Will Lethbridge Real Estate prices continue to rise?

As a real estate agent with Sutton Group Lethbridge, it is my job to keep abreast of real estate prices in Lethbridge and southern Alberta. Unlike some other parts of the country, our real estate prices are based on sound fundamentals, and a robust economy.

Real Estate prices in other parts of Canada are undoubtedly influenced by speculation to some degree. British Columbia has been a prime example for many years. The province is undeniably beautiful, and for many people that is the primary attraction. However, to base a real estate purchase purely on the scenic value of a location is risky. Fortunately, the BC economy is reasonably healthy at the moment, but most economists would agree, it simply does not compare to Alberta.

I recently asked some friends who live in the Okanagan about who is buying all the expensive real estate. They replied that Albertans were the primary buyers. That tells you something right there – it is the economy which is the driving force of any housing market.

The fundamentals are in Place

There are a set of vital fundamentals which dictate property prices, and all of them are in place in Lethbridge, and Alberta in general.

1. The job market is healthy – to the point of shortages in many occupations.

2. Oil prices are at all time highs. These prices seem to be the new normal.

3. Alberta has a good climate. Being in the rain shadow of the Rocky Mountains, we have more sunshine and less rain than just about anywhere in Canada.

4. We are located in a scenic part of the country. Some of the most attractive National Parks in Canada are on our doorstep.

5. We have no sales tax, therefore, the cost of living (excluding real estate) is substantly less than many other provinces.

6. Mortgage rates are still historically low.

We live in a great province, and more people are coming every day. Undoubtedly, the cost of real estate is set to rise in Lethbridge for the foreseeable future, or until such time as the fundaments change. Additional information about Lethbridge Real Estate can be found at my web site www.TeamMiller.ca

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Published in: on December 14, 2006 at 8:43 am  Leave a Comment