Norm & Lisa Racine

Scotiabank released an economic report this week. It mentions that the western provinces are driving the national real estate trends. This is not surprising. As we all know, easterner's have been flocking here for years, and there is no end in sight. Work BC is holding four job fairs in southern Ontario over the next week. The organization, made up of BC's top 100 employers estimates there will be 1 million new jobs to fill over the next 10 years in British Columbia. Alberta isn't far behind in these expectations, and Saskatchewan's demand is rising as well. The report also finds that the last decade of real estate cycles is the strongest and most sustained in history. These trends should be just as strong for another 10 years. The report states that we are not in over our heads and have little to be concerned with in regards to the U.S. mortgage meltdown. Only in Western Canada eh?

Four years ago an American could purchase a newer 1700 sq.ft. 2 storey house in Edmonton for $130,000 USD, $200,000 CDN. Today, the same home is $475,000 with either currency. This obviously has an impact on real estate demand. For this to happen over such a short period of time has made it unattainable for the average American. Much the same way that booming prices pushed a whole whack of local buyers right out of the market. The strong dollar combined with a struggling U.S. economy and a volatile stock market has made a lot of people nervous to do anything. These are all natural fluctuations in any marketplace. I have the wait and see attitude.

They say opinions are like belly buttons...everybody has one. When it comes to real estate forecasts you could probably get a dozen for a nickel. The kind that really bother me the most come from non-industry armchair quarterbacks. I've seen investors abandon the very market that has enabled them to retire early because their brother read that real estate is going nowhere but down. Opportunity lost, thanks to brother Bob. I have two suggestions...To the person with the dreams and the desire: talk to a professional. To Bob: please do not give unqualified advice, whether that be financial, medical, legal, etc. Do I really expect to stop people from communicating their opinions? No. People will always have a bellybutton...mine's an innie.

Put simply, yes and no. We have mortgage insurance in Canada, and this is law. American regulators put very few limitations on who can borrow mortgages. It is significantly more difficult to obtain a mortgage in Canada however, if our real estate value drops for any reason, (including economic meltdowns elsewhere) sellers could find themselves selling for less than what they paid. If the situation is long term, we would see people that are considered 1st class borrowers walking away from their homes. This is not a likely scenario, but it could happen. Particularly, when you see the ineptitude of the governments, financial institutions and investment firms that cause and allow economic meltdowns to occur. These outfits should be our biggest fear and they should be under more scrutiny.

We wrapped up our annual Realty Executives Polar Bear Dip this weekend. We raised $19,000 for the Food Bank. Thank you to every realtor who took the plunge in 6C water at the Royal Glenora Club. Thank you to every donor, Edmonton is a warmer place because of you all. Being a member on the Internal Advertising Committee for Realty Executives, I've seen first hand what a difference can be made when we donate our time, money and effort to people in need. Realtors have made a lot of money during these boom years in Alberta. They have also given a lot back to the community. This is usually done out of gratitude. The list of charities and causes we support is lengthy, but when a realtor is willing to freeze his/her jewels to feed the hungry...that's giving!