Opportunity is missed by most people because it is dressed in overalls and looks like work.
The most recent economic forecast by the Calgary Real Estate Board can be viewed here. By-and-large it is not an optimistic read. The negative can be boiled down to:
Prices in all real estate categories will decline between 2-3 percent in 2019
The number of sales is expected to decrease by 14.5%
Calgary’s unemployment numbers are still the highest in the province with little improvement expected
On the positive side (from a landlord and investor’s perspective):
Alberta’s GDP is expected to return to 2014 levels
Calgary’s net-in migration was 11,000+ for 2018 and is expected to be over 14,000 for 2019
More and more people are unable to qualify for mortgages
Demand for rental property is expected to continue to increase (due to the second and third point).
What does all that mean for you? It means there will be plenty of opportunity for additional real estate investment in 2019, it’s just disguised as doom and gloom. You are looking at a situation where home prices will be dropping, the population will be increasing, and demand for rental homes will be increasing. It’s like a perfect storm for real estate investors! This opportunity may not last however, as interest rates are also expected to rise in 2019. (The impact on monthly mortgage payments of a 0.5% increase in interest rates is usually larger than a 2-3% decrease in price).
Still not convinced… Power Properties rented 28 properties in January, which broke our previous January record of 22 properties set last year. That’s more than one per business day in January. Demand for rental property is increasing and will likely do so for the foreseeable future.
If you would like more information about how to take advantage of this opportunity please send an email to firstname.lastname@example.org and we will put you in touch with one of our Realtors who specialize in investment real estate.
Jamie Palmer Realtor®, CPM®, B.Sc. (Hon).