Calgary's Real Estate Market Is a Mixed Bag of Uncertainties
Calgary's real estate market is a mixed bag of uncertainties for this year. It remains unclear whether the region will experience high returns for 2016 or endure another year of struggle.
According to an article recently published by Calgary Herald, "The benchmark price for single-family homes in Calgary was $509,300 in January, sinking 2.6 percent from $522,900 a year earlier, and a $505,600 benchmark in April 2014 was the last time the price was lower."
Also, the market for single-family homes expanded by 1,488 listings in January, and new listings were recorded since the 1,768 additions last September. A setback of 18 percent was noted year on year, according to the same report.
Even CREB President Cliff Stevenson said, "Calgary's housing market continues to face a wide range of challenges. Sellers are reflecting on their expectations and considering all options available to them, given the dynamics of their specific market. In this environment, buyers have the opportunity to carefully consider their housing needs and make a decision based on their lifestyle and future goals."
CREB's Chief Economist Ann-Marie Lurie added, "In this type of market conditions gains in new listings can be caused from more people having to sell their home. However, in January, listings continued to fall over last year's levels and remain lower than what we typically see in January. This is an indication that people could be delaying any unnecessary moves right now."
Moreover, it appears that the issues aren't just limited to Calgary as other regions of Canada are facing the same degree of uncertainty as well. CBC has reported on the weakening real estate sector of Canada, particularly in Alberta.
Ann-Marie Lurie added, "The recent slide in energy prices has raised concerns about near-term recovery prospects for the city. Energy market uncertainty and a soft labor market are weighing on many aspects of our economy, including the housing sector."