CREB released their 2017 forecast report today, which outlined some general optimistic trends, including that Calgary’s apartment sector is expected to start to turn around this year.
Home buyers can look forward to more balanced conditions in the condo market this year, thanks to stabilizing in the price and inventory of the sector.
The attached and apartment sectors combine to represent slightly more than 50 per cent of all sales activity in Calgary. “Price declines and a shift in demand toward more affordable product could benefit this sector of the market in 2017,” said the CREB® report. “While discrepancies will continue to exist in both the semi and row product, prices are expected to stabilize as inventories ease with modest improvements in sales.” [CREB]
While prices in the apartment sector are forecasted to drop two per cent to an average $271,672, sales are expected to increase by two per cent. Supply is increasing even further in 2017, with more than 4,300 new units coming onto the market. It’s not the full rebound that will offset the downturn from 2016, but it is moving us towards more balanced conditions.
Besides the falling price of oil affecting this market last year, there’s a wild card to consider that could throw this sector one way or the other—baby boomers.
Gondek cites aging baby boomers as a wild card for Calgary’s real estate industry. Many who received packages may not return to work, for example, choosing to retire instead. “What we may also find is these same people who have raised their families may not want to stay in a big home,” said Gondek. “So they may take up some of those apartment condos that are coming on the market in inner city areas, and if that’s the case, you’ll see more positive movement in the segment.” [CREB]
Regardless of what this could all appear to be, what it does mean for sure, is still an ideal market for condo buyers. Favourable conditions are still here in terms of pricing and selection options, but interest rates are predicted to rise so don’t wait too long if you’re thinking of buying. The full 2017 CREB Forecast report can be found online here.
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