5 Alberta real estate trends to watch in 2021
The real estate market is a growing market globally with the increasing need for affordable and better housing, it is not difficult to see why growth projection continually points upwards.
26/03/2021
The real estate market is a growing market
globally. With the increasing need for
affordable and better housing, it is not
difficult to see why growth projection
continually points upwards.
Considering
the number of
people who own homes in Canada, it
is only imperative that you, too, yearn for an
opportunity to have your own home.
In
cities like Alberta, the process of getting a
home can be hectic, so you must know the real
estate trends to watch while there. Research
indicates that these five Alberta real estate
trends are ideal for any individual or business
that plans to involve itself in real estate.
Before we speak on these trends, let's
briefly look into what real estate is and how it
affects you consciously and unconsciously.
What is Real Estate?
According to
Investopedia, Real estate is any landed property
or real property attached to land in the form of
trees, on water, or under the ground. There are
four (4) types of real estate, including land,
residential, commercial, and industrial real
e/state.
Land real estate refers to any
undeveloped property and vacant land that is
good enough for development. Most Developers and
real estate investors prefer purchasing land to
begin their development plans.
On the
other hand, residential real estate refers to a
piece of housing units suitable for individuals,
families, or a group of people. This type of
real estate is the most common type of real
estate. Most people are very familiar with this
type of real estate, its features, and
regulations.
Commercial real estate
refers to buildings and lands used by firms and
other businesses for their operations.
Commercial real estates are similar to the
industrial counterpart except for slight
differences.
Industrial real estate is
commercial real estate that involves land and
buildings for industrial businesses, including
factories and research purposes. Real estate is
very vast and is a worthy investment.
5 Alberta real estate trends to watch in 2021
The real estate market is an open market that welcomes new developments and other initiatives that promote the real estate business. This segment will speak about the top five real estate trends to look out for this year, 2021. If you plan on transacting for a house or a landed property shortly, then these trends are for you. Let's go!
Buyers will Face Strong Competition
On the flip side of the real estate market,
it could be challenging to enter the market as a
buyer in 2021. This expected increase in housing
prices is due to the rise in demand, thereby
leading to a competitive market. With that said,
individuals who plan to purchase a home now
would need to act fast to avoid getting left out
of the market.
However, despite the
seemingly dire situation, there are some
advantages for people who want to own a home in
2021. These advantages include reducing interest
rates to as low as 2.9%, reducing loan
interests, and increasing the number of lending
communities, e. g.
Alpine Credits.
According to Fanny Mae's reports, they have been
instances of landlords reducing their prices on
rental spaces. There's also an instance where
landlords have offered incentives and
complimentary packages to draw new tenants to
their building.
Real estate will go Virtual
The pandemic of last year has added some
advantages to the way and manner of doing
business. It has also helped to properly scale
work and increase efficiency and accuracy
without raising the production cost. With that
said, it is only imperative that real estate
goes virtual.
People understand the
value of having tangible landed investments and
buildings on them. People already know that the
best investment is real estate. With the growing
fanbase of real estate enthusiasts, real estate,
just like many other businesses in times like
this, is going virtual.
Mortgage Rates will Remain Affordable
Considering the rate that people will be
buying houses in 2021, there might be a
possibility that mortgage fees and interest will
experience a necessary hike.
The Bank of
Canada, in response to the pandemic, left the
overnight lending rate at an effective lower
bound of 0.25% for most of the year. The
government also stated that it has decided to
maintain this rate until "economic slack" from
the pandemic is absorbed.
In simpler
words, the Bank of Canada gave citizens an
overnight lending rate of 0.25% for businesses
and firms to recover from the Corona Virus's
effects. With the implementation of that policy,
mortgages have also remained at an all-time low.
The suburbs will become densely populated
Remote work is becoming the new norm in most parts of Alberta and Canada. Remote work is carefully replacing the traditional work model. In this new reality, and with the need for an enormous amount of space to do more, there is a surge in attraction for the suburbs' affordable areas.
18-Hour Cities In Canada will increase Housing Demand
In real estate, location is critical. One of
the significant impacts that the pandemic had on
the real estate market is that it pushed home
buyers to reconsider their particular needs in
current locations.
As mentioned earlier,
various individuals have adjusted to life at
home and remote work. With many companies
adopting this practice as a whole, many home
buyers are slowly getting in tune with the new
system.
In conclusion, focusing on the
impact these five significant trends have on the
real estate market should be your goal. However,
ensure that you're also well-informed when you
finally decide what and when to purchase. We
hope this piece of information has helped you
greatly.