Big investors keen on developing the real estate market of Calgary say they will push on with their plans despite the looming economic crisis caused by abrupt oil price drop.
Real estate developers are not backing down and see the sudden drop of oil prices as just another hiccup that will be over as quickly as it came about. According to Calgary Herald, Anthem Properties and United Communities chief executive Eric Carlson spoke at the Calgary Real Estate Forum on Tuesday and he brushed off talks of imminent doom. He said, "This isn't Armageddon. Everything will be all right."
Carlson's company is the developer responsible for building and developing the multiple condominium Waterfront project in Eau Claire. He recently announced the start of the second phase of the project in a visit in Calgary. Anthem has already completed phase one with four buildings comprised of 624 units which are all sold. The upcoming phase will be called Parkside which will see the rise of six buildings that will offer 361 units. As of press time 85 percent of all the units are already sold.
Carlson explained that the economy of Calgary has many other industries apart from the energy producers involved today and it is more diverse. He added that Calgary has had worse economic problems in the past. He said, "If this is bad, I'll take it."
Meanwhile, according to CBC News, the Canada Mortgage and Housing Corporation (CMHC) released a forecast report on the situation of the housing market in Calgary and things are looking bleak. The report indicated that by the end of 2015 prices of homes will be lower and sales will be lackluster at the very least. This will, in turn, cause the industry to stagnate for a year or even two with little investor activity.
CMHC regional economist Lai Sing Louie said, "The economic and housing market outlook for the Prairie region continues to be adversely impacted by low commodity prices."