Weekly Real Estate Market Update, Oct. 25/19

With thousands of well paid jobs in Edmonton being eliminated this provincial budget and likely thousands more gone in next spring's budget, I could see a steep dive in home prices over the year or two.

And with a PM who hates the west and especially Alberta in office for 4 more years, there is little hope for at least 4 more years. And such damage will have been done that it will likely take decades to ever recover.

Well said Stephen. Tom, I for one dont have much sympathy for public servants. Especially when Notley hired 40k of them in a time when she should have been astutely managing the finances. Economy is driven by small business. A decline of 7% in public servants will not have any effect on the economy.

Karlhungus: These layoffs will absolutely make it harder for small business stay in business. Layoffs mean that people will have less money to spend. It doesn't matter if these people are paid by the private sector or receive government money. This is a significant negative for Edmonton's economy and housing market over the next few years. Not to mention the much higher property taxes (both residential and commercial) that will be needed to offset decreased municipal transfer next year (I worked out that to maintain projects like the LRT and others, which council supports, we will see a property tax increase of around 10%+ next year).

Calgary shouldn't be much affected though through all of this, as they have fewer public servants, and their transfers weren't cut as much.

Apparently next spring's budget is going to be much, much worse. Especially for Health and Education which are undergoing funding review that will wrap up soon. Edmonton might become a ghost town as thousands of laid off public servants leave in the next few years.

The pipeline will get built and the Alberta economy will level out and become what it will be. Let us continue to press forth and innovate. I love Edmonton and Alberta, let's not let those with the victim mentality speak for the majority.

Ugh, I'm glad I didn't buy a rental property. Things are going to be rough in Edmonton for the next few years.

Tesla stock raised another 30 percent last week. Electric car may get more popular, it will be unfortunate for the oil industry, and Quebec only want to by US oil. It may make more sense for Alberta process the oil adding some value instead just sell it cheaply.

Electric cars are the future. Tesla is not. Short that stock. If Alberta were a stock I'd short it as well. Oil is a commodity reducing in demand. It will take a long time to play out but gradually Alberta needs to find more non oil industries calling Alberta home.

Stu,
World oil demand continues to rise every year.
Alberta should be selling their oil until such time as the demand goes down, which won't be for another 30 years. Too bad Justin Trudeau doesn't understand that.