Friday, it was announced that Canada had lost 70,600 jobs in November. The most in any month since 1982.
Today, the Bank of Canada lowered its overnight target rate a staggering 3/4 of a percentage to 1.5 percent, its lowest in 50 years, openly acknowledging Canada is in a recession.
Hang on to your homes people, it's slowing down whether you like it or not. After the last major Alberta Oil Boom in 1982, people defaulted on homes owing of around $70,000 after recording record years of permit issued in 1980 and 1981. Average 1982 home prices were $74,174.
Sound familiar? Current 2008 average home prices in Alberta is $343,000 as of August. After 2 years of record permits issued, we are seeing quite the drop off in home sales this year.
How much real equity do people actually have, as Albertans have been using their homes in the last 3-5 years as an ATM to finance numerous renovations, buy flat-panel televisions, and SUVs? A Boom almost never has a soft landing does it?