Investors may be shying away from parking their money in Edmonton real estate, but one veteran who has focused on the area for years argues there are still deals to be had in the area.
“I think it’s most important that people pay attention to the specific neighbourhoods and towns they want to invest in. There are pockets of opportunity,” Wayne Weum, an investor who focuses on Edmonton and the surrounding area, told Canadian Real Estate Wealth. “You have to pay attention to age dynamics and where the jobs are. The economic downturn cannot be ignored.”
It’s no secret Edmonton real estate has taken a beating as the oil industry has declined.
Totals sales in the Big E have taken a nosedive over the past two years. In June, total sales fell by 10.1% year-over-year as 2,063 homes changed hands.
And prices have followed that trend, albeit to a more moderate degree.
The average home in Edmonton now costs $372,671, down 0.6% year-over-year.
And with many other Canadian markets experiencing historical price gains, investors may be tempted to avoid Edmonton.
However, Weum isn’t fazed. He’s sticking with a strategy and he argues whether a market is up or down, investment fundaments remain the same.
“I’m still buying; I’m looking at mainly private sales and I’m looking at expired listings. People aren’t getting the money they want and they are willing to let properties go for a bit better price,” he said. “[When buying a house], I’m going to say, I’m going to give you 'X' amount of money but I can close with you in a week and I can offer no financing conditions. I can come in with cash. I can avoid prolonging their pain.”
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A dedication to due diligence and research allows investors to cash in when purchasing properties in this hard-hit market, according to one veteran investor.