There is a great deal of uncertainty regarding Calgary’s real estate market in 2017 even though the real estate sales increased by 24% in the month of January. This rise is in proportion to the corresponding month last year. In 2016, four out of every five neighborhoods in the city lost value.
Overall, prices decreased by 3.1% on an average, but the city seems to have experienced the worst. Prices are expected to remain stable or decrease only in small amounts in 2017. Some realtors also expect prices to rise again. The median price of a home, as of March 2017, is $490,534.
Stability in 2017
According to the Calgary Real Estate Board (CREB), the city can expect to see a degree of stability, and the prices of detached homes and attached homes are expected to remain steady. Condos could be in line for a decrease in average prices. Ann-Marie Lurie, the CREB’s chief economist, predicts an end to the recession in 2017. The market will continue to remain a buyer’s market until the level of over-supply gradually reduces.
A marginal increase in certain prices
Employment levels are forecasted to rise, but they are not expected to rise in a manner that replaces all lost jobs. Mortgage rates will rise as the qualifications have also become far more stringent. The prices of detached homes are expected to rise by 0.8% by the end of the year, and the prices of attached homes are expected to increase by 0.5% in the same period of time. In effect, the prices are unlikely to affect the sector greatly, and we can expect the problem of over-supply to remain relatively unchanged.
Prospective buyers of apartments, condos are expected to be the biggest beneficiaries as the average drop in prices is expected to be around 2% by the end of 2017. Buyers can expect to find some real steals in the condo market this year.
The CREB also cautions that the fluctuations in oil prices and uncertainty from the US administration could affect Calgary’s market in unexpected ways. The Canadian government could also be a player by modifying lending rules and increasing the mortgage rates.