June 2012 Alberta Economic Fundamentals
- Thread starter Ally
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3 Eau Claire double glass towers to change Calgary's skyline
3 Eau Claire is going to dramatically alter the ever-changing Calgary skyline, offering splendid retail, office and residential opportunities in the developed west-end area.
Representative and director of development Norman Starnes says he has been working on the project, owned by a Calgary-based consortium 3 Eau Claire Developments Inc., since he was able to purchase the land through Tim Sommer of Cushman & Wakefield four years ago. The prime site is on the parking lot at 6th Street and 3rd Avenue S.W. immediately across from the classy Shaw Court.
Read the full article here.
3 Eau Claire is going to dramatically alter the ever-changing Calgary skyline, offering splendid retail, office and residential opportunities in the developed west-end area.
Representative and director of development Norman Starnes says he has been working on the project, owned by a Calgary-based consortium 3 Eau Claire Developments Inc., since he was able to purchase the land through Tim Sommer of Cushman & Wakefield four years ago. The prime site is on the parking lot at 6th Street and 3rd Avenue S.W. immediately across from the classy Shaw Court.
Read the full article here.
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Calgary single-family house prices crack half million dollar mark
Close but no cigar.
The average MLS sale price for a single-family home in Calgary flirted in May with a new record level but ended up just short.
According to the Calgary Real Estate Board, single-family home sales in the city averaged $502,065 on 1,710 transactions during the month. That`s the second highest average price ever and only the second time it has topped the half-million dollar mark.
The peak was set in July 2007 at $505,920.
Read the full article here.
Close but no cigar.
The average MLS sale price for a single-family home in Calgary flirted in May with a new record level but ended up just short.
According to the Calgary Real Estate Board, single-family home sales in the city averaged $502,065 on 1,710 transactions during the month. That`s the second highest average price ever and only the second time it has topped the half-million dollar mark.
The peak was set in July 2007 at $505,920.
Read the full article here.
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Oil price decline not a threat yet to projects
The downward slide of oil prices may lead some companies to trim their capital spending plans, but analysts suggest the bigger projects are not in jeopardy, at least not yet.
The price of oil as fallen roughly 20 per cent from its highs of the year amid rising concerns about the strength of the global economy and falling worries about political unrest in the Middle East.
The plunge has raised questions about the future of the billions of dollars worth of projects on the books for both the conventional oilpatch in Canada and the oilsands.
Read the full article here.
The downward slide of oil prices may lead some companies to trim their capital spending plans, but analysts suggest the bigger projects are not in jeopardy, at least not yet.
The price of oil as fallen roughly 20 per cent from its highs of the year amid rising concerns about the strength of the global economy and falling worries about political unrest in the Middle East.
The plunge has raised questions about the future of the billions of dollars worth of projects on the books for both the conventional oilpatch in Canada and the oilsands.
Read the full article here.
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Enbridge says 60% of first nations buy into its Northern Gateway pipeline
Enbridge Inc. said Tuesday that almost 60 per cent of the aboriginal communities along its proposed Northern Gateway pipeline route have accepted an equity position in the $5.5 billion project,
`We made it available to about 45 of the aboriginal communities along the right-of-way,` said Paul Stanway, manager of Northern Gateway Communications for Enbridge. `Almost 60 per cent of those eligible communities along the right-of-way have now signed agreements to be partners with us in ownership of Northern Gateway.`
Read the full article here.
Enbridge Inc. said Tuesday that almost 60 per cent of the aboriginal communities along its proposed Northern Gateway pipeline route have accepted an equity position in the $5.5 billion project,
`We made it available to about 45 of the aboriginal communities along the right-of-way,` said Paul Stanway, manager of Northern Gateway Communications for Enbridge. `Almost 60 per cent of those eligible communities along the right-of-way have now signed agreements to be partners with us in ownership of Northern Gateway.`
Read the full article here.
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Little opposition expected to TransCanada $4 billion gas pipeline
CALGARY ` TransCanada Corp will build a $4-billion pipeline to serve Royal Dutch Shell PLC`s planned liquefied natural gas plant on British Columbia`s northern coast, the company said on Tuesday.
TransCanada, Canada`s No. 1 pipeline company, said it would design and build a 700-kilometre line capable of shipping 1.7 billion cubic feet of gas per day from the Dawson Creek area to Kitimat, where three LNG plants, including Shell`s facility, are planned.
Northeastern British Columbia contains some of the world`s largest unconventional natural gas reserves.
Read the full article here.
CALGARY ` TransCanada Corp will build a $4-billion pipeline to serve Royal Dutch Shell PLC`s planned liquefied natural gas plant on British Columbia`s northern coast, the company said on Tuesday.
TransCanada, Canada`s No. 1 pipeline company, said it would design and build a 700-kilometre line capable of shipping 1.7 billion cubic feet of gas per day from the Dawson Creek area to Kitimat, where three LNG plants, including Shell`s facility, are planned.
Northeastern British Columbia contains some of the world`s largest unconventional natural gas reserves.
Read the full article here.
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Fort McMurray: Economic centre of Canada?
Fort McMurray, economic centre of Canada? Torontonians and the rest of the country had better get used to the idea. The Canadian economy will increasingly spin around the northern Alberta oil town if an industry forecast that shows Canada`s daily volumes will more than double to 6.2 million barrels a day by 2030, largely from the oil sands, proves right.
Under the forecast, made public Tuesday by the Canadian Association of Petroleum Producers, Canada will climb to the No. 3 or No. 4 spot in the world as a major oil producer (from No. 5 currently), trailing only oil heavyweights Russia and Saudi Arabia and likely running neck and neck with the United States, depending on what happens to its tight-oil chase.
Read the full article here.
Fort McMurray, economic centre of Canada? Torontonians and the rest of the country had better get used to the idea. The Canadian economy will increasingly spin around the northern Alberta oil town if an industry forecast that shows Canada`s daily volumes will more than double to 6.2 million barrels a day by 2030, largely from the oil sands, proves right.
Under the forecast, made public Tuesday by the Canadian Association of Petroleum Producers, Canada will climb to the No. 3 or No. 4 spot in the world as a major oil producer (from No. 5 currently), trailing only oil heavyweights Russia and Saudi Arabia and likely running neck and neck with the United States, depending on what happens to its tight-oil chase.
Read the full article here.
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Natural gas: Where deep pessism bodes well
`Well, they might not be going quite to zero but `,` says a portfolio manager. The subject at hand is natural gas prices and the manager sees nothing but bad news ahead.
To an investor, this is a tipoff to start getting bullish. Natural gas and the stocks of those who produce it are in the doghouse. Market sentiment is near all-time lows, which conveniently matches natural gas prices.
When professional managers get as bearish as they are now, investors should perk up. We are most likely near the bottom for natural gas prices. We may not be exactly there ` the summer might bring fresh lows ` but we`re close. Investors should be prepared because even modest price improvements and a change in sentiment could propel some stocks upward.
Read the full article here.
`Well, they might not be going quite to zero but `,` says a portfolio manager. The subject at hand is natural gas prices and the manager sees nothing but bad news ahead.
To an investor, this is a tipoff to start getting bullish. Natural gas and the stocks of those who produce it are in the doghouse. Market sentiment is near all-time lows, which conveniently matches natural gas prices.
When professional managers get as bearish as they are now, investors should perk up. We are most likely near the bottom for natural gas prices. We may not be exactly there ` the summer might bring fresh lows ` but we`re close. Investors should be prepared because even modest price improvements and a change in sentiment could propel some stocks upward.
Read the full article here.
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Week jobs report seen as fueling drive to force Obama on Keystone
A sputtering U.S. job market is encouraging supporters seeking to force President Barack Obama to approve TransCanada Corp.`s Keystone XL oil pipeline before the November election.
A report last week that U.S. employers added in May the fewest workers in a year underscores the need for the $5.3-billion pipeline, which would carry heavy crude from Alberta to Nebraska, according to Senator John Hoeven, a Republican from North Dakota. Hoeven is lobbying to include a measure in a transportation spending bill that would fast track the project.
Read the full article here.
A sputtering U.S. job market is encouraging supporters seeking to force President Barack Obama to approve TransCanada Corp.`s Keystone XL oil pipeline before the November election.
A report last week that U.S. employers added in May the fewest workers in a year underscores the need for the $5.3-billion pipeline, which would carry heavy crude from Alberta to Nebraska, according to Senator John Hoeven, a Republican from North Dakota. Hoeven is lobbying to include a measure in a transportation spending bill that would fast track the project.
Read the full article here.
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'Help wanted' signs sprout like dandelions
EDMONTON ` Barring another global recession ` a critical, albeit unpredictable factor ` Alberta is likely heading into its most severe labour crunch in history.
With the provincial economy expanding by 5.2 per cent in 2011 ` tops in Canada ` and oil prices showing signs of stabilizing after a recent soft patch, all signs point to a hot summer ahead.
Read the full article here.
EDMONTON ` Barring another global recession ` a critical, albeit unpredictable factor ` Alberta is likely heading into its most severe labour crunch in history.
With the provincial economy expanding by 5.2 per cent in 2011 ` tops in Canada ` and oil prices showing signs of stabilizing after a recent soft patch, all signs point to a hot summer ahead.
Read the full article here.
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Alberta fund offers $40 million for innovative energy-saving projects
EDMONTON - Alberta`s carbon research fund said Wednesday it is offering $40 million in support for innovative renewable energy projects.
The Climate Change and Emissions Management Corp. is seeking projects that might include wind generation, geothermal energy, run-of-river (which requires little or no water storage) hydroelectricity as well as solar or biomass projects.
Chairman Eric Newell said the fund will be used to subsidize projects that are innovative in various ways, including through technology, technology application, geography, finance, partnerships or bridging the gap to broad deployment.
Read the full article here.
EDMONTON - Alberta`s carbon research fund said Wednesday it is offering $40 million in support for innovative renewable energy projects.
The Climate Change and Emissions Management Corp. is seeking projects that might include wind generation, geothermal energy, run-of-river (which requires little or no water storage) hydroelectricity as well as solar or biomass projects.
Chairman Eric Newell said the fund will be used to subsidize projects that are innovative in various ways, including through technology, technology application, geography, finance, partnerships or bridging the gap to broad deployment.
Read the full article here.
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How Western-Canada's resort-property market went south
COMOX, B.C. ` While British Columbia fishermen were concerned about reduced salmon stocks returning a few years ago, realtor Dave Procter noticed a trend of his own.
People from the Prairie provinces, who had been the predominant buyers of resort properties in the Comox Valley, started going to depressed United States real estate markets instead.
`We`re still getting the retirees,` Procter, who heads up Dave Procter Realty with Re/Max in Comox, said in an interview.
Read the full article here.
COMOX, B.C. ` While British Columbia fishermen were concerned about reduced salmon stocks returning a few years ago, realtor Dave Procter noticed a trend of his own.
People from the Prairie provinces, who had been the predominant buyers of resort properties in the Comox Valley, started going to depressed United States real estate markets instead.
`We`re still getting the retirees,` Procter, who heads up Dave Procter Realty with Re/Max in Comox, said in an interview.
Read the full article here.
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Labour federation critical of new rules that speed up the hiring of foreign oilsands workers
Accelerated approvals for temporary foreign workers and provisions that allow employers to pay them up to 15 per cent less than Albertans will depress wages for oilsands workers, says the province`s labour federation.
Gil McGowan, president of the Alberta Federation of Labour, presented a torn-up paycheque to staff at federal Immigration Minister Jason Kenney`s office in Calgary Friday to protest changes he says will rip off an estimated 100,000 workers building and operating heavy oil facilities.
`Construction companies have convinced the Harper government that costs are out of control and that desperate measures are need,` said McGowan, `but these changes will just make it tougher for ordinary people to get their fair share of the resource pie.`
Read the full article here.
Accelerated approvals for temporary foreign workers and provisions that allow employers to pay them up to 15 per cent less than Albertans will depress wages for oilsands workers, says the province`s labour federation.
Gil McGowan, president of the Alberta Federation of Labour, presented a torn-up paycheque to staff at federal Immigration Minister Jason Kenney`s office in Calgary Friday to protest changes he says will rip off an estimated 100,000 workers building and operating heavy oil facilities.
`Construction companies have convinced the Harper government that costs are out of control and that desperate measures are need,` said McGowan, `but these changes will just make it tougher for ordinary people to get their fair share of the resource pie.`
Read the full article here.
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Multi-family housing propels growth in new home construction in Edmonton
EDMONTON - Construction of new housing in Edmonton rose again last month, Canada Mortgage and Housing Corp. said Friday.
The first five months of 2012 saw 33 per cent more housing units started than during the same period last year.
`Generally, I think we`re looking at a pretty solid housing market right now,` said Christina Butchart, senior market analyst with the Crown corporation. `There are pretty good economic fundamentals supporting housing demand.`
Much of that growth comes from multi-family dwellings, a category that includes highrise condominiums like the recently announced Ultima and Fox Towers projects downtown.
Read the full article here.
EDMONTON - Construction of new housing in Edmonton rose again last month, Canada Mortgage and Housing Corp. said Friday.
The first five months of 2012 saw 33 per cent more housing units started than during the same period last year.
`Generally, I think we`re looking at a pretty solid housing market right now,` said Christina Butchart, senior market analyst with the Crown corporation. `There are pretty good economic fundamentals supporting housing demand.`
Much of that growth comes from multi-family dwellings, a category that includes highrise condominiums like the recently announced Ultima and Fox Towers projects downtown.
Read the full article here.
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Alberta adds jobs, Ontario slips
Canada`s east-west economic gap was apparent in this morning`s employment report. Alberta continues to generate jobs at a fairly rapid pace, while nationally employment remains constant. After a couple months of strong national growth, the slowdown out east will give Mr. Carney more reason to pause with respect to raising interest rates.
According to Statistics Canada, Alberta added 9.8 thousand jobs in May of which 8.2 thousand were fulltime positions. This pushed the provincial unemployment rate down from 4.9 to 4.5 per cent`the lowest level since the onset of the recession. As a general rule of thumb an unemployment rate of 5 per cent is roughly balanced, with the ball really in the employee`s court once it dips below 4 per cent.
Read the full article here.
Canada`s east-west economic gap was apparent in this morning`s employment report. Alberta continues to generate jobs at a fairly rapid pace, while nationally employment remains constant. After a couple months of strong national growth, the slowdown out east will give Mr. Carney more reason to pause with respect to raising interest rates.
According to Statistics Canada, Alberta added 9.8 thousand jobs in May of which 8.2 thousand were fulltime positions. This pushed the provincial unemployment rate down from 4.9 to 4.5 per cent`the lowest level since the onset of the recession. As a general rule of thumb an unemployment rate of 5 per cent is roughly balanced, with the ball really in the employee`s court once it dips below 4 per cent.
Read the full article here.
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Move west, young man
Alberta`s economy picked up steam through 2011 and wages began to climb higher after stagnating for a bit during the recession. Other parts of Canada weren`t so lucky, especially in the country`s most populous province, where wages have stalled altogether.
Prior to Alberta`s boom, average weekly earnings in Ontario were actually slightly higher. By the time the recession hit the gap hit about $100/week, but it has subsequently increased to $150/week. If extrapolated over the entire year the average worker is now making about $8 thousand more in Alberta.
Read the full article here.
Alberta`s economy picked up steam through 2011 and wages began to climb higher after stagnating for a bit during the recession. Other parts of Canada weren`t so lucky, especially in the country`s most populous province, where wages have stalled altogether.
Prior to Alberta`s boom, average weekly earnings in Ontario were actually slightly higher. By the time the recession hit the gap hit about $100/week, but it has subsequently increased to $150/week. If extrapolated over the entire year the average worker is now making about $8 thousand more in Alberta.
Read the full article here.
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Eastern refiners save on western crude
Cheap western crude prices are driving the North American oil industry to find creative ways to ship oil east where refineries are struggling to remain competitive.
In recent weeks, the first rail shipment of Bakken crude oil from North Dakota arrived in Saint John amid word Irving Oil Ltd. is close to reaching a deal with an American fuel broker that would involve regular shipments of oil arriving by rail.
The net savings for shipping the crude oil, after accounting for the cost of transportation, are estimated to be about $7 to $10 per barrel, according to Pavel Molchanov, an energy analyst with Raymond James and Associates Inc., in Houston.
Read the full article here.
Cheap western crude prices are driving the North American oil industry to find creative ways to ship oil east where refineries are struggling to remain competitive.
In recent weeks, the first rail shipment of Bakken crude oil from North Dakota arrived in Saint John amid word Irving Oil Ltd. is close to reaching a deal with an American fuel broker that would involve regular shipments of oil arriving by rail.
The net savings for shipping the crude oil, after accounting for the cost of transportation, are estimated to be about $7 to $10 per barrel, according to Pavel Molchanov, an energy analyst with Raymond James and Associates Inc., in Houston.
Read the full article here.
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Calgary leads in comercial real estate investent options
CALGARY ` When it comes to commercial real estate investment options, no city tops Calgary, according to a new international study.
Investment Property Databank's global property index pegged total return on investment in Calgary last year at 21.6 per cent, followed by San Diego, Calif. (19.5 per cent), Portland, Ore. (18.0 per cent) and Seattle, Wash. (17.7 per cent).
The report also said Calgary is among the world's most improved markets with total returns of 8.7 per cent in 2010.
Read the full article here.
CALGARY ` When it comes to commercial real estate investment options, no city tops Calgary, according to a new international study.
Investment Property Databank's global property index pegged total return on investment in Calgary last year at 21.6 per cent, followed by San Diego, Calif. (19.5 per cent), Portland, Ore. (18.0 per cent) and Seattle, Wash. (17.7 per cent).
The report also said Calgary is among the world's most improved markets with total returns of 8.7 per cent in 2010.
Read the full article here.
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Lethbridge - a stable Alberta option
Less reliance on the oil industry is one of the reasons Lethbridge has remained a more reliant real estate option than Calgary or Edmonton.
Recent news around Alberta's real estate market has focused on the overdevelopment, higher vacancy rates, rising unemployment, and just overall lesser performance compared to the rest of the country.
But despite sharing those same borders, Alberta's fourth-largest city of Lethbridge presents a much different investment picture.
For one, it's less reliant on oil. "We have a very diverse economy, so there are a number of industries doing well," says Stan Mills, a real estate broker and president of the Lethbridge Real Estate Board. "Any time there might be trouble in one industry, there's so many other industries that help drive the force ahead. We don't get caught up in a recessionary situation too much."
Read the full article here.
Less reliance on the oil industry is one of the reasons Lethbridge has remained a more reliant real estate option than Calgary or Edmonton.
Recent news around Alberta's real estate market has focused on the overdevelopment, higher vacancy rates, rising unemployment, and just overall lesser performance compared to the rest of the country.
But despite sharing those same borders, Alberta's fourth-largest city of Lethbridge presents a much different investment picture.
For one, it's less reliant on oil. "We have a very diverse economy, so there are a number of industries doing well," says Stan Mills, a real estate broker and president of the Lethbridge Real Estate Board. "Any time there might be trouble in one industry, there's so many other industries that help drive the force ahead. We don't get caught up in a recessionary situation too much."
Read the full article here.
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Promising outlook in Grande Prairie
For any Albertan city tied to the energy sector, the future of the real estate market and economy looks much brighter in 2011 than it has over last couple of years.
A prime example is Grande Prairie, one of Canada's fastest-growing cities, with nearby oil and gas drilling playing a major role. Located near the British Columbia border, the latest census had the city's population at around 50,000 people. But like most of Alberta, home prices have lagged far behind the national gains in recent years.
Certainly the oil industry took a hit during the recession when prices were down, but the entire province is now starting to pick up thanks to the oil and gas recovery. The real estate market has been slow to adjust in Grande Prairie until recently, but the trend is an increasing amount of activity this year.
Read the full article here.
For any Albertan city tied to the energy sector, the future of the real estate market and economy looks much brighter in 2011 than it has over last couple of years.
A prime example is Grande Prairie, one of Canada's fastest-growing cities, with nearby oil and gas drilling playing a major role. Located near the British Columbia border, the latest census had the city's population at around 50,000 people. But like most of Alberta, home prices have lagged far behind the national gains in recent years.
Certainly the oil industry took a hit during the recession when prices were down, but the entire province is now starting to pick up thanks to the oil and gas recovery. The real estate market has been slow to adjust in Grande Prairie until recently, but the trend is an increasing amount of activity this year.
Read the full article here.