Housing Prices Set to Climb Again After Fort McMurray Wildfire

According John Andrew, a Queen's University real estate expert, the prices of homes in Fort McMurray are not likely to increase significantly due to the wildfires.

John Andrew stated that the city should see some recovery from the decline in housing prices after the oil price crash.

Alberta's fourth largest city, Fort McMurray, had many homes destroyed by a massive wildfire.

According to statistics released by the Fort McMurray Real Estate Board, the average sale price of homes in the city dropped between 6.9 per cent and 24.9 per cent between March 2015 and March 2016 depending on the type of home.

About 2,400 structures were destroyed by the wildfires. John Andrew mentioned that some of these structures were likely vacant. He also stated that the loss of some of those homes likely fixed any oversupply in the market and this should help prices recover.

The rental market is expected to be affected as there is likely to be some price increases. The cost of new construction of homes is likely to climb.

John Andrew advises residents of Fort McMurray looking to rebuild their homes should check whether their insurance policy covers the full replacement cost or if it covers a set amount in order to avoid any unexpected costs.

A mortgage agent with Dominion Lending Centres, Debbie Jacobsen, stated that the cost of rebuilding homes after fire was about $100 per square feet more than it should have been.

Reference: Edmonton Sun

http://www.edmontonsun.com/…/housing-prices-set-to-climb-ag…