Canada's neighbor to the south has seen a real estate bubble burst in devastating style, affecting both American and Canadian economies, especially where property investors are concerned. There's been hesitancy on the part of Canadian investors who wonder if the same thing could happen here, but recent numbers are encouraging. While nationwide home sales are falling slightly and prices are moderating, there is one shining star in Canada's investment market: Calgary.
It's About Demand...
The secret to Calgary's success can be found in the numbers: Canada admits an average of a quarter million immigrants into the country each year, and has since 2006. What will change this year is that 10,000 of those immigrants in the Canada Experience Class will be offered a fast-track to Canadian citizenship, based on what they have to offer in the way of skill and expertise. That's a nearly 30 percent increase since 2012, a government effort to build the skill level of Canada's future generations.
Slow building starts in recent years mean there hasn't been an influx of properties on the market to bring prices down in Calgary. The resale market has remained strong even while the rest of the country struggled last year, seeing a drop in MLS sales of around 1.1 percent. Calgary has bucked the trend. Sales of existing homes in 2012 rose an astounding 18.6 percent, while average sales prices rose 2.3 percent (versus a paltry 0.3 percent nationally).
Calgary's future continues to look bright, outpacing economic growth in the rest of the country as industry giants take up residence and find ways to import workers to solve a personnel shortage. Incomes are high, housing prices are not overly built-up, and borrowing costs remain low. All of that means growth and a strong real estate market in 2013 and beyond.
Investors who are looking for properties in Alberta can rest easy with Vision Investment Properties on their side. We have a staff that is dedicated to customizing your turnkey property investment portfolio to meet your personal financial goals. Visit VIProperties.com today for more information.