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.
