Alberta Homes for Sale

As Alberta leads the way in Canada’s real estate market upsurge, it also comes with a downside. This includes comparably higher real estate prices. It’s a rule of economics – price increases if supply cannot keep up with the demand.

Some would go to the extent of saying that residential and commercial property in Alberta is overpriced, as was culled from several informal online surveys. And what supports this perception is the number of foreclosed homes and commercial properties up for resale.

In Calgary and Edmonton for January 2008, MLS resale prices were up by almost 11% since 2007, while new housing rates increased by 6% in Calgary and 19% in Edmonton. Rent prices, on the other hand, rose by 13% in Calgary and 19% in Edmonton. Despite these trends, prices are seen flattening out this year. The upswing in price trends may just be the result of the boom in 2006 and 2007, seen to be cooling off a little this year.

Construction investment and office construction are expected to remain strong. Residential investments may continue to lay low until the real estate market stabilizes, hence the abundance of homes for sale in Alberta.

With real estate rates expected to plateau in 2008, it’s not unlikely that these homes for sale get snapped up by an increasing number of Alberta in-migrants and immigrants looking to buy a home.

Alberta economy is expected to improve by 3% in 2008 and 2009, thus attracting new entrants. The economy is consistently bolstered by oil sands projects. Latest commercial developments, like the StoneGate Landing project of the WAM Development Group, are expected to provide additional boosts.