Calgary, Jan. 14, 2019 – Since the oil price crash, Calgary has faced job losses, wage reductions and tightening national housing policy. These factors have all contributed to the slower sales environment, excess supply and citywide price adjustments of more than 10 per cent.
However, as Calgary moves into the sixth year of this cycle, there are indications of adjustments to these conditions throughout the housing market.
“Job growth, combined with recent easing in mortgage rates and price declines, is starting to bring some purchasers back into the lower end of the market,” said Ann-Marie Lurie, CREB® chief economist.
“We are seeing more transactions in the $500,000-and-below price point for residential homes.”
The shifts in consumers’ preference toward lower-priced product is expected to continue at the cost of persistent weakness in the higher end of the market. However, as the under-$500,000 market reflects a larger share of total activity, the gains in this sector will outweigh the losses from the higher end, resulting in modest growth in sales and a reduction in downward pressure in prices.
The current housing market conditions are different from what was recorded prior to 2014. We are settling into a new normal of slower sales, supply choice, limited price growth and a cautious consumer.
“Whether you are a buyer or seller, having all the facts, strategies and data is critical to ensuring you get into the right home, or sell your existing home, in an appropriate time frame,” said Alan Tennant, CREB® CEO.
“A REALTOR® can guide a homebuyer or seller through the process and help avoid the guess work.”