Oil Crash!! NDP Elected in Alberta!! Edmonton housing market doomed!!!
Do you detect a note of sarcasm? Well there is definitely a good reason for it. After silently listening the all the rhetoric in the past couple of months, especially with the May 5th victory of Rachael Notley’s NDP victory in Alberta. Suddenly, people have a built in excuse for their own failure. The NDP killed the economy! I lost my job because of the NDP! The list goes on and on. Even from senior business leaders and others well respected have come to this conclusion, even before they are able to pass their first budget. Having lived in Alberta for 9 years It is tough to argue the desperate state of health care and education. I recall emergency room visits of 11 hours more than once, and my kids being taught from portables in overcrowded schools. The latest is all about Canada east pipeline and Saskatchewan premier Brad Wall sticking up for the west. The media can certainly make headlines I will give them that.
Myth #1 the impending housing crash. I can argue this one all day long. Sure things have slowed down, especially in the energy sector and there have been layoffs but according to Alberta statistics 7,723 people moved to Alberta in the first quarter of 2015. It is down of course from 2014 however despite low oil prices, layoffs, people are still moving to Alberta for work. It is the economic choice of people in BC who need work, as well as eastern Canada, and is the land of opportunity for many immigrants when they arrive in Canada. Edmonton especially is well diversified. Read more here
Myth #2 the NDP will ruin any economy it touches. It is especially amusing to me how many are now blaming the NDP for their own failures in life and business. I personally made my highest returns every under the NDP government in Saskatchewan in 2006. Many are now afraid that Tom Mulcair may actually become prime minister and replace Stephen Harper. I don’t see this happening, however anything is possible and if it does I will be ready of course. The housing market in Edmonton may be slowing but it is still my favorite place to invest. People are still moving to, and moving up. The vacancy rate is low so all of our buildings are rented and rental increases continue. It’s business as usual. Slow, predictable, and sizzling.