In years past Edmonon real estate was definitely steady in appreciation and appreciatively undervalued. So what's changed since the run up of values here in Edmonton and Across North America? Something I've noticed over the past 20 years is that the Edmonton real estate market has always gone from patches of stability to instability then back to stability. One has to wonder, given that the Edmonton real estate market was volatile for much of 2007 and 2008, if 2009 was not the stability that I've been talking about.
The question is are the periods of stability going to be shorter now? Although fundamental investors have been in the market almost non stop, already in 2009 I've seen increased speculation, and a return to quick flips that I really didn't expect to see so soon.
Based on my observations the two new rules for real estate are:
- Expect more volatility. The market can change quickly in real estate and even if you're buying for the long term expect some volatility.
- Be a leader. In the past couple of years the leaders walked away with piles of money and the stragglers got burnt. If you're going to play be a leader if you expect to win.
what do you mean by ‘be a leader’ in this context?
In this context. “Not a follower or someone late to the party”.
so buy now?
No, he means to sell now!
Actually you are both wrong. This is primarily target at investors and speculators. The later they come to the party the more risky the party will be.
For homebuyers buying a home to live in. A more important factor will be how long they will be there.
We currently have a property that we are undecided on what to do. Sell now or wait for another 18 months. I know that those who try and predict trends often end up looking at broken glass. However, with the Alberta government possibly going through a series of cuts and with the slow economy do you think that the real estate market will go down? Or another scenerio, with the world demand for oil increasing and with limited supplies, things may pick up in Alberta again. What are your thoughts on investment properties now?
Anthony,
I would get specific advice from someone who is familiar with the property and your goals. There may be reasons to keep or sell the property none of which are related to the current or expected state of the market but factors such as interest rates will come into play. There are tax considerations as well that may cause you to sell later rather than sooner or vice versa.