Quote:
Originally Posted by Schraderbrau
The significant drop in oil in 08/09 only caused the Calgary real estate market to stumble slightly before it climbed out and recovered even higher, and that decrease in the price of oil was an absolute monster compared to what we are seeing now. The only thing 08/09 did to everyone is make us hit the panic button much faster these days at any sign of a slight slow down. At this point I for one am not worried.
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Using the Teranet house price index, the Calgary market had already peaked on August 2007 as higher interest rates began to have an impact. At its low, the Calgary market fell 17.6% and the 2007 peak was only surpassed early this year.
But oil prices were still going up in that time frame and didn't peak until July 2008. So while oil prices are important, I would say interest rates are even more so. The downturn would have been worse without the historically low mortgage rates at that time.