The truth behind the current drop in Edmonton real estate prices and the drop in Alberta home equity

Will the recent decline really hurt home owners in Edmonton, Alberta?

Before you go and pull out your calculator and drive yourself crazy to figure out how much Edmonton home equity you lost, lets examine the real reason why you bought your house in the first place. Did you purchase your home in the burgeoning Edmonton real estate market hoping to ride the real estate curve and make a few quick dollars or to have a beautiful place to call home for a long time or even generations to come? Or you bought your new Edmonton home because you fell in love with the place and absolutely wanted to live there? And you love all the extra spaces that it provide for you and your family, the lovely fenced yard for the kids and the dog, the deck that you always wanted to have for all those long summer nights, the gourmet kitchen that you love to cook and entertain in. Congratulations if you bought your Edmonton house because you fell in love with it then it! Then it really doesn’t matter to you which way the Edmonton real estate market goes because you love your home so much that you wouldn’t sell even if the market skyrocketed tomorrow or in the near future.

Investing in Edmonton properties is different than other investments

Most Edmonton house buyers purchased their homes to live in and they are not concern about the most recent drop in Edmonton real estate prices. This is because regardless of what happens, we still need a roof over our heads and a place to call home. That’s why in one lifetime the best investment is your own homes and this makes even more sense if you’re investing in Edmonton properties. Investing in Edmonton property is quite different than buying other investments such as stocks, mutual funds, GIC, bonds, gold, etc as these are more sensitive to the direction of the property market. This is not the case with the drop in the value of your Edmonton property values. As long as you can make your monthly mortgage payment you’ll still have a lovely home to stay in and no one will come knocking on your door to ask you to pay back your line of credit. That is why investing in Edmonton real estate makes sense and also makes sleeping easier compared to other more riskier investments.

Nothing happen to your Edmonton home unless you sell

Unless you can’t sleep at night or you are a realtor in Edmonton making a living selling real estate, the current up and down markets should have no bearing on your current finances. You qualified to buy your new Edmonton home based on your income earning ability at that time to service the mortgage and unless this has changed, you are still making the same payments the downturn in the Edmonton real estate market. The good news is that eventually this Edmonton home mortgage will be paid off and you can live in your home mortgage free! Then you wouldn’t care which direction property the market goes.

Edmonton real estate has increases over the past five years

Another way of owning your own home in Edmonton’s property market now is the right time to invest in more properties in Edmonton. According to the Edmonton real estate board an average houses in Edmonton 5 years ago costs $177,178 and when the Edmonton market peak in May/June 2007, an average Edmonton homes cost $426,028 and it is now sitting at $303,304. That’s a 71% increases since 2004. It is no wonder why we have seen slight adjustments in the values of Edmonton property and housing prices over the last 1.5 years. Edmonton real estate at one point used to be the tenth highest priced city in Canada to purchase a home, it now sits at fifth or sixth. This is why investing in Edmonton property for the long run still make the most economical sense and will continue to attract migrants from other provinces because of the no sale taxes and the lower cost of living in Edmonton combined with well-paying jobs and housing availability.