Have Oil Prices Affected the Alberta Market?

The answer is "yes", according to BMO.

In the first month of 2015, 2,642 properties sold in the province, a decline of nearly 30 per cent from 2014’s numbers. The median price also declined in the province, falling 1.6 per cent. Canada saw a decline in sales of two per cent, while prices increased 3.1 per cent. As you can see, it’s obvious that the province is dragging down an otherwise robust market.In markets more exposed to oil, the carnage was even worse.

Prices fell 7.3 per cent in Fort McMurray, 8.5 per cent in Grande Prairie, and more than 14 per cent in Lloydminister, all cities that are well known as oil towns. Listings have also surged in the province to 19,429 listings in January. That’s an increase of 20 per cent, and it represents almost eight months worth of sales. That’s the highest that number has been since 2011 and according to BNN.ca, the time has come to sell with home prices expected to dip by as much as 20 per cent. Sherry Cooper, the former chief economist at BMO, now at Dominion Lending Centres, says sellers in Calgary’s real estate market will be in for a rude awakening if they sit on the bench.


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