Calgary Housing Market Predictions for 2019
It’s been a tough year for the residential market in Calgary.
A slow economy along with oil price differentials and a challenging employment outlook all continue to weigh in on the housing market. But what about in 2019? Will these trends continue?
Here’s some of the most important points from forecasts done by the Canada Mortgage Housing Corporation (CMHC), the Calgary Real Estate Board (CREB), RE/MAX and Royal LePage.
Also see our Calgary Real Estate Market Updates for month-to-month statistics today.
Real Estate Market Predictions (2019):
- Current sales activity is lower than it has been since the mid 1990s
- Buyers’ market conditions are expected to shift towards balance 2019 as the economy gradually improves
- Expected stronger employment and population growth in 2019 – 2020 will help support sales activity and boost demand across all sectors
- The average listing price for all sectors on the MLS® will continue to see decreases into 2019, but is expected stabilize later in the year and see modest increases in 2020
- RE/MAX predicts the average home sale price will remain the same throughout 2019 – at $487,399
- Royal LePage predicts the average home sale price will drop by 2.3% by year’s end – to $473,104
- Both real estate firms point towards tougher lending rules and higher interest rates combined with weak oil prices as a result of low consumer confidence in the housing market
Inbound Migration & Lower Vacancy Rates
A recent census done by the City of Calgary showed overall housing vacancy rates decline to about 3.9% in 2018, down from 4.8 percent in 2018. The same census showed Calgary had a positive net migration of 11,588 people compared to a net migration of 974 in 2017 and a negative net migration of 6,500 in 2016.
While these are somewhat positive indicators for the local housing market, many real estate industry leaders believe that noticeable benchmark price gains won’t happen until full-time employment rates go up.
Furthermore, because Calgary’s residential market is closely tied to the oil and gas industry, a cancelled Trans Mountain pipeline expansion could severely affect the real estate market’s outlook heading into 2019 and 2020.
If you’re unsure about buying and / or selling in today’s dynamic market, I recommend contacting a experienced REALTOR® for advice.
They should be able to offer insight into specific market dynamics for the sector and community you’re interested. They will also check to see if a potential sale and / or purchase would align with your real estate goals.
Questions about Calgary Real Estate?
As a highly experienced REMAX real estate agent and REALTOR® in Calgary, I am looking forward to guiding you towards your real estate goals by providing the best service, advice and representation the industry has to offer.
Call me anytime at 403-370-4180 or send a message below for a prompt, if not immediate response. I am looking forward to helping you accomplish your real estate plans!