Edmonton Realty Report 

A Roll of the Dice for 2012 Real Estate Market

The global economy is in flux, the outlook outside the Canadian border is on the grim side, yet the housing market in Canada is still chugging along nicely. Expectations for the year were low, and all were exceeded. Economists are crediting the very debt crisis that is playing havoc with the rest of the world as a contributing factor to our good fortune.

Because of the debt issue, the Bank of Canada elected to leave the interest rates low. That in turn bolstered the housing industry.

CREA predicted that by the end of 2011, real estate prices would decrease an average of 1.3 percent from prices in 2010. Royal LePage, on the other hand, predicted that prices would see a three percent gain in the price nationwide.

But, in reality, the numbers were far better. In October in 2011, prices averaged a 5.5 percent increase over the same month in 2010. The average price of a home nationwide in October 2011 was $362,899. Gregory Klump, who is a chief economist with CREA, changed his original definition of the 2011 real estate market from the initial “boring” to the current “volatile.”

As far as 2012, CREA is predicting a flat market throughout the country, with British Columbia seeing a 1.8 percent decrease in price. But, who knows what will happen.

Edmonton Realty Report 

Office Space Availability Getting Tighter for 2012

The prediction for Canada’s office real estate market for 2012 is a mixed bag. The idea is that during the first half of 2012 the demand for space will decrease, largely because of the economic uncertainty in the United States and globally. Cushman and Wakefield, the authors of the report, think this lull will, however, be short lived. The firm fully expects demand to be in full swing by the end of next year.

Part of the reason is the number of deals already on the table, which is creating a decrease in the amount of available space in most of Canada’s major markets. CEO Pierre Bergevin notes this will create a severe shortage of inventory in the latter half of 2012 and into 2013.

The uncertainty in the beginning of 2012 may feed into that, as people wait to start projects. Calgary is expected to be the most affected, with a predicted vacancy ate of 1.2 percent in the Class A category by the end of 2012. Vancouver is expected to hit 1.9 percent in that category for the same period, but that will be helped by new developments scheduled to start in the New Year.

Toronto is expected to see a level office market, with many tenants swapping space, upgrading their old digs and leaving behind plenty of Class AAA space. But the population is seeing a bit of an upswing in the downtown core, and that space is expected to be snatched up fairly quickly.

Edmonton Realty Report 

Best Time to Buy Your First Home is Now

Buying your first home can be nerve-racking. It can also be very rewarding. The trick is to do your research ahead of time to see what you can truly afford, start saving for that down payment as soon as possible and get prequalified before you start looking. All of these items help to avoid disappointment if you find a home that you really like, but then discover that it is out of your reach.

Many Edmonton area real estate experts are encouraging those who are thinking about it, to definitely take that first step. Interest rates are as low as they have ever been, and, if you go house hunting during the late fall you have less competition for the available homes, keeping prices down. Of course this year it helps that there are more than the usual number of homes on the market. More homes for buyers to choose from.

Don’t pick out a home that is financially out of your reach. In this case, smaller may be better. A condo, townhome or row house is a great place to start. Many are in the $200,000 to $300,000 range, making the average mortgage payment less than paying rent. That same home in the much more competitive spring season might cost you $350,000 to $450,000. Think of it as an investment in your future.

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