Fort McMurray is very different from our Okanagan, Shuswap Real Estate Market

I have spent the last 2 days in the thriving metropolis of Fort McMurray. It is a very different experience in so many ways. The traffic is like that of Vancouver because the town has grown so fast that the infrastructure has not been able to catch up. The Real Estate prices are absurd or at least they are compared to the Okanagan Shuswap area. Rent for a 2 bedroom basement suite is $2500 per month. The poverty line is $91,000 per year. A regular every day 1300 square foot rancher or bilevel with a garage is going for close to 1 million and the average price in Fort Mac is $750,000. You would think this would be heaven for builders but the land costs are so hi they cannot build and make the numbers work. We were at the trade show marketing the Okanagan and Project Build. Over 25,000 people came past our booth. Project Build is a very inovative program where all the people involved in creating a new development including Realtors, builders, mortgage brokers etc all put in a small portion of the money which in the end goes to the buyer as a free gift for their down Payment. When we explained this to people the toughest part is to get them to believe that they don't have to pay it back. They ask what's in it for us. The answer is that we get to do a deal with a buyer that would not be a buyer if they did not go through Project Build. In other words they did not have the down payment. Fort McMurray is a fast moving thriving city that needs housing badly but I have no idea how someone would afford to buy. We have three Project Build sites in Vernon BC and perhaps we should look at starting one in Fort McMurray. That will be another blog at another time.

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