CMHC Downgrade Pushes More Money Into Alberta
The CMHC downgrade of predictions for the performance of the Canadian housing market should really not come as a surprise to anyone. Some voices from Ontario and British Columbia have continued to try and dissuade Canadians that their provinces are in for a slump but the data shows completely the opposite. It shouldn’t be surprising that CMHC is also trying to paint the dive as a ‘soft’ landing or ‘correction’ and attempting to avoid out-right panic.
However, historic real estate cycles show this is rarely the case and the stampede mentality invariably takes over. In fact, the best thing that the government and professionals could do is to adequately warn and prepare the public so that they can defend themselves appropriately and minimize the damage. Unfortunately this rarely happens.
Fortunately all real estate is local and the current issues in the east certainly don’t necessarily apply to Alberta. Most Canadians aren’t buying the spin anymore either, with many anxiously looking for ways to make the best of the situation, while Alberta towns and cities vie to attract the best incoming residents and businesses.
Calgary real estate is still in demand but its cost and lack of availability continues to push businesses and new residents outwards. This has Calgary’s bedroom communities ramping up PR efforts and battling each other to draw new residents in their direction, but for many Edmonton clearly continues to stand out as the preferred destination. This is especially true of business owners and professionals.