Responding to the latest housing market report from the Canadian Real Estate Association, BMO says low interest rates should support steady sales and prices nationwide in 2015, “though Alberta can expect a bumpier landing.” Why? Because of falling oil prices, of course.
Transactions in Calgary and Edmonton plunged in January amid looming layoffs in the energy sector, and preliminary data for February suggest the downturn continues in Calgary, albeit at a somewhat lesser pace.
In their report, BMO says depressed sales in Alberta will be acute enough to reduce national demand moderately in 2015. However, sales should stabilize in 2016 as economic growth and oil prices pick up.
For the province’s most populous city, BMO says Calgary can expect to see moderate price decline this year “as layoffs in the energy sector spur some reversal in migration flows.”
According to the BMO report, the city had just one unsold, vacant new condo unit in recent months, compared with over 700 in mid-2010. “This should help cushion the looming decline in home prices,” the bank says.
Province-wide supply has shot up, giving Alberta buyers a much-needed break after two years of rapid price gains.
For more, the complete report can be found here.