Alberta is a beautiful and thriving place with plenty to offer. With a strong economy and a growing population, you might wonder is it a good time to buy a house in this western province.
Alberta’s two biggest cities, Edmonton and Calgary, attract a lot of potential homebuyers but there are also several smaller cities like Spruce Grove and Airdrie that are close enough to the city limits and desirable for potential homebuyers.
While the high interest rates might have some wondering whether they should buy a house, here are some things to consider:
During the pandemic, housing prices skyrocketed across the country but once the frenzied buying was over, many cities like Vancouver and Toronto, saw significant drops in housing prices. Alberta’s housing market has seen a more stable and modest decrease in prices so buying a house now is a great investment because it retains its value.
Alberta’s economy is strong so Albertan’s can feel more confident and secure making major purchases like buying a home. Energy, manufacturing, and film are just a few of the thriving industries in the province.
Programs and Incentives
Another reason why it’s a good time to buy a house is because there are different government programs and incentives to help lower income and first-time homebuyers purchase a home, so it is easier now and more affordable for residents to buy property. Programs like PEAK, first-time homebuyer grants, Edmonton First Place Program and Attainable Homes Calgary, offer financing, interest free, and deferral options to help first-time and lower income Albertans buy their first house.
Taxes and Property Taxes
Taxes and property taxes is another expense you should consider when asking is it smart to buy a house now. Alberta has the lowest taxes compared to the rest of Canada, and Edmonton is the eleventh lowest property tax paying city in the country. Calgary homeowners properties rank among the Top 10 cities in Canada when it comes to the lowest property taxes- coming in at sixth.
This has been a very stressful and unstable year for mortgage holders because the Bank of Canada interest rates have climbed higher than we’ve seen since the 1990s. This has added a lot of stress to homebuyers across the country because the price of mortgage payments is making homeownership more difficult for buyers. However, Alberta’s stable economy and lower taxes is making it easier and more affordable for Albertans to make large purchases in real estate.
So, while residents in other cities might be questioning whether they should buy real estate, homebuyers in Alberta can still feel comfortable knowing they have the financial means and security to afford a quality home and mortgage payments.
If you are planning to buy a house, there are things you can do to protect yourself and make sure you get the best house for your immediate and long term needs. Your best chance for a successful purchase is preparation and planning.
Save For a Down Payment
Before looking for a home in Alberta, you should have enough money saved for a downpayment. If you are buying a house under $500,000, you will need to put down 5% of the purchase price. If you’re planning to buy a house over $500,000 in Alberta, you will need a downpayment that is 10% of the purchase price.
Do Your Research
There are many great cities and neighbourhoods to choose from in Alberta. When deciding should you buy a house now, research the cities and neighbourhoods to see which place best suits your immediate and future needs. Also research the types of neighbourhoods and houses available in your desired location.
Know Your Budget
Talk to your financial agent before you start looking to see what you would qualify for with a mortgage, what the monthly payments would be and what price range of homes you can comfortably afford. By knowing the money end of homeownership, it will help guide you in your search for the right home.
Is now a good time to buy a house in Alberta? You bet it is!
Canada’s housing market has been very turbulent over the last five years. From skyrocketing housing prices and bidding wars during the COVID-19 pandemic to price corrections and high Bank of Canada lending rates, the market has seen it’s fair share of extreme ups and downs.
Alberta is a thriving and beautiful province so it’s not surprising that people from all across Canada and the world are looking to relocate here. There are many economic and personal benefits to moving to Alberta.
With the holidays fast approaching, it’s time to plan your Christmas in Alberta holidays. This scenic province has something to offer everyone during this festive time of year.
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