Calgary, which claimed the hotspot last year, scored second place in the ranking system by the Real Estate Investment Network this time around.
Calgary’s real estate performance was naturally hit by the torrential floods that ravaged the city earlier this year, moving it from almost perfect market conditions to a "too" hot position.
“After the floods hit, the rental as well as the housing markets over-performed the underlying fundamentals and have pushed it into the too hot level, but this situation should not last longer than 12 months,” says Don Campbell, senior analyst of the REIN Research Institute.
With high levels of inward migration, zero vacancy rates and strong job creation, Campbell adds that the post-flood transaction bump will not be felt negatively in the market due to high demand.
Edmonton, he says, only claimed the top ranking because it is behind Calgary in its residential and industry recovery curve. “Edmonton’s market, beginning at a lower position in the real estate cycle, should slightly outperform the returns a homeowner or investors will experience in Calgary, which is already 12 to 18 months ahead on the cycle.”
Calgary suburb Airdrie claimed the third spot, followed by Leduc, St. Albert, Red Deer and Fort Saskatchewan.
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