Economist predicts 15 per cent drop in Calgary house prices

Economist predicts 15 per cent drop in Calgary house prices

Economist predicts 15 per cent drop in Calgary house prices Capital Economics’ David Madani is predicting a sharp drop in property prices in Calgary. He says that in regions directly affected by lower oil prices lower mortgage rates won’t stop listings rising and prices falling. In a research note Madani acknowledges that the lower rates may help some other markets but in areas like Calgary it is likely to make things worse: “We fear that this will only fuel greater overvaluation, higher household debt and more overbuilding.” He says that Toronto and Vancouver will see the benefits, as shown by recent sales figures in those markets, but for the oil-dependent provinces: “We remain deeply concerned over the longer-term prospects for the housing market.”

 
4 Comments
  • Keith 2015-02-05 10:22:11 AM
    Another economist spouting off with no meat behind his comments. In addition no where in the article does it reflect the amount posted in the headline. Many economists have wished for Calgary to fall for many years now and it continues to move forward not back.

    There is so much more to the Calgary economy than oil and that is why it continues to move forward. Economists try to pigeon hole the Calgary economy to one thing and that is their problem.

    So many economists do not look beyond one commodity.
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  • John S. 2015-02-05 11:16:34 AM
    I am not an economist but I think that 15% drop in house prices is like putting a lipstick on a pig.
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  • kac 2015-02-05 12:14:44 PM
    where do these guys come from. On a daily basis some economist has some prediction about the sky falling. Im no meteorologist but when i looked out the window this morning i predicted rain,why? it was raining.
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