What do you think is hurting YYC real estate numbers more, our Energy Sector or Covid-19?
Our Energy Sector.
In Feb, 20,000 jobs were taken out of Calgary due to Energy Prices. In March, our start into Covid19, another 40K jobs were lost. Many of the job losses were highly paid professional and scientific in the oil industry.
Sales dropped 63% in April and 43% in May. Of course, new listings also dropped, and we now see that our prices from the same months in 2019 dropped just 4%. (Higher priced homes decreased more than lower priced.)
RBC reported The Canadian economy will retract by 8% and Alberta will experience the most pain. Furthermore, we have still not recovered from the 2015 recession.
Alberta is likely in the worst recession it has ever experienced. While in-migration levels should increase this year, this in-migration to our province is international. These are “newcomers” to Canada – establishing in their new home. We are expecting to have the most job losses in recorded history of approximately 250,000. Unemployment in 2021 is expected to be in the double digits.
A colleague of mine, Keith Braun, has prepared a very good analysis. You may see it here.
Have you got real estate decisions to make? Each region of Calgary is different, and every community is different. Depending on your circumstances, and area, it may make sense to continue on your plan to be a seller or a buyer. All the variables must be considered in your life’s situation and your goals.
If you are attempting to navigate the Calgary Real Estate Market, please reach out. I would love to share what I know and assist in your ‘best decision making’, based on your lifestyle and future goals.
This is part of a series of pieces, written in about twelve minutes, proofread once with tiny edits, and then posted online.
Someday, probably not, I may publish a book entitled: Bryon Wrote This Book in 12 Minutes.
You can learn more about me and my real estate business at www.TheHowardTeam.net.