Critical Upcoming Housing Stat Reports
The Bank of Canada has finally admitted, what economists have said for the past month – that Canada could face some turbulence economically. With the crash of oil prices in the past few months, there is tremendous uncertainty in Canada’s economy, which is powered by commodities. Just yesterday, oil giant Suncor announced that it was cutting 1,000 jobs in Canada due to low oil prices.
The effect of lowering oil prices were immediately reflected in the Calgary real estate market with sales declining by 7.5% in December 2014 vs. December 2013. So far in January, things look even worse, with Calgary Real Estate Board reporting a decline of 29.12% this month compared to last year. This is undoubtedly a concerning trend.
Prices rose by as much as 11.6% over the past year, led by growth in urban cities such as Toronto, and Vancouver. Many other real estate brokerages have released updates on 2015 outlook. Unfortunately, most have downplayed the potential crisis for a housing correction. The latest, Royal LePage believes housing will continue to increase in price this year, albeit at a slower pace, seeing a 2.9% average growth across Canada.
There is no doubt that these next two housing reports to be released by the Canadian Real Estate Association (CREA) are the most important since the Financial Crisis of 2008. The December housing report is set to be released later this week, while January’s for next month.