The Calgary Real Estate Board has just released their 2017 Economic Outlook & Regional Housing Market Forecast. Highlights from the report for the 2017 Calgary Real Estate Market include:
- Overall economic stabilization in 2017;
- Marginal but positive net migration expected for the coming year;
- Increased number of sales over 2016 figures, approximately 3%, will still be below normal levels;
- A year of slow transition in the real estate market;
- Stiffer lending rules and higher mortgage rates will have minor impacts on affordability;
- Oversupply still a driving force in the market.
We interpret the “transition” mentioned above to be a flattening of the downward trajectory in overall pricing. We will not likely see the bottom of the market this year though the negative year over year change in pricing may return to zero before 2018.
The apartment sector will remain the housing type with highest level of inventory through the coming year. Some projects that began digging in 2014, 2015, and 2016 have not all come to market. When they do, they will continue to saturate the apartment sector and put downward pressure on pricing.
Anticipate affordable single family detached homes to be the shining star in the market as it has been in the past. Homes in this sector have fared best in the market correction and should maintain their position as best (relative) real estate investment vehicles.
Have more questions about the 2017 Calgary real estate market? Contact us to find out more.