There are many concerns amongst consumers in Central Alberta in regards to the oil prices. People are uncertain whether the Real Estate market will hold up during these times. However, people are focusing solely on this industry and not looking at the big picture. Although, oil is a significant contributor to our economy, we have many other factors that keep it alive & growing.
Here are some of the many examples:
1.Farming & Agriculture: Farming & agriculture industry is huge in Alberta. Not to mention, the beef industry alone. Cattle prices are at an all time high, which is nothing but good news for Central Alberta. Click on the link to view article http://www.cbc.ca/news/business/beef-cattle-prices-bounce-back-to-record-highs-1.2932006
2.Nova Chemicals Joffre Plant Expansion: Nova Chemicals has said this project will cost up to a $1 Billion dollars & creating more than 500 jobs! Check out the article here: http://www.reddeeradvocate.com/news/Significant_impact_expected_from_Nova__198710961.html
3.Red Deer 2015 Approved Budget (10-year plan): The City has conducted an operating budget that includes huge projects that will create job opportunities such as RCMP downtown detachment $1 million to develop the second floor due to growth, Red Deer Airport Runway Expansion $1.7 million (subject to Red Deer county matching), 30th Avenue projects $3.1 million, Red Deer arena replacement, fire station relocation, street light conversion to LED, and development & much more.
4.Relatively large population: Red Deer is home to over 98,000 residents (2014 census) - 1.5% increase from 2013. This doesn’t include the surrounding areas such as Blackfalds which has a population of 7,858 (2014 census), an increase of slightly over 8% from 2013. Other contributing areas include, Springbrook, Penhold, Lacombe, Sylvan Lake, Bowden, and Innisfail.
5.Red Deer College: With over 7,000 full time students, Red Deer College offers certificates, diplomas and degrees in over 75 different programs. Red Deer College supports apprenticeship training through the Alberta Learning Program. Futhermore, should Red Deer College elevate to university status the city would benefit from the number and breadth of students attracted.
6.Red Deer Regional Hospital Expansion – Currently under construction: This will create more jobs & better care for residents of Central Alberta.
Despite the oil prices, I feel that we should keep a positive outlook especially for the Real Estate Market. People are continuing to move to Central Alberta for opportunities such as what I have mentioned above. We have seen a slight decrease in the overall market however- properties in active price ranges remain steady and in need of new inventory. Also, interest rates are at historic lows – making houses more affordable. Mortgage brokers have said sometimes that 0.20-0.25 drop can make all the difference in a client qualifying for financing. If you are uncertain whether now is the right time to purchase or sell, contact me and we can discuss the where your property sits in the market place.