Oil BUST turns housing BUST in Alberta patch.
CALGARY • The crash in oil prices this year is hitting Alberta’s residential real estate market hard these days with oilsands epicentre Fort McMurray in particular feeling the pain — and a report released Tuesday by the Canadian Real Estate Association forecasts continued volatility in 2016.
New data by CREA i ndicates Fort McMurray, i n the heart of the oilpatch in the province, saw a 27.7- per- cent year- over- year decline in MLS sales in November with the average sale price plunging by 19.1 per cent to $ 519,193, which is down from $ 642,003 in November 2014.
In November, MLS sales in Alberta were down 21.1 per cent from a year ago while the average sale price fell by 5.3 per cent to $ 385,430.
The biggest decreases in sales were i n Lloydminster ( 49.1 per cent), Grande Prairie ( 34.7 per cent) and the area designated as Alberta West ( 34.4 per cent).
Significant year- over- year aver-
CREA said prospects in 2016 for a rebound in oil prices have dimmed
age price declines were also felt in Lloydminster ( 14.5 per cent) and South Central Alberta ( 12.7 per cent).
CREA said Alberta will lead the country for two straight years in annual MLS sales declines.
The national association of realtors said the province will see a 21.4- per- cent year- over- year drop in MLS sales this year to 56,400 units followed by a 3.7- per- cent decrease in 2016 to 54,300 transactions.
CREA said prospects in 2016 for a rebound in oil prices have dimmed and by extension housing markets in oil- producing provinces, such as Alberta, have as well.
The report is expecting the average MLS sale price in the province to dip by 1.9 per cent this year to $ 392,900 f ollowed by another 2.5 - per- cent drop next year to $ 383,100.
CREA’s MLS Home Price Index, also released on Tuesday, said Calgary’s benchmark price — which considers typical properties sold in a market — fell by 1.99 per cent year- over- year i n November to $ 445,800. However, the benchmark price of 12 major markets in the country rose by 7.11 per cent to $ 508,100.