It’s going to be another tough year for Calgary’s resale housing market with the challenging economic climate expected to persist into 2019.
The Calgary Real Estate Board released its annual forecast on Wednesday. It predicted that MLS sales in the city will fall to 15,882 this year from 16,144 transactions in 2018.
Prices are also expected to decline on average by 2.34 per cent.
The board said 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’s 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.”
The real estate board said there are signs that supply in the market is starting to adjust to lower demand but that 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,” said CREB. “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.”
Calgary’s housing market has been greatly impacted because of the tailspin the city’s economy suffered after oil prices collapsed in the latter half of 2014.
– Mario Toneguzzi for Calgary’s Business