Connect

Find us on...

Dashboard

Login using...

New Search X

Declining Oil Hardly Affecting Calgary Home Prices

Posted by Ryan MacDonald on Wednesday, March 11th, 2015 at 10:44am.

Looks like declining oil prices have not really affected how much homes in Calgary are selling for. Sure, new listings growth is down, but prices are still holding steady.

Calgary real estate market home prices

Looking at the February real estate stats for Calgary, as released by the Calgary Real Estate Board, new listing growth slowed from 37% in January down to 9% in February, which is a clear sign the panic to sell has passed. In terms of pricing, the unadjusted detached benchmark price was $516,000 in February, a 6% increase from Feb. 2014, and a 0.5% decline from January figures.

Again, looking back to the last time oil prices plunged, in 2008 (when oil was less than US$50 a barrel), the average Calgary home price only dropped by 7% from 2007-2009.

I think that, despite what the media is reporting, sales are still happening in Calgary and even competing offers on homes as well. (The number of) sales are down for sure, but consumer confidence is growing daily. Prices have not really been affected and the forecast is for a moderate price gain by the end of the year.

With spring just around the corner, I believe more buyers will emerge from winter hibernation. However, now is certainly not a bad time to buy a home in Calgary, as there is less competition for houses.

I believe buyers now have an opportunity to get exactly what they want for a fair price. If the oil market becomes stable and a 'new normal' is well received, there is a good chance of a 'mini boom', as there are a plethora of buyers sitting on the sidelines waiting to see what happens in the market and with their employment.

Recent history shows how resilient home prices have been in Calgary during slow times in the oil and gas markets. Fortress Real Developments released a report with stats concerning the past five economic downturns in Calgary:

    • Between February 1986 and December 1986, oil prices were down 49% year-over-year on average. During that same period, new house prices in the Calgary CMA increased 8% annually on average, said the report.
    • Between August 1991 to January 1992, oil prices were down 29% on average, new house prices were down 2% on average.
    • Between September 1997 to February 1999, oil prices declined 27% on average, new house prices increased 7% on average.
    • Between June 2001 to March 2002, oil prices declined 24% on average, new house prices increased 3% on average.

Contact our team to get positioned properly to strike when the time is right with Calgary real estate.

Ryan MacDonald, B.Sc. Real Estate Professional

Million Dollar Club Member
Top 1% Real Estate Professional in Calgary
Re/Max First
C: 403.519.9102
O: 403.278.2900; F: 403.592.8008

4 Responses to "Declining Oil Hardly Affecting Calgary Home Prices"

Calgary Luxury Home Sales Poised for Growth in 2012!! wrote: [...][...]

Posted on Monday, October 22nd, 2012 at 11:58am.

Lake Bonavista Estates Market Stats - October 2012 wrote: [...]Estates homes for sale,  or contact us via email or directly @ 403-519-9102.Related LinksSOLD by Calgary Home Team, Another Luxurious Home in Lake Bonavista Estates!Lake Bonavista Estates Real Estates Info in CalgaryCalgary Lake Communities Blog TagsLake Bonavista[...]

Posted on Wednesday, November 28th, 2012 at 4:18pm.

Another Luxury Home Sold by Calgary Home Team in Elbow Park!!! wrote: [...]or via email. Related LinksMAGNIFICENT LAKEFRONT HOME in Lake Midnapore Has Just Sold!!SOLD by Calgary Home Team, Another Luxurious Home in Lake Bonavista Estates!Calgary Luxury Home Sales Poised for Growth in 2012!!Blog TagsCalgary Luxury Homes (7)Elbow Park[...]

Posted on Thursday, November 29th, 2012 at 4:30pm.

Calgary Home Sales Set Luxury Record in 2012!! wrote: [...]by Calgary Home Team in Elbow Park!!!MAGNIFICENT LAKEFRONT HOME in Lake Midnapore Has Just Sold!!SOLD by Calgary Home Team, Another Luxurious Home in Lake Bonavista Estates!Blog TagsCalgary Luxury Homes (9)Elbow Park (2)Luxury Living (2)Calgary Luxury Market (2) Print[...]

Posted on Tuesday, January 8th, 2013 at 4:52pm.

Leave a Comment