July 2011 Alberta Economic Fundamentals

[Ally]

Realty rebels merge to grab bigger stake


The fight for real estate commissions is about to heat up, as two of the industry's biggest agitators join forces in an attempt to steal market share from the country's 100,000 real estate agents.







Propertyguys.com Inc., a company that helps people sell their own homes, will merge with flat-fee brokerage Realtysellers Real Estate Inc. The deal that will make it easier for those who want to handle their own transactions get their properties on the popular Realtor.ca website, which provides the online listings for an estimated 90 per cent of the country's home sales.




The two companies decided to merge after the Competition Bureau and Canadian Real Estate Association changed the rules to allow flat-fee listings to appear on the Multiple Listing Service, if they are posted by a licensed brokerage. Previously, anyone who had a listing on the MLS had to employ an agent to handle every component of a transaction, whether they wanted those services or not, normally for a fee of 4 to 5 per cent of the sale price of a home. At an average price of At an average price of $376,817 that means a commission of up to $18,840.





Read the full article here.

 

[Ally]

Province of 3.7M bests nation of 311M on jobs




Just how awful was Friday's bleak U.S. jobs report? Let us count the ways:




Alberta created more new jobs in June (22,000) than all 50 U.S. states combined (18,000), even though the U.S. population is 85 times larger than Alberta's;




The shockingly weak U.S. jobs tally was more than 80 per cent below the consensus forecast, according to a Bloomberg poll of leading economists, and more than 50 per cent below even the most pessimistic projection;





Read the full article here.

 

[Ally]

Alberta job market goes from recovery to growth with biggest gain in five years




EDMONTON - Alberta`s labour market caught fire in June.




The province added a whopping 22,000 jobs in June from the previous month ` the largest gain since May 2006 and the second month of growth in a row, according to Statistics Canada figures released Friday.




Because 27,600 more people were looking for work ` mostly newcomers from other provinces ` the unemployment rate still rose 0.2 percentage points from May to 5.6 per cent.




Besides robust June job numbers, the provincial labour market also passed a milestone in June, going from recovery mode into growth mode.





Read the full article here.

 

[Ally]

Alberta government wants other provinces and Ottawa to help fight pine beetle infestation




EDMONTON - It`s time for the federal government and other provinces to help Alberta hold the line against the mountain pine beetle, Sustainable Resource Development Minister Mel Knight says.




`This is an extremely serious situation for Alberta and it`s getting to be an issue that`s of serious concern and high risk to the boreal forest east of us as well,` Knight said Thursday.




`We are going to ask for this to be looked at as a bit of a shared responsibility for us to manage this thing inside of Alberta to the best of our ability.`





Read the full article here.

 

[Ally]

No near-term gas price lift, executives say





CALGARY ` Vast infusions of cash paired with the push to develop anything liquids-rich is energizing natural gas plays, promising to keep prices too low to make money for the next two years, according to industry executives.




Companies will only turn a profit on a few shale plays on the continent that are economic at low prices thanks to a glut in supply that shows no sign of easing, leaders at three Calgary-based energy firms say.




`Two things that are going to keep the price down in the next 18-24 months is the number of JVs (joint ventures) that have a completely different subset of economics associated with them,` said Derek Evans, president and CEO of Pengrowth Energy Corp.




`The second thing is the focus on liquids-rich gas,` Evans said, citing the current tendency of producers to chase heavier gaseous hydrocarbons in natural gas plays, such as propane and butane, which are priced relative to oil.






Read the full article here.

 

[Ally]

Housing starts in Edmonton move lower in June



The news release below from CMHC reports that housing starts are lower this month than a year ago. That may be unwelcome news if you are looking to move-into or up to a new home. It might also mean less choice of condos.





But do not dispair, there are over 8,000 homes in the MLSÂ inventory and any REALTORÂ can show them to you. As with any resale home some of them will need some repainting or updating but if the "bones" of the home are solid (ask a home inspector for an opinion) you may be getting the advantages of a mature neighbourhood with trees and neighbours that have been there for decades. You are probably also close to shopping, schools, parks and other amenities that newer neighbourhoods don't have.





There are many choices available and a REALTORÂ can show you something that meets your needs and budget.





Read the full article here.

 

[Ally]

Alberta Economic Snapshot for July 9, 2011



Statistics Canada reported yesterday in the monthly Labour Force Survey that employment rose by a stunning 22,000 jobs, the largest monthly gain for provincial employment since May 2006! This brings the total number of jobs in the province to 2.09 million (all figures adjusted for seasonality).





Despite the impressive gain in employment, the unemployment rate notched higher to 5.6 per cent from 5.4 per cent, as an even larger number of people entered the labour force in June.





Although Alberta`s economy has been on fire recently and the labour market is really looking up in 2011, it has taken 32 months to regain all the jobs lost during the recession. This compares to 27 months for the country as a whole, eight in Manitoba while Saskatchewan barely lost jobs at all.





The Canadian national employment report was also fairly positive with the country gaining 28,000 positions in June, ahead of consensus expectations of a gain of 15,000. U.S. jobs figures were also released this morning, but in contrast to the good news north of the border, the situation for our largest trading partner remains troubling (see below).





Read the full article here.

 

[Ally]

Analysts say oil price dip will likely be short-lived




As oil-producing countries battle with oil-consuming countries over whether to increase oil production, investors in Canadian energy companies can sit back in anticipation of better stock market returns ahead.




The current issue theoretically began when civil unrest in Libya curtailed oil production there, causing the price to rise above US$100 a barrel for both the international benchmark North Sea Brent and the North American benchmark West Texas Intermediate.




Among the Organization of Petroleum Exporting Countries, Saudi Arabia led a group of countries proposing that the cartel increase production to make up for the Libyan shortfall, with the ulterior motives of keeping gasoline prices low to stimulate a weak western economic recovery and keeping consumers from switching to alternative energy sources.





Read the full article here.

 

[Ally]

National energy strategy gains clout





The Harper government has endorsed the need for a national energy strategy in the face of growing calls from provinces and industry groups that the sector`s vision of a new era of global growth is too critical to be governed by piecemeal planning.







The government`s backing of the idea of a national energy strategy marks a substantial shift from its previous public position. The Conservative government had long been cool to calls for a national strategy, fearing it would get dragged into areas of provincial jurisdiction with demands for financial support.







But with a majority government safely in hand, the Conservatives are now signalling their support for a national policy. The Alberta government has urged Ottawa to lead the effort for a national energy strategy, arguing the country must work together if it is going to achieve Prime Minister Stephen Harper`s vision of an `energy superpower.`







Read the full article here.

 

[Ally]

Drilling rights auction nets $140 million for Alberta





CALGARY ` Not all cowboys were at the Calgary Stampede this week, based on substantial results from Alberta`s 12th oil and gas land sale of the year.




The first of July`s two auctions of drilling rights brought in a total of $140.32 million from oil and gas companies buying licences and leases, according to the Alberta Energy website Wednesday.




Bids came in for parcels in all three major regions of the province, from the plains in southern Alberta, to along the Foothills and into the province`s north.




Read the full article here.

 

[Ally]

Real estate sales in Edmonton up, prices down






EDMONTON - Edmonton`s residential real estate market saw sales pick up in June while prices lagged compared to June 2010.




Residential MLS sales finished at $584 million for the month ` up 7.6 per cent from a year earlier, according to figures released Tuesday by the Realtors Association of Edmonton.




There were 1,768 residential sales in June with 3,260 listings, for a sales-to-listing ratio of 54 per cent.




That compares to 1,619 residential sales in June 2010 with 3,339 listings, for a sales-to-listing ratio of 48 per cent.





Read the full article here.

 

[Ally]

Canada's housing market on 'solid footing': CREA




OTTAWA ` Home sales rose by a seasonally adjusted 2.6% in June from the previous month, a sign the housing market is on a `solid footing,` the Canadian Real Estate Association said Friday.




Sales activity remained stable in Toronto, with gains recorded in Victoria, Calgary and Montreal, as well as in the Ontario cities of Ottawa, London and Hamilton, CREA said.




However, monthly sales declined in Vancouver and the nearby Fraser Valley.



Read the full article here.

 

[Ally]

Factory sales drop more than expected




OTTAWA ` Sales by Canadian manufacturers declined more than expected in May, led by lower by the food and petroleum sectors.




Statistics Canada said Friday that sales were down 0.8% to $46.0 billion in during the month. Economists had expected manufacturing shipment to decline by about 0.2% in May.




The federal agency said sales dropped in 11 of 21 sectors, and losses were recorded by six provinces.




Sales in the food sector fell 3.1% in May, `partly attributable to lower sales in the dairy product industry,`the agency said.





Read the full article here.

 

[Ally]

Canada on track to clinch EU free-trade deal, Tories say




The Harper government says it's successfully concluded an eighth round of free trade negotiations with the European Union and is on track to clinch a deal by 2012.




During discussions in Brussels this week, Canada and the 27-member country EU traded offers to open up their respective markets in the fields of goods and government purchasing.





Read the full article here.

 

[Ally]

Creating a 'Brita filter' for oilsands tailings ponds




EDMONTON ` They may be staff pets, but the koi and goldfish swimming in the lobby of Syncrude`s Edmonton research centre are also doing a great job of showing how oilsands tailings water can be cleaned, environmental engineer Warren Zubot says.




The tank is filled with nothing but tailings pond water from the giant Mildred Lake settling pond north of Fort McMurray that has been filtered through a waste product from the upgrader ` petroleum coke, or petcoke.




This black, sand-like material ` which is removed from the raw bitumen during processing into synthetic crude oil ` is almost pure carbon, the kind of material found in home water filters.





Read the full article here.

 

[Ally]

Canada's oil conundrum






Canada is a very peculiar country when it comes to oil. We are the only major supplier in the world that produces twice as much oil as we consume, yet we are not energy secure. In the event of global supply disruptions, emanating say from Saudi Arabia or Algeria, eastern Canada could well suffer oil shortages. How is this situation possible in a country that is ranked the sixth biggest producer of oil in the world?






In fact, oil shortages have happened here before. The western world experienced the perils of empty barrels during the Arab oil embargo in 1973. Canada`s internal response was token: some exports to the US were cut back to take care of ourselves and a relatively small amount of Alberta oil that was being piped to the B.C. coast was diverted to Montreal via the Panama Canal.






We haven`t learned much in 40 years, because our fragmented and limited downstream oil infrastructure from western Canada to the eastern provinces hasn`t changed much since then. Consequently, as a modern industrialized economy we`re still naively vulnerable to simmering `Arab Spring` events in the Middle East and North Africa.





Read the full article here.

 

[Ally]

Calgary condos to rise again as confidence builds





In a sign of rising optimism about Calgary's housing market, a number of condo towers in the city's centre are moving ahead - including two that stalled with the economy, with shovels already in the ground.




"It's all very positive," says David Watson, the city's general manager of planning, development and assessment.




"It says to me people are pretty optimistic about the future, any of these plans are probably a two-year build, everyone's looking two, three years out."






Read the full article here.

 

[Ally]

Energy strategy is a pressing issue





A year ago, over a casual lunch and but six months into the energy portfolio, Ron Liepert had already set his sights on this weekend's meetings in Kananaskis with his provincial counterparts.




Liepert was determined the meetings would yield concrete outcomes in the context of moving energy policy forward; given the work that has taken place over the past 12 months, he might just get his agenda moving forward.




As indicated at the recent release of the Changing the Climate report jointly released by the Calgary Chamber of Commerce and the Canada West Foundation, it's critical Canada develop a national energy framework that addresses everything from environmental regulation and greenhouse gas emissions, to the development of export markets and the looming labour challenges.






Read the full article here.

 

[Ally]

Surging economy good for Alberta, Stelmach





Premier Ed Stelmach says Alberta's surging economy should provide both financial relief for government but also some good job opportunities for him when he leaves office.




The outgoing Progressive Conservative leader said Thursday the rebounding economy and strong oil prices produced a "very positive" first-quarter fiscal showing for the province that will shrink the projected $3.4-billion deficit.




The government's February provincial budget projected annualized oil prices at $89.40 for the 2011-12 fiscal year, but crude has been trading around $100 US per barrel recently. Every $1 annualized increase in oil prices translates into an extra $141 million for provincial coffers.






Read the full article here.

 

[Ally]

Alberta to hire hundreds of new nurses





The province`s health authority is looking for hundreds of new nurses ` including more than 100 jobs to be filled in Calgary by August ` after several years of holding the line on new hiring.




Faced with retirements among an aging workforce and next year`s opening of the city`s South Health Campus, Alberta Health Services is spending an extra $6.5 million now to ensure it has an adequate staff of caregivers.




Deb Gordon, the authority`s senior vice-president in charge of health professions, said the new jobs ` all of which are permanent positions and the majority of which are full-time ` should also provide work for some recent graduates of nursing schools around the province.




Read the full article here.