The Alberta economy continues to improve with oil prices stabilizing, but a new report shows that there are still some challenges for the housing market.
In its regional update and forecast, the Calgary Real Estate Board says that home sales for 2017 are expected to be up 3.3% compared to 2016 at 18,401 units. That’s slightly better than previously forecast due to a strong first half.
Although some consumers are being tempted back with the view that the worst of the recession for the region is over, there is still weakness in the labour market and migration.
Also, while there is improvement for the demand-supply balance for detached and attached homes which has led to increasing prices, the same is not true for condo-apartments.
Ownership in the condo sector is lagging supply, leading to downward pressure on prices. CREB forecasts challenges for this sector well into 2018.
“While the shift is welcome news for many, we continue to expect that process of recovery will be slow and dependent on the property type and location within the market,” said Ann-Marie Lurie, CREB’s chief economist.