Calgary can expect more balanced conditions for its rental and housing markets by the end of the year, 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.
This sustained performance will receive some boost from the market’s Q2 2019 performance, when year-over-year sales volume increased for the first time in over five quarters.
Detached housing sales growth was most apparent in the sub-$500,000 price bracket. Fully 56% of Calgary sales in this asset class during the second quarter were in this segment.
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.
However, Lurie emphasized that “while prices may stabilize, on an annual basis they are expected to remain below last year’s levels.”
Data from the CREB also indicated that overall activity is still considerably below the long-term average. Starts are also easing, while inventory remains plentiful.
“With current economic conditions, we expect housing demand will remain similar to levels recorded last year,” Lurie stated. “Supply declines will help to better position the broader market for recovery moving into 2020.”
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