It’s no secret Alberta’s real estate market has been severely impacted by the downturn in the Canadian oil industry, but investors will likely start looking to that market for their next big deals. And that time may be now.
“My personal feeling is it is at that point right now. Oil is at $50 a barrel now,” Derek Austin, an agent with Century 21, told REP. “The big companies that couldn’t handle the downturn have left, other companies have taken over and I think the bottom is only when you start rising again.
“You can sit and wait too long and you miss out.”
A similar cycle occurred in the 1980s, when Alberta experienced two years of economic decline between 1982-83. That was the tail-end of the last oil recession.
The province obviously recovered after that, and many investment speculators cashed in when prices were low.
With Alberta now seeing similar negative growth, a similar event may soon occur.
“Things are coming around, there are some big development projects in the works,” Austin said. If you put all the pieces together, we’re definitely coming out of this. Myself, I’ve been thinking about advertising in Vancouver and Toronto for investors there who may consider now is the time head out to where there are some good deals and things will turn around.”
However, he did note that the economy and, indeed the oil industry, likely won’t return to peak levels enjoyed just prior to the most recent downturn.
“We’re not going to come back like we were; it’s going to take a while,” Austin said. “And it’ll probably never come back to like it was. That’s OK.”
A rebound could be happening in one hard-hit market, and investor interest could spur sales for local agents.