The Media has had a great time placing its opinions on the forecast of the real estate market in Calgary. When the market is strong, we are considered to be over-inflated. When the market slows down, media claims a massive market crash. Instead of listening to these dramatic opinions of the media, take a look at the numbers.
The average sale price of homes has only dropped -0.5%, a minimal half a percent, from Jan 2014 to Jan 2015, while the year-over-year employment gains in Alberta resulted in 35,400 new jobs. Our unemployment rate fell to 4.5% from 4.7%. Production of Crude Oil represents just 3% of Canada’s GDP. Along with growth figures (GDP), inflation and net trade, unemployment is one of the key indicators of a country’s economic health.
The benefits of lowered Oil Prices: Oil Export increase due to more affordable Oil. More jobs in Transportation. Lower Looine will increase exportation of products internationally across Canada as a whole.
So instead of breaking out your Apocalypse Starter Kit and being to cry wolf that “the sky is falling”, take a minuet to calculate the numbers. The biggest threat to Real Estate right now is consumer confidence. All stocks will rise and fall, just because we are seeing a slight market correction does not mean you should throw in the towel on investing in Real Estate. This current market is a great window of opportunity to be investing. Due to high inventory we are in a Buyers Market. This is Basic economics of Supply & Demand. Real Estate still one of the best investments you can make for long term results.
“Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt
– Franklin D. Roosevelt