Nov 21 2015
Key insights and forecasts for Alberta's housing markets will be shared by Canada Mortgage and Housing Corporation (CMHC) economists and market analysts at today's 22nd annual Housing Outlook Conference in Edmonton. CMHC experts will present to hundreds of housing industry experts on economic, demographic and other factors impacting Alberta's major markets, including Edmonton, Calgary, Grande Prairie and Wood Buffalo.
"Lower oil prices have had an impact on Alberta's economy this year affecting capital investment, energy exports and consumer spending, and in turn, the province's housing starts," says Lai Sing Louie, CMHC's Regional Economist for the Prairie and Territories Region. "New construction declined by about 20 per cent in 2015. However, oil prices are forecasted to rise next year and in 2017 as US crude oil production declines. This will help Alberta's economy return to growth in 2016 and 2017," says Louie.
In Edmonton, strength in the multi-family sector will push total housing starts to 16,400 units in 2015. However, this strength will dissipate in the closing months of 2015 and throughout 2016 as slower economic growth and reduced net migration lead to softer housing demand.
"Multi-family starts began 2015 at a record setting pace, supported by a tight rental market and relatively low inventory on the ownership market," says Christina Butchart, CMHC's Principal, Market Analysis for Edmonton. "Weaker economic conditions and a well-supplied resale home market will continue to weigh down the new single-detached housing market in Edmonton in 2015 and 2016, but we should begin to see some modest growth in 2017," says Butchart.
"In Calgary, the impact of lower oil prices on the labour market has weakened employment growth and has also slowed migration, and increased uncertainty among prospective homebuyers," says Richard Cho, Principal, Market Analysis for Calgary. "Total housing starts in 2016 are forecast to decline an additional 16 per cent from 2015, but increase slightly in 2017," says Cho.
CMHC's annual Calgary Housing Outlook Conference helps housing market participants understand trends in the market place, identify new opportunities, and make sound business decisions. With more than 65 years of experience, consumers and the housing industry trusts CMHC to deliver reliable, impartial and up-to-date housing market information.
Source: http://www.cmhc-schl.gc.ca/