Calgary Real Estate Market
Calgary’s real estate market has risen along with the oil boom. As oil prices have fallen, so have employment numbers in the energy sector. We’re seeing more homes for sale in Calgary as houses that were built to meet growing demand come onto the market as demand stalls, and we are starting to see houses come on the market driven by wage cuts and job losses. That is only going to accelerate if oil prices remain low and the oil boom busts.
Lease rates are falling. Commercial vacancies are up. And home sales in Calgary fell 7.5% from December 2013 to December 2014. The prices for condos fell almost ten percent year over year from spring 2014 to spring 2015. The number of housing listings has risen from 2,500 to 4,000 year over year (January 2014 to January 2015). The March 2015 figures year over year are even more astounding, a rise from roughly 3000 active listings to 5,700 Calgary homes for sale – a change of about 87%.
Condo prices have dropped ten percent over 2014 values, while detached houses fell 3.3% in February, 2015. Housing prices have only dropped a few percentage points but may drop further. In February, 2015, Sherry Cooper of Dominion Lending Centres, previously an economist at BMO said that Calgary’s real estate prices will drop ten percent if not twenty percent.
The Conference Board of Canada reported at the end of February, 2015 that they expect Alberta to remain in recession into 2016, perhaps longer. Real estate prices that have stalled and started to drop since oil prices fell therefore won’t go back up in a year.
Real estate prices will probably fall further because of the construction boom that was underway to bring new properties to market to meet growing demand. The Calgary Real Estate Board reported in January, 2015 it expects sales to drop 4% over 2015, though prices are projected by the CREB to remain stable. Net migration to Calgary will prevent demand from cratering, while inflation may even allow home prices to rise over the next twelve months. Home buyers can rest assured that this means that the home they buy in 2015 won’t lose half its value by 2016, as some home buyers in Nevada, Arizona and Florida saw in 2007 and 2008.
What does all of this mean for those looking for homes for sale in Calgary?
• If you couldn’t find a house in the neighborhood you wanted last year, you’ll probably find several this year. Supply is much higher in 2015 than it was in 2014.
• If you want to buy a condo in place of a detached house, it is already a buyer’s market.
• Prices for single family homes have dipped, but they may come down more. Prices aren’t going to go up and may come down, making it a great time to buy.
• Properties started in 2014 to house oil patch workers and energy sector employees are coming onto the market while demand has softened. This creates an unusual supply of brand new homes at good prices.
• Distressed sellers are going to start hitting the market among those laid off in the energy sector. Your possibility of finding homes for sale in Calgary at a steal of a deal are rising.
Finding houses for sale in Calgary starts with a good website that has a full IDX integration with the MLS database of available homes. Simply put, www.albertarealestategroup.com has all of the homes for sale in Calgary as the MLS database is the same but with a more user friendly, customizable user interface. Add to that the ability to ask questions via the website directly to a realtor and you have the perfect resource for helping you find the perfect home at the best price. You’ve found the perfect site to find the best home at the best price. Listings are updated hourly and long before they are “officially” loaded.