Calgary may be experiencing a recession complete with high unemployment and slow growth but that isn’t stopping developers from going full-steam ahead with new condominium projects. There are currently 88 condo construction sites spread out between the city centre, developed communities, and developing communities which will result in 6,522 new places for people to live.
Buying a home is often one of the most significant financial transactions a person will ever make. So how do you protect your investment? Do your homework from the start.
When it comes to the luxury real estate market, Vancouver and Toronto seem to have secured their respective spots at the top but according to an industry report from Sotheby’s featured in the National Post, Calgary is poised to take over. Partly attributed to the province’s gross domestic product surpassing expectations as well as to increased manufacturing exports and oil prices, consumers appear to be willing to translate their newfound confidence into sizable real estate transactions.
Toronto and Vancouver aren't the only cities that will shine this year for real estate deals. According to experts in residential real estate in Canada, Calgary and Montreal will also be in the list of star cities. Calgary is expected to make an immense recovery this year and has already seen a 45 per cent increase in sales from this point last year, especially in the luxury market.
Through the bitter winds of the winter often come the encouraging winds of change. This bodes true for the residential real estate market in central Alberta after a somewhat chilly November and December, according to the Central Alberta Realtors Association (CARA). In fact, the entire province saw an almost 7 per cent increase in sales in January from the previous year.
There are times when the real estate market gets pummelled because of general economic woes. For a while now, residential real estate in Alberta has been suffering the backlash of difficult times in the oil sector. That is expected to continue into 2019, but there is positive change in the air, too, according to some experts. A spokesperson for a major Alberta construction company estimates the spring will see construction increase with demand on the heels of recovering economy.
Edmonton's condo market is expected to come up against some difficult times, according to a real estate expert. In terms of residential real estate in Alberta, the condo sector has always been a pretty strong contender, but is apparently on life support in the Edmonton area according to the expert who recently spoke to a panel of developers. In fact, the man said that an investor market is basically nonexistent in the area, and condos are mainly purchased by first time purchasers or those who are downsizing.
Potential property purchasers may not be able to afford as much house as they initially thought thanks to a looming mortgage stress test. The demand for residential real estate is expected to drop in Alberta, particularly in the Calgary area. This thanks to the federal government's new mortgage rules that raises the bar in terms of the amount of loan for which purchasers will be able to qualify.
Homebuyers in the west can weigh their options between Alberta and British Columbia, but chances are there's no contest when it comes to what money can buy in Edmonton versus Vancouver. For those who are qualified for a couple million when it comes to a residential real estate purchase, Alberta will definitely get them more house for their dollars. Shelling out $3 million for a property in Vancouver will maybe get a purchaser an old fixer upper, while for the same price, a purchaser can buy a bungalow in the foothills in Alberta with a stunning mountain vista view.
A recent survey by a leading Canadian real estate company shows that the real estate market is changing around the country. In Alberta, particularly Edmonton, residential real estate prices are flat. The market trend is being blamed on the lack of economic security in Wild Rose Country.