Category: Market News

Farmland values in Alberta increased an average of 4.5% during the second half of 2011, following gains of 4.0% and 1.5% in the previous two reporting periods. The province has seen values continue to rise since 1993.

Strong agricultural commodity prices, along with increased oilfield activity, appeared to spur confidence in the economy, with land prices either holding their value or increasing.

Farmland values in some areas of the Peace region and central Alberta have increased and were comparable to values observed in 2007 and 2008, before the 2009 drought.

In southern Alberta, land was generally considered to be a sound investment. Large producers competed for good cultivated farmland, fuelling demand and pushing prices upward.

Irrigated land suitable for specialty crops continued to be in high demand, while marginal land suitable for hay and cattle production also saw increases.

Source: Farm Credit Canada Website

For the first three months the housing market has shown an increase of 31 sales in Brooks. The average resale price of homes was $234,478 which is down 1.1% from last year.. Attached housing, which includes duplex, townhouse and condominiums averaged $201,915 with 13 sales and mobile homes averaged $48,350 with 10 sales. Currently Brooks has 54 single family dwellings listed on the open market. We have approximately 17 houses selling per month, so there is an estimated 3-4 month supply of homes. The average days on market for homes is 110 days.

(Source: Realtor Association of South Central Alberta)

Alberta farmland values showed an average increase of 4.0% during the first half of 2011, which followed increases of 1.5 and 2.9% during the two previous reporting periods.

Values increased by an average of 0.7% per month between January 1 and June 30, 2011. Farmland values in Alberta have been rising since 1993.

Strong demand for good cultivated farmland was observed in southern Alberta. Large producers were competing for land, which pushed demand upward. Irrigated land suitable for specialty crops continued to be in high demand, with associated significant increases in value. Marginal land suitable for hay and cattle production also saw an increase in demand. Farmland was generally considered to be a sound investment.

Producers were optimistic about the growing season, given the above-average moisture levels. However, in many areas, excess moisture during planting delayed seeding.

Strong demand for good cultivated land continued in central Alberta. Increases in cattle prices improved the demand for pasture land. Above-average moisture levels and the cool spring delayed crops, which reduced producers’ disposable income, and weakened demand for land. A softening of the provincial economy over the past couple of years levelled off previously fast-paced increases in land values around the Highway 2 corridor from Edmonton to Calgary. Land values in most areas of central Alberta plateaued or increased slightly this reporting period.

A portion of the Peace region of northern Alberta experienced severe drought in 2008 and 2009. In certain areas, drought continued in 2010. This affected income levels and reduced demand for land. The spring of 2011 brought good moisture levels back to the region. Most areas saw modest increases in land prices throughout the past six months, perhaps due to renewed optimism driven by better growing conditions after several years of drought.

Source: FCC Website

For the first 9 months of 2011 the housing market has shown an increase of 7 sales in Brooks. The average resale price of homes was $246,978. Attached housing, which includes duplex, townhouse and condominiums averaged $173,744 with 18 sales and mobile homes averaged $46,633. Currently Brooks has 93 single family dwellings listed on the open market. We have approximately 12 houses selling per month, so there is an estimated 8 month supply of homes. The average days on market for homes is 69 days.

(Source: Realtor Association of South Central Alberta)

For the first six months of 2011 the City of Brooks resale market had an average sale price of $249,630. Average sale prices have remained fairly stable but we have seen more activity than this time last year. Brooks currently has 90 single family detached dwellings for sale. The average days on market so far this year has been 87 days and there are about 11 house sales per month. There is an estimated 8 month supply of homes on the market. The town of Vulcan reports 3 sales with an average of $220,300, Bassano has 7 sales averaging $158,429.

(Source: Realtor Association of South Central Alberta)

For 2011 the city of Brooks resale market had an average sale price of $237,018 which closely mirrors the first quarter of last year that had an average of $237,600. The have been 7 attached housing (duplex, apartments, condo’s, townhouses) sales in Brooks, with an average sale price of $162,071. For the first quarter, mobiles in Brooks had an average price of $58,870. Resale houses had an average 120 days on market before obtaining sale. Top sale price so far in 2011 has been $382,000. In the first three months of 2011 there were 5 foreclosure homes that were resold on the market.

Market information has come from Realtors Association of South Alberta

Myth: Assessed value should equate to market value.
Reality: This often is not the case. Often the assessor is unaware of the improvements or the current condition of the house. Often properties have not been reassessed for an extended period.

Myth: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality – no matter for whom the appraisal is conducted.

Myth: Market value should approximate replacement cost.
Reality: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind.

Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

Myth: In a robust economy – when the sales prices of homes in a given area are reported to be rising by a particular percentage – the value of individual properties in the area can be expected to appreciate by that same percentage.
Reality: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable properties and other relevant considerations. This is true in good times as well as bad.

Myth: You generally can tell what a property is worth simply by looking at the outside.
Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.

Myth: An Appraisal is the same as a building inspection.
Reality: An Appraisal does not serve the same purpose as an inspection. The Appraiser forms an opinion of value in the Appraisal process and resulting report. An inspector determines the condition of the home and its major components and reports these findings.

Alberta farmland values increased an average of 2.9 per cent during the first half of 2010, following gains of 3.8 and 1.0 per cent in the two previous reporting periods.

Values increased by an average of 0.4 per cent per month between January 1 and June 30, 2010, which mirrored the same average monthly increase during 2009. Farmland values in Alberta have been rising since 1993.

The more modest increase during the first six months of 2010 compared with the last six months of 2009 was due in large part to slowing urban sprawl, coupled with a decrease in the amount of land purchased by speculative interests.

Southern Alberta experienced steady demand from large landholders looking to expand operations in traditional dry land areas. Irrigation land remained in high demand, with land suitable for specialty crops driving the market.

In central Alberta, the transfer of family farms between generations was a main driver of land values. A decrease in the expansion of large land holdings and continuing challenges in the beef and hog industries contributed to a more moderate increase in land values compared to the previous period.

Source: Farm Credit Corporation Website