Mortgage Blog

Positive News For Alberta!

October 12, 2018 | Posted by: Brandi Pierik and Matthew Pierik - Red Deer and Calgary Mortgage Brokers

Positive Trends for the Alberta Economy and Homeowners

It’s no surprise that Albertans have faced many hardships over the past few years. But, we’re strong and resilient! In fact, economists are predicting that our great province is well on the road to recovery and should be back to a fully stable economic outlook within the next year!

That’s great news to all Albertans, especially homeowners and those looking to break into property ownership! After all, everyone wants to feel secure that the property they purchase will continue to be a strong long-term investment.

TD Economics released a report recently that names eight reasons for optimism in our province’s future. Highlights of the report said:
- About 24 months since the end of the recession, the Alberta economy continues to move in the right direction
- Real GDP growth bounced back with more gusto than expected in 2017, although the pace of expansion has moderated so far in 2018
- Based on output levels, the economy is close to returning “home” – a moniker used to characterize full recovery from the downturn. It will, however, take a few more years for the unemployment rate to fall to a level consistent with full employment
- As the recovery continues, the discussion will shift towards the state of the province’s longer-term growth foundation. Questions surround the viability of the province’s oil and gas sector and which industries will drive growth over the long haul
- Despite these uncertainties, there are a number of reasons for optimism that the province can reassert itself as a leading economic engine of Canada

In addition, the province has other industries taking flight including the high-tech sector, where Alberta is pulling ahead in artificial intelligence research. The forecast also notes Alberta’s relatively young population, when compared to the national average, adding to future growth potential and high labour force participation. Additionally, Alberta shows a historical record of outperforming expectations for economic recovery.

And, according to ATB Financial’s Economics & Research Team, Alberta’s population – among the fastest-growing provinces in Canada – is also having a positive effect on our economy.

Compared to a year ago, we’ve grown by more than 63,000 people (+1.5%). Natural population growth – the total births minus total deaths – has remained consistent over the last five years, averaging around 8,000 new Albertans each quarter.

Permanent immigration has been consistent at around 11,000 new people each quarter, while emigration has averaged just over 2,000.

Interprovincial migration also comes into play. Before the recession, this had consistently brought in 5,000 to 10,000 net new people each quarter. Between 2015 and 2017, however, Alberta experienced a net outflow of migrants to other provinces. It has recently returned to the positive side of the equation in 2018.

Thinking of buying your first Red Deer home, tapping into your home equity, or wondering about your Red Deer mortgage options in general? Answers are just a call or email away! Brandi Pierik, Dominion Lending Centres, Your Red Deer Mortgage Broker

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