Calgary and pretty much all of Alberta was the economic engine for Canada since oil was first discovered in the Tar Sands. While this boom time lasted for decades Alberta was hit by an economic whammy when the price of crude oil dropped to below $50 a barrel. Since it costs nearly $50 to extract a barrel of crude from the tar sands it didn’t take long for the hard times to spread with massive layoffs. Over the course of a couple years Albertans went through some tough times but it appears to be back on track. With the number of organizations like roofing companies calgary progressive roofing expanding heir workforce it looks like the economy is recovering at breakneck speed.
Additional Signs of Economic Recovery
If we waited for Statistics Canada to report about the health of the economy in Alberta it would be dated but there are some additional signs you can look for aside from construction. Have you noticed that the number of “want ads” has increased in recent weeks/months? During the economic downturn that was worse than the hard times felt in the 1980s the number of jobs in the want ads virtually dropped down to only a few low level opportunities. A great way to determine the health of the economy is to look at the postings for Tim Horton restaurants. Canadians love their Tim Hortons and if they are working a lot then these newly employed individuals will go to Tim’s to grab a coffee to work and on their way home. It may sound like a silly approach but people won’t spend money on gourmet coffee if they are worried about their employment situation.
We touched on roofing companies calgary progressive roofing as an indication of economic growth but another sign of economic growth is the number of apartments for rent. When people find work they want to move into a nice apartment. The more people who are employed the greater this demand so the vacancy rate in the city will drop. During the boom times a small apartment in Calgary would set you back a few thousand dollars and while rental prices are nowhere near this level they are on an upward trend.
Using Real Estate as an Economic Barometer
Look at the sheer number of homes for sale in Calgary then compare that number to the total number of homes for sale a month or two ago. If the number is about the same or decreasing then it is a sign that people are buying homes. The decision to buy a home is not one that people take lightly but there is an added benefit. Lenders must have confidence in the local economy to finance the purchase of these homes otherwise they would not underwrite the transaction.
With Calgary recovering from the economic downturn it should be considered a positive sign for the Canadian economy as a whole since a large number of Canadians migrate to Alberta to find gainful employment.