Weaker housing market in Calgary as oil revenues plunge

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Housing activity in Calgary has started the year with an increase in listings and a year-over-year fall in sales. Data from the Calgary Real Estate Board shows listings up 22 per cent and sales down 34 per cent compared with January last year. The figures follow growth in listings and falling sales in December. Analysts are watching all data from Alberta with expectation of a slowdown due to the weaker energy sector and David Tulk of TD Economics told The Financial Post that he expects more weakness to emerge as data is released over the coming months. Meanwhile the Bank of Canada said yesterday in its business outlook that sentiment across the country is generally positive but “falling oil prices have significantly dampened the outlook for firms tied to the energy sector.”
  • AnthonyC. on 2015-01-13 11:30:18 AM

    I think deja vu applies here...those cowboys don't seem to learn from the past...

    Not that I have a crystal ball and would have made out of it any safer were I to have had invested in the Alberta Boom, but w.t.f....weren't any of the analysts working the Credit Risk desk looking to the south and wondering as to the future of tar-sand production, while the U.S. becomes the world's leader in Natural Gas production and thus becoming less reliant on Canadian and Middle East oil...? ...and the answer is ...NOPE...too much profit to think about the downside.

    Canadian Natural is slashing $2.4 Billion from its 2015 capital expenditures...just one of about a dozen or so big players who are all cutting back...wonder how many mortgages, car loans, equipment leases & financing, new build home projects, condo developments etc. (the list goes on) which were reliant on those jobs, are now in crisis mode as to how its all going to be paid with major cutbacks announced and expected...there one minute, gone the next...

    Recession in Alberta to follow...

  • AnthonyC. on 2015-01-13 11:33:42 AM

    ...and as a side note, Keystone looks like it is going through...so its not all doom and gloom...for the top execs anyway...who will retain their salaries for the meanwhile, as production will be minimal at best and unrefined will be sold at cost, to maintain status quo.

  • Rudy Haugeneder on 2015-01-14 12:08:25 AM

    Not only Alberta is in deep, deep economic trouble. Once almost zero interest rates eventually, probably within a year, return close to normal, it is very likely the American deficit will spiral out-of-control and the USA will shortly thereafter default, unable even to come even close to making interest payments alone on its known $18 Trillion national debt. And that's a cold and hard fact.

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