Calgary, Jan. 30, 2019 –
The challenging economic climate in Calgary is expected to persist into 2019.
Easing global oil prices, concerns regarding market access and easing investment activity are weighing on the energy sector and are expected to slow growth prospects in the province this year.
"Slowing growth, weak job prospects and lack of confidence are all factors that are contributing to the expected easing in sales activity this year," said Ann-Marie Lurie, CREB® Chief Economist.
"At the same time, our market continues to struggle with high inventory levels and further potential rate hikes, all of which is expected to cause additional price declines this year."
There are signs that supply in the market is starting to adjust to slower sales, but the pace of adjustment is expected to be slow. Overall, it will help reduce some oversupply in the market and put the industry in a more stable position by 2020.
Buyers' market conditions are expected to persist throughout most of the year, impacting prices across all property types. However, the pace of decline is expected to ease by the end of the year, as concerns over the economy ease.
While further easing in the housing market is expected, this will not likely be the case for all price ranges, as demand for affordable product is expected to continue to improve, given shifts in lending requirements and adjustments in expectations.
"In this market, buyers have the advantage of choice. A REALTOR® can help buyers find a home that best fits their lifestyle," said Alan Tennant, CREB® CEO.
"For home sellers, knowing all the data and facts surrounding their home is critical to maximize their selling price. Working with a real estate professional can take the guess work out of the process."
City of Calgary, January 2, 2019 –
As oversupply continues in Calgary’s housing market, December prices eased by one per cent compared to last month and are over three per cent below last December.
“Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year,” said CREB® chief economist Ann-Marie Lurie.
“This contributed to elevated supply in the resale market, resulting in price declines.”
December sales totalled 794 units, a 21 per cent decline over the previous year. Overall year-to-date sales in the city totalled 16,144 units. This is a 14 per cent decline over 2017 and nearly 20 per cent below long-term averages.
Inventory levels in December sat at 4,904 units. This is well above levels recorded last year and 30 per cent above typical levels for the month. Elevated resale inventories in 2018 were caused by gains in the detached and attached sectors.
Throughout 2018, the months of supply remained elevated and averaged 5.2 months. This contributed to the annual average benchmark price decline of 1.5 per cent. Price declines occurred across all product types and have caused citywide figures to remain over nine per cent below the monthly highs recorded in 2014.
“Both buyers and sellers faced adjustments in expectations this year. Sellers had to compete with more choice in the resale market, but also the new-home market,” said CREB® president Tom Westcott.
“With less people looking for a home, it became a choice between delaying when to sell or adjusting the sale price. However, buyers looking for more affordable product did not find the same price adjustments that existed in some of the higher price ranges.”
More information on the 2018 housing market will be released at CREB®’s 2019 Forecast Conference & Tradeshow (www.crebforecast.com) on Jan. 30, 2019.
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