Home builders in Wild Rose Country say the industry is in a dire straits situation. Real estate transactions in Alberta are affected by a myriad of forces, including market fluctuations and supply and demand. Builders believe that the market is suffering from many uncertainties and the fact that more people are taken out of the market because the prices of homes are out of their reaches. With fewer builds come fewer construction jobs.
Some construction companies have had to cut their staff and cut various projects due to the difficult economy. BILD Alberta, representing those in the building and construction industries, says there are more vacant homes on the market now than ever before and housing starts are the lowest they've been in 10 years. Regulations from the federal government aren't helping matters, a BILD spokesperson says. Those include a buyer stress test and higher interest rates from the Bank of Canada.
The Alberta government is also considering new legislation regarding building costs, which won't help the industry, BILD says. All this is amid Canada Mortgage and Housing Corporation (CMHC) predictions of a flat Alberta real estate market in 2019. The BILD spokesperson says that those in the construction business always try to look on the positive side, but that is has been a struggle lately.
Whether the market is strong or flat in Alberta, there will always be real estate transactions on the go. There are still people who are selling and buying property no matter what the market is doing. Buyers and sellers should be aware of some of the laws the govern the real estate industry in order to make the wisest decisions possible. Obtaining legal counsel is a smart way of getting that information.