Today we were fortunate to attend the Red Deer Chamber of Commerce Luncheon with guest speaker Don Drummond, SVP & Chief Economist with TD Bank. Don presented his follow up to "Canada's economic Tiger, the Calgary-Edmonton Corridor", to a full house. This time Don's economic report is aptly titled "The Tiger that Roared Across Alberta". You can view the entire report your self at www.td.com/economics where it is available in a PDF document.
Some of the highlights from Don's report include information on future growth. No secret Alberta has experienced "boom" and "bust" in the past. This time around things are different. I would like to think that we've learned from some of the decisions made in the past so that we do not repeat events that would push our economy into the proverbial toilet. We will continue to have growth here in Alberta. We have experienced tremendous economic growth and we've led North America in growth. Today's presentation suggests that although our growth will slow down from the rapidly fueled pace in 2005 and 2005, we will end 2007 with a positive growth trend and we will continue to see economic growth in 2008, '09, and in 2010. Don went on to share that our growth rate will exceed that of Canada's and we should continue to lead North America.
Bottom Line, the market is stabilizing and or leveling off and we should not experience a halt or down turn. Great news indeed. Why not a "boom - bust" this time?
Well for starters, Alberta and Red Deer have become far more diversified economically. Oil and Gas continue to be strong and robust, but other market sectors have also flourished and should continue to do so. Oil prices are high and should remain at profitable levels. Gas has been low, but higher prices are on the horizon with expected demand during the cold winter months driving prices up and those prices are expected to remain higher than today's level. The agriculture sector is experiencing increases in exports for Beef, as well as an increase in demand with higher prices for our crops. Down the highway from Red Deer a short 20 minute commute Innisfail is preparing for a large Ethanol gas plant which will require increased supply of wheat. Alternative fuel sources are benefiting our Agriculture sector. This is just one of the projects bringing in Billions of Dollars in construction projects over the next 5 to 10 years.
There are those that for a better word are jealous of our economic prosperity, and are waiting for the "BUST". This latest economic report/presentation was still favourable for growth and the economic environment here in Alberta and more particularly the Red Deer region.
So while we've experienced tremendous growth in housing costs, we will continue to prosper and grow. In my opinion the report from The TD Bank was very positive and supports investing in Real Estate. So buy now, the forecast is sunny.
What to you think, will our market continue upward after are present levelling off?
Your Friend in Real Estate,
Full Reort can be found here. http://www.td.com/economics/special/db0907_alta.pdf