Alberta grows as BC slows

How is this possible?

British Columbia, the province formerly known as the best place on earth is forecast to have a sluggish economy for the rest of the year, while Alberta is growing at a ridiculous rate with astronomical population growth.

Have you ever been to Alberta?

I haven’t, but I hear its just full of oil and cattle and cowboys.

Why are they growing while Beautiful British Columbia is mired with a sluggish economy?!

More than 10,500 moved here from outside Canada in the second quarter, making Alberta the third most popular choice for immigrants to Canada, behind Ontario and Quebec.

“It used to be that people came to Vancouver, Toronto and Montreal, and now they also come to Calgary and Edmonton,” White said. “So we are seeing a permanent change in that trend.”

Read the full article here.

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Barb Rennie
Guest
Barb Rennie

Could it be because British Columbia has become unaffordable for the middle class? I was in the bank today, and I could not help but overhear the lady standing at the next teller explaining that she was 2 months overdue for her mortgage payment. I felt bad for her because I know how it feels to be anxious and overwhelmed by debt.

Jed Clampet
Guest
Jed Clampet

Bubbling crude.

Oil that is. Black gold. Alberta tar.

patriotz
Member

You mean immigrants are moving to Alberta because they need jobs?

Why, I keep being told that immigrants can keep a city’s economy going just because of their own weight – there’s something magical about them that can support house prices.

tedeastside
Member
tedeastside

but but but the mountain views the winter olympics everybody wants to be here ..BC “you gotta be here” everybody wants to live in a place that has winter olympics and mountain views…..and an economy anchored by 1-800-got junk

tedeastside
Member
tedeastside

BC’s low wages, pitiful career opportunity, no big companies, no industry.
highest prices for everything and highest taxes on earth might have something to do with it

patriotz
Member

@5: “highest taxes on earth ”

Which taxes did you have in mind? Certainly not income tax, sales tax, or property tax.

George
Guest
George
Another news story about corruption in Canada… This time it’s Toronto City Councillors get hefty discounts on their rents from developers. From the CBC: “Two Toronto councillors have been paying well below the market rate to rent apartments from developers that have millions of dollars in contracts with the city, a CBC News investigation has found. David Shiner and Giorgio Mammoliti each lease a two-bedroom suite run by Greenwin Property Management and owned by its sister company, Verdiroc Holdings. The Greenwin-Verdiroc group does significant business with the City of Toronto, including managing a number of buildings for Toronto Community Housing, and developing new social housing. Mammoliti used to sit on the Toronto Community Housing board. The high-rise at 88 Erskine is considered one of the companies’ prime non-subsidized rental properties. Its website says two-bedroom units start at $1,650 a month,… Read more »
Son of Ponzi
Guest
Son of Ponzi

I don’t have any proof, but my suspicion is that the younger Asian immigrants are moving to Alberta, leaving parents, grandparents and children behind in BC.

HAM Solo
Guest
HAM Solo

New BC Foreclosure Filings Sep 30 – Oct 1

Victoria: 4
Vancouver: 3
Penticton: 2
New Westminster:1
Nanaimo: 1
Prince George: 1
Williams Lake: 1
Chilliwack: 1
Cranbrook: 1

“Countrywide Cup” Foreclosure Lenders

CIBC: 3
MCAP: 3
BNS: 2
First National: 2
Royal Bank: 1
TD: 1
Macquarie: 1
Credit Unions: 1
Private: 1

Learning more about the data as we go. This is Monday filings only in most cases. It seems to me the Wednesday and Friday Reports are the busiest.

taylor192
Member

I read the Metro news every morning on the shitter at work and this silly story struct a cord cause it reminded me of so many I know:

http://metronews.ca/?p=810932

“Like any good North American couple burdened with a mortgage that restricts discretionary spending”

She is correct they are like most couples who decided it was better to overspend on somewhere to live and sacrifice getting out and living. I wouldn’t call that a “good” choice.

Laurey
Guest
Laurey

So, are Alberta RE prices in bubble or they represent true supply/demand?

crabman
Guest
crabman

Laurey,

You tell us. Here is a condo for rent at $1,700.

http://calgary.en.craigslist.ca/apa/4037302914.html

Here is a comp in the same building for $464k.

http://beta.realtor.ca/propertyDetails.aspx?PropertyId=13650307

After condo fees and takes, the net will be about $1,000. Is a 2.7% yield (if nothing goes wrong) a good investment, or an overvalued condo?

Laurey
Guest
Laurey

” Is a 2.7% yield (if nothing goes wrong) a good investment,”

well no, it is the same sheety return as my RRSP Scotia Fund, with more hassle of dealing with self declared embassy tenants.
unless that 464k condo appreciates in the next few years and you count on that.

tyler
Guest
tyler

Don’t believe the stats.

BC’s underground economy is huge compared to Alberta’s. There is more undocumented population growth here.

Either believe stats like CREA and STATSCAN but don’t pick and choose.

Loon
Guest
Loon

Big difference between CREA and Stats Can, one is gov and the other is trade ass. that depends on sales. Apples/oranges.

HAM Solo
Guest
HAM Solo
@ taylor The longer this sucker takes to blow … the better the decision to overpay is looking. I don’t think the bubble makes things particularly easy on either group of people. The conscientious, careful types who are living below their apparent “means” by renting or owning small/cheap places and saving their money do face a hell of a lot of pressure from spouses, know-it-all BILs/FILs, and (if they have kids) they have to live in worse neighborhoods with worse schools and amenities. Yes their sleep is probably a little better than the somewhat less careful types, who if they are honest with themselves, would admit they are setting themselves up for wipe-out at some undetermined future date. However, every day that goes by gives these folks one more chance to escape their debt prison. The market has given them… Read more »
An Observer
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An Observer

@tedeastside #5, I agree with everything you said except for the part about taxes. Five to ten years from now we may have very high taxes (likely have an NDP government, bad economy, baby boomers retiring or at least trying to, tax income dropping like a rock while expenses dramatically climb etc etc) but for now we’re very competitive with most places in that one area

remittance me
Guest
remittance me
evidently Alberta is the wonderland for the human slave brokers. I’m not sure exactly how this works, because the graft goes to the highest levels in government, and reaches into the control of the mainstream press (so no real good investigate reporting is done). But, say, you’ve got a few thousand trees.. Gooseberries, a Prairie favorite. Hire a broker who arranges Outside the Country labour. With this type of arrangement you know the worker gets just a small margin, and the rest goes to the lawyers, immigration brokers, government officials (both sides), and on and on… Witness the poor Somalian planting trees outside Golden B.C. Him and his comrades are in a deplorable condition… injuries, underfed, horrible! How can you be productive? Will an investigation of the system that landed him here be questioned? Maybe.. but too many people make… Read more »
space889
Member
space889
Alberta apparently has a lot of tech companies…quite a few coworkers moved there over the years. However, the sudden snowstorms in summer months, the -30C, the foot deep snow…no thanks… And really if you look at it, the rich Asian immigrants that everyone want to sell their crappy house / condo to for $1M or $2M+ aren’t going to Alberta. They don’t need to work and want a nice warm place to live in Canada and that pretty much restrict the choice to Vancouver and maybe Victoria. So sure maybe more working people have to move to Alberta but rest assured that the rich and powerful that everyone here wants are still coming to Vancouver in droves. This is almost like a natural sieve since Vancouver Metro attitude is now really just geared toward serving the rich and everyone else… Read more »
Skook
Member
Skook

Off-topic

Huff Post has posted a piece by Ross Kay today. It is his response to CREA reps and a regional MLS system’s CEO admission that some home sales are counted multiple times.

It’s a good read and here is the link:
http://www.huffingtonpost.ca/ross-kay/real-estate_b_4018891.html

You can see the numbers Kay is posting vs CREA’s numbers on his website: http://www.rosskay.com/

Skook
Member
Skook

A quick follow-up.

if you haven’t done so, I would highly recommend reading the first Huff Post piece about multiple home listings and sales counting posted Sept 20th. Here’s the link:

“MLS Phantom Listings Distorting House Prices: Consultant”

http://www.huffingtonpost.ca/2013/09/20/mls-phantom-listings-house-prices_n_3957237.html

Many Franks
Member
Active Member
From the text of Tiff Macklem’s speech today to the Economic Club of Canada: Following the financial crisis, the Bank’s strategy for monetary policy was to support domestic demand while the recovery in exports took hold. The first part of the strategy worked. Final domestic demand recovered quickly in Canada. But a side effect has been the emergence of imbalances in the household sector, reflected in rising household leverage, stretched valuations in a number of housing markets, and an increase in the incidence of highly indebted households. Today, there is a more constructive evolution of those household imbalances. This is good news. It reduces the risk of an abrupt and painful correction down the road. But this new-found and welcome household prudence is dampening growth. To replace this growth, we need a rotation in demand toward exports and business investment.… Read more »
Laurey
Guest
Laurey

“To replace this growth, we need a rotation in demand toward exports and business investment.”

every country in the world wants to export and that is mathematically impossible.

Skook
Member
Skook

Off-topic

For those following Sunshine Coast sales, I have just posted the September stats at VanPeak:

http://vancouverpeak.com/showthread.php?tid=530&pid=5714#pid5714

Million dollar plus property sales can be found in this thread:

http://vancouverpeak.com/showthread.php?tid=2556&pid=5711#pid5711

Cheers
Skook

tedeastside
Member
tedeastside

Vancouver is such a dead-end city, that’s why everybody sells drugs
because there’s no effin economy

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