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With an economy in a relative state of flux, Alberta is a different place than it was 10-15 years ago. Now, despite what you may hear, it’s not all bad. There are plenty of interesting things still happening and plenty more interesting things happening in the Alberta Condominium Industry.
As such, we thought it would be important to cover what’s happening in the real estate market and how it relates to condo prices and their place in said market. Keeping abreast of these trends whether you already own a condo, or are looking to buy one, is certainly important. Whether it’s an investment property or where you call home, having a grasp of the local market can help to determine future decision-making as well as those in the short-term. With that in mind, let’s take a look at six market trends you need to know about in, as they relate to the Alberta condominium industry.
Condo Market Trend #1: Buyer’s Market
With prices having dipped in most Alberta markets, it has created an influx of properties for purchase. As simple economics has taught us, matters of supply and demand rule here. In the Calgary market specifically, there have been many condos put up in recent times that remain uninhabited. What this means is that a condo can now be purchased for quite a bit less than the previous few years. If you’re looking for a new home or investment property, now would be a great time to snap one up.
Condo Market Trend #2: Slower sale times
Being on the other side of the coin, however, can certainly be difficult right now. With so many choices being out there, paired with the fact that many people in the province face career uncertainty, sale times have become quite a bit slower.
Condo Market Trend #3: Downgrade in real estate investment trusts
Investopedia describes a real estate investment trust (REIT) as such: A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges like a stock. REITs provide investors with an extremely liquid stake in real estate. They offer special tax considerations and typically offer high-dividend yields. What this is saying is that investors no longer are looking at real estate as an extremely profitable model for investing. They’re not quite as stable as they were in recent years. This is something that may be important to take note of if your money lies here.
Condo Market Trend #4: Condo prices in Edmonton remain steady
Unlike Calgary, over the past year, Edmonton’s condo prices have actually remained quite steady. This doesn’t quite create the buyer’s market that is being seen in Calgary, but it means that as an investment, condos are still solid. There’s no risk, as it relates to condos specifically, of a housing bubble, which is important. While this is something of an aberration in the Alberta market right now, a steady condo market is a great sign for those who have previously invested in a home or are looking to get into the Alberta Condominium market.
Condo Market Trend #5: Oversupply of in the Calgary Market
As was previously touched upon, Calgary’s booming growth over the previous years has culminated in an oversupply of condos. This brings to mind two different thoughts: the first is that it’s a fine time to buy as the excess of properties has brought prices down to levels that haven’t been seen in quite a few years. If you’re looking to buy, now is a great time as purchasing a home in Alberta has become achievable for most people again. The second thought is the other side of the coin, and how a slow market negatively affects many people. If you’re looking to sell, now is not the best time to choose as lowered prices and an oversupply mean that people can afford to be picky about their home. There are positives and negatives that come along with condo markets like this one, and it’s important to know where you stand and how things look.
Condo Market Trend #6: Slow down in Alberta condominium sales
With a slower moving condo market comes a slowdown in sales activities as well. As previously mentioned, people tend to take their time and weigh their options a little longer when the market isn’t as competitive. With the way things stand right now, this is largely where the Alberta condominium market is at. The positive to this process, however, is it gives companies a chance to take a look at where they are and potentially streamline some of the slower and older processes. When things are going well, changes are rarely made. When things slow down, it’s a fine time make changes to better the organization.