Since the price of oil saw a decline in 2014 activity on Calgary real estate market also began to weaken.
In 2018 Calgary real estate market experienced record price drops in all sectors, which was tied to an increase in the listings inventory and a decrease in the number of sales.
In the fourth quarter of 2018 the citywide benchmark price fell over 3% compared to 2017.
The challenging economic climate in Calgary is expected to persist into 2019. Issues surrounding the price differential of oil, falling global prices, a lack of market access and ability to attract investment are placing current and future growth at risk and will impact employment opportunities, consumer confidence and the housing market.
On top of energy sector concerns, we are in an environment of stricter lending conditions and higher interest rates. With further rate increases expected in the second half of 2019 and no significant improvements in the job market, resale sales activity is forecasted to remain low compared to historical standards.
Persistently weak demand and excess supply in the Calgary market are expected to cause further price declines in 2019. Calgary Real Estate Board expects price to fall by over 2%
So is it worth to buy a house in Calgary in 2019?
Everyone has different motivation and needs if it comes to owning a house, so there is no strict answer to this question.
Real estate is a long term investment, so it is worth looking at long term statistics in making a decision on purchasing a property. Home Price Index (HPI) is one of the best tools to view home price trends. The table below shows % changes in price for each sector in Calgary over last 10 years based on HPI. More detailed data for specific communities and property styles is also available to my clients.
If you are interested in how the property values changed in your community or would like to know which communities ratian their home values contact me for a detailed report.
The forecast of continued price decrease can be a valid reason to wait with a home purchase. However future increase of mortgage rates will make the cost of owning a home more expensive despite falling prices and current market is already full of opportunities for significant price reductions.