On Wednesday, January 10th, I attended the 2010 Housing Forecast Seminar at the Shaw Conference Centre.  I was joined by 1000 industry members, including Realtors, Mortgage Brokers, members of the financial industry, and those wishing to gain an in depth review of what lies ahead in the Edmonton real estate market.  As someone who makes it my business to know what is going on in Edmonton real estate and the Alberta economy, I was excited to be surrounded by like-minded individuals and to hear their predictions for 2010.  Notable speakers included J. Angus Watt (Managing Director of National Bank Financial and “Alberta’s Business Authority”), Larry Pollock (President and CEO, Canadian Western Bank) and Ron Gilbertson (President and CEO, Edmonton Economic Development Corporation).

So what did these industry experts have to say?  Well, they did not mince words – the future is bright for Edmonton, and the time to buy a home is now.  Edmonton and Alberta continue to have better economic fundamentals that most, such as a decreasing unemployment rate, positive net migration, and a high quality of life (measured by factors such as housing affordability, a higher than average per capita income, and a rating of being one of the world’s greatest mid-sized cities).  Employment growth will return in 2010, and the unemployment rate should decrease to about 6%.  Potential areas of weakness are that Alberta has become a high cost location and businesses do have concern about the increasing cost of the Canadian dollar and future labour shortages.  Heavy oil has a growing role, and our oil and gas royalty structure has made an impact on the attractiveness of our supplies.  In addition, while interest rates are still low, we should not expect them to last and should plan for higher interest rates in the medium term.  Households must base their budgeting on an expected increase in the cost of servicing their debt and not count on low interest rates for the medium term.

As far as homes sales in Edmonton, there was a tremendous amount of activity in the last half of 2009, and that will continue as families feel an increasing level of confidence through 2010.  Larry Westergard (President, Realtors Association of Canada) went so far as to predict that there will be a 5% increase in the value of single family homes in 2010.  So, it is the ideal time to enter the market as a first time home buyer, or to upgrade to a higher value home in order to take maximum advantage of an increase in equity.  The current average home price is currently $365,000 for single family homes and $233,000 for condominiums.

On a global basis, technically the recession is over in most parts of the world, and the pace of recovery is tentative.  Corporations and governments generally entered the recession in better shape than in past downturns, and Asia (not the U.S.), will likely drive the recovery the rest of the way.

In summary, it is an optimistic time for Edmonton and that is carrying over in to real estate activity and an increase in home values.  As usual, it is my pleasure to help you translate this information in to your next property purchase and I look forward to hearing from you with any questions or to buy or sell a property.  I can be reached on my cell phone at (780) 934-8514.

Sincerely,

Sarah Dulmage, Realtor
www.knock-knock.ca
Re/Max Real Estate
Cell: (780) 934-8514

Nice Realtors for Nice People