OIL UP....SUPPLY DOWN? SIGN OF THE TIMES?
A report from the U.S.A. Energy Information Administration showed crude inventories fell by 2.1 million barrels in the last week. Oil output from shale producers is down at a $40 a barrel price and has slowed the shale producers to a standstill. So the stockpiles are moderating, but the oil market remains oversupplied.
The Real Estate market is slow and prices remain stable so it is best for Buyers at this time. Good homes are available. In talking to my fellow Realtors, we have noticed that when we show 10 homes to our Buyers, we will only find maybe 2 of the homes that are good or great with a fair price and shows great with a good location. Then something surprising happens; there are several buyers who want the same house so we end up in a competing offer situation. I ask the Buyers to think long term.
A fellow realtor was at a wedding last week. He was put at a table with an oil executive, a securities trader and himself. The consensus at the table was that oil will return to $50.+ a barrel in about 6 months and interest rates will remain low. We are in a short deflation time. This has become the best time to buy that we have seen in our market for some time.
ATB’s Todd Hirsch reported saying in the Calgary Herald “There are signs the Province will rebound enough to see modest growth by the second half of 2016.” He goes on to say, “One of the keys to the recovery of Alberta’s energy will be sort of a reality check.” He also said “Remember 11 years ago, oil was at $45 a barrel. What happened since then was cost escalation with labour costs. They have really ballooned in the last 10 years.” He also noted Canadian average weekly earnings went up 29% in the last decade and gas employees earnings went up 56%. This correction puts them in a dangerous position.
If you know of anyone who is thinking of buying or selling, I would appreciate you passing my name onto them. Also my webpage at www.docwatson.ca has daily updates on house prices in the Calgary market. There is also a directory of services and professionals to help you in all your home needs.
Money for Referrals - did you know that you are able to refer buyers and sellers to me and be compensated for your effort? If you send me a referral and a sale is completed, as soon as possession has happened my company will write you a cheque for up to $500. If you refer a name and phone number for me to call, we can begin the process right away. Thank you for all the referrals! Have a great month.
“Doc” Watson, Realtor
Sutton Group Canwest
Text: (403) 804-8007
Office: (403) 208-7788
Celebrating over 25 years of Real Estate Service in the Calgary area