Real estate fears due to dropping oil prices unwarranted

As per CBC's report on Edmonton's real estate:

Edmonton realtors expect the city’s bullish housing market to continue into 2015 despite dropping oil prices.

Low unemployment and a strong economy will push the values of homes up by four per cent with the average residential price climbing from $374,000 in 2014 to $389,000 in 2015.

With oil selling close to $60 US per barrel many expect the oil industry to slow down, but realtors say that won't have a large impact on the housing market.

“We’ve got away from being solely dependent on oil in the Edmonton market, with $5 1/2 billion in infrastructure.construction projects going along in the downtown core alone,” said Greg Steele, president of the Realtors Association of Edmonton.

“That’ll be sustained for the next three to five years."

Steele said the Edmonton market is far from saturated, despite the rapid growth in downtown condos and single family homes on the city’s outskirts.

“Right now we’re taking everything,” he said. “We’re like a sponge. Everything being built is being sold.”

While homes priced below $400,000 make up 65 per cent of the market, luxury home sales have been growing for the past three years.

Realtors reported a 29 per cent increase in sales over $1 million in 2014 compared to last year.


Source:

http://www.cbc.ca/news/canada/edmonton/edmonton-ho...

It is understandable why some may be concerned over the dropping oil prices but Edmonton's market was also initially slow to rise with the oil boom in the mid to late 2000's. Edmonton's real estate market was also busy prior to the boom and is expected to stay healthy while the same can't be said for properties in the north around Fort McMurray where a much larger part of the boom directly affected the real estate prices and development.

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Elizabeth Cwik

Elizabeth Cwik

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CENTURY 21 Platinum Realty
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