Real Estate and Calgary Economy December 2019
Total sales volume in Calgary is up by 1.1% from last year; Inventory is down by 9.7% and the “months on market” metric is also down by 9.4%.
However, in spite of these improving numbers, it is still a buyer’s market with the Benchmark price down by 3.5%.
Looking forward:
- Interest rates are not likely to go up;
- The Provincial government is cutting spending. This will have short term pain for long term gain.
- The Kitimat LNG project - $40 billion will have lots of spinoff benefits for Alberta;
- TMX perhaps online mid 2022 with added capacity of 590k bpd;
- Line 3 expansion added capacity of 370k bpd;
- Keystone XL expansion added 510k bpd.
While there is no guarantee that all these projects will proceed some will. And every 100,000 bbls/day = $2.4 billion per year in total revenue to Canada! If all this capacity were to be built that would be $35 billion/year coming to Canada.
For the latest on the TMX see here: https://globalnews.ca/news/6248082/trans-mountain-pipeline-expansion-construction/