We caught up with Laura Parsons, Mortgage Expert with BMO, to get some insights into her thoughts on the current economic outlook, and how the housing market may be affected.
“The reality is that the drop in prices is cyclical and, just like in 2008, employment and housing was strong going into this downturn. Some oil and gas drilling projects will be delayed or cancelled, but they will still operate and be a strong source of employment” says Parsons.
“Oil prices could stay low for a few months but they should rebound in response to supply reductions and improved demand. Prices are expected to go up next year to $70 barrel. Interest rates are still very low and it is still better to own than to rent, building on your own equity and paying for your own mortgage” Parsons continued. “Alberta has the highest spending and in this sector there are still lots of employers and other industries looking for good employees – the building industry is one of them. More like that i.e. Target pulled out of Canada and now Walmart has a hiring campaign. Other provinces will prosper from the lower oil prices and weaker currency, and we will move through the cycle as we always have.”
Thanks Laura for taking the time to give us your thoughts.