FCC Reports Alberta Farm Land Value Increase

The average value of Alberta farmland increased 11.6% in 2015. This was after increases of 8.8% in 2014 and 12.9% in 2013. The majority of the province experienced a steady increase in farmland values throughout the year. The continued positive outlook on agriculture resulted in many producers purchasing land for expansion or to support succession planning. Agricultural land price increases were observed in northern, eastern and southern portions of the province, largely due to strong pulse crop prices. Continued strength in beef prices resulted in increased demand for land used for grazing in cattle producing areas as well. There were localized areas that started to reflect the impact of the downturn in the resource sector or appeared to have reached the point where the demand for cultivated land lessened.

2014 Alberta Farm Land Values Report

Alberta farmland values increased an average of 8.8% in 2014, following gains of 12.9% in 2013 and 13.3% in 2012. Values in the province have continued to climb since 1993.In southern Alberta, demand for irrigated land remained strong, especially from specialty crop producers looking to expand contracts. Traditional crop producers sought to purchase irrigated land due to the higher commodity prices seen in the first half of 2014. Dry land producers also contributed to a steady demand for farmland due to higher commodity prices and general optimism in the area.Strong beef prices have increased the demand for pasture in the more traditional beef areas throughout the province. This was especially prevalent in the central to northern east portions of the province.

https://www.fcc-fac.ca/fcc/about-fcc/corporate-profile/reports/farmland-values/farmland-values-report-2014.pdf

Colliers International Cap Rate Report Q4 2013

Each quarter Colliers International survey top investors, more than 250 commercial property brokers and 30 registered commercial appraisers covering all major markets in Canada regarding current market conditions. The following capitalization rates are based on the responses they provided for the fourth quarter of 2013. Please note that this is

http://www.collierscanada.com/~/media/Files/Research/2014/Q4%202013%20Cap%20Rate%20Report.ashx

Real Estate Update CREA

From CREA website:

Residential sales activity reported through the MLS® Systems of real estate boards in Alberta numbered 4,699 units in November 2014, rising three per cent from a year earlier. This was the best November in eight years and the third highest on record for the month.Nationally, home sales activity was up 2.7 per cent from year-ago levels in November 2014.

On a year-to-date basis home sales activity in the province (68,706 units sold) was running 9.2 per cent ahead of levels from the same time last year. This marked the second best year-to-date figure on record, standing just 1.8 per cent behind the all-time record set in 2006.

The provincial average price for homes sold in November 2014 was $407,071, an increase of 5.7 per cent from November 2013. This was the second highest average price on record. The national average price, by comparison, rose 5.7 per cent on a year-over-year basis to $413,649.

Monthly residential average prices were up from year-ago levels in South Central Alberta (+14.5 per cent), Lethbridge (+12.0 per cent), Edmonton board (+10.6 per cent), Lloydminster (+9.8 per cent), Medicine Hat (+8.9 per cent), Grande Prairie (+8.4 per cent), Fort McMurray (+7.2 per cent), and Calgary (+3.8 per cent). Average prices declined on a year-over-year basis in Alberta West (-0.2 per cent) and Central Alberta (-0.7 per cent).

New listings on the MLS® Systems of real estate boards in Alberta numbered 6,005 units in November, an increase of 6.7 per cent from a year earlier. Active residential listings numbered 18,452 units at the end of November, edging up 1.3 per cent from one year earlier.

There were 3.9 months of inventory at the end of November 2014, little changed from 4.0 months at the same time one year ago and below the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The value of all home sales in the province totaled $1.9 billion in November 2014, up 8.8 per cent from November 2013 and a record for the month. The dollar volume of all home sales in Canada was up 8.5 per cent on a year-over-year basis.

Sales of all property types in Alberta numbered 4,998 units in November, up 1.3 per cent from November 2013. The value of those sales amounted to $2.1 billion, rising 4.9 per cent from a year earlier.

A total of 2,292 home sales were recorded through the MLS® System of the Calgary Real Estate Board in November, rising 5.5 per cent from a year earlier. The combined value of home sales activity in Calgary was $1.1 billion, a 9.5 per cent increase from year-ago levels.

Real Estate Update Alberta

Residential sales activity reported through the MLSR Systems of real estate
boards in Alberta numbered 6,354 units in August 2014, rising four per cent
from a year earlier. This was a new record for home sales in the month of
August.Nationally, home sales activity was up two per cent from year-ago levels in August 2014.

On a year-to-date basis home sales activity in the province was running 10
per cent ahead of levels from the same time last year. It marked the best
first eight months of any year since 2007 and the third best ever.

The provincial average price for homes sold in August 2014 was $397,701 an increase of four per cent from August 2013. The national average price, by comparison, rose five per cent on a year-over-year basis to $398,618.

Monthly residential average prices were up from year-ago levels in South
Central Alberta (+27 per cent), Lloydminster (+15 per cent), Grande Prairie
(+10 per cent), Central Alberta (+7 per cent), Lethbridge (+7 per cent),
Calgary (+5 per cent), and Edmonton (+4 per cent). On the other hand prices declined in Alberta West (-2 per cent), Medicine Hat (-2 per cent) and Fort McMurray (-7 per cent).

Alberta Farmland Increases 2013

Alberta farmland values increased an average of 12.9% in 2013, following gains of 13.3% in 2012 and 8.7% in 2011. Much of this increase occurred in the first half of the year. Values have continued to rise in the province since 1993. The strong agricultural commodity prices in the first half of the year along with increased oilfield activity spurred confidence in the economy. Land prices either increased or remained steady throughout most of the province. Location and availability were the main price drivers. Competition for land caused prices to increase along the Highway 2 corridor, particularly for agricultural holdings. This reflected continued optimism in agriculture. Southern Alberta continued to see high demand for irrigated land from specialty crop producers looking to secure contracts and traditional crop producers seeking irrigated land for production. Demand from producers looking to expand their land bases to increase efficiencies also drove up farmland values

Source: https://www.fcc-fac.ca/fcc/about-fcc/corporate-profile/reports/farmland-values/farmland-values-report-2013.pdf

2013 Stats for Medicine Hat

March 2013 statistics for the City of Medicine Hat showed the average
residential sale price was $259,910. Year to date for 2013 showed an average sale price of $255,742. Monthly residential average prices were up from March 2012 for Medicine Hat(+1 per cent). Residential listings are down from 526 listings as of May 2012 to 365 listings as of April 2013. 2012 vacancy rate was 7.0% and the average rent of a two bedroom apartment was $705 per month, with a 2013 forecasted vacancy rate closer to 6.0%.

(Information provided by Medicine Hat Real Estate Association, CREA, CMHC )

Farm Credit Canada Report Fall 2012

Farmland values in Alberta increased an average of 5.7% during the first half of 2012, following gains of 4.5% and 4.0% in the previous two reporting periods. The province has seen values continue to rise since 1993.

Overall, northern Alberta experienced strong increases in farmland values, corresponding to very strong commodity prices. Several areas saw larger farm operations consolidate their land base. Competition for land caused prices to increase, with location and availability as the major drivers. Some areas, primarily in the northern Peace Region, saw land prices stabilize, possibly in response to concerns about moisture conditions.

Once again, in central Alberta, strong cattle and grain prices corresponded with an increase in the price of land.The irrigation area of southern Alberta saw robust demand for irrigated land, resulting from high commodity prices and specialty crops grown under contract. The Lethbridge area also saw strong demand for good cropland.

Source: http://www.fcc-fac.ca

June 2012 Medicine Hat Real Estate Report

May 2012 statistics for the City of Medicine Hat showed the average residential sale price was $263,949. Year to date for 2012 showed an average sale price of $257,482.

Monthly residential average prices declined in Medicine Hat (-0.1 per cent), Lethbridge (-3 per cent), and Alberta West (-7 per cent). As of June 2012 there are currently 428 active residential listings which is
down from the month of May 2012 which had 438 active residential listings.

(Information provided by Medicine Hat Real Estate Association, CREA, CMHC )