It’s been a rough real estate ride for Cowtown.
Calgary’s housing market has never returned to the highs reached in 2014 — since then, a weakened energy sector has taken its toll on home sales activity and prices.
But there are mounting signs that Calgary’s housing market is getting back on the horse, albeit slowly.
“With current economic conditions, we expect housing demand will remain similar to levels recorded last year,” writes Ann-Marie Lurie, the Calgary Real Estate Board (CREB)’s chief economist, in a news release.
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CREB anticipates tighter supply levels will push the market into more balanced territory by the year’s end, resulting in stable prices — just don’t expect soaring property values.
“While supply declines are expected to support price stability by the end of the year, on an annual basis, prices are expected to remain lower than levels recorded last year across all property types,” Lurie continues.
Calgary’s market could benefit from the federal government’s First-Time Home Buyer Incentive, as well as low interest rates, CREB suggests in its 2019 Economic Outlook & Regional Housing Market Mid-Year Update. But both slowing local and international economic growth may prove headwinds.
CREB forecasts Calgary home sales will total 15,930 by the end of 2019, down 1.31 percent compared to 2018’s tally. Meantime, CREB expects home prices will fall 2.61 percent.
However, detached homes are the only property type anticipated to see prices drop. The benchmark price of a detached home is projected to fall by 2.66 percent.
But attached home prices are forecast to climb 6.29 percent and condo-apartment prices are expected to rise 2.94 percent.
Calgary’s stabilization is part of a broader recovery in the Canadian housing market that has led at least one economist to make a bold statement.
“Canada’s housing market correction is over and the recovery is on,” RBC Senior Economic Robert Hogue said recently.