Edmonton’s continued growth a double-edged sword for first-time home buyers

There’s no question Edmonton has been one of the strongest markets in North American and it will continue to grow as long as long as there’s oil and manufacturing job available.

But as Edmonton’s economy and housing market is expected to continue to grow in 2013, what will this mean for first time home buyers in Edmonton?

Well it’s a combination of both good and not so good for first time home buyers.

The good: A growing economy means continual growth and improving values for homes. The house you buy for $200K might be worth $250-300K one day, so long as updates are made to the home and the economy keeps growing, which doesn’t look like it will subside anytime soon. Basically the investment you purchase should pay off.

The bad: Well, home prices are rising. The home you wanted to buy at $180K could be worth $200-215K in a competitive market like Edmonton. Also, the new regulations put down from the government made it so the maximum amortization period for a home mortgage dropped from 30 years to 25, which doesn’t help either.

So it’s a tricky situation for Edmonton first-time home buyers, but it you may have to get in while the getting is good. The longer you wait, the more home prices will go up. There doesn’t seem to be a decrease anytime soon.

Post written by Alexis Hlady

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