Housing Market Outlook

The current economic environment reminds me of the old proverb “May you live in interesting times?. Well, the times are certainly very interesting and have created a great deal of uncertainty in consumers and businesses alike. Emotion verses fact seems to be ruling many decisions, so I thought I would take this opportunity to highlight a few truths about the Alberta economy and the current real estate market.

• The Alberta economy has slowed but is actually projected to grow at a healthy rate next year, with the GDP growth forecast ranging between 1.9 to 3.3 percent.
• Oil prices have declined from an all time high a few short months ago. However, today’s prices are still at the top of a 5-year average and projected to increase at more realistic and modest rates in 2009.
• Net migration to the province – a key indicator of growth and housing demand – is forecasted at 51,000 people in 2009, which is a slight increase over last year.
• Resale home prices have been decreasing from a historical high last year but have only come down 5.7% in 12 months and are now looking like they will reach equilibrium in early 2009.
• Prime lots are at their lowest inventory since the housing boom began and next year there will only be 1000 new serviced lots added to the entire inventory in the Calgary region by Developers.
• Long-term mortgage rates are near their lowest level in 30 years.

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It is in fact one of the best times right now to buy a new home. It is still a buyers market but all of the fundamentals (income growth, interest rates and population growth) indicate it will soon reach a balance as supply and demand reach equilibrium. Once the correction is complete in early 2009, the market will see a return to stable prices and growth. It always amazes me how short our collective memories are and how we over react. We had an overheated market driven by speculation in the energy and housing market. Now we are back to a normal market with realistic growth forecasts and the media makes it sounds like we are in for a long-term recession. What we are truly in is a cycle of fear, which has created a psychological recession that is self-fulfilling. Do your homework, listen to your own intuition and use your common sense. We believe you will come to the same conclusion we have that the next several months will be the best time to buy.

I believe Warren Buffet said it best about times like these “Be fearful when others are greedy, and be greedy when others are fearful?. He also promotes buying value and investing for the long-term, and for most of us, our homes will be our single largest investment. So invest wisely and base your decisions on the fundamentals and the facts.

Visit our web site to learn more about why this is the time to buy. We have gathered all the details for you so you can make an informed decision. Then come visit one of our show homes and we can show you the difference in our craftsmanship, from our exceptional features to the amazing attention to detail that we build into every home.

Whether you are looking to buy your first home or move up to a luxury home, with Lifestyle Homes you will know you are making a great investment in your happiness and financial future.