News
House prices likely to rise 5%-7% in
Calgary: Conference Board
June 25, 2010
The short-term year-over-year price growth expectation for Calgary's resale housing market is in the range of five to seven per cent, says the Conference Board of Canada.
Last month MLS sales of residential properties in Calgary dropped by 18.7 per cent from May 2009 to 2,133 units but the average sale price increased on a year-over-year basis by 9.2 per cent to $417,978.
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Mortgages: Walking Away
May 9, 2010
Commentary from Ellis Property Development:
1. This is why you must only invest in markets that will have future economic growth, as past trends never dictate future demand.
2. Luckily you can't just walk away from mortgages in Canada which holds buyers to their decisions and protects our markets from speculators.
Economy adds stunning 108,700 jobs
May 7, 2010
The Canadian economy created a whopping 108,700 jobs last month – more than four times as many as expected – the largest monthly gain in percentage terms since August, 2002
Read More:
http://www.theglobeandmail.com/report-on-business/economy-adds-stunning-108700-jobs/article1559881/
The charms of Canada
May 6, 2010
Good policies, good behaviour and good fortune: if only others could be as lucky
AS THEY contemplate high unemployment, foreclosed homes, shrivelled house prices and the arrogant follies of their investment bankers, Americans may cast envious glances across their northern border. Despite its umbilical links with America, Canada’s economy suffered only a mild recession and is now well into a solid recovery. The Canadian dollar, having dipped sharply, is back up to rough parity with the greenback. The Bank of Canada has signalled that it may soon raise interest rates. When Stephen Harper, the prime minister, hosts the get-togethers of the G8 and G20 countries next month he will be able to boast to his visitors that his country’s economy is set to perform better than that of any other rich country this year.
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By far the largest Chinese investment ever made in Canada
April 12, 2010
It is by far the largest Chinese investment ever made in Canada, and it shows that China is still willing to pay a premium price for energy assets that no one else will match.
Monday, state-owned giant Sinopec Corp. was revealed as the winning bidder for the 9.03% stake in Syncrude Canada Inc. that was put on the market by ConocoPhillips Co. last year. It offered a whopping US$4.65-billion.
The fact that Sinopec put in the highest bid did not come as a shock — the company is already an investor in the oil sands, and it has spent more than $10-billion to buy two Calgary-based companies with largely foreign assets: Addax Petroleum Corp. and Tanganyika Oil Co. Ltd.
Read more: http://www.calgaryherald.com/business/real-estate/
Calgary GDP to zoom ahead in 2011
April 8, 2010
Calgary's economy is on the rebound and set to outpace the rest of the country next year, a new forecast says.
In its spring outlook, the Conference Board of Canada predicts the city will post 2.8 per cent economic growth this year, down from an earlier forecast of three per cent.
Stronger construction and services activity is expected to help the city recover from last year's downturn in the energy sector, the report said.
The latest forecast puts Calgary in the middle of the pack among the 13 major Canadian cities this year. But in 2010 the city will jump to the head of the pack with 4.4 per cent growth as a recovery in the oilpatch takes a firmer hold.
Alberta braces for next labour squeeze
March 1, 2010
The problem is the market typically overcorrects on both the upside and downside. When the energy market is strong, there is a mad scramble for new projects and skilled labour, with wages heading out of sight. When things cool down, jobs are slashed, and itinerant tradespeople go home to the Maritimes, to Mexico, or to their farms in Alberta and Saskatchewan.
The sense that things have turned around again is partly spurred by once-delayed projects being pulled off the shelf, such as ConocoPhillips and Total's plan to quadruple the capacity of their Surmont oil sands facility south of Fort McMurray. But the most telling signals are in the drilling sector, which suffered a deep plunge in activity over the previous 18 months, but is now showing signs of life.
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"Canada's Moment"
March 16, 2010
The next period of Canadian prosperity will be marked as much by sound public and private finances as by robust economic growth.
That makes Canada a safe haven for offshore investors seeking the upside of GDP growth without the risk of suffocating debt levels – the crisis now bedevilling the U.S., Britain and much of continental Europe.
Read more: http://www.thestar.com/business/article/780327
Waiting for the other shoe to drop
Fears are growing of a second dip in the US housing market
March 25, 2010
Yet the housing-market recovery has almost run out of steam. Sales of new and existing homes have fallen for three consecutive months. As a result inventories have grown, putting downward pressure on home values. According to some measures, prices are dropping again: the Federal Housing Finance Agency reported national declines in December and January.
Read more: http://www.economist.com/world/united-states/displaystory.cfm?story_id=15772789
Canada was tops among developed countries surveyed
March 30, 2010
The biennial study by the accounting firm KPMG indicated it is now 5% cheaper for businesses to operate in Canada compared with the United States. Canada was tops among developed countries surveyed, but trailed the only emerging economy examined, Mexico, which has an 18% cost advantage over the United States.
Read more: http://www.financialpost.com/story.html?id=2743568#ixzz1YUpNkm7m
696 years to double your money in a Tax Free Savings Account?
January 22, 2010
Negligible is an understatement. Consider that in 2009, the median one-year yield for Canadian money-market mutual funds was 0.3%, according to Morningstar Canada. That would mean you'd double your money in 232 years, says Morningstar investment funds editor Rudy Luukko. Or, if you calculate it based on the 0.1% six-month yield, you'd double your investment in 696 years.
Read more: http://www.financialpost.com/story.html?id=2473824#ixzz1YUm1UE4k
Market Data
The following information provides valuable insight into the economic fundamentals around the world and the likely effects they will have on the Canadian and Alberta economies. Some images can be clicked on to enlarge.
Ellis Property Development Focuses on 13 Primary Economic Fundamentals:
Mortgage Interest Rates
Net Wealth Effect
Job Growth and Demand
Real Estate Doppler Effect
Local, Regional, and Provincial Political Climate
Critical Trasportation Expansions
Cost of Labour and Materials
Areas of Gentrification and Renewal
Zoning Opportunities
Wholesale Buying
Quality Marketing
Renovations and Sweat Equity
Risks of Speculation
