Hey Calgary
- Good News for the Economy
Alberta’s wildfires raged in May and oil exports
dipped forcing a downturn in the overall country’s economic output. The good
news is that the figures for June show growth. Real estate can start growing
again.
Economy
Weakened but on the Rebound
Statistics Canada reported that during the second
quarter the real (i.e. inflation-adjusted) GDP fell at a rate of 1.6 per cent
in the three months ending in June 30. That reflects the deep impact of the
wildfires that shut down large portions of the Alberta’s oil sands production
throughout May. Statistics Canada also stated that by the end of the quarter,
June’s real GDP grew 0.6 per cent. That's the biggest monthly growth in nearly
three years!
BMO's
Research Proved Ugly, Bad and then Good
Referring to the second-quarter report, Bank of
Montreal's Chief Economist wrote, "We knew for the past four months that
GDP report was going to be ugly, and it delivered with a capital U." Douglas
Porter stated, "The good news is that we have also known that there would
be a considerable rebound in the third quarter, and June’s solid result
reinforces that view."
A Boost in
Consumer Spending Expected – the Biggest Driver of GDP
Most economic analysts agree
that the third quarter will see a return to growth as June has
proven. As well there will be the continuing rebound in oil production, the
rebuilding of Fort McMurray, a strong manufacturing sector and the new federal benefit
program. Many economy watchers, including the Bank of Canada, expect
that starting in July the first payments of the new Canada Child Benefit will boost
consumer spending.
What Does This Mean for Real Estate Prices? Houses?
Condos? Apartments?
Recently stats on the number of
sales for the same period last year dipped 21.6 percent according to Calgary
Real Estate Board. Also prices fell while the number of days on the market grew
to 57 from 47 last year on average according to CREB. What does it mean? What's
next? For more information give Chris a
call 403-6804479.
E-mail: chris@yourhomeinalberta.com
Website: http://www.YourHomeInAlberta.com
