The oil market has had an effect on house prices in Alberta. Now with prices lower than they were a year ago does Alberta pose a good buying opportunity for real estate investors?
Don Pittis over at CBC says maybe not yet.
According to long time investment adviser and real estate guru Hilliard MacBeth, the bargain hunting in Alberta has already started.
“I’ve heard of lots of people who say, ‘The prices are down. I’m going to jump in,'” said MacBeth, Edmonton-based author of When the Bubble Bursts.
In fact, some of the people he advises have already identified a buying opportunity and jumped into the market, at least on behalf of their kids, who they are helping out in the role of bank of mom and dad.
“I would have counselled them against it,” said MacBeth by phone as he put on his ski boots in the Lake Louise parking lot. “I would have said, ‘Wait,’ because we’re early days yet.”
It’s more exciting to buy when prices are rising, so maybe try the Fraser Valley instead, where prices are up 27% over a year ago and they don’t have high paying oil jobs to lose.
“One of the things that was supporting Alberta home prices was the fact that our incomes were 40 to 50 per cent higher than the rest of Canada, and that’s changing very rapidly,” said MacBeth.
But property owners and prospective buyers elsewhere would be wise to watch and see if, indeed, the plunge is nipped in the bud by bargain hunters or whether prices continue to fall for a while yet.
Read the full article here.