Easing Demand for Housing Will Bring about Price Stability
It's predicted that housing sales in the Calgary area will be easing this year by 4% due to the economic changes and market uncertainty. The Calgary Real Estate Board issued its annual forecast today and it indicates that a 1.58% modest increase in home prices can be expected in 2015.
Price stability and a more balanced market should be seen within the next 12 months. The combination of an easing market and the tight market conditions that were seen in 2014 will lead to this balanced market. It's estimated that 24,503 homes in total will be sold across Calgary in 2015.
The ultimate figures, of course, may be impacted by an extended period of instability in the energy sector, which would affect net migration into the city along with employment levels. As well, a prolonged weakness in the energy industry can lead to decreased consumer confidence.
The easing of sales activity this year is consistent with the levels that have been seen on a long-term basis. Last year the housing sales that took place were almost 15% higher than usual when compared to long-term trends.
According to Ann-Marie Lurie, the chief economist at the Calgary Real Estate Board, we shouldn't worry about a financial crisis in Calgary like the situation that occurred back in 2009 and 2010. Economic indicators at this time are much more positive than they were back then.
Consumers can expect to see more supply in the Calgary housing market this year, which will ultimately provide more options at different price points. It will no longer be a seller’s market and anyone that is selling their home will have to be realistic about the length of time it will take to sell the property. As well, they may have to adjust their expectations in terms of pricing.
It's important to remember that real estate always has been and remains local. What occurs across the rest of Canada will not necessarily affect the market conditions in Alberta or the Calgary region.Posted by on