“Political change creates uncertainty, and uncertainty creates a lack of consumer confidence, which in turn usually translates into a short-term buying opportunity,” James Knull, an Edmonton-area real estate agent specializing in investment properties told CREW
He says recent discussions with clients have been around the fact that Alberta it is still a pretty blue province and the affects that could have on decision-making.
“Around here many people are claiming the sky is falling and that the Liberals are going to completely sink Alberta,” says Knull. “Is that true? Probably not. So what’s going to happen is people who are listening are going to wait to see how it plays out.
“The opportunity for investors, he says, will come while “people who are buying into the media hype are afraid that the market is going to get worse and may try to dump their properties before things get worse.
“It’s a terrible environment for sellers, but a great environment for buyers.”
When it comes to the economic climate, some think real estate prices will remain stable.
“The purported increase in federal government spending might offset some of the increases in unemployment in Alberta that we are seeing, but not in the near term,” Phil Wazonek, an agent at Distinct Realty Services in Calgary told CREW
. “Thus, I think real estate prices will continue their softening [in Alberta] but we won’t see any large decreases.”
Wazonek doesn’t see the creation of any buying opportunities unless unemployment rises and people start leaving the province.
“At this point, I am more worried about the NDP provincial budget coming out shortly,” he adds. “I think that could have more of an impact for investors in Alberta in the near term.”
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With change comes uncertainty, and in the wake of Justin Trudeau’s stunning election victory, some investors are of the mind that the next quarter may provide opportunities.