Oil seeps into every area of Alberta's economy. The residential real estate market is no different. According to the Alberta Real Estate Association (AREA), a sluggish oil industry, more stringent mortgage qualifications, escalating interest rates, all played a part last year in falling sales, especially in places like Fort McMurray and Lloydminster. In fact, sales were down about 18 per cent below a 10-year average in most south-central areas of the province last year.
It seems buyers have the upper hand in the Cow Town real estate market. When it comes to the luxury sale of residential real estate in Alberta -- particularly Calgary -- the economic downturn has put a damper on sales of more upscale homes. Add to that other factors like tighter federal mortgage regulations and heightened interest rates, which are barriers to homebuying.
The resale home market in Calgary was hard hit in 2018. Residential real estate sales dropped but so did prices. In fact, Cow Town was one of the hardest hit Alberta city's when it came to resale properties last year. The Calgary Real Estate Board (CREB) said home sales were more than 14 per cent lower in 2018 than they were in 2017. Sales in December were even worse with a 21 per cent drop from the same time in 2017.
Those who are looking for affordable homebuying markets in the country should pay attention to Wild Rose Country. Alberta still tops the list of affordability when it comes to residential real estate. Wages in Alberta have kept pace with housing prices -- one of the primary reasons potential homeowners can still think about buying their dream homes that are still within reach.
It may have the word "cold" in its name, but Cold Lake is pretty hot where real estate is concerned. In fact, the northern Alberta town is one of the top places in the country for affordable residential real estate. A leading real estate website in Canada figured out home prices to income ratios for all significant Alberta markets and used that data in a comparison to single or dual median household incomes in that area.
It's well-known that buying a new home can be a difficult experience, but selling can be just as challenging. Homes often carry a lot of emotional value, not to mention often being the biggest asset Alberta families own. According to residential real estate experts, there are a few common mistakes sellers can make that cost them money in the sale.
Calgary's real estate market has been on the lips of many across the province, as sale rates continue to decrease through 2018. While a slowdown was expected by the Calgary Real Estate Board, sale figures have dipped lower than projected. From Jan. to Sept. 2018, less than 13,000 properties changed ownership in the Alberta city. This is a decrease of 14 percent in residential real estate sales from the same period in 2017.
Buying a house is a major financial decision. Naturally, the amount of debt and assets one has when taking on a mortgage is an important consideration. Is it a good idea for Alberta families to purchase residential real estate while they are facing debt from other sources? Unsurprisingly, the answer to this question can vary depending on the particulars of the financial situations.
When looking for a home, buyers have many options to choose from. Those who are seeking a location closer to one of Alberta's city centres may find a condominium to be a more affordable or convenient option than more traditional residential real estate. Those who are considering the purchase of a condo should consider a few specific things when making their choice.
Many people who are considering purchasing a home have considered the pros and cons of buying versus renting. Although there are some objective factors such as the housing market that may influence this decision, overall the choice comes down to personal preferences and financial situation. Here are some things Alberta individuals and families should consider when choosing between buying or renting residential real estate.