Happy Holidays to Alberta Real Estate Investors
We are cheaper today than 3 years ago
ATB Economics recently wrote about the price increase in the resale market...
According to Canadian Real Estate Association calculations, the price of a benchmark home increased for the 24th month in a row in Calgary and for the 19th month in a row in Edmonton (seasonally adjusted).
Looking at change over the last 12 months, the benchmark price in Calgary hit $584,300 in November, up 4.4% compared to November 2023.
Edmonton’s benchmark price remained lower than Calgary’s at $403,300, but grew faster at 7.7% higher than a year ago.
Great news for anyone who are invested in the Alberta real estate market.
I had a great year this year and I hope you are too.
If you have taken actions and invested in Alberta real estate, I'd love to hear about them!
If you are trying to figure out how to get involved with Alberta real estate, feel free to reply to this email and I might be able to share some resources with you.
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This is one chart you may want to print out and stick it to somewhere you see regularly.
You see, I believe from time to time, a big opportunity presents itself on a silver platter.
Many people call them "luck".
I have been "lucky" few times in my life.
Right after university, I was presented with an opportunity to help grow a home decor business.
In 3 years, the business doubled.
The product was hot, people wanted to decorate their homes even during the Great Financial Crisis.
Since most people cut back on spending money on big ticket things like cars and vacations, they end up buying small things around their home, like home decor.
I was "lucky".
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After that, I was recruited to consult for a company in the emergency preparedness industry.
It was a fascinating industry. Back then it was relatively obscure.
These days, many people refer to people in that industry as "preppers".
I would bet you may have not heard of "emergency preparedness", but you have probably heard of “preppers".
The company doubled in less than 2 years.
When people thought the world was going to end (aka the Great Financial Crisis), people were eager to stock up on emergency preparedness products.
My pay doubled in 2 years as a result of the company's performance.
I was "lucky".
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After the real estate market crashed in the US, my Canadian brother Mitch reached out to me to partner up on a piece of property.
There was nothing fancy about that property.
It was a single family home in an area very few people even knew about.
We bought the property for 140k US dollars.
The market was dead back then.
So was the 1st year after buying it.
After the 1st year, the market started to show some life.
Few years after, we sold the property for over 300k US.
I was "lucky".
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Why am I bringing your attention to the resale home prices chart?
Because, this is the chart that many people may point to in the future on the timeline and say..
“This was when I bought in”
“I was lucky!”
The gap between the previous hot markets and Alberta is simply too large.
But just like the US property Mitch and I invested in, the market didn't go anywhere in the 1st year.
Just because there's an unusual large price gap, it doesn't mean the market will pick up right away.
Until the wind changes direction.
The momentum has been back to Alberta for the past 3 years.
Interesting enough, even today, with Alberta real estate as the "shining star" in the Canadian real estate market, the price "gap" between Vancouver/Toronto is larger in November 2024 than November 2020.
To say it in another way:
After all the price increase with Alberta real estate in the past 3 years, we are cheaper today relative to Vancouver/Toronto than 3 years ago.
I believe this is a big opportunity that presents itself on a silver platter.
I hope you are "lucky" enough to recognize it.
If you like my work, I invite you to share it with others.
Merry Christmas and Happy Holidays to my dear readers,
Eric Chang
Calgary, Alberta
December 17, 2024
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