Sustained economic recovery to bolster Calgary residential market

Amid continuous economic recovery, the Calgary housing market will see sustained performance for the rest of 2019, according to CREB chief economist Ann-Marie Lurie.

“Supply continues to adjust in the resale market, but also in the new-home and rental markets. Reductions in housing supply are expected to move the resale market toward more balanced conditions and support price stability by the end of the year,” Lurie told the Calgary Sun.

However, Lurie quickly added that “while prices may stabilize, on an annual basis they are expected to remain below last year’s levels.”

“With current economic conditions, we expect housing demand will remain similar to levels recorded last year,” she stated. “Supply declines will help to better position the broader market for recovery moving into 2020.”

During Q2 2019, year-over-year sales volume went up for the first time in over five quarters, but overall activity is still a ways off from the long-term average. Starts are also easing, while inventory remains plentiful.

Detached housing sales growth was observed only in the market segment priced lower than $500,000. Fully 56% of Calgary sales in this asset class during the second quarter were in this price bracket.

Transactions involving detached homes more expensive than $500,000 fell by 10% annually, while inventory shrunk in every segment except the $1,000,000-plus range.

The semi-detached market saw 7% growth in sales during Q2. Meanwhile, resale condo apartments remained in buyers’ territory, with year-over-year sales moderating for six straight quarters.

On a year-to-date basis, resale condo activity was almost 21% lower compared to the long-term average for this property type.