Reported by CBC
Calgary Real Estate Board predicts housing sales to drop in 2015
But prices expected to remain stable, or even increase slightly, in Calgary this year
By Kyle Bakx, CBC News Posted: Jan 14, 2015 9:50 AM MT Last Updated: Jan 14, 2015 3:59 PM MT
The stark drop in oil prices is expected to weaken the Calgary real estate market.
The Calgary Real Estate Board (CREB) released its annual forecast for the upcoming year today. It is projecting sales to drop by four per cent in 2015; however, housing prices are expected to remain stable and even increase by 1.6 per cent.
CREB admits the forecast should be taken with a grain of salt, considering the uncertainty in the province right now.
The board bases its forecast on many factors including employment levels, net migration and consumer confidence. The plunge in crude oil prices is impacting all of those factors.
“The challenge is understanding what is happening in energy. No question what happens in the energy sector influences what happens in Calgary’s market,” said CREB chief economist Ann-Marie Lurie. “Given energy has been so volatile, we really have to look at what people are saying about what will happen in energy.”
Economists are either projecting Alberta to enter a recession this year or experience limited growth.
Several Calgary-based energy companies have announced layoffs, including Suncor which announced Tuesday it would be eliminating 1,000 jobs.