I could be considered part of the problem, but I’m far from alone.
With the average detached house in Okotoks now selling above $680,000, which is 11 per cent higher than it was just a year ago, there’s been an increasing amount of discussion about what, or who, is driving this upward trend. The supply-demand imbalance is playing a part for sure, but the inter-provincial migration of people leaving overheated real estate markets in B.C. and Ontario in search of a bargain in Alberta is undoubtedly a significant factor.
There are so many making the trek these days that prices have been steadily climbing, not enough to make those new Albertans blink, but to a point where they’re getting out of reach for those who didn't arrive with a nest egg.
I moved to Alberta from Greater Vancouver coming up on four years ago, not because of the price of housing, but rather to be closer to our only child who had moved here in search of a brighter future. The fact house prices were considerably less expensive was a welcome bonus.
We initially moved to Beaumont, where we found a nicer, bigger and newer home than the one we had in B.C. for just over half the price. I remember saying to our realtor at the time that the houses we were looking at would all have a ‘1’ in front of them if they were in the Vancouver area. Instead of $600,000, they’d be $1.6 million.
We saw a decent appreciation during the time we were in our Beaumont house and have seen prices continue to rise since we moved south almost two years ago, but despite these increases, the market is still attractive to outsiders, so they’ll continue to flock here as long as that’s the case.
The move from a scorching real estate market to one that’s more room temperature is advantageous to buyers of all ages and price levels, which means it’s not just first-timers or retirees, it’s everyone who reaps the financial benefit of relocation.
Younger people who can’t even dream of getting the deed to a place have a much better chance of becoming homeowners, those struggling to make their mortgage payments can find comparable accommodation at a fraction of the price and those who have paid off their mortgage or are close to doing so can cash out and bank a big chunk of change.
Throw in the fact that if you’re considering leaving the craziness of B.C. or Ontario, the Calgary region might be as attractive a landing spot as you’ll find in the country, which means it’s hard to see this train stopping anytime soon. I have come across many former Lower Mainlanders in my time here and I suspect countless more are on the way.
If this influx is helping you build equity in your home, I suspect you don’t mind the fact that outsiders like me are helping drive up prices. If you’re one of those who is on the wrong end of these increases in the real estate market, it’s important you remember that I came from Beaumont.
