The Calgary Real Estate Board released their “Mid-Year Market Update” today, and it does reinforce the fact that some consumers were willing to re-enter the housing market after some hesitation in 2016.
City wide prices in 2017 are forecasted to remain relatively unchanged over last years levels. However, prices are expected to flatten out for the remainder of the year and it will still take some time until full-price recovery occurs.
Despite generally improving trends, difficulties continue to exist in the condo-apartment/townhouse ownership market. Rising sales cannot keep pace with the growth in new listings, keeping supply levels high and placing continued downward pressure on prices. This area of the housing market is expected to face challenges well into next year as it will take time to absorb additional inventory.
However, continued weakness in employment and migration along with more stringent lending conditions will weigh on demand growth through the second-half of 2017. Overall, the Conference Board of Canada expects Calgary employment to grow by 1.09 per cent and unemployment rates are to trend down from the 9.4 per cent average recorded last year.
Continued high vacancy rates in the downtown core is an indication that near-term recovery of higher-paid energy sector jobs is not expected. More Calgarians going back to work is the foundation for a turnaround in the housing market. If growth in lower paid sectors continues, it can influence the type of demand growth recorded in the housing market.
According to the latest civic census in April 2017, Calgary’s population grew by 0.90 per cent for an annual total of 1,246,337 people.
If you’re looking to sell your home or if you need help finding your new dream home, please contact me today!
Bruce Voigt – REALTOR
RE/MAX Rocky View Real Estate