If you’ve been paying any attention to the local and national news, you’ve no doubt heard that the sky is falling. This summer, oil prices fell below $50 per barrel for the first time since 2009, while the Canadian dollar is trading at $0.75 USD – its lowest valuation in 11 years. The Bank of Canada has dropped its benchmark interest rate to just half a percent, and although home prices in cities like Vancouver and Toronto show no signs of slowing, Edmonton and other major Alberta cities are seeing much lower home prices. If you’re considering buying an Alberta home in the near future, there’s no better time than right now. Here are just a few reasons why savvy buyers are snapping up Alberta properties like they’re going out of style.
Sales are Down, But New Listings are Way Up
The Alberta real estate market is most definitely a buyer’s market right now. Sales numbers this year have been dropping, especially in Edmonton, while the number of days on market has risen. The number of properties on the market is also up, which means buyers will have lots of choices. More choices means lower prices and more bargaining power, and for buyers, having a strong bargaining position is always a good thing.
The Oil Collapse: Good News for Buyers who Want a Deal
The recent collapse in the price of crude oil has had a ripple effect throughout Alberta’s economy, with job losses in the energy sector reducing household spending and slowing economic growth. The energy sector accounts for about one quarter of Alberta’s GDP and employs seven percent of Alberta residents – and that means cheap oil is going to greatly reduce economic activity in the province. BMO is estimating that Alberta’s GDP will grow just 0.4 percent this year, and a number of layoffs earlier in the year has left over 11,000 Albertans out of work. With homeowners looking for work in other cities and provinces, and with the economy in a slump, buyers should have an easy time finding affordable properties.
Alberta’s Housing Market is Set to Rebound Next Year
A recent report by RBC is predicting that Alberta’s real estate market is set for a moderate rebound in 2016. Demand for homes will rise, with a number of new buyers entering the market to capitalize on low prices. That means if you want to find a great Edmonton property at the best possible price, you’ll want to act now before prices start to rise again. It may seem like there’s nothing but bad news about Alberta right now. But low sales and lots of listings mean that there’s never been a better time to buy a Prairie home in Edmonton. The slow market means lots of sellers are eager to make a deal, and savvy buyers will find lots of great choices for affordable prices. But this buyer’s market won’t last long, which is why now is the time to act if you’re considering buying a home. Finding your next Edmonton home can be fast and easy, and with the right real estate agent, you’ll be able to get your dream home at a fantastic price.