The long road to recovery is proving more difficult than expected for the Calgary housing market.
The addition of stricter mortgage lending criteria has combined with the region’s ongoing struggle to bounce back from the energy sector crash, weakening home sales while listings rise.
"Easing sales combined with rising inventories has pushed the market into an oversupply situation for all products, affecting pricing for all products, which include detached, semi-detached and row, and apartment," said CREB chief economist Ann-Marie Lurie.
The second half of 2018 is expected to see a better economic landscape but it is not expected to be enough to offset a weak first half of the year.
Calgary’s sales activity is expected to be down by almost 10% to 17,047 units.
"Prices were not expected to improve this year. However, supply has not adjusted fast enough to weaker than expected demand. This is causing us to make a downward revision from earlier estimates,” added Lurie.
Sellers will need to be realistic
With demand weak and listings elevated, home sellers will need to carefully consider their strategy and be patient says CREB president Tom Westcott.
"This is a market where a solid pricing strategy will make a sellers' home more attractive," said Westcott. "The same kind of strategic thinking is true for buyers who need to consider local market trends against long-term property value to make an informed purchase decision."