Is Alberta recession-proof this time?
We certainly are not saying that we won’t experience interest rates or inflation but we do believe that we will be better than many markets and will be for a while. And we don’t say that very often.
But, things change and they can change fast.
Many people would rather be in a place where new jobs are getting created, jobs are abundant, and housing is affordable – relatively speaking compared to other major cities in Canada.
Let’s not forget the past.
- In 2015 crude oil was as low as $34 per barrel.
- In 2016 vacancy rates were over 10%
- 2020 unemployment rates were as high as 15% and thousands of people were leaving Alberta
We had several years of high unemployment, negative migration, empty real estate, and economic uncertainty.
2015-2021 – we felt the pain at Plintz and we won’t forget it as we, along with many others, were maximizing lines of credit to make payroll, and pay bills, but also giving discounts on rent to help others keep homes when we could.
That’s called community building, learning, and resilience. It was tough, really tough.
Thankfully we made it through but like most challenges we make it through, we became stronger and wiser for it.
Here is where we are now:
- Oil is over $80 per barrel.
- Unemployment is at record lows of less than 5%
- 40,000+ people are moving to Alberta this year
- Vacancy rates are around 5%
- Costs are high so new home construction and renovations are easing
We can’t control inflation or rates, but we can control a few things.
First and foremost how we try to take care of ourselves. Our health, let’s not give up the gym memberships yet. Our community, supporting local, giving back, and volunteering if we can.
The punchline: The resale market in Alberta will be very buoyant and strong/stable in most segments.
If you don’t have to sell it don’t.
If you do, call us for maximum service and strategy.
If you have to rent, lock in your lease if you can.
If you don’t need new debt don’t get it.
If you can get cheap debt get it.
Let’s all work hard together and give a lot of hugs.
That’s our plan at PLINTZ and we’d love to plan with you
Detailed market statistics from the Calgary Real Estate Board for October 2022 are available HERE.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn, or other areas in the Calgary region.