Impact of oil values felt across the country

by Olivia D'Orazio30 Jan 2015
Sales reps in Canada’s oil-producing provinces are not the only ones preparing for the impact of sinking oil values; agents on the opposite side of the country are also watching with interest.
“We’re dependent on the money they bring back,” says sales rep Jim Graham from Miramichi, N.B., where many people migrate west for work in the oil fields. “Low oil might impact the market, because lots of people might not have jobs. Quite a number of people in the area work out West, either Saskatchewan or Alberta.”
Miramichi, a small town on the eastern coast of New Brunswick, was particularly hard hit by the recession a few years back. By 2009, the town had lost one-third of its employers from the last five years. As a result, many workers took jobs in the oil sands out west in an effort to hang on to their lives back home.
“We appreciate the fact that they have jobs and the disposable income is brought back here, as opposed to where the money’s made,” Graham says.
While the market hasn’t experienced a massive up-tick in activity, Graham says the money coming in has certainly helped stave off a potential downturn.
“Most of the people who work out there already had their homes established before they left,” he says. “So when they come back, they do renovations. But they’re not buying much except the necessities.”
Kari McBride, president of the New Brunswick Real Estate Association, said agents are encouraging buyers to get into the market now – especially as the Bank of Canada opted to lower the benchmark interest rate.
“We have a lot of oversupply and we were encouraging people to buy because it’s a buyer’s market,” she added. “There’s a lot of confidence in the market and things have been stable.”


  • by Matt Johnston 1/30/2015 11:18:16 AM

    Slightly misleading title. Here in southern Ontario, I'm not seeing any affect at the moment related to oil prices. I don't expect to either. Chicken Little won't get me!

  • by Brad Hawker - Broker - Canmore Alberta 1/30/2015 11:42:35 AM

    Time will tell where the effects of lower oil prices will be felt but interesting that NB is thinking about it as well as oil producing Alberta, Sask and BC! One thing I would like to see is an environmentally accepteable Energy East pipeline approved to allow for Canadian producers to hopefully be able to get a better market price as most are not trading WTI, they get paid the Select rate which is much lower and puts further financial pressure on ALL those affected.

  • by 1/30/2015 12:08:07 PM

    Ontario has a lot to benefit with lower oil prices. The consumer will save with lower fuel prices, giving more money to spend in the other sectors of the economy. The lower oil price is causing our dollar to plummet, if this trend hangs on we will see more output in our manufacturing industry. This will help create more jobs and build the Ontario economy. Lower interest rates will keep the real estate spark burning, the lower they go, the dollar will continue to drop and keep Ontario very attractive to business. I'm hoping oil drops to the $30 mark and stay's there for years to come. As big as the energy sector may be, it's still only one sector of the economy and not the largest. We were due for a deflation in oil, since in 2000 it was sitting at $12-20 a barrel. Call it the oil bust.

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