Reported by Teresa Mardon, REALTOR, C.E.T., TOP 5% Edmonton Real Estate Board Yearly since 2001, Royal Lepage Director's Platinum Award!
Updated November 3, 2009.
Current Market Rating: 2
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Current Price Trend: 3
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November 3, 2009 Normal seasonal variations aside, figures for October continue established trends with no new surprises evident. Sales volumes virtually mirror those of Octobers from years past, although prices remain strong with both September and October recording the second highest price levels on record, bested only by 2007 when we were mid-bubble. The Inventory/Sales ratio indicates we're still in a Buyers' Market, and in fact trending deeper in that direction, but I think we can draw some conclusions from the trends taking shape. Market demand remains stable, and excess inventory is slowly being absorbed. Most importantly, prices are stable around existing levels while inventory levels are falling, (as a footnote, inventory levels are usually decreasing in the last few months of the year, typically reaching a low in December). This year however, inventory supply is lower than either of October 2007 or 2008. So, what is sustaining housing at near seasonal record price levels when we are in such a Buyers' Market? The answer is all-time low interest rates and to a much lesser extent, stimulus spending. Pent-up demand held over from the dark days of late 2008 played a bit part but has now largely spent itself. Prevailing market interest rates of course have a direct bearing on housing affordability. The last RBC "Housing Affordability" report was issued in September, 2009 and showed the costs of owning a house in Alberta were third lowest in the country, behind only Quebec and Atlantic Canada, (http://www.rbc.com/economics/market/pdf/house.pdf). The percentage of average family income required to buy a standard detached bungalow in Alberta exactly equals the average Affordability Index calculated since 1985. As we've noted in previous articles, Bank of Canada has more or less explicitly stated it won't increase rates at least until April 30, 2010. For several reasons the federal government does not want to see the Canadian dollar strengthen more against the U.S. dollar, so their hands are pretty much tied in terms of increasing rates - any rate rise would have a profoundly undesirable effect. We can therefore expect to see pretty much the same thing for prices for the next little while. This is good news if you're considering selling. If you're thinking about buying, perhaps one should dwell on whether a purchase would be affordable - in other words view a house as one of life's necessities rather than as an investment. Any current discussion of real estate price trends should recognize the impact of the TD Bank's recently released and much studied "Answers to Some Key Questions About the Costs of Combating Climate Change". Despite the fact it hit the press like a bombshell, I found the report remarkably well balanced, although none of the obvious political issues were addressed. The inescapable conclusion is that if Canada is to reach its intended target, (reduction of overall greenhouse gas emissions to 20% below 2006 levels, by 2020), most of the burden will fall on Alberta. In short, our economy would be devastated and the effect on our real estate market profound. See the full report at: http://www.td.com/economics/special/ca1009_climate.pdf It is unclear how, or if, our government would find the political will to inflict this much economic damage on one province. While the TD Bank should be commended for bringing this important topic into the public forum for debate, we should remember no government commissioned or sponsored this report, (or indeed, even commented on its conclusions), and we should therefore not rush to judgment just yet.
Location Characteristics: Morinville is a town in central Alberta, Canada. It is located 34 km (21 mi) north of Edmonton on Highway 2.
Morinville was settled by Father Morin, an Oblate missionary, who brought many French settlers in the late 1800s, followed by several German pioneers—hence its many French and German families such as Hittinger, Riopel, Boissonnault, Tailleur, Houle, Labonte, St. Laurent, Maisonneuve, Bokenfohr, Krauskopf, Rustemier, and Meyers.
The monument located in the St. Jean Baptiste Park lists the many names of pioneers and settlers to Morinville. Once situated on the street at 100 Avenue and 100 Street, the monument was moved to its present location in 2000, as it was a safety hazard and very difficult to enjoy with all the traffic at the intersection.
The Roman Catholic church of the St. Jean Baptiste Parish was built in 1907. The church, along with its adjacent but now inoperative convent Morinville Convent, was declared a historical site in 1975. In 2005, the grounds of the church were landscaped with a clock tower, new grass, trees and shrubs, in celebration of Alberta's 100th anniversary as a province.
In 2006, Morinville had a population of 6,775 living in 2,401 dwellings, a 3.6% increase from 2001. The town has a land area of 11.34 km2 (4.4 sq mi) and a population density of 597.4 inhabitants per square kilometer.
Seven percent of Morinville residents still speak French, most of whom are elderly. All public business is conducted in English. And French is declining, as witnessed by the formerly French mass at the Catholic Church on Sundays turning bilingual.
About Teresa Mardon:
Teresa Mardon, is a licensed agent in the province of Alberta. She has received numerous awards, in her real estate career. She has continuously been in the TOP 5% for the Edmonton Real Estate board since 2001, she continues to stay on track for this honour. She has also received the Royal Lepage Directors Platinum Award and Royal Lepage Award of Excellence
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
