After selling their home in Red Deer, Lise DeMoissac and her husband were in the market for a new place and were ready to invest in a place in St. Paul.
After selling their home in Red Deer, Lise DeMoissac and her husband were in the market for a new place and were ready to invest in a place in St. Paul.
“Basically for us, we were looking for a long-term home,&” she said, noting there was quite a bit to choose from in St. Paul's housing market, and they were able to find a unique home that they felt met their needs.
To DeMoissac, the current downturn in the economy due to low oil prices created a better buyer's market, and she notes the house they bought came at a reduced price. “Because of the scare, they were willing to negotiate.&”
However, despite the provincial economic slowdown, St. Paul's housing market is holding its own, say local real estate brokers. Housing prices have not taken a dramatic fall and houses continue to move, they say.
The price for an average home, such as a 1,200 sq. ft. bungalow built in the 1970s or 80s, is hovering at about $270,000, according to Rob Hippisley, owner/broker of Coldwell Banker.
While property rates are still lower than they are in the Bonnyville and Cold Lake areas, Hippisley notes that these neighbouring areas have a lot more inventory coming onto the market as the effects of sinking oil prices affect these more resource-driven areas.
Meanwhile, in St. Paul, the boom and bust cycle of oil has less of an effect - the area doesn't get the big increases or decreases, said Hippisley.
“We're just more of a service industry, so it's just always consistent.&”
Tyler Poirier, owner/associate broker for Century 21 Poirier Real Estate, was also positive about St. Paul's growth.
“Basically, the latter half of 2014 finished very strong,&” he said, adding 2015 saw a steady start to the year. However, the consumer confidence isn't as strong as usual, as people are in a “holding pattern,&” wanting to see what the budget would bring and also to see if the economy would affect housing prices, he said.
However, like Hippisley, Poirier noted, “We've always found St. Paul a steady, stable market to invest in, even when oil prices fluctuate.&”
As spring season comes around bringing more listings, Poirier offers a few factors for first-time homebuyers to consider as they decide whether or not to take the plunge into home ownership.
First and foremost is the fact that potential homeowners can lock in a great deal on interest rates, which are still at record lows.
Secondly, he notes that effective July 1, 2015, the Alberta Government will be passing on increases in closing costs for mortgage and land title registrations.
“It's almost a 400 per cent increase,&” he said, adding homeowners ready to make a decision on purchasing could get ahead of what he called a “hidden tax&” if they closed deals before that date.
“The other reason is, it's still a good time to buy a house. I would say that the market has always done well over any five-year period. Real estate is more of a long-term investment,&” he said, adding he estimated that in the last five years, there would have been a 13 to 15 per cent growth in housing prices. He noted that people purchasing a house are “likely going to have a safe and steady growth to your investment.&”
DeMoissac concurs, saying she and her husband were less concerned about getting a house at bottom dollar and more focused on the future.
“We just felt like in the long-term, this would be a good investment.&”
