Is Real Estate Still a Sound Investment in Alberta?

Investing in real estate has long been a sound long term investment strategy. Historically, increases in property values have well outpaced inflation over the long term. In the short term (under 5 years), economic cycles, and speculative bidding often dictate growth and declines in real estate markets, and can therefore harm the growth potential of real estate for short term investors. However, in the long term real estate values consistently outpace inflationary pressures and increase in real value.

The Alberta Real Estate Market went through a cycle over the past half decade where increases in property values far outpaced inflation or growth –particularly in late 2006 and 2007 during which property values soared in double digit values month over month. The market is now making a correction and re-establishing the once lost balance between growth in property values and inflationary pressures. Once this correction has been completed, I would expect for property values to stabilize and then begin increasing (at normal levels) again. In the long run, I would expect the Alberta Real Estate Market to again lead the country in strength and growth and remain a sound investment.

For more information, or to discuss this topic please contact one of the mortgage professionals at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.