Economy/Jobs in Calgary with the falling oil price

[AlexRox]

Hi Friends,
With the significant lower oil price (and with the predictions that the price may still go lower) , would you think the house prices will drop ? I heard many speculations that the it houses will be cheaper as the economy slows down. Also there will be less new jobs and even staff reductions.
What would you think ? Is it the time to move out of Alberta ?

 

[MMNSAM]

Hi Friends,
With the significant lower oil price (and with the predictions that the price may still go lower) , would you think the house prices will drop ? I heard many speculations that the it houses will be cheaper as the economy slows down. Also there will be less new jobs and even staff reductions.
What would you think ? Is it the time to move out of Alberta ?

I have a similar query...is it advisable for new immigrants to land in Calgary looking at the lowering Oil Prices and treat to cutting down jobs?

 

[newtone]

Dont worry falling oil prices will be offset by rising oil prices in the next few months. Oil is not running out anytime soon. So relax, take it easy enjoy life and stop all frustrations.

 

[Jalex23]

With the significant lower oil price (and with the predictions that the price may still go lower) , would you think the house prices will drop ? I heard many speculations that the it houses will be cheaper as the economy slows down.

Houses will keep rising, I think they just reported 7% increase from last year and it is likely to keep going up.

Also there will be less new jobs and even staff reductions.

New projects are all over the place. The economy isn't slowing down at all.

What would you think ? Is it the time to move out of Alberta ?

No.

 

[AlexRox]

Houses will keep rising, I think they just reported 7% increase from last year and it is likely to keep going up.

New projects are all over the place. The economy isn't slowing down at all.

No.

It seems economy will slow down if the oil price remains at this level. While some companies have silently started laying off, many companies have stopped/reduced hiring to cut cost.

http://www.thestar.com/opinion/commentary/2014/12/01/albertas_booming_economy_can_withstand_dipping_oil_prices.html



those house prices increase reflects the history (don't forget the the very high oil price at $105 in June) may not reflect the future. If the economy slows down house prices may fall. Read the latest comments from Bank of Canada here.
http://business.financialpost.com/2014/12/03/bank-of-canada-more-hawkish-on-economy-though-oil-price-plunge-household-debt-pose-risks/

 

[fdk511]

I see your point - but why would one move based on these reports unless it impacts one personally (layoff/termination etc)?

It may have an effect on net influx as active hiring decreases, leading to a demand/supply situation, but I would hardly start packing because of a survey on cbc

 

[AlexRox]

I see your point - but why would one move based on these reports unless it impacts one personally (layoff/termination etc)?

It may have an effect on net influx as active hiring decreases, leading to a demand/supply situation, but I would hardly start packing because of a survey on cbc

Yes, We should not give a lot of credit to a CBC survey. However I just mentioned those to quote the Bank of Canada.
Anyway did you read the comments of the Alberta premier last week ? Those comments will explain why you would have to consider beyond your personal situation such as layoff/termination.

let me quote him. you may read the full text online.

"has created conditions no Albertan can ignore.

We will see spending cuts. It will not be pretty. If oil prices stay low then billions will be lost to the provincial public purse.

It will not be easy on Albertans. Tough choices will have to be made and we will make them and they will be felt across the province'

In overall my point was if the oil prices remains low for a longer period, Alberta would not be the province of choice. However I wish the oil price will go up soon, which will be good for all of us, but my personal feeling is it will take some time.

 

[fdk511]

I understand what you are saying, but this impact may be more on people considering moving to Alberta versus those already here and gainfully employed.

Unless items like tax credits, health services, snow removal etc start to become detrimental, there is little motivation to consider moving unless one gets a better alternative elsewhere. Maybe folks in public sector may be affected as well is spending cuts kick in.

Again, you are asking for opinions and I have shared mine

 

[AlexRox]

I understand what you are saying, but this impact may be more on people considering moving to Alberta versus those already here and gainfully employed.

Unless items like tax credits, health services, snow removal etc start to become detrimental, there is little motivation to consider moving unless one gets a better alternative elsewhere. Maybe folks in public sector may be affected as well is spending cuts kick in.

Again, you are asking for opinions and I have shared mine

Thanks a lot for your opinion