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Sunday, February 25th, 2024

Bank report reveals hottest investor markets

A new report on varying provincial fortunes hints at where to make that next real estate investment. Psst, there’s oil there.

“Strength in the energy sector has rekindled in-migration and helped firm up the labour market,” writes economist Robert Kavcic, touching on Alberta in the new edition of the BMO Blue Book “With the recent growth spurt, measures of cost pressure and capacity constraints are picking up, but remain far from the extremes of the last boom.”

The guide, which digests employment, manufacturing and other commercial activity stats for each province in order to develop a snapshot of local economies, appears just as bullish on Saskatchewan and, to a lesser extent, Newfoundland & Labrador, which led the country last year with its 3.8 per cent growth in real GDP.

While acceleration is expected to slow this year as investment levels off and oil production dips, both Alberta and its neighbour to the east are expected to  lead this year’s GDP growth with 3.0 per cent and 2.9 per cent increases, respectively.

The BMO report lends yet more support to real estate investors now hunting for residential and commercial properties in those provinces, hoping to capitalize on the expected bump-up in demand for housing.

But to make that happen, they’ll first have to find those properties. That’s no mean feat.

“There’s a dearth of move-in ready investment properties on the market,” said Randy Bett, head of an investor-focused realty in Calgary. “They’re tough to find and the competition for them is significant.”

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