Calgary home prices to drop 15% as oil slump weighs, says leading economist

A rise in new listings combined with a plunge in sales in January suggest that house prices in Calgary will fall by close to 15%, according to a leading Canadian economist.

“Lower mortgage rates won’t prevent home sales and prices falling sharply in regions directly hit by the slump in oil prices,” said David Madani, with Capital Economics, in a research note published on Wednesday. “While they might support housing activity in other key markets, we fear that this will only fuel greater overvaluation, higher household debt and more overbuilding.

Read full article HERE.

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