This past few weeks, we at Team Leading Edge have harping the good news about Edmonton’s real estate industry, today, we’ll try to touch base on the issue of declining oil prices and what it means to the real estate sector.
This topic strikes close to heart since one of Alberta’s main source of income is oil money.
In the past 4 months, oil prices have plunged to a low of 25%, although this is nothing compared to the 80% drop during the Great Recession, some business leaders still foresee a negative effect to the real estate side.
This is not to say that there is another major crisis. Canada’s southern neighbor is currently enjoying a faster than average economic growth.
The declining in oil prices might cost Alberta’s provincial treasury CDN $215 million, if oil prices drop down a notch below the $92 per barrel mark.
David Sanche, co-CEO of Westrich Pacific, said that if oil prices stay low until spring time, condominiums that are entering the pre-marketing phase might face delays, including their project at the Windemere area and corner of 102nd street and 102nd avenue.
On the other hand, the decline may prove to be a good thing for the construction industry as it might shift the demand for construction workers from the oilsands to Edmonton’s real estate.
