CALGARY—The recent uptick in global oil prices could reignite Calgary’s housing market this spring, according to industry analysts. With West Texas Intermediate crude climbing above $80 per barrel—a 15% increase since January—the city’s energy-driven economy may see renewed confidence among buyers.
Historically, Calgary’s real estate market has closely tracked oil price fluctuations. During the 2014-2016 oil slump, home prices dropped nearly 10%, while the 2022 rebound saw record sales volumes. ‘There’s typically a 3-6 month lag before oil prices translate to housing activity,’ noted a senior economist at ATB Financial, speaking on background.
Current MLS data shows inventory levels 12% below the 5-year average, with detached homes under $700,000 receiving multiple offers. ‘We’re already seeing energy sector employees who deferred purchases last year re-entering the market,’ said a RE/MAX agent specializing in energy corridor neighborhoods.
However, some caution remains. Mortgage rates near 6% and stricter stress test requirements could temper demand. The Bank of Canada’s next rate decision in April may prove pivotal for market momentum.