Mixed reviews from investors about Western Canada’s real estate market

There is a mixed response from investors about the current opportunities in Western Canada’s real estate markets, according to CREW’s latest online poll.

Forty per cent of respondents, who were asked what they expect to see in the market, said they believe investors will hold off on buying property, while 34 per cent of respondents believe investors will continue to buy.

“Currently, buyer confidence is not as high as it has been in Calgary in light of the low price of oil and the layoffs that have been announced,” said Glenn Herring, a Realtor at RE/Max in Calgary.

“Whether investors will hold off or continue to buy is yet to be determined, but I believe that, while there are definitely some people taking a ‘wait-and-see approach’, there are others that view this as a buying opportunity.”

Todd Millar, investor relations at Glenn Simon Inc. in Edmonton, agreed, saying in his weekly blog that it is very likely we will see softer housing prices in 2015 in areas that rely on oil and gas production.

“That can mean a good buying opportunity for long-term investors,” he added. “Flatter prices will inevitably frustrate those that wish to sell.”

Another 19 per cent of respondents to CREW’s poll said they expect to see a combination of both the wait-and-see approach and investors continuing to snap up properties.

“Looking at the current situation and economic fundamentals in Edmonton, the housing market should remain stable, but no one can ever forecast 100% accuracy,” continued Millar.

“Alberta, specifically Edmonton, remains the best spot in Canada to invest; however it goes without saying that risk is consistent everywhere. Building a portfolio than can weather up and down cycles is key when buying.”

Jennifer Paterson