As the price in oil continue to go downward, real estate markets in oil-dependent areas like Calgary might soon become a buyer's market. In a previous report, an annual outlook shared by the Calgary Real Estate Board states that this year Calgary could be looking at lower home sales and lower property prices. According to CBC, CREB president Cliff Stevenson told reporters that Calgary is expected to be a "bona fide" buyer's market and adds that he is not expecting to see any positive change to the hard-hit oil capital's market this year.
However, places like Calgary may not at all find itself at a losing end as there are still investors interested in buying in. According to Financial Post, Brookfield Property Partners LP looking at building in the North American cities of which the economies have been devastated by the slackening oil. It is most likely that the company is looking forward to taking advantage of the lower property prices in this oil-hit markets.
Besides Calgary, Brookfield is said to be eyeing Alberta as real estate prices have also slumped. As previously reported Alberta's real estate market is expected to see its worst time since the last financial crash. Despite predictions that Alberta will be seeing fewer building starts, Brookfield Chairman Ric Clark said in an interview in Dubai that the company and a partner have plans to build a $1 billion skyscraper. He added that Brookfield is also interested in apartment towers in Houston.
This could come as a good news to these markets that have actually seen unemployment rise as crude oil prices got cheaper. Clark said, "Canada is in good shape overall, but there are some pockets of opportunity and we may well do some investing in those markets. We've done little investing over the last five, maybe even 10 years in Canada but are starting to see some opportunities."
