Opinion based reports for those that appriciate an open minded interpretation of the current market!
January 2012
We are entering 2012, and on this note we want to wish you all a great new year.
Sinds 2008, there is not much changed. Governements have use their recourses and that of others to pump money in economies around the world.
The interest rates are at all time lows and still, trouble.
Every hick-up gives a large wave in the world pond and the effects are layoffs in 1e world countries, larger companies swollow small ones, and people on the bottom and middle incomes are looking for way's to make ends meet.
For you buyer or seller, there are some things to keep in mind.
Prices from moderate and higher end homes will see a decrease as money gets tight.
The starter homes are getting more expensive, but don't realy having more real value.
Home Buyer:
Be aware of the trents in the area where you are planning to buy. Pricing in the past don't have to work in the future. Alberta has due to it's higher avereage income currently an inflated market. $100.-+++ oil is having an inpact on new workforce housing.
A world wide slow down could drag oil prices down, an directly effect the demand on the housing market and it's higher prices.
Renting is not a bad idea when reasonable housing is unaffordable at this time.
Home Seller:
The current market is good and there is resonable demand for good houses. When you are thinking to sell, evaluate you property, and cash in on it's current value. Expect a volatile market and price swings in the future.
Farm Buyer and Seller:
Because of a volatile stock market and low interst rates, buyers have bought land as a save haven for their investment money.
This has made land reach record high prices. When you have money in an investment account and are looking in buying farm property, invest it for a very long time, as voletility might strike rather sooner than later.
Returns on land are low. When interest rates will rise, expect more land on the market with lower prices. This could take a wile. Sellers that have to sell could see their investment drop in value.
Long term investers should look at future and current potential, location and ...realistic value.
Questions?? Give us a call, we can help you with up to date info regarding land and farms.