In both 2008 and 2014, Edmonton’s housing market suffered due to rapid oil price declines. The good news is that market is holding up better today than it did after the 2008 energy dip, says a November CMHC insight report, which is the first in a new series of housing insight documents.
But homeowners and investors in the region should still be cautious, says the report. “As oil prices remain low one year after the 2014 oil price crash, the [Edmonton] housing market is still reacting, and the low oil price environment continues to pose downside risk to all segments of the housing market.”
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CMHC’s current report examines the state of Edmonton’s resale market, as well as how vacancy rates and inventory levels have been impacted by oil prices. The report says, “When oil prices post a large decline, it affects key drivers of Edmonton’s housing market, including employment, wages and consumer confidence.
“However, the reaction from the housing market is not consistent, depending on the conditions in the housing market leading into an oil price crash.” (To read the full report on Edmonton, click here).
CMHC says the housing market story differs from region to region, and even neighbourhood to neighbourhood. So it plans to release between 30 and 40 Housing Market Insight reports over the course of a year. These documents will discuss trends and data across all of Canada’s major metropolitan areas.
On December 3, CMHC will release a report that discusses foreign ownership across Canada. And, in early 2016, it will separately examine trends in Halifax and Quebec City.
For more on housing, read:
What’s driving Canada’s housing price strength?