All of us are nervous about the market these days. We’ve all had our RRSP’s take a dive, our house values have decreased, gas prices have suddenly taken a plunge… and we’ve been nervous for good reason!!! Is this a good time to buy? You bet!!!!! But should you buy a condo or a house?

OK, condos are cheaper but hear me out! For 2009 we can expect housing prices to drop another 3% and condo prices to continue their decline at a 5% drop this year. What does that show us? The housing market is going to see prices slightly increase for 2010 but because of condo over-building, we probably won’t see condos do this for at least another year, perhaps two. Overall condos are not as good of an investment as houses are. Spanning the last decade, condos have never been a good investment . I have always preached this to my clients and still preach this to this very day. With condo fees rising, less control over your unit with stiffer by-laws in place, overbuilding etc., condos remain a flimsy investment with poor returns overall. So to all condo owners…. Get out now and get into a house where you actually own the land! In fact, history shows us that only land increases in value and that the opposite is true for the building structures themselves.

Why buy a house now? Interest rates are at historical lows. Lots of homes to choose from. It’s a buyer’s market with sellers looking at offers lower than they would normally. Urban sprawl issues are hotly debated items in the suburbs which means that housing is going to be built differently in the future so that yard sizes are reduced(duplexes, even narrower lots if you can believe it!). Keep in mind that for every $100 you spend on condo fees monthly translates to roughly $15,000 in house price so that if you are looking for a condo at the $250,000 price range, you can actually start looking at houses in the $300,000 price range with condo fees at $300.

As for the market… overall we see indicators that the recession is going to end soon. This year in fact! Calgary has suffered very little so far. Our jobless rate is the best in the country. Migration to Alberta from other areas of the country such as Ontario is expected. Homeowners want to stretch their wings and leverage their equity before housing prices jump up for 2010. I expect Alberta’s market to remain strong and increase faster and higher than the rest of Canada in 2010. I’m already seeing investors flooding the market right now… looking for good deals. Investors, as speculators, will be the first to drive the market up in Calgary and believe me, there are thousands of investors out there right now watching the market, waiting and some smart ones are buying in good areas right now!

Your house is the biggest investment you have! It’s a 3 bedroom piggy bank and it needs to be your highest priority right now if want to protect your future!