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Unlocking 2024: Alberta's Property Puzzle - Market Booms, Rental Surges, and the Mortgage Forecast Mystery

February 9, 2024 | Posted by: Matt Broom-Hall

Alberta Mortgage Market Insights
February 9, 2024

Weekly Market Recap: Alberta's real estate and mortgage markets continue to exhibit resilience and dynamism amidst fluctuating economic indicators. This week, we saw significant developments, including insightful forecasts on mortgage rates, pivotal policy proposals aimed at boosting construction and home affordability, and an in-depth examination of Edmonton's surging rental market due to interprovincial migration.

Alberta Housing Market Surge

Alberta's Housing Market Surge

December 2023 marked a significant upturn in Alberta's housing market, with an overall 6% year-over-year increase in average prices and a robust 17% growth in home sales activity. The province witnessed a notable rise in apartment sales and a tightening in housing inventory, reflecting a strong seller's market across major cities​...

Calgary Real Estate Resilience

Calgary's Real Estate Resilience

The median prices in Calgary have risen by 13% year over year, reaching $523,250. This growth is supported by a population increase and a mismatch between housing starts and demand, underlining Calgary's enduring market strength...

Calgary Real Estate Resilience

Increasing inflation to a growing population, Edmonton's rental market is under pressure

Edmonton is experiencing a surge in its rental market, largely driven by interprovincial migration. As people move to Alberta from other provinces, drawn by job opportunities and a relatively affordable cost of living, the demand for rental properties has increased, pushing up rental prices. This trend highlights the growing attractiveness of Edmonton as a place to live and work, and underscores the need for more rental supply to accommodate the influx...

2024 Mortgage Rate Forecast

2024 Mortgage Rate Forecast

A nuanced forecast suggests that prime rates might drop by 1.5% by the end of 2024, influenced by economic trends and inflation rates. The analysis indicates a cautious optimism for a softening in mortgage rates, aligning with broader economic adjustments​...

Home builders group pushing for 30-year mortgages to boost construction in Canada

Home builders group pushing for 30-year mortgages to boost construction in Canada

The Canadian Home Builders’ Association has proposed extending the amortization period for insured mortgages on new homes to 30 years. This move aims to improve affordability and stimulate more home construction, addressing the urgent need for increased housing supply​...

Market Analysis and Expert Insights:

This week's developments highlight a cautiously optimistic outlook for Alberta's real estate and mortgage sectors. Experts emphasize the critical balance between demand stimulation and addressing housing supply shortages to ensure long-term market stability.

Tips for Navigating the Market:

For Homebuyers: Exploring the benefits of the current market conditions, particularly in cities showing strong growth, is essential. Locking in mortgage rates now to capitalize on potential future decreases could be a wise decision.

For Renters Considering Homeownership: If you're currently renting with an average rent of $2,500 a month, under current mortgage conditions with an interest rate of 4.79% and factoring in property taxes, you might be able to afford a property valued at $460,000 with a 10% down payment. This comparison between renting and buying could be crucial in your decision-making process, especially in the dynamic Alberta housing market.

For Investors: The surge in Edmonton's rental market indicates growing confidence in Alberta's economy. Investigate emerging opportunities, especially in areas with high rental demand and tight inventory.

Looking Ahead:

Keep an eye on the Bank of Canada's interest rate decisions and policy proposals affecting the mortgage landscape. The push for 30-year mortgages could significantly impact market dynamics, offering new opportunities for first-time homebuyers and investors alike.

Stay informed and ahead of the curve with Alberta Mortgage Market Insights, your go-to source for the latest in mortgage and real estate news across Alberta.

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