Apartment vacancy rates edged higher in October in both Edmonton and Calgary according to the fall rental market reports released by Canada Mortgage and Housing Corporation (CMHC).
Alberta’s capital city experienced its first apartment vacancy rate increase since 2009, seeing its rate inch from 1.4 per cent in October 2013, to 1.7 per cent in October of this year. CMHC reports that even though the apartment vacancy rate rose softly, the rate itself is quite low and resulted in a rise in rental prices. The average rent for a two-bedroom apartment in Edmonton in October was $1,227 per month.
Calgary also witnessed an increase in apartment vacancies after declining for four consecutive years. According to CMHC, the vacancy rate was 1.4 per cent in October, up from 1.0 per cent from a year prior. Calgary's average monthly rent for a two-bedroom apartment was $1,322 in October.
The main reason for the rate increases comes down to basic supply and demand. The supply of apartments has been growing faster than the demand for units. In turn, this helped increase the vacancy rate in both cities this year. Although vacancy rates crept higher, they remained below the national average (2.8 per cent) thanks to high levels of migration, rising wages, and a favourable employment environment.
**Article courtesy of Todd Hirsch, Senior Financial Advisor with ATB Financial. Thanks Todd!!
The question is, what does Bill 9 "The Condominium Amendment Property Act" involve? If you're thinking about purchasing a condo or you are currently an owner, this information is for you!
Below you'll find a summary of the key points of the Bill that has yet to be passed.
**All info taken directly from http://www.servicealberta.ca/2166.cfm (Service Alberta)
1. Improve protection for buyers by:
Below you'll find the 2015 RE/MAX Market Outlook Report Video and the report itself.
The value of building permits issued by Alberta’s municipalities rose by $87 million in October to $1.6 billion, according to new figures released by Statistics Canada. The increase from September was due in large part to the rise in the value of residential projects in our province.
After a small drop in September, residential permits rebounded and rose by eight per cent across our province in October. Since 2013, future spending by Alberta’s homebuilders has increased by almost the same amount (seven per cent). The jump in the total value of Alberta’s housing sector can be attributed to sustained demand from new provincial migrants.
Permits for commercial projects picked up in October as well, where the total value of business-related building permits increased by $25 million (or by five per cent). Over the last twelve months, the total value of future construction spending in Alberta has increased by almost six per cent.
Calgary’s housing sector continued to grow at a furious pace which helped lift the value of Alberta’s residential projects higher in October. The total value of housing permits in Alberta’s largest city grew by $44 million (+11 per cent) from September. Meanwhile, Edmonton’s biggest gains were made in the non-residential sector where the total value of commercial permits increased by $72 million (+37 per cent) from one month earlier. Additionally, Edmonton held almost half the value of all non-residential permits issued in our province in October.
** Article courtesy of Todd Hirsch of ATB Financial. Thanks Todd!!
The proliferation of home renovation shows on TV may be an inspiration for some people to remodel their kitchen or add onto the family room. But last summer, it seems Albertans were perhaps spending more time watching TV than actually renovating.
During the months of July, August and September of 2014, the value of renovations to residential properties fell to just under $1.18 billion—the lowest level it’s been in nearly two years and a sharp drop from the $1.6 billion record in the spring. The data were released this morning from Statistics Canada as part of its regular quarterly report on residential investment activity.
Still, the big drop in the third quarter masks a longer term trend towards increased spending on renovations. Over the last ten years, investments on improvements to homes and condos have doubled. And even with the summer slump, total renovation spending over the last complete four quarters is up 19 per cent compared to the previous four quarters.
There could also be some substitution effect taking place in the residential market. That is, rather than renovating their existing home to get that new kitchen or bigger media room, some Albertans may have opted instead to purchase a new home. Construction on new residential properties set close to record highs over the summer. Instead of hiring contractors to rip out walls and flooring—or even trying to do it themselves—it seems some Albertans may have opted simply to move into something new.
**Article courtesy of Todd Hirsch of ATB Financial. Thanks Todd!!