In the latest forecast released by the Calgary Real Estate Board, the organization stated that the metropolitan market this year will remain as much as it did in 2017.
CREB noted that stricter lending criteria introduced this year by Ottawa along with slightly higher interest rates should put downward pressure on prices – a situation that will offset any upward movement stemming from Alberta’s continuing economic recovery.
“The path to recovery is expected to be bumpy, as the market adjusts to a new normal,” the report stated, as quoted by CBC News. “More balanced market conditions will be led by the attached and detached sectors of the market, while the apartment sector will continue to struggle with excess inventory in 2018.”
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And while Calgary’s economy is already out of the downturn, the housing segment remains rife with problems.
“Even though sales activity increased last year, there was still just too much supply,” CREB chief economist Ann-Marie Lurie said, adding that the condo market in particular has a glut of inventory.
“Economic conditions are improving, which is helping to support our market, and our housing market as well, but what's counteracting that is, we do have almost a new lending environment,” Lurie explained, alluding to the possibility of the oversupply getting absorbed should net migration to Alberta continue to increase.
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Calgary market might see reduced demand this year