Alberta, Canada communities such as Calgary and Edmonton are experiencing softer sales, but local Realtors believe there is opportunity in rental investments.

Calgary

"More and more money is going into real estate," says Realtor Ernie Laprairie. "Vacancy is rising, so now is the time to buy a better deal on rental real estate investments. Expect rental rates to fall with low interest rates and the fact that you can now buy a home for less than rental payments. Some say that there is a real estate bubble. That may be true, if a serious layoff happens anywhere. Don't expect that to happen in Alberta - one layoff creates some sort of boom in something else to offset it. Look at the stock market, billions lost and nary a flinch in the real estate market except for the fact that a lot of people won't retire wealthy."

Laprairie advises, "Look for the wave of baby boomers to begin making their move towards smaller luxury accommodations, whatever that will be should show its colors soon. Boomers are weary of debt but are sucking it up on their real estate because they have never experienced lower rates than their fathers, but be wary, they will want someone to take over the payments on the slightest threat of higher rates. This will all take place in about three years and in giant proportions. Now just figure out where they will want to live, and your fortune is made, maybe in motorhomes or very small suburban homes. Let's hope that the grandparents don't spend all the inheritance money."

Edmonton

"Edmonton is the political capital of Alberta and often referred to a the 'City of Champions,'" says Realtor Bob Sand. "It encompasses 670 square kilometers, making it one of the largest cities, by area, in North America. It is a thriving center for business, culture, the most diverse economy in Canada. Edmonton is a tourist hot spot, boasting the world's largest mall and the largest stretch of urban parkland in North America. Located on the 53rd latitude, Edmonton is a haven for summer and winter activity with 17 hours of daylight in mid-summer and the magical Aurora borealis (Northern Lights) in peak activity in mid-winter. It offers virtually every amenity and lifestyle within its borders."

About the market, Sand says, "The housing market in Edmonton remains balanced with a strong demand for homes being met by existing inventory. April's average sale price for single-family homes was $197,527 with a median of $186,215. Single-family homes represent 67 percent of sales in the Edmonton market. The average selling price of condominiums was $133,315. These numbers show housing prices have remained constant from last month. In comparison to other major cities in Canada, Edmonton housing prices remain very affordable."

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Published: May 26, 2004

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