Looking Ahead: The Calgary Housing Market at a Glance
With housing prices declining in Calgary at the close of 2019 relative to last year, there are both challenges and opportunities available in the Calgary real estate market.
The challenges are more of a concern for those selling their homes, as a recent study by Royal Lepage indicated that prices fell by an average of 2.3% from the same time last year. That said, although prices are down compared to last January, they landed there after having made a significant recovery in the second half of 2019.
The opportunities lie more with potential buyers. With prices experiencing somewhat of a dip of late, this might be the perfect time to invest. After all, the old adage “buy low, sell high” is a cliche for a reason. In fact, at least according to some real estate professionals based in the area, the market has already started to tighten up, which may indicate that the market is primed for a more robust recovery.
One of the elements that will help keep things moving in a positive direction are continued low interest rates. The Bank of Canada held its key interest rate at 1.75%, part of an effort to encourage growth during what is still a relatively sluggish economy - or at least slow the pace of decline. However, ultimately the real estate market is wedded to the state of the energy sector, the province’s main source of economic energy. Until that sector finds itself on solid footing again, the province’s fortunes will remain uncertain.
In terms of price dynamics associated by housing type, apartments have seen the largest decline from their peak in 2014, dropping almost 20% since that time. Sales of homes priced over $500,000 also have also seen better days of late, and sales of that kind of housing continues to slump. From that perspective, homes priced in the upper tiers are still a buyer’s market. On the other side of the spectrum, townhouses and other semi-attached properties have seen increases in value lately, likely as a part of a trend that saw greater interest in more affordable housing
Overall, average pricing trends don’t tell a complete story, as the direction of the housing market depends on the neighbourhood. The part of Calgary that saw the most dramatic drop in prices in recent years is the city centre. The most affordable sections of the city are the northeast and southeast quadrants.
Anyone interested in exploring these areas from an investment perspective can start their research and even find instant listings for the northeast here, and the southeast here. With Calgary House Finder, all the informatin you need is at your fingertips.