According to a new report issued by BMO Capital Markets on Friday, it found that the Calgary’s housing market is gathering momentum again and despite a sudden drop in oil markets, home prices have further to run and homebuilders will get busier in the year ahead. Moreover, the report alleged that Alberta is guaranteed to see another housing boom in near future. The report stated “for policymakers, this is clearly a case of superior economic and demographic fundamentals at work, not a bubble rearing its head.”
According to a senior economist with BMO Capital Markets, Robert Kavcic, the key difference in today’s market, when compared with previous boom, is that this time it’s a “pretty unique situation and I don’t think we’re going back there.” He pointed out that the economy was stronger at the time of previous boom but today Alberta is head and shoulders above the rest of the country now. Moreover, it was highlighted that the pace of growth is also less if compared with 2006, as today growth is in the 3.5 per cent range, whereas back then it was four per cent to five per cent.