Home buyers and sellers around Calgary can expect stable prices in 2018, according to the Calgary Real Estate Board’s (CREB) annual forecast.
We have entered 2018 with some new factors including rising interest rates and stricter lending criteria. But CREB feels that Calgary’s slowly improving economy coupled with modest job growth (2.13% rise in 2018 according to Conference Board of Canada) and positive net migration of 1,900 this year (according to City of Calgary) will counterbalance the interest rate problems and provide stability across all real estate market sectors in Calgary.
The key word in all of this is balance. While the apartment sector lags slightly behind, the attached and detached markets will show very little change in prices through 2018 thanks to balanced supply/demand conditions.
- Detached prices forecast to drop 0.1%
- Attached prices forecast to rise 0.4%
- Apartment prices forecast to drop 1.0%
After apartment prices dropped 6% in 2016 and 4% in 2017, the modest 1% drop in 2018 is a welcome return to a healthier market.
CREB feels homebuyers may start to look more at attached properties, as their lower prices may attract some buyers away from detached homes. They are forecasting a 2.2% increase in attached sales this year.
Sales growth of 5.6% is forecast for the detached sector but new listings growth of 6.6% is what will prevent prices from taking off. A balanced market is around 3-4 months worth of supply and CREB is forecasting 2.8 months on average this year, which puts us into a seller’s market.
Apartments, however, are forecast to have 6.7 months of supply which means they will remain firmly in buyer’s market territory.
Since prices should have very little fluctuation throughout the year, the best time to make a move is when it makes sense for your lifestyle.
It doesn’t appear that there is any big market crash nor any sharp rise in prices ahead so don’t overanalyze trying to time the market. Decide what you and your family want and need in your own lives and make a move accordingly.
If you feel the time may be approaching for you to make a lifestyle move, drop either of us a line anytime!
Lastly, CMHC is forecasting a slight increase in the average rent in Calgary as well as a slight decline in vacancy rates, which means that investment properties should start to see better returns. If you want to pick up a cheap rental condo, up/down duplex or maybe even a small apartment building, we can send you some great options.
P.S. If you love numbers & graphs and would like the full CREB forecast report, send us an email and we can send over the PDF.
