Calgary – While Calgary is officially out of a long period of economic downturn, the path to recovery is expected to be bumpy.
The impact of stricter lending criteria and higher interest rates is likely to offset the modest improvements in the economy.
“Housing market conditions are expected to remain relatively unchanged in 2018,” said CREB®chief economist Ann-Marie Lurie.
“The market will continue adjusting to the ‘new normal’ in this economy. However, there was modest job growth and net migration last year, with expectations of further improvements into 2018.”
Minimal changes in sales activity are expected to be met with easing new listings for some property types. This should support more balanced conditions and prevent widespread benchmark price declines.
“In this market, knowledge is power. A REALTOR® will help buyers and sellers understand what options they have, and negotiate the best price for their property,” said 2018 CREB® president, Tom Westcott.
“For buyers, there are a lot of supply choices in all prices across most product types. Sellers need to understand what niche their home falls within, their competition and how fast they have to sell.”
More balanced market conditions will be led by the attached and detached sectors of the market, while the apartment sector will continue to struggle with excess inventory in 2018.
Prices will likely continue to face some downward pressure in the apartment sector, with stabilization not expected until the latter portion of the year.
The attached sector may benefit as demand shifts from the detached sector to the attached sector, with modest price gains of 0.38 per cent. Easing demand in the detached sector is expected to be met with easing listings, supporting overall stability in pricing.
Click here to view the full 2018 Calgary Economic & Housing Outlook report.
CREB® is one of the largest real estate boards in Canada. Now in its 75th year, the organization represents a professional body of more than 5,500 licensed brokers and registered associates across 290 member offices. CREB® oversees the operation of the Multiple Listing Service®(MLS®) System and is a trusted source for local housing statistics and real estate news.