Economical Solution to Real Estate Situation Affecting Housing Market in Alberta, Canada
As a result of uncertain economy the housing market in Alberta, Canada has reported a demand in rentals. Even though, until recently the housing market in Alberta was a great deal, nowadays the situation has changed. After the price crash the apartments which are for rent are much more profitable than houses which cannot be sold. Recently the demand for renting has gone up and the real estate selling has gone down. The economic uncertainty has turned away the majority of people in the market for real estate in this area of Canada. However the majority of people now turn to rental options.
The reason for all this can be found the crash of the price of oil, which happened sometime in the previous year. Now, a lot of people who are hoping to sell their properties are wrecking nerves over how to sell and not lose money. Prospective buyers are rare to find due to the difficult economic situation.
Only a few months ago the Calgary Real Estate Board released statistics which placed Calgary on the map for real estate market, however now the experts agree that the market is not what it used to be a year ago, even though the situation is not that terrible yet and is expected to get worse as a matter of a fact. Home values in Alberta, Canada, are expected to fall rapidly over the period of the following two years due to the lower oil prices. Since the sales of oil went down the homeowners have rushed to sell before the market collapses entirely. The cutbacks in oil industry have had a major impact on the real estate market in Alberta, Canada, sending potential buyers to Calgary and elsewhere in the province.
The Negative Impact
The entire oil situation in Alberta, Canada, has mainly affected those who are in the market to sell their real estate, whereas the negative impact is much less on the apartment owners. The negative impact is high, however there are numerous opportunities for renting apartments. The shorter supply of homes and apartments is yet expected to happen in this area, so some agencies even predict that the people will rent more as the low-rise market is preventing them from finding the right home. For some, the most reasonable solution to this current situation is definitely continuation with rental, until the situation changes it might be the most economical solution to real estate problems which are currently affecting the market of Alberta, Canada.
In addition to difficult economic situation, which is definitely oil related, the job market has not been great lately either. Job cuts have forced some workers to leave Alberta, and move homes to provinces in eastern Canada or British Columbia, even. While the prices of the average home in Calgary have dropped in April, the current situation can only be compared to the low market prices in December, 2011.