Tuesday, February 14, 2017 / by Chris Matlashewski
1) If you are looking at Calgary's real estate market and trying to Strategize: Is this the time to buy or sell, you need to look at the facts and peel the onion, in order to truly understand how this ride is going to play out. Here are 7 wildcards that could affect our the demand and in turn the price of homes.
1) Price of Oil (Pretty Obvious)
2) Price of Natural Gas- Elimination of coal plants, will necessitate the need to look elsewhere for heat.
3) New Carbon Tax - Taxing on citizens? It may be more expensive to live, preventing renters from saving to buy their first home. (Side note: Canada one of the lowest emitter's globally)
4) Policies and Politics - Our dollar is currently weakening. Yes weakening. The Canadian Economy is not strengthening to the US is, The US currency is losing ground against other nations.
5) New Mortgage Rules- $400,000 is the New $500,000. In the coming months we will see that the average price has dropped as a result of this. We will also hear of multiple offers. Again, the change in mortgage rules in October is playing a part in this.
6) The first 100 Days in the Oval Office- The Don is going to make good on his promise to create jobs. Albeit Trump does seem to like Alberta, he as the ability to shape trade agreements. Softwood lumber, gravel, and Aerospace may be affected heavily. I just hope Trudeau does not feel the need to give Bombardier another bailout. The "trump" to this wildcard may be that with the travel ban in place, I.T. companies may start to set-up shop in Canada. #Bringit.
7) Infrastucture - We Albertan's will receive some benefit from the rebuilding of Ft. McMurray.