A struggling energy sector continues to weigh on the overall economy. Unemployment levels remain elevated and income growth remains weak.

However, Calgary continues to benefit from stable population growth fuelled by international migration and natural increases.

With current economic conditions, we expect housing demand will remain similar to levels recorded last year. Supply continues to adjust in the resale market, as well as the new-home and rental markets. Reductions in housing supply are expected to move the resale market toward more balanced conditions and support price stability by the end of the year.

While supply declines are expected to support price stability by the end of the year, on an annual basis, prices are expected to remain lower than levels recorded last year across all property types.

Conditions throughout specific price ranges and product types will continue to vary. Growth in the attached and detached markets will continue to be fuelled from the lower end of the market, but apartment activity will continue to face challenges due to the competition from new product and rentals.

Nonetheless, supply declines will help to better position the broader market moving into 2020.

Three things to know about the 2019 mid-year forecast:

• Stable lending rates and the new shared-equity mortgage program may support modest improvements in housing demand in the second half of the year.

• Concerns regarding slowing global growth and impacts on commodity prices may affect consumer confidence and housing sales.

• Slowing economic activity in the province may result in weaker job growth than the current forecast suggests.

Source: https://www.creb.com/News_Centre/Media_Releases/2019/July/Mid-year_market_update/

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Things are looking good in June! Here are the latest housing market updates for areas covered by the Calgary Real Estate Board (CREB)!

In CREB’s latest market report, it appears that sales activity has improved for second consecutive month.

Sales growth in May was met with a decline in new listings. This combination eased the pressure on inventory levels, which finished the month at 7,467 units, a decline of 12% compared to last year.

Improving sales relative to inventory levels caused the months of supply to ease to just under four months. While still oversupplied, this is an improvement from the five months of supply recorded last May.

While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing their homes. This has started to push the market towards more balanced conditions. If this trend continues, it could limit some of the downward pressure on prices.

Citywide sales in May totalled 1,921 units, 11% higher than last year’s levels. However, sales remain 10% below longer-term trends. This sales growth was primarily driven by homes priced under $500,000.

The following data is a comparison between May 2018 and May 2019 numbers, and is current as of June 2019.

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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
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