Oil capitals heading for correction says TD
TD economists are predicted a fall in house prices of around 10 per cent over the coming year in Canada’s oil capitals of Calgary, Edmonton and St. John’s, Newfoundland. In Alberta’s hot markets that would erase the increases in prices during 2014 while in St. John’s it would be a further blow to a market already struggling. TD’s Derek Burleton and Diana Petramala wrote in their report yesterday that the downturn in the oil industry would affect levels of unemployment, something that is already being felt, and would push house prices lower. The report suggests that Alberta would narrowly avoid recession but that Newfoundland will fall into negative growth this year. Away from oil-dominated areas the TD report expects moderate growth for the housing markets in Toronto and Vancouver with Ottawa and Montreal flat.