DailyStats.ca

""The price of single family homes in Calgary has been on the rise all year, while in Edmonton we are seeing increased demand for single family homes but prices are pretty stagnant. Why do you think that is?""

Good analysis of the long term relationship between Calgary and Edmonton...

http://edmontonhousingbust.blogspot.com/2009/03/tale-of-two-cities.html

"Depending on the period, the overall average is a bit different. If you include everything right back to '73, Calgary is 21% higher (median 20%)... but over the last 20 years, they have been 27% higher (median 26%)."

"So, to make a long story short... I'd say Calgary prices we should generally expect be about 20-25% higher on any given month."

Right now, our median (Calgary) is about 18% higher.

The trend this year doesn't seem *that* different between the two cities.  Edmonton seemingly seems to have been tailing off since summer, while the prices here seem to be staying pretty stagnant since October.

If I recall correctly, Edmonton's unemployment rate is also a bit higher than ours right now.  Maybe it's just hitting them a little earlier than Calgary, could be a glimpse of our future.

Over time, I'm pretty sure it's safe to say that the two cities will track each other almost to the tee, with the 20-25% price premium for Calgary.

http://dynamic-evolution.com/ehb/090309-2.jpg

Calgary has carried a premium due to the relatively higher income levels of its citizens compared to Edmonton.  Not just average income, but rather if you take the top earners in Edmonton and compare them to Calgary you will see that Calgary has far more "super rich" people.  Most of the big energy head offices are in Calgary, leading to a higher number of executives living here.  Edmonton, though having some executives in other industries, lacks the large white-collar presence in the energy industry.

Proximity to various outdoor activities has also been a draw for people.  Banff, Canmore, and winter sports in the mountains just 1hr away.  Also, hiking, camping, etc in the summer.  Speaking of mountains, Calgary has also been blessed with the chinook winds - which have been apparent for most of this month.

Edmonton has a far better University however.

http://www.canequity.com/mortgage_rate_history.stm

October 2008:

Median SFH = 390k, people taking out mortgage for 350k @ 4.75% = $1385/month

April-> July 2009:

Median SFH = 400k, people taking out mortgage for 360k @ 2.25% = $675/month

For a product that became 50% cheaper virtually overnight, I'm surprised sales aren't more brisk really.

CM

What????? You don't use simple interest for a mortgage calcualation.

350k @ 35 years @ 4.75% = $1,700.82/mth

360k @ 35 years @ 2.25% = $1,237.27/mth

Difference $463.55/mth = 37%

350k @ 25 years @ 4.75% = $1,986.09/mth

360k @ 25 years @ 2.25% = $1,568.20/mth

Difference $420.89/mth = 27%

Both these assume CMHC are included in the total mortgage amount.

You are using a simple interest calculation which standard mortgages don't use.  The only thing I know that uses simple interest are interest only LOC's.

CM, maybe the recession has something to do with that.

Layoffs start in the field (Edmonton) and work their way up to the office (Calgary).

CM, where are you getting your numbers?  

A 360K mortgage at 2.25% is $1237/month @ 35yr amortization.  Am I missing something?

And a 350K mortgage at 4.75% is $1700/month @ 35 yr amortization.

Still a savings but only 27% cheaper.