Similar to the hottest real estate markets, Vancouver and Toronto, Edmontonians are yet to witness a major real estate market crash, warns author of “When the Bubble Bursts: Surviving the Canadian Real Estate Crash.”
”Edmonton has so far escaped the brunt of the recession caused by the drop in oil prices, unlike other parts of the province. The city also largely escaped the impact of the 2009 downturn following the American housing crash” says Hilliard MacBeth, an Edmonton-based portfolio manager
Due to the strong market for over 20 years, Edmontonians may believe the city is recession-proof, MacBeth said.
“People have been lulled into the idea that house prices always go up,” said MacBeth.
Macbeth said as you take a cruise through the city’s mature neighbourhoods, you can’t help but notice old houses being torn down by builders to make way for new.
Bargaining is everything!
It’s just a matter of focus, he added. The key is to drive around the outskirts of the city in pursuit for bargains in all the new houses being built.
“I’m sure there are,” he said.
Considering recent stats that predict that the current recessions will be twice as bad as the last four, Edmonton is very likely to be affected and thus witness a major housing crash.
If this recession can be compared to a baseball game, “we’re in second or third inning.” said MacBeth
Costs are coming down rapidly for one- and two-bedroom apartments and renting offers an opportunity to save money for mortgages which will be smaller if his prediction is correct, he said.