Most recently I heard it from my future mother in law. Do you think that Edmonton prices are going to rebound? Is the market totally in the toilet? Should I sell everything I have now? Should I move to cheap, cheap, cheap Phoenix?
Well, she did ask if I thought the current ‘breath’ the market is taking is just a ‘breath’. I took a little artistic license with the other bits.
First, I’ve said before that positive cash flow real estate investments work in any market. And Todd Millar just wrote a very well done article on a similar topic. As Todd and Danielle mention, Alberta is a buyer’s market – not a falling one.
Second, the fundamental of investing that most people intellectually understand is: buy low, sell high. However, when it comes to reality, emotions take over and people act like cattle. When it comes to real estate they sink to the mental level of lemmings.
It’s like all the investors got down on their knees and prayed for a buyers market. Now it’s here, and people are getting freaked out.
It’s not so much being a contrarian, as being smart. You don’t have to be a genius to see a cycle when you look at Edmonton’s historical price trends. And when you understand a little about the history and economy of the region, you learn why the cycles aren’t completely regular.
Buy when it’s smart. Right now, in Edmonton, it’s smart.
And I’m buying.