I wrote that our real estate market wasn't that bad a little while ago and now with the new graphs coming in I believe even stronger that the Calgary Real Estate market has bottomed out and is beginning to stabilize. Will it jump up and back to previous highs - NO I believe that it will jump up a bit as those who have been waiting on the side lines begin to purchase because they don't want to miss out on a good deal. However, that will be short lived and the Calgary Real Estate market will become more balanced.
What makes me think its stabilizing? The amount of new listings in January and February were lower then previous years and the amount of sales has ticked up. As well the absorption rate is falling towards a balanced market for the first time since the correction.
Real Estate in Calgary was over inflated and the price drop just brought prices down to where they should be. The oilfield has begun to heat up again and that means our Real Estate market will see growth again in the near future. Why do I think this? Because the year before the Real Estate prices in Alberta dropped the oil field had put the brakes on production.
2005 - Oilfield hot hot hot - Real Estate begins to rise
2006 - Oilfield puts on brakes fast - Real Estate market is hot hot hot prices rise
2007 - Oilfield still slow - Real Estate market price correction starts
2008 - Oilfield still slow - Real Estate market still in correction mode
2009 - Oilfield begins to pick up - Real Estate market -- we'll see.......
Update March 26th - After talking with some people it sounds like just recently the oilfield has put on the brakes again and has layed off a lot of men. Not sure why this has happened or if it is just the annual break up.
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