As we reach the final two months of 2021 the market display incredible year over year data points. These indicate not just a change in trend, more like a completely new arrangement of the economy. Of particular note worthiness is the price of western Canadian select, aka oil sands product. The combo of much higher prices for the product and better shipping options from enbridge line 3 (even better by 2023 when transmountain pipe comes into operation) could mean a large reduction in the WTI discount that plagued the producers for years. What does this mean for the calgary economy? It certainly means companies like Suncor are erasing costly loans and paying large dividends again. More provincial revenue is likely to assist with major deficits due to Covid and overall government high cost of operation in Alberta. House prices in calgary are a fraction of the cost to find shelter in the larger cities and it does appear there are plenty of opportunities to find work. Calgary also has a massive amount of new purpose built rental apartments compared to the places like Vancouver that have rent control and huge obstacles to permitting new construction. All of this points toward a healthier society more able to grow because the fundamentals are in place to support it. Overall energy ignorance and woke policy is meeting reality of supply constraints and this does put Alberta back on the map as somewhere to invest after the huge rut we’ve been digging out of since 2014.
247% increase in price year over year. Eventually this massive change will impact the calgary housing market, arguably it already has.