Economic factors can have a big impact on property and development in Canada. This can be seen in Alberta, where residential real estate development grew 22 percent in the last quarter. This is led primarily by 37 percent growth in single-family homes. The increase comes after two years of decline in the residential construction sector.
While the growth in the third quarter of 2017 was substantial, construction activity is still below its 2014 peak. While experts say full recovery will take time, growth is expected to continue through 2018. Along with the building of new residential developments, the resale market is also seeing a recovery as Alberta emerges from its recession levels.
The residential construction market bottomed out in January 2017, and growth began shortly thereafter. Besides an economic upturn, some of the reasons this may be taking place include post-fire reconstruction efforts in Fort McMurry. However, the Calgary Real Estate Board chief economist noted that new housing stars were also increasing modestly. One Calgary-based broker noted that the increase in construction can be seen clearly around various residential areas.
Despite this upturn in certain residential real estate sectors, such as single-family houses, the condominium market in Calgary is still feeling the effects of Alberta's economic challenges. As the market continues to shift, new buyers, sellers and developers will enter the Alberta real estate market, and it is important for all interested parties to understand the residential real estate and construction laws in their areas. Contacting a lawyer is a good first step for anyone looking to buy, sell or build a home in Alberta.
Source: CBC News, "New home construction rebounds in Alberta", Dec. 5, 2017