TD Bank updated their provincial economic forecast today, projecting that housing activity in Alberta will be adversely affected by the economic slowdown due to low oil prices.
“Weaker employment and income gains are expected to translate into a downturn in the resale market, which is estimated to lead to a pullback in new residential construction activity,” states the report.
The average price of an Alberta home is predicted to fall -3.5% this year and -1.3% in 2016.
Home sales in the province are forecast to plunge by -20.8% in 2015 and a further -2.2% next year.
The new construction industry is expected to pull back housing starts by -17.4% and -3.6% in 2015 and 2016 respectively.
To read the full TD report, click here