Economist predicts 15 per cent drop in Calgary house prices

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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.”

  • Keith on 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.

  • John S. on 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.

  • kac on 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.

  • John S. on 2015-02-05 1:37:30 PM

    Sad but true, without which we wouldn't appreciate the sunshine. It was hard to dodge those propaganda headlines about robust markets and healthy economy. When US market collapsed, Canadian government decided to print 25 billion dollars instead of cleaning up the house just like our neighbor did. Bottom line you pay now or you pay later. If you look outside of Canada you may learn that currencies all over the world are down except of US who's economy is recovering. Global trouble. Do you know that it takes about US$9 for Saudis US$65 for US and about US$85 for CDN do dig the crude out of dirt? I am not a meteorologist either, but I think we need a miracle.

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