Average monthly sales price of all properties in last one year
Composite Properties Housing Price Index over last 13 years
Single Family House
Sales of Calgary homes have been slower to recover than expected, according to the Calgary Real Estate Board’s mid-year economic and housing outlook update. CREB said the trend is due to stricter lending criteria, higher rates and a slow economic recovery, which have weighed on housing demand during the first half of the year.
“Prices were not expected to improve this year. However, supply has not adjusted fast enough to weaker-than-expected demand,” CREB chief economist Ann-Marie Lurie said in a statement. “This is causing us to make a downward revision from earlier estimates.”
The real estate board is forecasting housing prices to decrease by more than one per cent across the city overall. Declines range from a one per cent price drop in the detached home sector to 2.5 per cent in the apartment sector.
Lurie said all housing prices — including the detached, semi-detached and row, and apartment sectors — have been affected by oversupply this year, due to a combination of easing sales and rising inventories.
But Calgary’s housing market has struggled to recover due to a number of factors, according to CREB, including higher lending rates and stricter qualifications, which have prevented some first-time buyers from becoming homeowners. Existing homeowners who had considered moving up to a higher price point have also been affected.
The struggling economy also continues to play a role. While it continues to recover and is expected to gain further traction later this year, the economy still hasn’t reached conditions that were present before the recession began.
Economic growth is expected to help limit further declines in housing demand later this year, but it likely won’t be enough to offset the declines that happened during the first half of 2018. Sales activity should decline by 9.7 per cent to 17,047 units, according to CREB.