No areas are sellers’ markets says BMO
The slowdown in the oil industry with the resulting job losses will mean a “moderate” decline in the Alberta housing market. That’s the view of BMO Capital Markets senior economist Sal Guatieri who wrote in a report yesterday that prices will slip back this year due to a reversal in migration. Nationally, the report says that demand is “especially weak” in Quebec and Atlantic Canada, “falling fast” in Alberta and Saskatchewan but “remains healthy” in B.C. and Ontario. Guateri says no areas are judged to be sellers’ markets although Toronto and Vancouver come close. On a positive note he believes that low interest rates should support the housing market in 2015, although Alberta can expect a bumpier landing. Valuations outside Toronto and Vancouver are reasonable “reducing the change of a nationwide correction.” In those two hot markets though Guateri highlights rapid price gains could result in a correction of economic conditions worsen.