CTV News on January 4, 6:00PM reported the forecast for housing in 2017 was “grim”. Don’t believe everything you hear on the news!
I look forward every year to attending the annual Housing Forecast Seminar put on by the REALTORS(R) Association of Edmonton. They invite several economists to present as well as our own Chairperson with predictions for the year ahead. The RAE predicts the following: Prices on average will drop a marginal 2.2% for Single Family Dwellings, 3.8% for Condos, however the Duplex Row housing market will increase by .5%. Although this outlook isn’t on the upswing, the margins are small, and may not be realized if your property is in good shape and is priced right. The rental market continues to have a 7%+ vacancy rate which is going to affect investors.
The Economists from Canada Mortgage and Housing, Government of Alberta and City of Edmonton were primarily in agreement about several things. Interest rates will stay low, oil prices will likely not change much from $53-$58/barrel WTI prices and unemployment rates are going to stay higher than usual until 2018. It is our immigrant population which is off setting the inter provincial migration so we will be at a net zero population growth over the next year.
We are in for a lean year, but not a “grim” one. If you need to buy or sell in 2017, work with a real estate professional who will be able to walk you through how to maximize your real estate investment!