For those of you who haven't been paying attention to Alberta's economy, the oil industry is currently facing a decline. Oil has always been a major factor in Edmonton's economy and coupled with the winter season, the common assumption is that real estate in Edmonton is in a dire situation. Although many of us know someone who is feeling the changes within the market, I want to assure you that Edmonton's real estate activity is going strong despite the fluctuations.
According to a November 2015 report from the Realtors Association of Edmonton, overall real estate is only down by 3% from last November. Thanks to the amazing weather and the amount of properties that were available, Edmonton buyers' efforts counteracted the expected downturn that generally happens during this time of year.
The report also mentioned that Edmonton's rental vacancy is expected to increase to about 3.5% in 2016. The bump in apartment buildings throughout the city means residents will have more options to choose from when it comes to finding a home that is right for them.
But don't count out Alberta's economy just yet. According to the Conference Board of Canada, the province is set to pick up in 2016. "The trade sector will drive much of the improvement, underpinned by strong growth in the U.S. economy and a lower Canadian dollar," said the Ottawa based think tank. RBC Economics' senior economist Robert Hogue is also predicting that Alberta will end its slump. "We’ve seen home sales pick up slightly since the winter," said Hogue, "and we think that going forward it’s going to be about stable or might increase a bit.” While all Edmonton properties face downside risk in this ever-changing economy, the relationship between the oil and real estate markets isn't as dreadful as some people are making it out to be.
If you're thinking about buying a new home or selling your current one or you just want more information about Edmonton's real estate market, I would love help out any way I can. Feel free to contact me at 780-438-2500 or email me at chris@proctorteam.com; you can also find me on Facebook and Twitter. Hope to speak with you soon!
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