The Effect of Of Politics on the Housing Market
The recent statistics for April’s Real Estate market for the Calgary region have just come out and surprisingly, the sales numbers have actually decreased compared to the year before. When you consider the economy has been gaining steam, the provincial outlook is good and there is definitely a new stream of people moving back into Alberta, this decrease caught many people off guard.
So what could be the reason behind the backwards movement? There are likely thousands of different answers available, but I believe it comes down to two factors. First, our extended winter this year has delayed much of the early activity in the market. With snow seemingly showing up in every forecast, spring seemed to trickle in this year with barely anyone noticing.
Normally by this time of year, we’ve had numerous beautiful days and the first signs of spring fever would have hit the current crop of potential home buyers. This year however, while spring fever (or more likely cabin fever) has started to settle in, until we get a few more nice days strung together it really won’t take hold. Of course, when it does, I am sure it will suddenly get quite hectic out there.
As for the second factor that likely slowed the sales pace, we have to turn to the recent election. With the countries electoral outcome in flux, many citizens seemed to be holding off on major decisions until they saw the outcome. Would we be stuck in another minority government with continued disharmony and potential changes to tax structures, potential economic damage and a negative overall environment? Or would we be able to achieve a majority government that could potentially keep Canada’s economic engine chugging along?
Well as we just saw, the public seemed to give us the answer they were looking for by voting for a majority government. Hopefully this is enough impetus for the economy to continue to strengthen and to continue to provide an extremely positive outlook not just for Alberta, but for the rest of the country as well.
So where does the Real Estate market head now? All indicators are definitely still pointing upwards. Although April’s sales slowed down, so did the amount of overall inventory available for sale. With the number of new listings decreasing by 25% versus the same time last year, a positive outlook on the economy, increased in-migration, a delayed spring rush and a newly defined government in place, we could be at the beginning of a very solid future.
Investor Perspective – Calgary Real Estate Market 2011 & Beyond
I’m quite confident the Conservative government is going to be very good for the West. Sure they have to understand where the largest share of the vote come from, but at the same time they also understand where the golden goose lives.
As Don Campbell likes to point out, the world is going to be demanding the three F’s for the foreseeable future. These are Food, Fuel and Fertilizer, which are all in abundance in Alberta and Saskatchewan and even B.C.
These resources will lead to more jobs, more in-migration and an economy that will drive the rest of Canada to prosperity. Which makes Calgary an ideal area to invest.
Investing in Real Estate is not a quick ticket to riches, it takes time and that is why it’s so important to look to the future and see where the road is guiding us. Right now the road looks clear and straight.
