With the sharp decline in oil recently, province across Canada are having a varied response in terms of their housing markets. Alberta however, has an economy that largely circles the oil and gas industry, so things are looking different here.
But before you take this information as doom and gloom, this means one major trend for buyers in Alberta—it’s a great time to buy.
Large changes to investment impact employment and housing demand. Low oil prices have reduced investment in this industry decreasing housing demand and creating housing market conditions that favour buyers in Alberta and Saskatchewan. [CMHC]
According to CMHC, MLS® sales in Alberta have again dropped 11 per cent so far in 2016, which has been attributed to low energy prices and reduced employment numbers.
If you’re looking at Calgary specifically, a lower level of real estate transactions this year (and last) has resulted in downward pressure on prices, which again is a condition that very much favours home buyers. Essentially, affordability has risen again. Real estate is a great investment in Calgary, and an affordable one.
In Alberta, investment related to energy represents more than half of all its business investment, and is dominated by oil sands investment. Hence, a large portion of Alberta’s expenditures are dependent on oil prices. Over the past year and a half, oil and natural gas companies responded to low energy prices by reducing investment and payroll expenditures, all contributing to an economic contraction in Alberta. [CMHC]
There’s plenty of resources on my website for home buyers, but if you have any questions about the current real estate landscape in Calgary or about homebuying in general, please contact me.
