Found 4 blog entries tagged as Economy.

Real Estate Market Value

The concepts of Market Value and Purchasing Price!

Market Value

  • Market Value, often referred to as Fair Market Value, is the estimated amount for which a property or an item would trade in a competitive and open market environment.
  • It reflects the price that a willing buyer and a willing seller, both having reasonable knowledge of all relevant facts and neither being under any compulsion to buy or sell, would agree upon.
  • Market value can fluctuate based on demand, economic conditions, and other market dynamics.  

Purchasing Price ( Purchase Price ) 

  • The Purchasing Price is the actual amount paid for a product or service at the time of buying. It is the cost at which someone acquires an asset, commodity, service, or…

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Oil and Gas Capital Spending

Rob Roach, ATB Economics 

Oil and gas capital spending better but far from great

As expected, oil and gas extraction capital spending in Canada has improved since the lows reached last year due to the oil price crash and the onset of the pandemic.

Seasonally adjusted spending by oil and gas companies in the second quarter was 46.4% higher than during the same period last year for an increase of $1.8 billion.

There is still some catching up to do with spending over the first half of the year down by 10.3% ($1.3 billion), but forecasts suggest that the difference will be made up over the second half of the year.

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New House Prices On The Rise In Alberta

The average price of newly built homes in Alberta was on a downward trend before the pandemic, but has picked up some steam in recent months.

As of February 2020 (the month before the pandemic was declared), the new home price index for Alberta was 2.6 per cent below where it was in December 2016.

The price index barely moved during the pandemic in 2020, but it did get as low as 3.3 per cent below the baseline set in December 2016.

The index ticked up slightly in each of the first four months of 2021 to reach its highest level in six years. The increase, however, was modest at just 1 per cent above where things stood at the end of 2016.

The paths…

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What Is A Housing Bubble?


A housing bubble means that there is an increase in demand but a decrease in supply. In this case, fewer houses are available compared to the number of people looking to buy.

What happens during a housing bubble?
When a housing bubble occurs, house prices increase significantly. The home that you thought was reasonably priced is now priced considerably higher.

Why does a housing bubble happen?
There are a few things that spark a housing bubble. However, all aspects will play a role in making the housing bubble happen. 

- The population increases significantly.
- Low interest rates to make homes more affordable or mortgage products that are extremely attractive to home buyers.
- Risk taking as a borrower.             …

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