The stock market continues to be rocky. Many people are waiting for the bottom. Many others have moved their money out of stocks into bonds and other fixed income assets. Investors have even sold off mutual funds. Despite all this uncertainty in the marketplace, there is still something to smile about. In fact, buying a home is still one of the best investments you can make.
The value of homes is rising. The Canadian Real Estate Association reported on August 15, 2002 that the average price of a resale home in Canada in July was $201,372. That was up 5.8 percent over the same period in 2001. Homeowners in most major urban markets faired well.
Recreational property is also on the rise. A recent survey by RE/MAX found that 90 percent of the recreational properties in Canada increased in value in the past year.
In its spring housing report released on August 9, 2002, Canada Mortgage and Housing Corporation reported that Edmonton's new home construction for July recorded its best performance in 21 years. Total housing starts in the Edmonton Census Metropolitan Area (CMA) reached 836 units, about 26 percent higher than July 2001. This was the thirteenth consecutive month when housing starts were higher than the same period a year earlier.
From January through July, single starts are up nearly 37 percent over the same period in 2001. "With low interest rates and a shortage of supply of homes in the resale market, Edmontonians are continuing to turn to the new home market for their housing needs," reported Vinay Bhardwaj, Manager of Market Analysis for CMHC. "As a result, the new home construction industry is on pace to show its best year since 1979."
Over the phone or in person? Carl will review the entire process with you.