Calgary home sales and prices both fell last year, but according to the Calgary Real Estate Board (CREB), 2017 will bring some stability.
In a January 11th press release, CREB predicts that prices for detached and attached Calgary homes will “remain unchanged over 2016 levels,” while apartment prices will see a small 2 per cent fall. Overall home sales in the city are expected to increase slightly to reach 18,335 units.
“This year is about moving away from extremely challenging conditions,” says CREB President David P. Brown in the release. For the last two years, weakness in the energy sector has weighed on Alberta’s economy. With less money flowing into the province, people have struggled to buy homes and the housing market has suffered as a result.
Ann-Marie Lurie, CREB’s chief economist, also thinks the Calgary housing market will change for the better in 2017, but has cautioned that “[t]he transition … will be a slow process.”
She notes that any changes will be “heavily dependent on stability in the energy sector and overall labour markets.” Calgary’s unemployment rate is currently high, and it’s possible that job growth won’t occur until the second half of 2017. Lurie also believes that supply will need to continue to adjust to demand if prices are to ultimately even out.
CREB ends by pointing to “recent government policy changes” as additional factors that could derail this year’s positive Calgary housing market outlook, but does not elaborate further.