The analysis compares current market conditions with the sharp downturn of the 1980s and reports that there are some similarities, including economic uncertainty and lower oil prices.
However, it concluded that some of the key issues of 30 years ago are not the same as now, such as non-recourse mortgages, where those who suffered foreclosures could walk away from the debt, and high interest rates.
The report did state that Alberta’s exposure to the oil sector means that it could not be completely isolated from a fall in the price of crude oil.
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The federal Finance Department has looked back to the 1980s as it predicts the future for Alberta’s housing market.