How have benchmark real estate prices in Alberta historically behaved?

Real estate prices in Alberta have historically been closely tied to the behavior of WTI (West Texas Intermediate) oil prices. This correlation can be attributed to the significant role that the oil and gas industry plays in Alberta's economy. When oil prices rise, this often leads to increased economic activity, higher employment rates, and a greater influx of workers and investment into the province, which in turn drives up demand for real estate. Consequently, as demand for housing and commercial properties increases, benchmark real estate prices tend to follow suit, reflecting the strength and health of the local economy as influenced by the energy sector.

The close relationship between real estate prices and oil prices indicates that fluctuations in the energy market can have direct and substantial impacts on property values in Alberta. Regions that are heavily reliant on oil revenues often see their real estate markets directly respond to changes in oil prices, making real estate investments in these areas sensitive to the dynamics of the oil market.

In summary, the close following of benchmark real estate prices by WTI oil prices captures the inherent economic interdependencies within Alberta's economy, further underpinning why option B is the most accurate reflection of historical behavior in this context.