Alberta saw unprecedented sales and house prices in 2021. In April, the number of homes sold skyrocketed, and many were shocked as the market became a frenzied desperate race to see who could buy property the fastest.
Although first-time homebuyers are nervous about what this means for the future, the world has its eyes on what will happen next in Alberta.
Oil Prices Set to Rise
One of the largest items that affect home prices in Alberta is unsurprisingly oil costs. When oil costs drop, that lowers the average income of the people of this province.
Because of this, many are taking note of speculations that oil prices are going to rise again in 2022, which will possibly lead to another rise in home prices. This could mean that buying earlier in the year, before the prices go up, could score homeowners nearly instant profits. This is a big selling point to many.
Spring is Always the Hot Season
Nothing can be predicted quite as clearly as the uptick in people buying St. Albert real estate every spring. Spring is the hot season for home sales because people are ready to start a fresh life as it warms up, and many want to find a home they can move into by the end of the summer when their children will be back in school.
In 2022, that’s expected to be kicked up a notch. The larger availability of homes will lead many into another possible buying frenzy, which could boost prices again the way they were raised in 2021. Current buyers have seen how much house prices have skyrocketed and want some of that growth for themselves.
More People Are Back at Work
Although it’s struggling to return to the workforce numbers that Alberta had pre-pandemic, many more people are vaccinated and back to work. This gives them far more buying power than many had in 2020 and makes them feel more confident in making a large purchase decision like buying a new home.
This is most noticeable in multiple-income households where people are more likely to be able to afford a property.
Supply Chain Can’t Keep Up.
More homes were built in 2021 than any year since 2015: but they still can’t keep up with demand. The supply chain has struggled to keep turning out the supplies needed to build new properties or flip and repair properties that need work done.
So, although there are more homes available, it’s not as many as there could be. This means there will still be far less supply than demand, trapping Alberta in the sellers’ market it’s been in for the last two years.
The Housing Market is Making Unbelievable Changes
Although the housing market is always unpredictable, the last couple of years have been unprecedented in more ways than anyone could count.
Because of this, it’s hard to guarantee how the next few years will play out for property owners and investors in Alberta. One thing’s for sure, though: records will be broken in the highs or lows.