Oilers99
Active Member
Alliance is an Edmonton co.
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Edmonton Real Estate Market
- Thread starter Daveography
- Start date
MacLac
Senior Member
The punchline to my facetious remark towards Ian is just razzing him "that real estate in YEG sucks and that no one is buying or selling anything." Hence my remark that this parcel sold in less than a week, along with the Abbey Park Residences in a day or so. Good to know that the buyer on this is from YEG.
Kosy123
Active Member
Here's the PDF to the CMHC report
There's a couple of super interesting tidbits therre. A bit (more like extremely) lazy right now to summarize them so you'll have to read it on your own to find out lol
There's a couple of super interesting tidbits therre. A bit (more like extremely) lazy right now to summarize them so you'll have to read it on your own to find out lol
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IanO
Senior Member
IanO
Senior Member
But this tells the story.
occidentalcapital
Senior Member
Beating a dead horse
IanO
Senior Member
Trying to resuscitate said horse, but few seem to acknowledge or care it seems.
northlands
Senior Member
I do wonder if we'll see a lot bigger year for multifamily starts in 2024. A lot of the big Edmonton developers all had large purpose built rental multifam project(s) commence in 2021/2022 and most of those projects are still not yet bringing in cash flow but are very close to completion (Hat 121, One12, Laurent/Eleanor, CNIB, Abbey Park, Mercury Block, West Garneau, Windsor Terrace, just to name a few) plus some real massive projects like Station Lands, The Parks, Falcon I that are mid construction.
Market forces including tightened lending I am sure have stopped many developers from breaking ground on something new, but I'm thinking a lot are simply waiting till their current projects are at the occupancy stage bringing in some healthy cash flow to derisk a little more than developers not being able to get any projects off the ground. Especially given that the vast majority is all purpose built rentals, which is a pretty different ballgame than condos with strong presale numbers. Abbey Lane selling Abbey Park before even hitting occupancy seems telling of that--it's a hard game having multiple PBR projects on the go without real deep pockets.
Market forces including tightened lending I am sure have stopped many developers from breaking ground on something new, but I'm thinking a lot are simply waiting till their current projects are at the occupancy stage bringing in some healthy cash flow to derisk a little more than developers not being able to get any projects off the ground. Especially given that the vast majority is all purpose built rentals, which is a pretty different ballgame than condos with strong presale numbers. Abbey Lane selling Abbey Park before even hitting occupancy seems telling of that--it's a hard game having multiple PBR projects on the go without real deep pockets.
Oilers99
Active Member
another thing to add on PBR projects right now is the time CMHC is taking to provide COIs. they are significantly backlogged on applications which is further impacting the ability to green light projects.
IanO
Senior Member
Funny how reactive policy has unintended consequences.
northlands
Senior Member
interesting you mention this, just saw this on LinkedIn
"We are ready to break ground on this apartment building.
165 rental homes desperately needed in Kelowna.
The only way rental housing can be feasibly built in Canada is with CMHC MLI Select Debt. Our file has not been picked up after 5 months. This used to take 90 days.
Romy Bowers and the CMHC MLI Team are working extremely hard, but they are completely overwhelmed with applications since raising their fees on June 19. They need more staff.
The Federal Government need so provide significantly more funding to CMHC to allow CMHC to staff up and get these loan applications processed in a reasonable timeframe. Removing GST was a great step, but doesn't solve the problem if everyone is stuck without construction debt.
9-12 months to obtain a loan is not going to solve the Canadian housing crisis."
Kendal Harazny on LinkedIn: We are ready to break ground on this apartment building. 165 rentalâ¦
We are ready to break ground on this apartment building. 165 rental homes desperately needed in Kelowna. The only way rental housing can be feasibly built…
www.linkedin.com
occidentalcapital
Senior Member
Who is not acknowledging or caring?
archited
Senior Member
too many "seems" it seems.
ChazYEG
Senior Member
A few comments:
1 - this quote is very reductive, and a more complete view of the scenario is provided in their bullet points below this.
2 - On said bullet points: a) there was an increase on unsold inventory, but there was also a massive increase in said inventory over 2022. b) until we start seeing inventory come down, and prices go up, housing starts will not go up. c) Population inflows have not been that much higher in Calgary (it at all) than in Edmonton. This is supported by various pieces of information that have been shared extensively on this forum.
Might be anecdotal, but I have been chatting with quite a few realtors, for one reason or another, and the consensus amongst these is that our inventory levels are TOO HIGH, but that their sales have ticked up quite a bit in the past year, compared to 2022, especially for SFH, mostly driven by out-of-province buyers. I'll go ahead and make an educated guess that, if someone was going to spend $3000~4000 on a mortgage in Toronto or Vancouver, even with low interest rates, paying ~$2000 in Edmonton is still a huge win, so that doesn't matter much, and they'll probably get lower rates in 3 or 5 years, anyways.
On top of these, while housing starts have dropped, there's still A LOT currently under construction, both rental apartments/townhomes and some SFH in a few areas of the city, which, of course, add to our already monstrous inventory.
David A
Senior Member
It seems to me this is all part of a healthy adjustment process - higher current inventory leads to lower starts and more people coming here will draw that inventory down in the future.
SFH's still remain relatively affordable here, so you don't see demand for condo's by people who are priced out of the SFH market, hence the lower condo numbers compared to elsewhere, but some people who move here do rent initially or remain renters, so rental demand is stronger.
SFH's still remain relatively affordable here, so you don't see demand for condo's by people who are priced out of the SFH market, hence the lower condo numbers compared to elsewhere, but some people who move here do rent initially or remain renters, so rental demand is stronger.