The Calgary Real Estate Board just held its annual Market Forecast summit where they looked back on 2019 and looked forward into 2020. One of their missions is to help you--buyers, sellers, renters, and investors--be informed on what is happening in the real estate market so that you can make educated decisions that will give you the best possible outcome when it comes to your housing needs. Ken Richter, your trusted real estate professional, is also a wealth of knowledge and happy to help you strategize.
Looking back at 2019, the Calgary Real Estate Board didn't shy away from recognizing what a difficult year it was for the real estate market. They explain, "since the oil price crash, Calgary has faced job losses, wage reductions and tightening national housing policy. These factors have all contributed to the slower sales environment, excess supply and citywide price adjustments of more than 10 per cent." The good news? "As Calgary moves into the sixth year of this cycle, there are indications of adjustments to these conditions throughout the housing market" (CREB®).
The biggest thing we are expected to see in the market is an increased number of buyers in the lower end of the market. CREB® chief economist Ann-Marie Lurie notes, “job growth, combined with recent easing in mortgage rates and price declines, is starting to bring some purchasers back...We are seeing more transactions in the $500,000-and-below price point for residential homes.” Luxury homes are not expected to see more growth in sales as the average person does not have the means to afford a home on the higher end of the market. However, CREB® is confident that the gains in the lower end of the market will far outweigh any loses experiended in the higher end of the market.
Overall, CREB® is confident moving into 2020 that the market will steadily improve. They write, "the current housing market conditions are different from what was recorded prior to 2014. We are settling into a new normal of slower sales, supply choice, limited price growth and a cautious consumer." CREB® CEO Alan Tennant adds, “whether you are a buyer or seller, having all the facts, strategies and data is critical to ensuring you get into the right home, or sell your existing home, in an appropriate time frame."
2020 is going to be a great year. Call me today at 403-630-6363 if you're ready to sell, buy or invest!
Your Real Estate Professional,