With the massive plummet in oil pricing, the Edmonton real estate market is bound to see some backlash. Although it’s a relatively recent occurrence, many people have already lost their jobs and as a result the Edmonton real estate market has begun to cool off.
Can it Last?
Many economists believe that the energy sector is going to flounder for at least a year before seeing any type of recovery. While consumers are benefiting greatly from the low-prices at the pumps, many others have found themselves in the unemployment lines. There is no sure-fire way to say when prices will climb again, but it’s all about politics so the world news will be very telling. The Edmonton real estate market will change in tandem with the oil pricing.
The Good News
Although real estate experts fully expect the Edmonton real estate market to cool off a bit, they don’t foresee it halting altogether. The city has enjoyed a red hot market for years now, so having it slow down to a more average pace will take some adjusting but its not the worst thing that could happen. This may be an opportunity to gain some perspective for consumers.
Where Will the Most Damage Occur?
Without a doubt, industry towns like Fort McMurray will be the hardest hit in terms of real estate value, but for the Edmonton real estate market, specialists expect the greatest slowdown to occur in the condominium market place. Condos were popular for energy workers who spent a lot of time away from home, for obvious reasons, but there will still be a market for them.
Condos are still hugely popular Edmonton real estate for first-time buyers and working professionals, there is a high likelihood that oil prices will primarily affect the construction industry for condos, rather than the salability of existing condos.