Ah the Oil business, all at once a booming and busting entity to hang your hat on. As Calgary gets pulled into the gauntlet of another oil price dive, all eyes are on the residual housing market correction threatening to take place.
By January 2015, house sales had slumped 45% since last year’s peaks, with experts predicting a 10% drop is house values this year as the oil prices continue their roller coaster ride with most Albertan’s, directly or indirectly affected, strapped in for the ride.
So what does this mean for home-owners?
If the last crisis of 2008 is any indication, the troubling economic effects of an oil crisis will cause a bit of a hit to home values for the near future. Those who are looking to break into the market and finally purchase a home, the listings will most likely be in their favor. Those who are looking to sell will be facing some stiff competition and harsh truths when it comes to value. For those who are in the position to sit tight and wait out the storm, the act of retaining the inner-city urbanization and building still remains. The high cost of infrastructure and commutes during times of economic strife promote the idea of inner-city living, and with decreasing prices, the option to not only buy inner-city but build inner-city is becoming more available to more people.
While the local economy narrowly avoids a recession, the need to maintain structure within the city is essential. As with before, the market will return to a level place and when that happens, those who arrived or stuck with the inner-infrastructure will see great returns.
Until then, home-owners and home-builders will continue to build up and improve upon the inner neighborhoods to provide a strong core for the city to build upon when times are high again. Stay tuned to see what Van Manna Homes is doing with their newest projects.