Investors from Alberta and Saskatchewan can attest, since they’re seeing evidence of it personally every day. Real estate markets in both provinces are drying up, especially in areas where energy is the main driver of the economy. Consumer spending is down as well, mostly on big ticket items. CIBC is even predicting that Alberta’s economy will suffer a mild recession in 2015, before rebounding in 2016 along with energy prices.
The other thing that isn’t really looking strong is Canada’s real estate market. Sure, headline numbers are up, but that’s mostly based on strength from our two largest markets—Toronto and Vancouver. In January, prices actually declined in eight of Canada’s largest 11 cities. Alberta led the decline, but prices have also declined 5% in Montreal in the last seven months, and Halifax’s real estate is down 5.5% in the last five months. (more)
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