Edmonton new home
Canada Mortgage and Housing Corporation (CMHC) released its report on housing construction in Edmonton for December showing for the third month in succession, total housing starts decreased on a year-over-year basis. Here are some highlights from the report:
- housing starts totalled to 558 units in December, down from 812 last December
- Despite the recent reduction, annual starts were considerably higher than 2009. Total housing starts reached 9,959 units, up from 6,317 units reported in all of 2009.
- There were 309 single-detached units started in December, down 31% from the same month last year – it was the slowest month since July 2009.
- For the year, builders started 6062 single-detached homes compared to 3897 in 2009.
- Multiple unit starts amounted to 249 units in December, down 32% from December ’09.
- For the year, multiple unit starts increased by 61% to 3,897 units, up from 2,420 units in 2009.
- “New apartment activity experienced the largest gains, with starts in
2010 more than double the volumes recorded throughout the previous year,” noted Richard Goatcher, CMHC’s Senior Market Analyst for Edmonton. - Check out new Edmonton homes for sale.
Important notes:
- At 2pm this afternoon we will send out our annual report to all subscribers – dont miss out, subscribe before 2pm for free! If you don’t get your copy, check your junk mail! *our mailing service provider is having technical difficulties, we will send this out asap.
- We will be attending the Edmonton Housing Forecast seminar tomorrow. Check the blog all morning for live updates from the seminar featuring Garth Warner, President and CEO, Servus Credit Union, John Rose, Chief Economist, City of Edmonton, Patrick Shaver, President, Urban Development Institute, Ian Glassford, CFO, Servus Credit Union, Richard Goatcher, Senior Market Analyst, Canada Mortgage and Housing Corp and Chris Mooney, President, REALTORS® Association of Edmonton.
I don’t want to be all negative and bearish but wouldn’t a “Edmonton Housing Forecast” seminar benefit by having someone there that isn’t vested.
Credit Union employees, CMHC, REALTORs all getting together to forecast housing seems a little strange. Even Edmonton’s Chief Economist doesn’t want to be accused of ruining consumer confidence.
Maybe I’m wrong and there will be different points of views there but not according the list provided. I’d rather hear from someone who has retired from the industry than someone who’s bonus/salary comes from RE going up.
So you’d rather hear from someone who is retired, than someone who works in the industry everyday? Someone whose job it is to stay on top of trends, analyse the data and make forecasts for their shareholders? That doesn’t make much sense to me…. it’s not like these people are PR people or spindoctors, we have CFO’s, Chief Economists, CEOs and Presidents.
I believe the CFO’s, Chief Economists, CEOs and Presidents have valuable insight and knowledge. Unfortunately when speaking publicly they all share it with the same rhetoric and spin. To be a leader you need to have confidence and show confidence in your product. I don’t blame them for it, it’s part of the job.
Maybe there needs to be an official group to balance all these groups. Like the “Edmonton Renters Board”. They would have to follow RE prices and rental prices, but mainly just encourage people to rent
x2. I usually envision these things are like one of those old timey Evangelical church sermons…
“BLESSED ARE THOSE WHO OVER LEVERAGE THEMSELVES! HALLELUJAH!” *People yelling, screaming….etc.*
Although, I do give Sheldon and Sara credit for allowing open disscusion of a “Bearish” nature on their blog.
Wow. You are so far off base its not even funny. Next year if you remind me I’ll bring you as my guest so you can see for yourself.
Sara,
If I have the time I would love to go! Thank you for the offer!
It would have been good to go this year, then see how close the predictions are for what is going to be a very interesting year for Real Estate in Edmonton.
Sara/Sheldon:
Excellent annual report, thanks for your efforts.
My 2011 forecast is continued slow slide down. Even though mortgage rates will likely stay near the same levels (based on my guess that Bank of Canada will not raise rates), housing prices are still not back to affordable levels. Cost of living increases (eg. gas, food, property taxes!) will continue to leave less for housing. Increasing oil prices should bring more jobs into Alberta, but those increasing oil prices also bring inflation. Despite the trillions being pumped into the U.S. economy and their rah-rah media, they are still no where near out of the woods. This, combined with a loonie that continues to strengthen is a wee bit of an issue for Canada’s exports.
Dipping housing prices is not all bad! Affordable housing leaves more disposable income in people’s pockets.
M
Exactly what I think as well, with an exception…
I think we are likely to see increased interest rates LATE next year (3rd/4th quarter?) but nothing serious. However, when coupled with tightened lending standards brought in shortly before or after Parliament breaks for the summer, the effects may be enough to accelerate price and sales decreases.
Cheers,
OB
I heard this seminar is open to the public. Is this true?
No it’s not… as members of the association we can bring guests with us, but we have to purchase the tickets in advance as it sells out every year.
Economics 101 – Artificially low interest rates result in misallocation of resources. If not corrected, the market will correct this for you. Demand has been pulled forward much too long. Even if rates were to stay at 3.8 forever, eventually, it will lead to collapse. There are no new buyers (lifeblood of RE), they are all owners now. Congrats on making it for the first 5 of your 35 years, good luck on the next 30. Inflation is all that can save you, but it will not happen. The US kept rates way to low, way too long. Canada’s were low to keep our exports strong, not for speculation on your home. Unfortunately, the opposite happened. As soon as the US begins to raise their rates, starting from ground zero, the reality will set in even more. My bet is housing will start to correct nationally, even long before rates rise. (Carney can’t raise them, it’s too late) sell your house now. Please call me a doomer/bear and do nothing. Scoff at the doomer talk. Tell me how silly I am. 99% of you will do just that, nothing, staying in your overinflated house. List for 50,000 under market and get out now. Be saved. Take the tax free gain and get a 2400 square foot bungalow in Miami for 80,000 that will PCF today, and just get better as time goes on and the US goes through a hyperinflation period; you can get financing at 4% and it will be 4% for 30 years. Thats how Americans get their mortgages, they don’t do 5 years like us – it is too risky.
Good luck to all.
Sounds like a cheer-leading event! Go Debt/House pumpers! Rah Rah Rah!