The real estate market is on a lot of folks minds these days. Will our local market go the same direction as that in the U.S.? Are prices at their peak? Is it the right time to buy? Even booming Alberta seems to suffering a price meltdown. So what is happening in our market?

 

I can honestly say that the market is holding firm. Sales activity in the 1st 3 months of 2008 are just 3.5% lower than the same period in 2007. Total sales in the Tri city area for January to March 2008 were 1, 011 compared with 1,047 in 2007. That is strong activity. Interest rates are dropping and inventory levels are high. Those 2 factors alone point to a great buying environment.

 

Our traditional bulwarks against a market meltdown are firmly in place. Geography has been good to us as supply and demand forces work to keep prices high. When you think about it we are nestled between the mountains, water and the ALR (Agicultural Land Reserve). Land is scarce. That is the simple truth of the matter. Flying into Calgary last summer I was struck at the number of subdivisions and roads being built. From the air it's plain to see that in order to add supply, all they need to do is push a bit of dirt around and lay some pipes in the ground. When supply is added too quickly, the market will suffer a downturn. Adding supply in our area takes a lot more effort. The vacant land is just not there.

 

So long as our economy continues to grow and interest rates stay low we will be in a steady market. We may not see prices rise dramatically but we won't see a downturn either.