MARKET UPDATE – November 1, 2018
There are a number of economic indicators that suggest the Alberta economy is gradually recovering from the downturn that started in January 2015 when oil prices began to free fall. Alberta Treasury Branch economic updates over past weeks have highlighted a return to population growth, increased employment, strong vehicle sales, growing restaurant receipts and higher wages as proof that we are making gains.
In the past forty years Alberta has experienced at least five economic reverses, some more drastic than others. Many who can remember the early eighties believe this most recent one to be almost as bad. The common denominator is that we always recover to even better times, although this recovery has been slower than most simply because oil prices were depressed for longer.
The improving economy hasn’t translated to the real estate market yet, but it too will recover. The question on every seller’s mind is when? The simple economic principle of Supply and Demand provides the answer. When Supply and Demand are balanced, prices will stabilize. When Demand outpaces Supply, prices will go up. In the meantime, buyers have an unprecedented opportunity to take advantage of ample choice and very attractive prices.
