Will housing market slow into a recession?
A new report by BMO Nesbitt Burns suggests that Newfoundland and Labrador could slip into a shallow recession this year with Alberta on the borderline. The outlook is for NL to see negative growth of 0.5 per cent as the province suffers from the weakened oil industry. Alberta is expected to be flat at best but could also slightly tip into negative growth while Saskatchewan is likely to slow to 1 per cent growth. What will the change in government do? Will it affect BC? Will prices go up or down?
Overall though the outlook for the Canadian economy is more positive with the report suggesting 2 per cent growth this year and possibly higher in 2016 as oil prices have recovered from the lowest points of the slump. The report does not specifically suggest a slowdown in the housing markets in the three oil-producing provinces although consumer sentiment has already affected sales and prices to some extent and is likely to be compounded by the predicted weakening of growth.
We are in a balanced market now, who knows what the future will bring,
Nancy signing off..er,