Housing Outlook Calgary 2015

What are your thoughts regarding the year ahead?

BUY or don’t BUY – SELL or don’t SELL – That’s what I am here to discuss;

First of all lets look at the Stats from 2014 – (*Information provided by the CREB*)

Calgary resale housing market enjoyed a robust year in 2014!

Growth was fueled by several factors:

  • Strong employment9.4%
  • Net migration growth
  • Low mortgage rates
  • Tight rental market

All of these factors cumulated into 9.4% growth in sales activity.

First half of 2014 saw sales growth far exceed the growth of new listings as result that encouraged new listings.

The 2nd half of 2014 saw new listings grow at a rate fast enough to result in inventory gains. With more inventory this pushed the market into more balanced conditions and eased the upward pressure on prices.

The average home price totaled $451,008 in 2014, a 9.85% increase from 2013.

Now that we have seen where we are let’s look at where we are going.

The economic climate will change in 2015.  Weaker economic conditions are expected to cause pullback in sales, cause inventory to rise.

Prices are expected to remain relatively stable, increasing by 1.58% this year.

The demand for houses is expected to decline by 4% due to market uncertainty and a drop in employment growth.

While sales are expected to ease in 2015, it remains consistent with long-term trends for the city.

New listings are expected to grow, however inventory levels were already low meaning a rise would help push the market towards a more balanced market.

Concerns over employment levels and the energy sectors could impact consumer confidence in the market and soften the demand and put downward pressure on prices.

Sum that all up:

Calgary’s housing market has been on a steady incline over the past few years, recovering from & exceeding all time high’s following our correction in the 2008-2009 year.

With oil prices slipping below the $50 a barrel mark for the first time in years, the economic concern for the province is uneasy hence the DOOM & GLOOM media reports following about Calgary’s housing market.

LET’s look past those reports & Look at some POSITIVES:

  • Sellers will have to be more competitive when it comes to pricing their home.
  • The Bank of Canada & major banks have both recently reduced their interest rates.
  • Thus making it easier to Qualify for a mortgage
  • With the nature of Calgary’s market we can expect some consumer uncertainty this should all help gear up Calgary’s housing market to a more stable “Balanced Market”.
  • Which means more selection & more competitive pricing
  • The Rental market is HOT – leading to more BUYER’s shopping instead of renting.

If you’re thinking or buying, selling or just have questions about Calgary’s always changing real estate market please contact the team at 3Sixty5 Real Estate!

http://www.3sixty5realestate.com

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