Picture Credit: Unsplash Investors and analysts show confidence in new spurt of growth in the Western Canada property market. According to Business Insider, ReDev properties leading the way with quick closings and a search for new commercial property investments among Western Canada's shopping plazas. Commercial real estate investment activity rose again in 2017. With other global and investment trends changing, experts believe even better things could be in store for the market in 2018. The End of the Bull Run for Stocks Many have had a hard time pulling back from stocks due to recent surges, new records, and even higher revenues reported by Facebook and Amazon. Yet, the Financial Post reminds us that we are well beyond where we were in the 2008 crisis, and price to earnings and stock prices are outrageous at best. Some have become immune to these warnings, yet, sooner or later common sense says it has to come crashing down. No one can really afford to keep their money in cash or suffer the miserable returns of bonds or savings account either. Fortunately, some real estate markets and sectors still seem to have legs for savvy investors who want to protect and grow their wealth and incomes. East vs. West It is true that some Canadian property markets still seem hot and highly priced. The government is unrelenting in trying to cool those markets, and sooner or later they will probably be successful. We can definitely see that with their focus on chilling things out in Toronto. New CMHC stress tests show that even with a 15.3% unemployment rate and 31.5% drop in housing prices by 2022, the country and major financial institutions would remain very resilient. Of course, when things over-correct they may see double that amount of damage. Yet, more importantly, we have to remember that all real estate is local. Whether Toronto and Vancouver continue blazing even higher housing cost records, or they completely melt down in the next 5 years, there is going to be even more demand for more affordable housing, business rents, and better investment returns in other areas. Many may find those demands being met in Alberta. This is particularly true of Edmonton, where Realtors report housing prices are even $32 per square foot cheaper than in Calgary, and office vacancies are almost nonexistent, and a rate of just 1.77%. Where housing is more affordable, and business is strong, good retail sales figures usually follow too. Summary More good things could be in store for Western Canada's real estate markets in 2018. This is particularly true of Alberta and Edmonton, where things are more affordable, and there is more room for growth. Sooner or later more capital is likely to be seeking out these investments. Though local experts are already out securing the ripest opportunities to capitalize on.
- May 7, 2018
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