Calgary housing market flattens
August 23, 2018
What looked like a rally in Calgary’s housing market earlier this year derailed in the first half and the outlook remains flat until at least the first quarter of 2019, says the Calgary and District Real Estate Board (CREB).
Rising inventories have pushed the market into an oversupply situation for all sectors including detached, semi-detached and row, and apartment, according to CREB chief economist Ann-Marie Lurie.
Sales activity this year is expected decline by 9.7 per cent from 2017 to 17,047 units—a downward revision from previous forecasted levels.
Overall, prices are expected to drop by at least 1 per cent across the city, with expected declines ranging from 2.5 per cent in the apartment sector to nearly 1 per cent in the detached sector.
"Prices were not expected to improve this year. However, supply has not adjusted fast enough to the weaker-than-expected demand. This is causing us to make a downward revision from earlier estimates,” Lurie said.
Slight improvements in conditions for the second half of the year are expected to reduce some of the inventory. However, it is unlikely the issues of oversupply will correct this year, causing modest price easing across most product types.