Patrick Murray Logo

Should You Listen to Local Economists or Non local Economists?

With different messages coming from all different sides, it can be challenging to know who’s right, who’s wrong, and who’s just stirring up trouble when it comes to Calgary’s economic situation. Are local experts more likely to be correct since they’re close to the action? Or are they going to be biased to make the news more positive than reality? Are non-local economists too removed to says how the economic situation really is? Are they biased to be more negative than is really accurate? It’s honestly pretty hard to say. Like the weather, the economy can be hard for people to predict and interpret. Usually the best bet is to try and hear a variety of opinions and go from there.

Arguing for Weakening. At the moment, there is a lot of support for the idea that the economy in Calgary being at its weakest since 2009 that saw the economic recession in both Canada and the States. The Conference Board of Canada's is anticipating that with the currently low oil prices, Calgary’s economy will inevitably suffer. Historically, this is a pretty reasonable guess. Calgary’s economy and housing market often follows the oil industry closely, and economists from across the country are watching Calgary carefully at the moment.

In Defence of Neutral. Not all economists are gloom and doom though. Calgary has been in the top three performing real estate markets across the nation for several years, some economists are suggesting that the system is simply correcting itself. Others however, think Calgary will cling to its place among Vancouver and Toronto as a real estate capital. Many Calgary economists are more optimistic. They arguing that, while the fall in oil prices is at a low, it has not fallen nearly to the level of 2009. In 2014, Calgary saw MLS sales up 9.3%, and some argue that we’re still early in the year.

Regardless of which economists you think have the right of it, one thing’s for sure: just at the moment, it’s a buyers market. The number of homes listed is on the rise and the number of buyers is low. If you’re thinking of buying a home in Calgary, now might be the perfect time! Need some expert Calgary real estate advice? Call me today at (403) 660-5319.