6 Need To Know Trends About The Alberta Condo Industry
With the economy in a state of flux right now, Alberta is a unique spot than it was 10, 15, or even 20 years ago. Now, despite all of the doom and gloom, it’s not all bad as you might think. In terms of the condo industry, there is still plenty of interesting things happening.
Because there is a handful of things happening in the condo market, we figured it would be a good chance to talk about some of the trends that are happening and what they mean to the condo industry. Keeping up with trends is important for any person involved in the condo industry. Trends alone can be the determining factor about whether you invest in a property or invest in your own. So to help you make the best decisions you can, here are some trends that you want to be looking out for.
Bigger Buyer’s Market
With the dip in prices in most Alberta markets, this has given a rise in properties available for purchase. This is simple economics of supply and demand. However there is more to look at in this instance. When you look at the Calgary market specifically, you’ll find condos are being put up in more recent times that are still uninhabited.
What this means is that a condo can now be purchased for a much smaller price than what it would’ve been charged at from previous years. So if you’re looking for another investment property or a new home, this is a good chance to buy one.
Slower Sale Times
With the previous trend in mind, it makes sense that being a seller in this scenario isn’t ideal. There are so many options out there and many people have so much economic uncertainty during these times. As such, more people may be inclined to stay in their current living situation and not move around so much. As such, you’ll find the market to be slower when searching for buyers.
Downgrades In Real Estate Investment Trusts
A real estate investment trust (REIT) is a type of security that invests in real estate through either property or mortgages which will then make trades with those on major exchanges like a stock. The idea with REITs is that they provide investors with an highly liquid stake in real estate. There are special tax considerations involved and they also offer high-dividend yields.
That all sounds well and good, however during these times where the stock market has crashed and isn’t in the best of shape, it makes sense people aren’t eager to buy these right now. The stock market itself isn’t as stable as it once was in recent years. This is something to keep in mind if you have money here.
Steady Condo Prices In Edmonton
Unlike Calgary which has seen a rise in supply and lower prices, Edmonton has remained steady over the past year. Because of this, you don’t see the same kind of buyer’s market as you’d see in Calgary. That said, you can see Edmonton as an investment rather than as an area to buy up condos.
Because of the stable prices, there isn’t as much risk as it relates to condos. This is good as you can invest in peace without risking of investing in a housing bubble.
Overall, even though there is an aberration in the Alberta market, the steady condo market is a good sign for those who have invested in a home or are looking to be more involved in the Alberta condo market.
Oversupplied Calgary Market
Since the Calgary condo market was booming over the previous years, this has developed into an oversupply of condos. This has brought forth two different thoughts.
First that this is a great time to be buying any of the excess properties. The prices have been the lowest they have been in a few years so it’s a wise move. If you’re in the market for a home in Alberta, this is a better chance than ever.
The second though is the other side of the coin and how slow sales are. This slow market has impacted a lot of people. Because there are so many vacant condos, now isn’t the best time to put up that for sale time.
On top of that, because there are so many options, people can afford to be pickier about their home. All in all there are positives and negatives to condo markets like this one and its important to know where you stand.
More Slow Down in Alberta Condo Sales
As we’ve iterated already, the market is slower in terms of sales. Because of this, people will be weighing their options more and will take their time with this decision. With how everything is standing at the moment, we have to accept that this is how the market is going to be like for a while.
The upside to this though is that it allows companies a chance to look at where they are and even streamline processes that are older and could use adjustments. When things are going great, people don’t tend to make many changes to systems or processes. When times are slower, it’s smarter for you to make changes that improve the overall organization.
Prince Property - Condo and Property Management services!
Prince Property provides management functions for Condominiums in Edmonton Alberta, and the surrounding areas. If your Condominium operation needs a Management Company – we’d love to talk to you.