End of Edmonton House Price Spikes
RE/MAX reported yesterday that ‘the dramatic, decade-long run-up in house prices’ may be over. This will be a big shock for Edmonton homeowners who have enjoyed a compound annual growth rate of 9.25% over the past decade. The Canadian Real Estate Association has revised its house price projections to 1.3% growth in both 2011 and 2012! Those who saw real estate as a surefire investment may be in for a major shock in the days ahead!
Does it still make sense to own your own home? Absolutely! It is better than paying rent. Besides mortgage rates are still very affordable –even though they are now creeping above 4% for a 5 year term.
Even in a static market, selling and buying again still amounts to an equity exchange. As well, there will always be motivated sellers who need to sell and price their homes accordingly.
