In its mid-year update, Calgary Real Estate Board calls for an 8 per cent drop in sales volume in the city for 2016, easing from the 26 per cent slump of 2015; prices are set to contract by 3.8 per cent year-over-year.
“While the market as a whole continues to be challenging for home sellers, the highest price declines are typically in the neighbourhoods and sectors where the largest amount of supply has built up, either from the resale market or the competing new home market,” said CREB® president Cliff Stevenson. “In this kind of market, both buyers and sellers continue to be forced to adjust their expectations. Not all districts and product segments are reacting the same way.”
With little change expected in Alberta’s economy, including the weak labour market, soft demand and easing prices are almost guaranteed.
“The big thing is making sure consumers are well informed about how the market is reacting in specific segments and within specific communities, so they can make sound decisions. That’s the unique value add of a real estate professional,” Stevenson noted.
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Home prices in Calgary are set for further impact in the second half of 2016 from the weakened Alberta economy.