Photo by Tom Blackwell
Energy is one of the wealthiest industries in Canada and it influences many aspects of Canadians’ lives. Its improvement will positively affect not only employment and the financial market, but also housing demand.
According to Business Review Canada, energy is the second most prosperous industry in Canada, with a market capitalization of 435.8 billion dollars. The revolution in Egypt and the uprisings across the Middle East caused energy prices to spike globally. International oil prices are also soaring, which will drive up the demand for Canadian oil. We also expect overall increases in production.
“Improvements in the energy sector will translate into growth in employment and net-migration in Alberta and Calgary,” says Sano Stante, Calgary Real Estate Board president. Migrants will have to quickly find a place to live. The growth in net-migration will also bring improvements to family income, one of most significant factors influencing the housing market. “This will boost consumer confidence and ultimately improve housing demand,” adds Stante in a report issued by the Calgary Real Estate Board.
Incremental and gradual recovery of the housing market is also expected this year. “Overall the first quarter of 2011 will show modest improvements in sales which will lay the foundation for the return to a more balanced market,” advises Stante.