Over the past few weeks the global financial markets have been reeling since Britain voted in a national referendum to leave the European Union. The results of the Brexit vote shocked the world and sent the British pound plummeting.
The negative global economic outlook coupled with weak employment numbers in the US released last month decreased interest rates for borrowers and added to an influx of investors looking for secure investments outside of the UK and the EU. Those secure investments often translate into real estate and Canada continues to be a hot market for investors looking for a way to ride out volatile markets.
As a result, there has been a lot of speculation about how Brexit will affect Canada’s real estate market, especially in its hottest markets, Toronto and Vancouver. Our country’s current low interest rates have been an historical lows, and the Bank of Canada’s next meeting will likely result in a rate reduction, adding fuel to the booming markets’ fire.
Despite the global financial uncertainty and negative global economic outlook, however, the affects of Brexit on Edmonton’s property market should be minimal. Since Edmonton is not one of the overheated markets for investors looking to park their money in Canadian real estate, it remains a steady market and ideal ground for locals looking to purchase property.
A positive side effect of Brexit will be for home owners looking to take advantage of dropping interest rates when it is time to renew their mortgage rates, or when planning to make any changes to their existing home or property.
While global economics continue to rise and fall, real estate in Edmonton continues to look good and, over the short-term, Brexit should have a positive affect for our city’s homeowners.