The economic landscape for the Calgary housing market remains challenging with the energy sector still weighing, elevated unemployment, and weak income growth.
However, the market is still benefitting from population growth and a modest decline in housing supply should mean a move towards a balanced market by the end of 2019 according to the Calgary Real Estate Board.
“With current economic conditions, we expect housing demand will remain similar to levels recorded last year,” said CREB® chief economist Ann-Marie Lurie. “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.”
While low-end sales will help grow the detached and attached market, the apartments sector’s growth is likely to be constrained by new supply.
CREB’s mid-year report has three key takeaways:
- 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.
