“Sunny Ways, my friends, Sunny Ways,”
(Is It Really?)
2015 was a year in Canada that will be remembered for generations to come. After 40 years of government led by the Progressive Conservative Party of Alberta, the NDP Party of Alberta stunned the populace and won at a time when the conservative vote was split between the Wildrose Party and PC party.
Almost immediately after the NDP rose to power, the situation in Alberta hit a rough spot. The introduction of a carbon tax, low oil prices for our product, and the failure of multiple pipeline projects that would help get Alberta Oil to new markets have contributed to a province-wide recession. Today, we are still experiencing high vacancy rates in commercial buildings in downtown Calgary, and it has also had a significant impact on the once-hot Calgary housing market.
As we look at the residential housing market today, we are faced with an oversupply of inventory across all areas of home sales, and it doesn’t look like it is going to improve anytime soon. The federal government purchased the Trans Mountain Pipeline only to have it delayed in regulatory hurdles earlier this year, and this has sent the oil and gas market in Calgary and the rest of Alberta into a tailspin because of the uncertainty that it has created for Oil and Gas producers and investors.
Buyers can’t afford homes that they may have been able to purchase five years ago; this has made people shift their purchase preferences from detached dwellings to condos or townhomes because of their affordability. Buyers are in a great spot right now due to higher than normal inventory levels, but sellers are becoming increasingly frustrated with the time it is taking to sell their homes as well as the realistic sale price as compared to the boom times.
As we head into 2019, the situation in Alberta housing market doesn’t look like it is going to see much of an improvement until the Trans Mountain Pipeline appeals finish. Some positive outlook is 2019 will have both a provincial and a federal election that could very well see the economic landscape in Alberta change dramatically.
When it comes to your next Realtor, make the right choice and ask questions about the current market conditions. With Jesse Davies and Associates on your side, you’ll be worry and hassle-free. Contact us today and see how we can help get your home sold or get you into your dream home.