With all the recent negative headlines about the potential collapse of the Canadian real estate market it’s hard not to get a nervous feeling about the value of our homes. Lately, these headlines have prompted many people to ask me what I think is going to happen to our Real Estate Values in Drayton Valley. Have our values peaked again? Is the bubble going to burst like the headlines suggest?
Let’s take a minute to think about what those headlines are suggesting. They are simply grouping ALL real estate markets in Canada into one big market. But is there such thing as a Canadian real estate market? If the average temperature in Canada today was 10C, would that give you any indication what temperature you could expect in your home town? Probably not, it may be 20C in Vancouver, -5C in Edmonton, and 8C in Toronto. And the same is true when it comes to the so called Canadian real estate market. Canada is simply too big to group into one market. In fact, real estate values tend to be very localized and are driven by many economic factors that have a direct impact on the area. What will happen to real estate values in your local area cannot be derived from what is happening in the so called Canadian market.
So what is going to happen to values in Drayton Valley? Well, there still seems to be more than enough people moving to the area with high paying permanent jobs who are looking for homes to buy or rent and have the income to do so to ensure the demand for housing in the near future remains strong. Couple this with the amount of major industrial / commercial development going on and planned in the area (ie. New offices / Shops) and it seems that there are many reputable companies who have big plans for the area for the years to come. I highly doubt they would be investing so heavily in the area if they did not think the economic future of the area was bright. This should poise values in the area for further growth in both the immediate and longer term. There are definitely challenges that we face (ie. Lack of new residential development and rental properties), but Drayton Valley has always been a resilient town when it comes to Real Estate, and I don’t see that changing any time soon.