Saturday, May 16, 2015

Edmonton Real Estate 91 Months With No Price Gains

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During 2007 Edmonton SFH price hit $452,000. They haven't increased since. For 91 months straight, despite a 60% interest rate crash they have not increased at all. In fact, prices have declined 2.6% over the 91 months stretch.

Doing simpleton math, and estimating a 3% yearly inflation rate, lets see where Edmonton SFH should be today.

2007 $452,000
2008 $465,560
2009 $479,526
2010 $493,912
2011 $508,729
2012 $523,990
2013 $539,710
2014 $555,901
2015 $572,578

Woops, that's not so good. Calgary is equally as bad, perhaps worse, the way that SFH prices are gauged in Calgary since 2007 has changed often, and dramatically.
The bubble peak was May-July 2007, that's as good as it got, and its as good as its ever gonna be. Interest rates will climb going forward, slowly for sure, but climb they will.

$400,000 @ 2.5% (25 years) =  $1792 month
$250,000 @ 7.5% (25 years) =  $1829 month

$400,000 @ 7.5% (25 years) =  $2926 month
 http://www.canadamortgage.com/calculators/amortization.cgi

Recession forcasted for Calgary Edmonton. 

No bubble here. LOL.
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Thursday, May 14, 2015

Oil was $42 BBL When Someone Said This



"Never again will this government or the people of this province have to set aside another tax dollar on debt..."Those days are over and they're over for good, as far as my government is concerned, and if need be we will put in place legislation to make sure that we never have a debt again."
 
—Ralph Klein 2004

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We will see where we are 4 years from today.

Aberta Debt Dec 2004 $0.00 - Alberta Debt May 15 2015 $12,633,318,831.00
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Tuesday, May 5, 2015

NDP



Founded during the midst of the Great Depression, Canada’s New Democratic Party, or NDP, was originally a hardline socialist party dedicated to the downfall of the capitalist system. In the decades since, the NDP has moved in a more moderate direction, away from doctrinaire Marxism and towards a more modern spirit of social democracy and a “mixed economy,” where the government regulates but doesn’t rule.

For most of its existence, the NDP — or Cooperative Commonwealth Federation (CCF) as it was known before 1961 — remained only popular enough to finish third or fourth place in the parliamentary seat count, and suffered a persistent reputation as being too “fringe” or “radical” to garner mainstream support. Its backers were generally those on the furthest left of the Canadian society — people like union bosses, street protesters, and anti-capitalist academics, but rarely the broad middle class.

Historically, the NDP has only exercised true political power in the context of a Liberal minority government - See more at: http://www.thecanadaguide.com/political-parties

To be continued...