Thursday, September 27, 2007

Small Slips Don't Equal Big Dips

YES - housing prices have slipped in Alberta, but is it really the big drop that everyone fears?

"August's (nationwide) decline was due largely to drops in Alberta, where the average price in Calgary fell $13,000 to $423,801 and Edmonton's average slipped $8,100 to $345,809."

NO - what we are seeing is a slight softening of the market. After such a meteoric rise in housing prices over the last 18 months we need a correction.

Don't forget Alberta's economics are undoubtedly the best in Canada.

"With the province expected to post economic growth of 4.3 per cent this year, growth is expected to moderate to between 2.5 and three per cent for 2008-09 due to rising costs for labour, production and infrastructure.""The promise of oil sands projects, combined with assets such as a young, educated population and an excellent business climate, bodes well for the region," TD Bank economists Don Drummond and Derek Burleton

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