The Calgary real estate market can be a little unpredictable at times due to the fact it’s tightly tied to the economics of the city. It’s directly affected by the buisness patterns of the oil & gas industry. Over the last several years Calgary’s economic state has been on the rise but many worry the recent volatility in the oil market could cause a bust in the housing market.
According to CREB® chief economist Ann-Marie Lurie “Two consecutive years of relatively strong employment and population growth, combined with rising wages and low lending rates, have supported demand growth in our housing sector. “
Also RBC’s chief economist Craig Wright has something to say about this worry, stating that “a strong economy and rapid population growth continue to trump any possible worries that Alberta’s energy boom might bust in the near future.”
Yes, oil prices directly affect the housing market but it has to be a long extended slump in oil prices before companies start laying people off and this causes a downturn in the housing market. Although, Calgary energy companies seem to be treading lightly and hiring has slowed, we won’t see an all out collapse of the market in 2015. We could see the market cool from what we are experiencing today.
Most will be happy to note that Calgary’s housing market is still strong. According to the Business News Network, “October’s month-to-date housing sales climbed 10.19 percent over the same period last year, according to the Calgary Real Estate Board. The month-to-date median price in October is $440,000 (Canadian), up 5.39 percent compared with the same time frame in October, 2013. October’s month-to-date median price is also up compared with all of last month, when it clocked in at $425,000.”
D Gees Homes & Realty has the experience, know-how, and infrastructure to offer you great opportunities in your real estate endeavors, whether you need a new rehab project to work on or would like to learn about other options.
Please call us today at 587.800.1213 if you’d like to learn more about the real estate services that we offer.