Based on low interest rate policies of the Covid-19 pandemic, it appears from the following excerpt out of a recent Economist article that high asset prices are all but guaranteed. This is predicted to last for many years to come. Alberta, given its current economic situation, may not experience the same level of house market value growth as the rest of Canada but fortunately we will be somewhat safeguarded from a housing downturn because of the fed’s interest rate policies. There are some bright spots!
“…Low interest rates also mean that high asset prices are all but guaranteed. This will reinforce complaints about wealth inequality and intergenerational unfairness—complaints that carry more bite given the unequal distribution of job losses this year. Homeowners, mostly drawn from the professional classes, will benefit as they can take advantage of cheaper mortgages. So will homebuyers. One reason why housing markets are holding up is that the downturn has not hit the typical house-hunter. Those without wealth or access to finance will feel understandably aggrieved.” The Economist, Nov1st, 2020