Alberta Real Estate Market Rebounds-00-3961

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Alberta Real Estate Prices Back On Track

Two years ago, the economics within the Province of Alberta were solid as a rock. Business was growing at a nice steady pace. Major corporations were shifting their head offices from Eastern Canada out west to either Calgary or Edmonton. The price of commodities was fairly stable. Home prices were moving up at a consistent 3 to 6% a year. Things were great!

Then the price of oil started to climb rapidly. The market in Alberta seen a huge influx of foreign investment and immigration. The housing and employment sector could not keep up. There were new homes being build and sold before they were started. There were restaurants closing because they couldn't find staff to work for $20/hr. We were having a real serious economic crisis. The boom drove demand for housing through the roof. Many eager buyers were caught in bidding wars and overpaid to get into a home.

Fast forward to 2 years later. The price of oil returned to its previous level. All the dream projects that were once projected have now been put on hold. The economy here is till ...
... good. There are still lots of jobs. Homes are still selling at a measured pace. Those who were overextended have been purged from the market, mostly at a loss. The number of listings on the market is almost back to normal levels. The number of sales is picking up as historicly low interest rates are creating opportunity for those who could not enter the market in the past 2 years.

As a Realtor and Mortgage Broker in Alberta, Robert May has seen the economy and market in Alberta and was at the front end of this trend. Customers who were prepared for the boom and bust found opportunity where others found crisis. Getting solid real estate advice from someone who has more in their mind then just thinking about their next commission cheque is imperative.

Many speculators have been shaken from the market. Many fly by night real estate people are on their way out the door. All your neighbors who used to call them selves 'real estate investors' or 'house flippers' are all wondering where their RRSP money went to. And yet through it all, my firends, family, and clients sleep soundly with their wise purchases. If you would like some reliable advice and conversation about Lethbridge real estate or mortgage financing, feel free to contact me. I always have time to talk business and to help keep you from following someone elses bad advice.

The following is an article from CTV Calgary today which echos the sentiment that I have just expressed.

Calgary houses at pre-boom prices

credit to: ctvcalgary.ca for this following article

A new report claims homes in Calgary are the most affordable of Canada's big cities.

The RBC study says homeownership costs have dropped steeply in Alberta taking it back to pre-boom levels.

The study says housing here is now as affordable as it was in late 2005 and early 2006.

The RBC study based the report on the costs of owning a detached bungalow and it takes salaries and homeownerships costs, like mortgage payments, property taxes and utility bills, into account when determining affordability.

"In Alberta you have to remember we also had the fastest price growth in all provinces in Canada at one time and we also experienced the sharpest decline," said Lai Sing from the Canada Mortgage and Housing Corporation, "so in terms of affordability its not surprising affordability has increased the most here in Alberta."

The CMHC believes housing prices in Alberta have now bottomed out and will continue to rise.

About the Author:

Robert May is a Realtor, as well as the broker and owner of Rainbow Realty of Lethbridge Alberta . He is also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta. He has been in the Lethbridge real estate industry since 1993 and offers full Lethbridge MLS real estate services to Lethbridge and surrounding area, as well as Lethbridge mortgage financing, mortgage refinancing , and preapprovals. Check the following link: lethbridge realestate