Is the real estate market in Alberta over?  According to CHMC Chief Economist Bob Dugan “Historically low mortgage rates, solid employment and income growth as well as a high level of consumer confidence continue to underpin the high level of housing starts.” He said this after Canadian housing starts increased more than expected in January by more than 20%.  The U.S. slump doesn’t seem to be moving North!

Of those starts it looks like multi-unit dwellings are the biggest movers going up 64.1% while single family dwellings dropped by 4.8%.

Pascal Gauthier, TD economist puts our minds at ease as he said “Residential construction should remain one of the bright spots in the domestic economy, helping to limit (but not eliminate) the extent to which the U.S. slowdown acts as a drag to overall economic growth.”   The sky isn’t falling for us and real estate investment on new construction or resale is still a good investment vehicle especially in Alberta.

Sure we have the energy sector but we are spending money on roads and highways, health care, commercial developments and education and our GDP will be strong this year.  Economist David Hamilton who authored the Provincial Trends research report says all this and that “Construction is going to be a huge boon for the province.”

This coupled with the fact that Alberta’s forecast unemployment rate is to stay at 3.5% for the next two years which is the country’s lowest and that our employment growth is set to lead this year says that Alberta is the place to be.

The only downside right now is that while we are expected to be the fastest growing province the migration rate has lowered and the housing affordability is declining.

Rhonda Hoffman

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