Q: Isn’t it risky to buy in a market that has been rising so quickly? What if it drops?
A: No! In Edmonton’s current market there have been substantial gains in prices, but these prices are supported by Alberta’s increase in wages. There is sufficient demand for housing due to high in-migration of people to Alberta. Our economy has only begun to take off and the in-migration has only begun. Alberta has many safe years of investing left and lots of room for prices to rise. Compare our prices to Vancouver, Toronto and Calgary. Learn more..
Q: Isn’t there a real estate bubble forming?
A: No! A Real estate bubble forms when prices are rising faster than wages can support. The perfect range for housing affordability is 29% - 35% and Edmonton is at 32.5%. We have real Fundamentals supporting our prices, unlike Vancouver where there is speculation that the Olympics will drive up prices. Vancouver’s housing affordability is at 58%. What will happen to all the jobs when the Olympics are gone? People are having trouble affording a home already never mind when there are no jobs around to support the rising house cost. Learn more..
Q: Remember what happened in the 80’s when the Real Estate market crashed?
A: Today it is exactly the opposite from what it was back in 1980 for these reasons:
- We have low interest rates. In 1980 it was at 16+%.
- Alberta now has very diverse economy... unlike the 1980's.
- Alberta had political problems in 1980.
- Alberta had no reserve fund in 1980. Alberta now has billions of dollars in reserve.
- There was a surplus of 'cheap' conventionally drilled oil in the world in 1980
- National Energy Program was introduced and will not be introduced again. The Canadian Government has already received 42% of the royalties from the oil sands.