With Alberta’s economy mainly driven by the oil up north, it comes as no surprise that every other news article is talking about how the price of oil has dropped below $70 a barrel. The question that we are frequently being asked lately is “how does the price of oil affect the Calgary real estate market and my home value?” It’s a hard question to answer as there are so many factors involved and much speculation out there; no one truly knows what the future holds for Calgary’s real estate market. I can tell you though that the market in 2014 exceeded expectations with home prices increasing by 5.87% and sales are up by 10.24% (CREB.com). The housing inventory in Calgary has been low all year creating pent up demand for good homes to come on the market and there are lots of buyers anxious to find something. “Over the past year, inventories have been low in the city, limiting some of the choice for consumers,” said CREB® president Bill Kirk. “While availability in specific segments and price ranges vary, on the whole, the recent rise in inventories will be welcome news for many buyers” (CREB.com). With Calgary’s real estate market coming off such a hot year in 2014 it makes sense that it will continue to move forward well into 2015.
Another factor positively affecting the demand for homes in Calgary is the creation of jobs by the many projects currently underway. These projects include the new South Health Campus which will be creating over 15,000 positions in both the construction and medical industry, as well as the advancement of the SW portion of the ring road. All of these factors among many others are drawing a large number of people to Calgary and the surrounding areas, causing a spike in home sales. Although I don’t claim to be an expert on all the inner workings of the oil industry and what goes on behind the scenes, I do feel optimistic about what 2015 has to offer for home owners in Calgary and the surrounding areas.