February Real Estate Update - Dispelling the Doom & Gloom --
Everywhere we turn we are surrounded by the media forecasting that the sky is falling. This isn’t comforting news when you are considering making a very important decision in your life; buying or selling your home. With the constant exposure to the dreary forecast, we must take a moment to consider how fortunate we truly are. Alberta is in great financial shape to weather the storm.
As one year closes and another begins, we can be comforted by a strong Albertan economy. As usual, oil is a main topic of discussion these days; however, oil is not the only source of sustenance in our economy. We have other natural resources such as coal and a large agricultural industry that support us as well.
Recently, Kirsten and I attended the Canadian housing forecast for 2009. The message that was delivered from the conference was that Alberta, and particularly Edmonton, were the most likely to come out of the ‘doom and gloom’ on top. The forecast calls for small losses in the beginning half of 2009 but an adjustment by the later half of the year. Alberta is still forecasted to have a high percentage of new immigrants into the province; particularly from the eastern region of the country where it is predicted to be hit the hardest.
Kirsten and I strongly believe in Edmonton and the Province of Alberta. The government has reacted quickly and wisely to the market conditions. Interest rates are the lowest they have been since the 1940’s. Most home builders have corrected their inventory levels and pricing, while slowing down their building process.
First time buyers are embarking on great opportunities right now; interest rates are at record lows, entry level homes have become priced within sight and most importantly, buyers can take a little bit more time to find the ‘right’ home.
Sellers--don’t lose hope. In today’s market, amidst the ‘doom and gloom,’ there are still approximately 30 housing deals made every day. Every home that is well priced will find a new owner. Showcasing the value in each and every property is necessary to entice a buyer to put pen to paper. Internet marketing is essential to getting buyers into homes. With the abundance of technology, buyers typically begin their search online; viewing photos, comparing prices and reading descriptions. Today, sellers have a more challenging process; however, properly priced homes are still selling.