Current Edmonton Condo Developments Move Forward

November 10, 2008 · Filed Under Edmonton Condo Developments, Edmonton Condo Market, Edmonton Economy, New Edmonton Condos · Comment 

It depends on who you ask. First time home buyers have welcomed the drop in Edmonton condo prices we’ve seen over the past year and a half; condo speculators not so much. Then there are others on the sidelines who look to the Edmonton real estate market as a signal of the economic health of the capital region.

Earlier today the Edmonton Journal reported that despite the less than ideal market conditions, Edmonton condo developers are confidently moving forward with projects that are under construction, despite cancelled projects in Calgary, Canmore and Kelowna.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

So what does this mean for these three groups of condo-watchers?

First, the potential condo buyer:

Its no secret that tens of thousands of young people have moved to Alberta over the past 3-5 years. Most people who moved to Alberta came here to find better jobs with higher wages. I would argue that in most industries Edmonton has higher wages than even Toronto and Vancouver. While there have been no shortage of good paying jobs the past few years, many first time home buyers who relocated to Alberta several years ago got priced out of the real estate market when prices soared in 2006.

These people have been renting and saving up for a down payment so they can buy their first home. The  majority of first time home buyers in Edmonton turn towards condos because of affordability and lifestyle. For these first time home buyers the news that current condominium developments are moving forward is good news; it means condo inventory levels will remain high, giving buyers lots of choice and leverage when negotiating the purchase price, the timing of possession, and other points on the purchase contract that are specific to each transaction.

Second, condo sellers:

The news isn’t so great here. With a large inventory of condos on the market in Edmonton for buyers to choose from it will continue to be difficult for sellers just to get buyers to look at their condo let alone make offers at last years prices (which is where some sellers still have their condos priced). The best strategy is to have your condo marketed effectively and priced competitively so it can stand out from its competition.

Those who are selling to move to a single family home or relocate to another city will able to cancel many or all of the effects of higher inventory and lower condo prices, by benefiting from the same factors when they go to buy since most real estate markets across Canada are facing similar environments. Those who bought a new condo in Edmonton during the price run-up with the intent to “flip it” are in a tougher position. If it is sitting vacant they have the dilemma of whether to rent or sell.

Finally, the Observers:

With condo developments “put on hold” else-ware in Canada, and the constant barrage of doom and gloom in the US and international media, having Edmonton condo developers continue their projects shows that they are confident in the economic stability of Edmonton.

Yes, oil prices are down, but people around the world haven’t hung up the keys to their car yet. Experts continue to say that Canada is in strong position compared to other countries. And Edmonton continues to offer strong job opportunities, in the face of manufacturing lay-offs in Ontario and Quebec.

Relative to the rest of Canada, and the rest of the world - Edmonton is a pretty good place to be.

 

Article by:  Nathan Mol, Coldwell Banker Johnston Real Estate

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