Calgary starting to feel oil crunch
Calgary, Canada’s fourth-biggest city, with 1.2 million people, is starting to feel the impact of the oil-price collapse. According to the Wall Street Journal, many companies, including some of the region’s largest employers, have slashed budgets, cut wages and frozen hiring, and some have started to announce layoffs. Those jitters are starting to affect the housing market there. “There’s a lot of people downtown with job uncertainty,” said Glenn Herring, a real-estate agent in Calgary. “They’re certainly not thinking about making a move.” Calgary’s total home sales fell 39 per cent on the year in January to the lowest level in five years, while new listings shot up by 37 per cent, the Calgary Real Estate Board said. Average prices fell only 0.5 per cent on the year in January, but that may change as the inventory of unsold homes on the market more than doubled.
Realtor looks to long-term health in Calgary
And while the picture may look bleak in the short term, the long-term outlook at looking stable, according to realtor in Calgary. Christina Hagerty, a realtor with RE/MAX Realty Professionals, who started in the business in 1991, said real estate in Calgary has always been a good long-term investment. “In fact, if you look at real estate values over the course of 10 years, all have performed double to triple their value right across the board, not just in the inner core,” said Hagerty, who specializes in that area. “So the old-timers like us who have seen a couple of decades of activity aren’t fretting.”
Commercial real estate healthy in Sault Ste. Marie
Algoma Central Corp., a major owner of commercial real estate in downtown Sault Ste, Marie, is reporting sharply higher real estate earnings in the final three months of 2014, compared to the same period last year. Fourth-quarter results released by the company on Friday showed profit of $894,000 in the three months ended December 31, 2014, compared to $470,000 over the same period in 2013. Real estate results improved due to higher occupancy and a reduction in one-time costs that were incurred in 2013.