Edmonton tops Calgary for housing investment
Mario Toneguzzi
Calgary Herald
Wednesday, August 27, 2008
CALGARY - Edmonton tops Calgary as the best place to invest in the residential real estate market, according to a report by the Real Estate Investment Network.
Alberta's Top Ten Investment Towns report says that although Edmonton's market is going to begin performing closer to historic norms, "the good news is that Edmonton's historic norms will be at, or near the top of performance for all of Canada, both economically and in the re-sale and rental housing sectors."
Edmonton leads the list followed by Calgary, Red Deer, St. Albert, and Grande Prairie. There are actually 13 locations cited in the report and they also include in descending order Lethbridge, Fort McMurray, Airdrie, Cochrane, Sylvan Lake, Lacombe, Devon, and Sturgeon & Strathcona Counties.
The report says Calgary has just experienced one of its best economic and real estate periods in Canadian history and ran neck and neck with Edmonton for the number one spot on the list.
"In 2008, the (Calgary) market is making a predictable (albeit soft) correction resulting in slightly more affordable housing compared to recent years passed," says the report. "It was economically impossible for the market to continue at the pace at which it was heading and now finds itself adjusting to market realities. This adjustment period, as the market searches for its new foundation from which to build, should continue into 2009 when the provincial economy is poised for another growth spurt."
REIN's previous top 10 list had Edmonton first followed by Grande Prairie and Calgary.
The REIN report says a focus on the reality of the economics behind the Calgary market today is critical at this juncture and it will be important for investors and homeowners to pay close attention to the fundamentals supporting the market "while not getting caught up in headlines and multitude of opinions that inevitably circulate during market adjustment periods."
"If there were no strong economic fundamentals supporting the market, it would be a good thing to be afraid," said the report. "However, when you study the long-term strength you will be able to relax and not let those from outside the country take up all of the good deals and look like geniuses five years from now."
Provincially, "Alberta's economy is as good as it gets," said the report, with high energy prices, rapid population growth, low unemployment, an abundance of jobs, and improved infrastructure.
mtoneguzzi@theherald.canwest.com
TOP ALBERTA RESIDENTIAL REAL ESTATE INVESTMENT TOWNS
1. Edmonton
2. Calgary
3. Red Deer
4. St. Albert
5. Grande Prairie
6a. Lethbridge
6b. Fort McMurray
7. Airdrie
8a. Cochrane
8b. Sylvan Lake
9a. Lacombe
9b. Devon
10. Sturgeon & Strathcona Counties
Source: Real Estate Investment Network
© Calgary Herald 2008