The first 10 days of Feb, 2023 are defying market predictions for higher end acreage sales. After a slow start in January of only 2 sales, 8 acreages over $1mil are either sold or conditionally sold so far in Feb! Hang onto your hat! The busy spring market is still a couple months away! Huge profits in the Oil and Gas sector are just being posted which means big bonuses this spring for many in the patch. Stay tuned as I will watch this market segment closely.
Just released today by the Gov’t of Alberta are migration figures. During the last 12 months, Alberta welcomed 79,992 net international migrants and saw a net inflow of 37,117 interprovincial migrants. Alberta is predicted to lead the country in GDP growth in 2023 and 2024 with the province receiving massive royalty revenues. These two factors mean certain segments of our real estate market are set for a very good couple years. Interest rates are predicted to start falling in 6-9 months (depending on who you listen to and what market indicators you consider). International events will as usual dictate our economic course.
I stand by my prediction that 2023 will be the year of the downsize for a good many people. Interest rate hikes will make mortgage renewals painful. Couple this with that fact monthly household operating costs have increased significantly (electricity rates are basically double that of a couple years ago and natural gas rates up 50%). In general, wages aren’t keeping up. There will likely be a further widening of the gap between the haves and have nots in 2023.