Calgary Housing Market Doing Alright, Considering…

August 20, 2015
By Cody Battershill

Calgary's Residential Sector Resilient, Remains Low Risk

I guess that things could be much worse for Albertans. Yes, our province’s economy and housing market are feeling a bit squeezed as of late due to slouching oil prices, but at least our real estate isn’t high risk like Toronto’s as recently stated by the Canada Mortgage and Housing Corporation (CMHC).

According to the CMHC, Toronto has found its way into what is called “high risk territory” after the organization performed its latest House Price Analysis and Assessment (HPAA).

Canada’s largest city now joins Regina and Winnipeg on the list of high risk markets, however, the national review still puts Canada as a whole in the low risk category.

Ups and Downs

Over the past year, Calgary’s residential sector has seen steady benchmark price gains up until a few months ago where low oil prices began to take its toll on the economy.

Less people working meant less disposable income and those who still had a job began saving just in case it happened to them. In addition, the slow job market decreased migration to the province, also taking its toll on the residential sector.

It wasn’t until a few months into 2015 that the housing market began to see its first year-over-year price drops, about the same time when energy companies started to lay off employees.

However, it is important to note that both sales activity and home prices remain in line with the five and ten year averages for the city.

While current economic circumstances seem risky, it should bring some comfort that the CMHC still has Calgary placed in the low risk category. Some Calgary home buyers have actually taken advantage of the opportunities that have arisen out of the situation, them being:

#1 – more time to look, less pressure to buy atmosphere with a balanced market not too far into either sellers or buyers territory

#2 – lower prices, giving buyers more options when it comes to finding a property that fits their wants, needs and lifestyle best

#3 – flexibility in quadrant location and specific neighbourhood to buy in

Multi-Family Slows Down

Experts predict that most of the slowdown to come in Calgary’s housing market will be in the multi-family sector.

Townhomes, condominiums and apartments have already taken a considerable hit to sales activity, contributing largely to the 22 percent in year-over-year sales decline for the entire market seen in June 2015.

More on Calgary's Housing Market

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