October 1 2015 – Market Update
September sales in Red Deer were off slightly from August’s while the number of active listings jumped, pushing the market into
buyer’s territory after several months when sellers had the advantage. The central Alberta market has fared extremely well this
year considering ATB economists are now predicting a slight contraction in the Alberta economy for 2015, and only modest
growth for 2016. The biggest reason for our stable market is that our population is still growing (a net gain of more than 8,000
people in Alberta in the 2nd quarter of this year, along with similar gains in the first quarter).
This week’s ATB Financial 4th Quarter Economic Outlook stated, “After 5 years of exceptionally strong growth, it now appears
certain that Alberta’s economy will contract in 2015. While that will be a challenge for many businesses and individuals who will
face loss of income and employment, it is not uncommon for our energy‐dependant province to face the occasional recession.
The single reason for the economic challenges this year is the drop in oil prices….. producers in Alberta have cut investments,
spending and workers…. Other major economic indicators showed some stability over the first three quarters of the year.
Residential construction was solid, wholesale and retail trade has stabilized and manufacturing has leveled off (albeit at a lower
value than a year ago).” See the entire report at www.atb.com/learn/economics
