This is my first positive assessment of the Calgary Real Estate marketplace in some time! Based on activity from several fronts I see significant price increases in the coming years.
With today’s interest rate hike and the possibility of more to come, even this could be considered good news. This shows that the economy is doing well and inflation is becoming an issue. Inflation means that there will also be upward pressure on house prices!
Here is a brief summary of projects, which if completed, will bring significant money into Alberta!
- The Kitimat LNG project: this involves 670 km of pipeline from Dawson Creek to Kitimat to be built by Costal GasLink Pipeline. The LNG port facility at Kitimat will be operated by Royal-Dutch Shell. This is a $40 Billion project. Several major contracts have been awarded here conditional on an official announcement of approval of this project. Read more here: https://www.cbc.ca/news/canada/british-columbia/lng-canada-pipeline-picks-up-steam-as-work-camp-contract-awarded-1.4737423
- Final regulatory approval of TransCanada Pipeline’s Line 3 running from Hardisty AB (near Edmonton) to Superior WI has been granted. This is a $ 9 Billion project to add an additional 375,000 bpd to the export capacity. Read more here: https://calgaryherald.com/pmn/business-pmn/oilsands-execs-see-brighter-future-with-approval-of-line-3-pipeline-project/wcm/0afb41d3-ccbb-4385-a4ca-4072a2bbaac9
- Also by TransCanada Corp is the Keystone X-L pipeline, which is not out of the woods yet but, certainly, is in a better place than previously. Read more about it here: https://www.reuters.com/article/us-transcanada-keystone/transcanada-to-start-work-on-keystone-xl-in-montana-in-fall-2018-letter-idUSKBN1I42DL
- The Kinder-Morgan pipeline has been in the news a lot lately, and now with Canada’s federal government buying out Kinder-Morgan and the Alberta government saying they will contribute up to $2 billion I think that there is a very good chance that this line will get built. Read more here: https://calgaryherald.com/news/local-news/pipeline-supporters-overtake-kinder-morgan-protest-in-calgary
So, while there is supply in the Calgary housing market particularly in the higher end properties, now may be the time to avoid the rush that will happen if these projects get built!
Let me know what you think of this! I would love to get our search started!