“I don’t think, based on population [growth] and cap rates, [that falling oil values] will have an impact on the prices of homes,” Sunny Sharma, a broker in Toronto, tells REP. “[Rising] interest rates and population declines would have more of an impact [on the market].”
But, Mark McLean, a broker at Bosley Real Estate in Toronto, says the market, mainly those outside of oil-driven economies, isn’t completely insulated from the impact of oil.
“There will certainly be a tiny fall out, but nothing too sharp,” McLean says. “The basics of our market in Toronto – immigration and [interest rates] – we’re not building enough properties to suit the people who need homes.”
Those people will need homes, regardless of the price of oil, says Nerses Sraidarian, a broker in Markham, Ont. In particular, Sraidarian says his investor clients have begun to ramp up their real estate portfolios.
“People are going to buy a house regardless of oil,” he says. “There are people who lost a lot of money in oil and now they’re back in real estate. They want to focus more on real estate. If you look at ten years on the grid, you’re always up on real estate.”
Oil prices might be falling, but they’re not taking the housing market with them, say agents pointing to larger issues that are slightly more capable of taking down the real estate industry.