Effect of Dropping Oil Prices on Real Estate in Calgary

With the oil prices dropping in the recent months, many Calgarian's are left wondering how the real estate market will be effected.

As many of us who lived in Calgary back in 2008-2009 can recall, the market took a drastic fall. However, the decline was linked to more factors than what we are seeing this year. Not only did the price of oil decline, but also the entire financial market. The oil and gas employment was too fat to handle, with the high wages, increased spending and a wealth of employees, the market was not able to bear.
As a result, cutback on development strategies was needed, thousands were laid off and people were leaving the city.

The recent oil price declines have elevated individuals concerns, as the the future housing prices.

I am here to tell you, you can breath a sigh of relief. CREB forecast shows that Calgary is in a more capable position to make it through this stretch of reduced oil prices, and that the housing prices should remain fairly steady for the remainder of the year.
Oilsands projects continue to run, as they are funded and committed and Oil & Gas industry now run a leaner employment force. Although we may continue to see layoffs as we've seen with companies such as Suncore, it's not foreseen to be to the degree of layoffs back in 2008
Currently, based on the 2 months of inventory available, Calgary is still in a sellers market.
This drop in oil prices is good news for anyone interested in purchasing this year as it means there won't be a substantial increase in housing prices.
As for sellers, I would encourage you to list early this year, as the first quarter trends are showing a sellers market.

If you have any questions regarding the Calgary or Airdrie housing market or would like to list your home, please contact me directly at 403-828-8319

For more information visit CREB.com


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