The outlook for this year can be summarised in one word OIL. At time of writing, oil is hovering at around US$40 a barrel, a far cry from the US$100 a barrel we came to accept as normal, just a short time ago.
The concerns are many and varied. Fracking has become a new and controversial phenomenon in the US. Hydraulic fracturing, is the process of drilling and injecting high pressure fluid into the ground in order to fracture shale rock, thereby releasing the natural gas and oil inside. There are presently more than 500,000 active gas and oil wells in the US. The increase in productivity from these wells has reduced world oil prices.
OPEC and major producers like Saudi Arabia, concerned about the long term effects on their own productivity, have determined to allow the price to continue falling, thereby making it uneconomical for some fracking companies to continue production. Further pressure on oil prices has come from Iran. Long deprived of selling it's oil because of sanctions, Iran is about to re-enter the market in a big way.
Perhaps the largest issue though, is the slow down in Chinese industrial output. As the second biggest consumer of oil in the world, this slow down is a concern. All of these issues have implications for Alberta oil producers and consequently the province as a whole.
A great time to buy
So what does that mean for buyers? In short, it is a great time to buy, there is an really excellent selection of pre-owned and new homes available and interest rates are still at historically low levels. For sellers, it means a little more competition and a need for realistic pricing. Whether you are a buyer or seller a professional realtor®is essential to represent your best interests and negotiate the best possible deal on your behalf. My fees for sellers are reasonable and negotiable and there is no fee whatsoever for buyers.