At the end of each month we turn to CREB®, the Calgary Real Estate Board, for statistics on what went on in the market that month and what consumers can expect to see in the coming month! At the end of January, we did not have the best news to report. Unfortunately, due to the significant drop in oil prices, the market was shocked out of a highly optimistic forecast for 2015 and into a month where everything slowed down. People were neither buying nor selling as unstable economic conditions loomed over the market.
We are thrilled to say that this is no longer the case! The market in February was still not at where it was forecasted to be, but that is completely understandable due to the changes in January. February was a month for recovery, and recover it did indeed.
CREB® reported that while “sales activity remained below long term averages for the month, Calgary inventory levels rose to 5,474 units in February.” This inventory rise is fantastic news for those of you looking to buy a new home! With more on the market, you will have greater options and lower prices to pick from.
While there is more supply, CREB® president Corinne Lyall warns consumers to still be careful and make educated, wise decisions. “It’s really important for consumers to consider what segment of the market they are buying or selling in when they make any real estate decisions,” Lyall says. “The inventory, demand and price movement will vary based on the community, price range and product type.”
While benchmark prices rose in February, again, they are still below what was originally forecasted for 2015. A stable economy means a stable real estate market, and because we are still waiting to see what will happen with the economy, we cannot make an exact, conclusive prediction as to what is to come.
CREB® chief economist Ann-Marie Lurie says, “Expectations vary significantly when talking about the impact that lower oil prices will have on the housing market.” We don’t know how long this trend will last or to what extent it will affect immigration and employment opportunities.
What we can be sure of is that the market will, eventually, make a healthy recovery. Calgary is a thriving city that won’t stay down for long. We have so much to offer in every area of life, and the real estate market is no different. We are very optimistic for the future!
Your Real Estate Professional,