CALGARY, May 4 /CNW/ - In a presentation earlier today moderated by Scotiabank's Senior
Vice-President, Prairie Region, George Marlatte, Scotiabank Chief
Economist Warren Jestin was joined by Ted Zaharko, Owner and Broker of
Royal LePage Foothills, to share their views on the Alberta economy, as
well as the outlook and trends for the Alberta real estate market.
During the forum, held in Calgary, Mr. Jestin provided a brief overview
of the economic and financial market trends likely to influence the
Alberta outlook. He noted that "continuing solid output growth in
emerging nations is providing important support to the global economy
through increased imports and persistently strong demand for
commodities. For Alberta, a resurgent resource sector will drive
exports, jobs and investment, keeping the province at the top of
regional growth performances in 2011-12."
Mr. Jestin proceeded to provide an outlook for the Alberta residential
real estate market and discussed the key economic, industry and
demographic trends that will shape the balance of the year and into the
next. Mr. Jestin observed, "Alberta's real estate market continues to recover, with housing demand underpinned
by rising employment and incomes, low borrowing costs, and population
inflows from other parts of the country. Overall, we anticipate a
modest pickup in home sales this year, and relatively flat average
prices. Still, this would leave sales roughly 30 per cent below the
unsustainable record levels of 2006-07."
Mr. Jestin pointed to several factors shaping Alberta's real estate
market this year:
Market conditions are gradually shifting from favouring buyers to one of
greater balance, which should support home prices going forward;
High home prices, rising mortgage rates and tighter mortgage lending
rules will pinch affordability, especially for first-time buyers; and
More affordable property segments, including condominiums and
lower-priced single-detached homes will likely be more active than the
high end of the market.
Ted Zaharko of Royal LePage commended the relative strength of the
Canadian housing markets. He stated that "here in Canada, we have been
fortunate to have a much stronger real estate market than in the United
States. The Canadian housing situation can in no way be compared to the
problems the United States is currently experiencing."
Mr. Zaharko also offered his expertise on the real estate market in
Calgary. He said that "our markets are stable across the country and it
would appear that recent activity in this market place has increased
substantially. We should start seeing an increased variety of listings
and increased sales activity like we have seen in other major Canadian
cities to date."
He noted that a few factors have been curbing the current residential
markets in the Calgary area:
The long winter and only lately a cool spring has been holding back
enthusiastic buyers; and
List prices seem to be determined from current listings in each area,
and therefore price adjustments are a key factor in sales activity.
Today's presentation will be made available until June 1, 2011 at: http://www.snwebcastcenter.com/custom_events/scotiabank-20110414-cal-en/site/.
About Scotia Economics
Scotia Economics provides clients with in-depth research into the
factors shaping the outlook for Canada and the global economy,
including macroeconomic developments, currency and capital market
trends, commodity and industry performance, as well as monetary, fiscal
and public policy issues.
Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 70,000 employees,
Scotiabank Group and its affiliates serve some 18.6 million customers
in more than 50 countries around the world. Scotiabank offers a broad
range of products and services including personal, commercial,
corporate and investment banking. With assets above $541 billion (as at
January 31, 2011), Scotiabank trades on the Toronto (BNS) and New York
Exchanges (BNS). For more information please visit www.scotiabank.com.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading
provider of services to real estate brokerages, with a network of
14,000 real estate professionals in over 600 locations nationwide.
Royal LePage is the only Canadian real estate company to have its own
charitable foundation, the Royal LePage Shelter Foundation, dedicated
to supporting women's & children's shelters and educational programs
aimed at ending domestic violence. Royal LePage is a Brookfield Real
Estate Services Inc. company, a TSX-listed corporation trading under
the symbol TSX:BRE. For more information visit www.royallepage.ca.
For further information:
For media inquiries:
Robyn Harper, Scotiabank Media Communications, 416-933-1093, email@example.com.