photo: courtesy of cbc.ca
Alberta Housing Outlook
Two industries will be major influences in the house market within the next two years. These will be the Oil and Manufacturing industries. As oil production and refinery will witness a decline of demand in their corresponding states, the economic conditions will become affected. More specifically, the world’s oil price will be lesser which should affect the lucrativeness of the oil producing provinces’ housing areas. This includes Alberta.
The redeeming factor would, however, involve Manufacturing as lower overhead, and raw material costs will serve as a profit advantage for companies. With lower costs of goods sold, their corresponding provinces which include British Columbia and Ontario will have better chances of household prospects. Eventually, Alberta will rebound from the oil price challenge, and this is expected to happen in 2017.
The oil price challenge inevitably affected the energy industry as lay-offs resulted from the low demands of gas production. As a result, migrations and pending power will decrease from 2015 to 2017. When it comes to house formats, both Single and Multiple Family home formats will
Witness much lower unit demands in Alberta. Their prices will then be on the buyer’s favor given the market conditions.
It is expected for unemployment figures to rise due to the shift of Alberta’s industry employment rates. The unemployment rate will specifically increase at 5.9% and eventually decline to 5.7% in 2017. As a result, migration flow will slow down with an estimated at 37,200 in 2016.
However, since it is forecasted for the Canadian economy to eventually grow, it would perhaps be a good idea to consider a home in Edmonton in the middle of a buyer’s market. This way you have a chance to have a house in a good location, right when the market eventually picks itself up. Prepare your budget within a price range of $373,600 and $409,600 in 2016, while you can expect to pay $379,000 and $419,800 in 2017.
Trends That Will Influence Housing in Alberta
In reference to the decline of the World’s oil prices, it is expected for the Canadian economy to improve within a span of two years. Within 2015 to 2017, the labor market will be at a stable pace, if not on a percentage increase when it comes to wages. Hourly earnings will also rise up at 2.7 per cent. These should further engage workers to prospect their options on homes/houses. Certainly, the provinces’ gross domestic product will be on the rise despite the oil challenge.
Furthermore, Canada’s GDP will remain resilient with a 1.1% growth during 2015 and 2% in 2016. The rates were much lower than the usual 2.4%, but the redeeming bounce back in 2017 will achieve a rate of 2.6%. According to Bank of Canada, the economy will leap back within two years and will continue to run in full capacity.
As the whole economy rebounds in 2017, home buyers must expect mortgage packages to be competitively priced, although they will not also lower at that time. Rates will, in fact, increase, so discretion is required for investors given these market conditions.
More detailed information can be found at cmhc.ca
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RE/MAX River City
Photo: courtesy of usnews.com
Over the years, FSBO (For Sale by Owner) has been a popular route for people who intend to sell their homes in Edmonton, Alberta. To make this easier, follow the tips mentioned below.
1. Pick your Timeline
One of the first things that you need to do is to determine when to sell. Make sure to have it sold once you are ready, meaning, you already have a new place to stay. More importantly, it should be sold when the market is attractive, making it easier to attract buyers.
2. Evaluate the value of your House
This is not one thing that you can do on your own. You need to hire an appraiser to give you an idea how much you can have your house sold.
3. Clean your Home
This does not need to be a do it yourself task. You can hire services of professional cleaners to tidy up the house and make it more attractive for prospects.
4. Home Inspection
Carefully go through the different parts of the house and spot any potential problem that needs to be addressed.
5. Make it Move-In-Ready
After the inspection, pay attention to repairing any problem, such as plumbing or electrical wirings.
6. Get Your House Staged
The main goal of home staging is to make it more presentable, giving buyers the reason to love it. There are many professional home stagers in Edmonton, Alberta who can help you. It is considered to be a form of visual merchandising, and it relies heavily on interior design in order to attract buyers. It is like dressing your home to create a positive impression and to have a higher value.
7. Know your Selling Points
This is another important thing to do if you opt for FSBO (For Sale by Owner). You need to highlight the strong points of your home, giving it an edge above other options available in the real estate marketplace. For instance, you should highlight having a swimming pool or a huge backyard if you have one. You can also emphasise location and accessibility. Being situated in a safe neighbourhood could be another selling point.
8. Market Your Home
There are many free online marketing tools that can help you to sell your house faster. Facebook, Instagram, Twitter, and Craigslist are just some of the best choices. The best way to market your home, however, is through word of mouth. It will help if you have an extensive network, making it easier to find prospects.
9. Know How to Show your House
Showing your property to interested clients in Edmonton, Alberta will be an opportunity to give them reasons why they should have it purchased. Make sure that it is clean and organised. Turn on the lights to highlight the different features of the house. Ask them if they would like to be guided during the tour of the house or if they would want to do so on their own. Be prepared to answer questions they might possibly have. Always be polite, energetic, and more importantly, positive. Be in the right mood to create a favourable impression, increasing the likelihood that you will be able to sell your house.
10. Be Prepared for Negotiation
This is the trickiest part of the process. Do not easily give in to the demands of the client as this may make you end up selling at a loss. Choosing FSBO (For Sale by Owners) means that there will be no third-party to represent you. Make sure to understand the different terms that are essential. To sell your house successfully, see to it that you will come up with terms that will be agreeable for both parties. It is also important to know when you should stop negotiating and proceed in looking for other interested buyers.
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RE/MAX River City