is seeing a similar amount of activity in the first few weeks of 2022, compared to last January.

There are still some big price tags on the Edmonton market including a $7.5-million home on Ellerslie Road SW , a $6.225-million home in Windermere and a $5.299-million house on Keswick Boulevard SW .

ktaniguchi@postmedia.com

twitter.com/kellentaniguchi

Christmas HampersCommunityKinsmenParkland CountySpruce GroveStony Plain 5 December 2021

Stony Plain Kinsmen Christmas Hampers

The 42nd edition of Kinsmen Christmas Hampers service project has been
like none of the forty-one that have gone before. In the year of COVID-19
and all the protocols and restrictions that it placed on every aspect of our
society, every Kinsmen stepped up and did the necessary pivot to make sure
that this service project not only survived but thrived.
The 2020 Christmas Hamper project turned out to be terrifically successful!
Some of the challenges presented new opportunities. For example, the
distribution of the food portion of the hampers was handled by the Parkland
Food Bank. Some commented that they missed the camaraderie generated
when up to 200 volunteers gathered at the Stony Plain Pavilion to receive,
sort, and redistribute literally tonnes of donated food items. The amount of
human resources needed on-site were drastically cut yet it was evident
through conversations with the community they felt very involved due to the
high visibility of the project. Sixty (60) local businesses and all the Stony Plain
schools served as key drop off locations. Red Apple Store and Safeway
Canada provided us with an opportunity for face to face interaction with our
community.
There were huge savings of space, packaging, sore backs and feet.
Generally, it was acknowledged that Parkland Food Bank knows the food
distribution business better than us and distribution of the “upsized”
December food hampers appears to have gone without any major hitches.
Hampers were available each day from Dec 1- 23. This gave recipients a
whole range of convenient days to pick up as opposed to the one day that
we provided in the past.
“Upsized” food hamper refers to the envelope that was supplied to the food
bank by both the Kinsmen and Kinettes. In addition to an extra amount of
food items, each recipient client/family received a food give card, a Tri
Leisure Pass, and a note explaining that the upsizing came from the Kinsmen
and Kinettes.
The estimated number of families was 675. It is anticipated that the
community’s generosity will cover 100% of this years’ service project!!
Stony Plain Kinsmen

EconomyEdmontonParkland CountyReal EstateRealtorSpruce GroveUncategorized 5 December 2021

Experts Predict an Alberta Boom: How Will This Impact the Edmonton Housing Market?

Photographer: David Thielen | Source: Unsplash

Alberta’s economic outlook for the coming year is better than expected. In fact, expert economists suggest Alberta will be home to the fastest growing provincial economy this year. This has many people predicting another Alberta boom.

The question on everyone’s mind is will this Alberta boom be different than the others? And what does this mean for the real estate market?

Economic recovery in Alberta faring better than rest of Canada

In the wake of the third wave of the pandemic this fall, the Royal Bank of Canada assessed Canada’s economy. Speaking to the Financial Post, RBC’s senior economist, Robert Hogue, says that the bank downgraded its economic growth outlook for every province in Canada except Alberta.

“Alberta was the lone exception. We kept our growth forecast in Alberta at 5.9%,” Hogue explains.

Comparatively, Canada’s overall GDP growth estimate this year is only 5.1%. Alberta's outlook for 2022 is similarly good, with RBC Economics predicting 4.9% real GDP growth for the province compared to 4.3% for Canada.

Oil prices could reach US$100 this winter

With energy prices surging, analysts suggest this latest Alberta boom will bring more jobs and will go a long way to help the province dig out from its current deficit. Oil prices have not only rebounded from the pandemic lows we saw in 2020, they have recovered from years of low prices since the 2014 crash, and climbed more than 50% from the start of the year.

Some analysts even suggest that a return to US$100 per barrel is possible this winter. How high prices reach over the next few months will depend largely on the demand for jet fuel.

“The return of air travel is actually the biggest factor continuing to weigh on oil prices,” says Rory Johnston, managing director and market economist at Toronto-based Price Street Inc.

Oil and gas boom bolstered by growth in venture capital and tech investment

The boost in oil and gas revenues and royalties is certainly a big help, but it’s not the only contributor to Alberta’s recovery. Growth in residential real estate investment, manufacturing, the tech sector, and renewable energy projects have also helped Alberta’s economy rebound.

Some positive signs that economic diversification is taking hold in Alberta include Amazon Web Service’s recent announcement that it will spend $4.3 billion on a cloud computing hub in Calgary, which will create up to 950 new jobs.

Alberta also had a record year for venture capital investment in 2020, with 51 deals bringing in $445 million in total investment. This represents a 100% increase over the previous year. And diversity in the energy sector has resulted in new projects including the expansion and retrofit of Dow Chemical Co.’s ethylene plant and two major solar projects: one near Vulcan and the other beside the Shell Scotford refinery near Edmonton.

What does an Alberta boom mean for residential real estate?

2021 marked a very busy year for Edmonton real estate. Fueled by growing families, a desire for more indoor/outdoor space, as well as work-from-home needs, the Edmonton market saw a 60% increase in sales across all home types.

The forecast points to relatively balanced conditions, but some neighbourhoods in Edmonton will continue to see high demand (particularly for single family homes). These areas of the city will continue to find seller’s market conditions with multiple offers on listings.

New construction in Edmonton is also booming, although supply chain issues are driving longer build times and fluctuating building material prices.

Experts predict Edmonton house prices to increase an additional 4-6% by the end of 2021. While the market is normalizing as expected heading into the typically slower winter season, the outlook for 2022 is good. The Edmonton real estate market is expected to be buoyed by the economy’s positive tailwind.

 

Source: https://www.topedmontonrealestate.ca/experts-predict-alberta-boom

Photographer: David Thielen | Source: Unsplash

Alberta’s economic outlook for the coming year is better than expected. In fact, expert economists suggest Alberta will be home to the fastest growing provincial economy this year. This has many people predicting another Alberta boom.

The question on everyone’s mind is will this Alberta boom be different than the others? And what does this mean for the real estate market?

Economic recovery in Alberta faring better than rest of Canada

In the wake of the third wave of the pandemic this fall, the Royal Bank of Canada assessed Canada’s economy. Speaking to the Financial Post, RBC’s senior economist, Robert Hogue, says that the bank downgraded its economic growth outlook for every province in Canada except Alberta.

“Alberta was the lone exception. We kept our growth forecast in Alberta at 5.9%,” Hogue explains.

Comparatively, Canada’s overall GDP growth estimate this year is only 5.1%. Alberta's outlook for 2022 is similarly good, with RBC Economics predicting 4.9% real GDP growth for the province compared to 4.3% for Canada.

Oil prices could reach US$100 this winter

With energy prices surging, analysts suggest this latest Alberta boom will bring more jobs and will go a long way to help the province dig out from its current deficit. Oil prices have not only rebounded from the pandemic lows we saw in 2020, they have recovered from years of low prices since the 2014 crash, and climbed more than 50% from the start of the year.

Some analysts even suggest that a return to US$100 per barrel is possible this winter. How high prices reach over the next few months will depend largely on the demand for jet fuel.

“The return of air travel is actually the biggest factor continuing to weigh on oil prices,” says Rory Johnston, managing director and market economist at Toronto-based Price Street Inc.

Oil and gas boom bolstered by growth in venture capital and tech investment

The boost in oil and gas revenues and royalties is certainly a big help, but it’s not the only contributor to Alberta’s recovery. Growth in residential real estate investment, manufacturing, the tech sector, and renewable energy projects have also helped Alberta’s economy rebound.

Some positive signs that economic diversification is taking hold in Alberta include Amazon Web Service’s recent announcement that it will spend $4.3 billion on a cloud computing hub in Calgary, which will create up to 950 new jobs.

Alberta also had a record year for venture capital investment in 2020, with 51 deals bringing in $445 million in total investment. This represents a 100% increase over the previous year. And diversity in the energy sector has resulted in new projects including the expansion and retrofit of Dow Chemical Co.’s ethylene plant and two major solar projects: one near Vulcan and the other beside the Shell Scotford refinery near Edmonton.

What does an Alberta boom mean for residential real estate?

2021 marked a very busy year for Edmonton real estate. Fueled by growing families, a desire for more indoor/outdoor space, as well as work-from-home needs, the Edmonton market saw a 60% increase in sales across all home types.

The forecast points to relatively balanced conditions, but some neighbourhoods in Edmonton will continue to see high demand (particularly for single family homes). These areas of the city will continue to find seller’s market conditions with multiple offers on listings.

New construction in Edmonton is also booming, although supply chain issues are driving longer build times and fluctuating building material prices.

Experts predict Edmonton house prices to increase an additional 4-6% by the end of 2021. While the market is normalizing as expected heading into the typically slower winter season, the outlook for 2022 is good. The Edmonton real estate market is expected to be buoyed by the economy’s positive tailwind.

 

Source: https://www.topedmontonrealestate.ca/experts-predict-alberta-boom