RE/MAX Edmonton Real Estate News

Housing prices have been resistant to economic decline

In the face of economic downturn there are still expectations that Canadian home prices will continue to rise. It is being reported that while the growth may slow understandably, there is no foreseeable slump in the any of the major real estate markets of Canada.

Despite plummeting oil prices a predicted nationwide appreciation of 2.9 % can be expected on 2015 residential sale prices. The major centers of Toronto and Vancouver are predicted to see increases of as much as 4.5% and 2.8% respectively.

2014 saw prices surpass historical averages; residential detached bungalows rose about 6.7% throughout the nation. Edmonton’s condo market saw the largest nationwide increase at 12.2%, contrasted with the cross-country average of 4.5%.

ATB Financial Chief Economist Todd Hirsch comments on the predictability of the oil markets:

“This happens over and over. In fact, in 2009, we saw a similar price plunge like this and it was quite short-lived and things rebounded…I don’t think we should worry too much because I think it will be quite temporary.”

Alberta in particular has prosperous industry to fall back on, such as agriculture and forestry, which have the potential to thrive in low oil price conditions. Additionally, as reported by the Calgary Herald, Alberta saw a “50 per cent increase in meat product exports last year along with growth in the aerospace, farming and chemicals sectors.”

Pierre Cleroux, Chief Economist with the Business Development Bank of Canada reasons

“Oil of course is the No. 1 export product from Alberta but we often forget that Alberta is also a diversified economy. There’s other sectors that are doing well.”

The real estate market outlook is optimistic due to other economic factors like labour market trends and a continuing surge in demand from homebuyers. At this point the multitude of positive aspects continue to outweigh the decline seen by a deteriorating oil market.

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The small community of Devon, Alberta, still considered a ‘town’ with a population of just over 6500, covers almost 12 square Kilometres of land southwest of Edmonton.  At about a 40 minute drive (26 KM) away, Devon provides an idyllic escape from city life.

Bridge at Devon, Alberta. Image Credit: Sean McCormick via flikr.com

Surrounded by agricultural communities, and residential sprawl from Edmonton, Devon is a hub of  not only shopping and amenities but is surrounded by world class golf courses and spectacular nature preserves.

By Alberta standards the town is relatively new, having almost sprung up overnight in the late winter of 1947. The Imperial Oil drilling company struck oil on the present day town site, and Devon developed to accommodate for the many site workers and staff necessary to maintain the drill. To this day the oil industry remains an important contributor to Devon’s economy.

Imperial Leduc #1 Oil Drill. Image Credit: Devon.ca

The Devonian Botanic Garden, facilitated by the University of Alberta, is a notable feature, and namesake, of the area around Devon known for its lush landscapes. The ‘Garden’ is in actuality over 190 acres of botany collections, indoor show houses, as well as an extensive trail system. Across the highway from the gardens lies the Clifford E. Lee Nature Sanctuary; nearly 350 acres of marshland, parkland, open meadows, and more. The varied terrain attracts a multitude of animal species, including over 100 varieties of birds.

The greenery around Devon is not only reserved for flora and fauna however, the Devon Golf and Country Club, as well as Blackhawk Golf Club are both found along the scenic Devon River. The Golf and Country club was also built in the interest of the early oil workers, to create a leisure time activity. As the sport escalated in popularity, it grew from a 9 to an 18 hole course.

View of the Devonian Botanic Garden. Image Credit: University of Alberta

Devon is appealing for those searching for a starter family home, or even more established buyers. The area is serviced by a general hospital, 3 public schools, 2 Christian academy, a Catholic School, and the Devon Dispatch newspaper.

CLICK HERE to view properties available in Devon.