Just because oil prices are down, doesn’t mean Albert’a housing market is going with it. According to a report released by RBC Economic Research, the province’s housing market resiliency is attributed to a population boom, a strong energy economy and increasing incomes.
“A strong economy and rapid population growth continue to trump any possible worries that Alberta’s energy boom might bust in the near future,” RBC’s chief economist Craig Wright explained in a statement. According to Wright, ‘the province’s affordability reputation is drawing more and more prospective buyers. For example, housing demand in Calgary is outpacing supply despite new listings increasing 17 per cent in the second and third quarters.”
The RBC Economic Research report indicates that the price of an average bungalow in Alberta to be about $405,700, a detached two-storey home at $410,200 and a condo at $242,800.
According to RBC’s affordability index, nationally it eased slightly by 0.2 percentage points to 47.8 per cent for two-storey homes, decreased 0.3 percentage points to 27.1 per cent for condos, and increased by 0.1 percentage points to 42.6 per cent for detached condos.
When cash flow is tight, economists say that condos are still the more affordable option in almost every market.