Hello Team RED,
What's Happening in Alberta?
The first quarter report for mortgages in arrears is out and .....the percentage of mortgages that are in arrears 90 days and over, has dropped to 0.31% in Alberta! That is the lowest it has been since August of 2008. Here are some key factors that are supporting Alberta's strengthening economy:
- The bankruptcy rate which is next to zero
- The average weekly earnings is up 3.3% year over year
- The job vacancy rate is at 3.6%
- Business incorporations is up 12.3% year over year
- Natural Gas production up 11.3% year over year
- Oil Production up 7.4% year over year
The list goes on and on, all showing very strong indications of our economy continuing to strengthen in the coming years.
What's Happening in the Market?
The listing inventory is gaining momentum with 60% of what we would normally be sitting at this time of year. Regardless of the showing levels levelling off after a strong decline, the sales through the first part of July are still very strong. Once again, we are on track for the fourth best July in Calgary's history. The showing decline was not as abrupt as it has been in the past few years which suggests that we may see these levels continue through August as opposed to seeing a spiked increase.
Summary
There are no indications of a slow down which means that prices will continue to rise. With rumoured interest rate reductions after summer, that will increase affordability for many people but they will need to weigh carefully if rising prices will offset the increased affordability. Speaking to a mortgage broker about variable rates to take advantage of current pricing levels and future interest rates may be the best of both worlds.
Steve Phillips
Broker403.618.6984
1210 20 AVE SW T2G 1M8