In Alberta, the energy sector is linked to everything, including real estate. The condition of the energy sector is directly proportional to the state’s real estate scenario. Todd Hirsch, the Chief Economist of ATB Financial, is of the opinion that 2017 will be a good year. Real estate professionals made up the bulk of his audience.
Better all over
Hirsch said that better results are seen all over the province. This is welcome news after two tough years- 2015 and 2016. In 2017, oil prices are again inching up, commanding a price around $50. He added that he hoped it will be a better year. He said that 2017 can be the year when markets will be stabilized and real estate markets will go up. He asked his audience to look forward to a better future in the coming months. Hirsch said that the rising price of oil will have a positive ripple effect. It will be mostly seen in manufacturing and construction. This will be particularly applicable for central Alberta.
Hirsch’s viewpoint has been supported by Patrick Galesloot of Century 21 Advantage. The owner and broker said that real estate is slowly getting its strength back. He said that real estate mirrors the actual state of overall economy. It is thus refreshing to see the positive economic direction of the province. He added that the outlying communities are enjoying a much better growth from much earlier. He also said there are a number of other market indicators with demand and supply for real estate. They show that it is now the time for improvement and change.
Galesloot credited the federal government for its action to make rebound quicker in smaller locales. The feds introduced an number of new mortgage qualifications. He said that although people who want to buy in Red Deer will find it tougher to afford it, properties are quite affordable in places like Sylvan Lake, Penhold and Blackfalds. The new changes and rules will need some adjustment and everything will level out to become normal growth. These changes are related to the debt to service and income ratio.