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The Calgary Real Estate Board (CREB®) has released its full economic outlook and regional housing market forecast for 2019.
A couple of quick keynotes to take away from the article looking into 2019:
- Sales in 2019 are expected to total 15,882 units. This is comparable to last year, but still well below historical levels.
- Persistent oversupply will weigh on prices throughout most of the year, causing an
annual price decline of 2.34 per cent. - The market is expected to move towards more balanced conditions, but the transition will likely take most of the year.
For the full report, continue below. As always, if you’re interested in finding out what these statistics mean for you and your specific property, feel free to get in touch with me at any time; sparanych@outlook.com or 403.703.1052.
Economic challenges to affect Calgary’s housing market in 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.”
Click here for the full 2019 Calgary Economic & Housing Outlook report.
Sarah Paranych
sarah.livelovecalgary.com
sparanych@outlook.com
403-703-1052
Source: CREB®
