Sept 30 2008 was the deadline for renewing real estate, mortgage and appraisal licenses with the regulator in Alberta.
Not only was this the deadline for real estate licensees to pay up, it also meant they had to have their mandatory education in place. Sounds simple but this licensing period required the courses “Understanding Agency” and “Transaction Brokerage”. As of October 1st , 2008 Alberta becomes the second jurisdiction in Canada (after Nova Scotia) to go the Transaction Brokerage route which effectively eliminates dual agency as an option.
For the past 15 years we have operated under the mode of dual agency in which a REALTOR could represent both a seller and a buyer in the same transaction but only under certain conditions. Both parties had to accept that representation in writing, and the agent could not disclose the motivation of either party or the price they were willing to pay or accept; other than those two items full disclosure was required. I’m not going to explain transaction brokerage here save to say that I’ll have more to say on it in the future.
Those who did not complete the courses were either not planning to renew their licenses or we just unable to meet the requirements and ceased to be able to trade in Real Estate as of Sept 30. About 90% of the over 12,000 industry members completed both courses.
My hat’s off to everyone in the industry who got it done in time during these challenging times. In March the more expensive Association renewal fees are due – if we’re going to see a drop in membership, I expect it will come in the spring.
News from The Globe and Mail
‘Armageddon’ in the oil patch
NORVAL SCOTT
00:00 EDT Thursday, October 09, 2008
CALGARY — Jeffery Tonken has lost a fortune over the past six weeks.
“It’s Armageddon out there,” Mr. Tonken, the chief executive officer of junior oil and gas company Birchcliff Energy Ltd., said yesterday.
“I’ve lost millions. Everyone has.”
The value of Canada’s energy companies has been devastated since oil plunged from record levels in the summer. Among the 58 companies in the S&P/TSX capped energy index, about $110-billion in market value has been wiped out in the past six weeks, calculations show.
http://www.globeinvestor.com/servlet/story/GAM.20081009.RBANKSALBERTA09/GIStory/
Brent is off the topic, isn’t he?
Karl,
Brent isn’t off topic…. That should be the topic of the day. If you haven’t noticed, we’re in unchartered waters – credit markets are frozen. The TSX keeps filling its diapers day after day.
Indeed, it’s very sad that some people losing some serious money, but at this point, not much we can do about it, only hoping that it will turn around as always in history.
Here is somewhat better news for you:
http://www.torontosun.com/money/2008/10/08/7016456.html
http://www.canadianbusiness.com/markets/cnw/article.jsp?content=20081008_082502_3_cnw_cnw
Edmonton housing starts continue downward slide
Bill Mah, edmontonjournal.com
Published: Wednesday, October 08
EDMONTON – Housing starts for the Edmonton region declined in September compared with last year, marking the eighth straight month where starts dropped year-over-year.
http://www.canada.com/edmontonjournal/news/story.html?id=2fde6276-f49c-4226-b066-f5dfabe1807c
AP
Oil plummets to $82 on global slowdown fears
Friday October 10, 4:06 am ET
By Alex Kennedy, Associated Press Writer
http://biz.yahoo.com/ap/081010/as_oil_prices.html
The headlines of today are alot like the headlines of 6-7 years ago (tech bust). It is the media’s job to get you to read their articles and ultimately their advertizing. Doom and gloom always sells more newspapers than upbeat and positive.
I’m not suggesting that this is exactly the same as the tech boom and bust. There are just some striking similarities.
There will be some people that will suffer because of this (just as the tech bust hurt people for a while), however, those who are educated or who educate themselves will understand that in this time of uncertainty, there are some excellent opportunities as well.
Have a great thanksgiving weekend all!
The tech bust never did come back.
CNNMoney.com
Oil prices plunge as troubled economy weakens global demand
Friday October 10, 10:45 am ET
By Kenneth Musante, CNNMoney.com staff writer
Oil prices plunged to a 13-month low Friday as investors worried that the weakening global economy was driving down demand for fuel worldwide.
U.S. crude for November delivery sank more than $7 to a low of $78.61 a barrel in electronic trading, its lowest level since crude traded in the high $70 range in September of last year.
http://biz.yahoo.com/cnnm/081010/101008_oil.html
There is some more good news!
Oct 10 2008
http://ca.news.yahoo.com/s/reuters/081010/business/cbusiness_us_economy_jobs_can
Bought my first oil stock today.
BQI Oil Sands Quest on the AMEX.
It has crashed through it’s 52 week low and I thought I’d have a taste.
The way things have been going on the world financial markets in the past week, combined with a plunging price for oil by the barrel which sustains this province’s economy and given that home prices went down 18% from the peak last year, the high level of inventory and that everyone has a maxed out HELOC in Alberta…Watch out because the Great Alberta Crash of 2008 is on now.
We have an over $200 billion projects is going on in this province- Great Alberta Crash- is highly unlikely.
Just because oil will touch $70 or $60 or $40 or $10 or even $ 0 a barrel temporarily and all the points from Dow Jones and the TSX will be gone, we are still going to be allright here.
Gloria – you are right about the HELOC comment – those who have been living beyond their means are in for some big problems. Many people who received bonuses last year and the year before have incorporated them into their “income” for 2008 and 2009 – but yet they are bonuses.
It’s like watching 2/3rds of MC Hammer’s Behind the Music – the money will never run out! (NOT)
Brent – yes the tech bust may have not comeback but good tech companies that had good business practices are better than ever. Microsoft, Google, RIM, IBM, etc… the same will apply in today’s market – good principaled companies will survive and grow.
here comes those rainy days that so many told Ralph he should save for instead of frivolously giving $500 cheques. great for creating the alberta buzz. some ow i told youso doesnt quite cut it.
Housings Starts down = Good for home values.
The less housing starts the better.
Chew through the inventory, have a low supply left to meet the needs of the low demand. Prices will stabilize and appreciate at normal rates.
It does nobody anygood (developers especially) to try and reduce the price of a lot in order to bring on a phase of 80 lots when no one is buying. Especially considering developer margins are getting progressively worse with the price of servicing rising steadily each year.