CMHC bullish on Calgary’s 2020 outlook

December 20, 2019

Calgary’s long-suffering housing market is expected to see recovery in 2020 due to higher in-migration and stronger employment, according to an outlook from Canada Mortgage and Housing Corp. (CMHC).
The employment gains are led by full-time employment in the service sector, which will support housing demand in the latter half of 2019 and into next year, CMHC stated.
“Net interprovincial migration into Alberta is correlated with gains in employment in the Calgary area. Given continued gains in employment projected for 2020-21, this positive trend is anticipated to remain,” reads the report.
After significant decreases last year, resale prices will begin to stabilize in the latter half 2019, leading towards modest upticks in 2020 and 2021.
“This will largely be the result of continued declines in available inventory in the existing home market, along with the new home market, as the market shifts slowly from buyers’ conditions to more balanced conditions,” continues the report.
The lowered inventory of unsold homes should lead to a modest increase in housing starts for all housing types, especially for more affordable multi-family homes, CMHC contends.
Calgary region housing starts are forecast to reach more than 10,000 units in 2020—with up to 4,400 detached and 7,400 multi-family homes (including rentals).
The average composite house price is expected to rise in 2020 to between $430,500 to $443,900, up about 5 per cent from 2019 .