Q2 Calgary Real Estate Market Outlook

Now that we have hit the midway point of 2019, let’s reflect on the housing market from the past few months and look forward to where things are heading. CREB has recently released data, and so far, the year has seen a decrease in the number of both resales and new homes. Soon, we should see the market move towards a more balanced portfolio, with prices stabilizing by the end of the year. With that said, we will likely see prices settle at rates lower than last year. Calgary is still seeing relatively high unemployment levels due to the struggling energy sector. The saving grace is the steady population growth from international migration as well as natural growth.

When it comes to homes and apartments, there will be a difference in conditions. There is expected growth in attached and detached homes that will be fuelled from the lower end of the market while apartments and condos will continue to face challenges due to the high level of competition caused by new buildings appearing every day. This is keeping the market firmly in favour of the buyer and doesn’t appear to be changing any time soon. Even with the increase in new buildings, supply is still expected to decrease, helping the entire market in 2020.

  • In Cochrane, there is a huge boost in sales activity. It is expected that if the supply stays at or drop below current levels, there should be a recovery in the market, settling closer to equilibrium.
  • Airdrie has seen an increase in sales as well. However, even with this, there is still a severe oversupply and a boost in sales will only slightly ease the imbalance.
  • Chestermere has seen a decrease in sales and remains oversupplied. Prices are still lower than 2018 levels and no change is predicted in the near future.
  • Prices in Strathmore will continue to suffer due to their massive oversupply with little demand.
  • High River saw a recent resurgence in sales that hasn’t been seen since 2013. This has pushed the market close to equilibrium.
  • Okotoks is similar to High River with high sales that are helping balance out the market.

So, while things still aren’t great if you’re looking to sell your home in or around Calgary, the market is starting to look up in most areas. Calgary is very much in the same boat as all the major cities in Western Canada with the housing market suffering due to oversupply. If you’re looking to buy a home for the first time, or are in the market for a rental property, now is the time to buy. If you wait, the market may shift away from a buyers’ market and prices will rise. If you are thinking of selling your home, it may be worthwhile to wait until 2020 and see where things settle before making any decisions. However, keep your eye on the market, because we never really do know when it will fluctuate.

Tags: , , , , ,