According to the Calgary Real Estate Board's forecast in 2019, prices have been falling for at least one more year in the city’s housing market.
According to CREB forecasts for 2019 and the forecast of the regional housing market, total housing prices are projected to fall by 2.34 percent, as the housing market of the city remains chronically overcrowded.
“It is expected that the market will move towards more balanced conditions, but the transition will most likely take most of the year,” the report says.
CREB predicts a market for buyers until 2019 with an estimated price of $ 421,218, compared with $ 431,375 in 2018.
Sales will also continue to slow down: 15,882 transactions are forecasted for 2019, compared with 16,144 in 2018 and 18,884 in 2017.
"Given the further increase in rates in the second half of 2019 and the lack of significant improvements in the labor market, it is predicted that resale activity will remain low compared to historical standards," the report says.
CREB forecasts lower prices for:
- 2.27 percent in the apartment sector.
- 2.49 percent in the attached home sector.
- 2.33 percent in the private sector at home.
CREB says that the rate of decline in prices and sales is expected to decrease by the end of the year, as concerns about a weakening economy.
The second report shows that prices for most homes fell by $ 10,000 to $ 20,000.
According to a report released Wednesday by Zoocasa, the last 12 months were difficult for the Calgary housing market.
It says that a combination of stricter lending rules, a soft labor market and a still recovering energy sector contributed to a decline in the purchasing power of home buyers.
This led to oversupply in many parts of Calgary, with an average margin of 5.2 months, which in turn led to lower prices for all types of housing, said Zoocasa, who analyzed data released by CREB.
“Although the cost reduction varied depending on the type of house and quadrant, most fell from 10,001 to 20,000 dollars in the last 12 months from December 2017,” the report says.
Condo apartments are better furnished.
The condominium sector in Calgary showed the best results in 2018 in terms of price: on average, these houses were priced at $ 251,500, which is 2.4 percent less than in 2017.
According to the Zoocasa report, apartment prices have actually increased in some areas of the city, and in the northwestern, northeastern, eastern and southeastern sectors there have been sharp jumps (in infographics, marked in green below for apartments).
In contrast, in 2018, prices for individual houses fell sharply. The average price of individual houses in Calgary fell by 3.5 percent, averaging $ 481,400, which in most neighborhoods fell from $ 20,001 to $ 30,000.
In the south, prices for individual houses decreased most of all by 5.7% to $ 441,900, and in the north-west they increased the most by $ 27,384 (or 5.1%), to an average of $ 513,800. .
The report found that the sharpest decline in prices compared to last year in dollar terms occurred in semi-detached houses in the center of the city of Calgary, where their value fell by $ 41,378 (or 5.4%). In the northern part of Calgary, prices for individual houses increased by 2.6 percent, or an average of $ 321,900.