As Alberta continues to battle with economic challenges, the Calgary real estate market is expected to take a slight dip in 2019. In response, buyers who have been waiting for the right time to invest may have just found their golden opportunity. Calgary home prices are expected to fall by 2.34 per cent this year, according to the CREB 2019 Economic Outlook and Regional Housing Market Forecast. The report describes the Calgary housing market as being ‘chronically oversupplied.’
As other cities struggle to meet supply, it appears Alberta’s largest city has been successful at keeping homes affordable and available to its residents. By combining market oversupply with a lack of a job market and a province struggling to maintain its economic activity, 2019 is likely to provide the perfect set of conditions for first-time homebuyers to jump into the Calgary real estate market. The average home price projected for 2019is expected to be $421,218, which is down from last year’s $431,375. Subsequently, the amount of properties changing hands in Calgary is also expected to slow down by a comparable percentage.
If you’ve purchased a Calgary property expecting to flip it for profit, you may be best advised to hold onto it for a little longer. The CREB Report is projecting for the drop in sale prices to alleviate somewhat towards the end of the year, as our economic concerns are expected to ease throughout the province.
Until we arrive at a more balanced market for both sellers and buyers, 2019 may be remembered as a transitional year where real estate investors hang onto their properties while Calgary families and first-time buyers jump into the market. This may also be the ultimate opportunity for buyers coming from outside of the province, such as those contending with tighter lending rules, navigating restrictions on foreign buyers or struggling in regions like Vancouver and Toronto where affordable real estate is hard to come by. For these individuals, Calgary’s a major Canadian city where they can purchase a home at a fraction of the cost they would elsewhere. Although it’s a large an investment, this could be their chance to find themselves a real home in the city.
As with other cities in Canada, it appears Calgary’s condo sector has fared slightly better than other housing sectors. In some parts of the city, condos have even appreciated in value. For investors seeking real estate in Calgary, they may be more inclined to chase condos and apartments as opposed to detached housing, where those properties are traditionally more prone to the up- and downswings of market conditions.
Calgary remains one of Canada’s most beautiful and sunny western cities. For buyers, the opportunity to purchase an affordable home has arrived. For less than you would have paid in 2018 and less than you’re likely to pay next year, 2019’s a year for buyers to find themselves a true home in our beautiful city.
