Too much of a good thing

High supply in Calgary’s condo market continues to push down prices

Calgary’s condominium market continues to see the supply of available product overwhelm buyer demand, meaning owners looking to sell need to consider ways to set their unit apart from the crowd.

According to CREB®’s 2017 Economic Outlook & Regional Housing Market Mid-Year Update, the condo market has seen a slight rise in year-to-date sales over 2016, but not enough to keep pace with a rise in listings, up an average of nine per cent over last year.

That increased supply is putting downward pressure on prices, which are expected to continue to decrease during the rest of the year for an annual forecasted decline of three per cent.

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Targeting tenants

Challenges continue for Calgary’s rental market

“Very cautious optimism” is how Gerry Baxter, executive director of the Calgary Residential Rental Association, describes the industry’s view of Calgary’s current rental landscape.

While Canada Mortgage and Housing Corp. (CMHC) pegged Calgary’s rental vacancy rate at seven per cent last fall – the highest it’s been in more than 25 years – Baxter says he thinks residential vacancies in the city are actually closer to the eight-to-10-per-cent range.

“There’s been some slight improvement in the rental market over the last few weeks, but it’s still a challenge to rent,” said Baxter, attributing the slack rental market to the economic downturn that started in late 2014 and early 2015.

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Trickle-down effect

How economic indicators actually drive the housing market

What do unemployment, migration and oil prices have in common? Apart from being touchy subjects at a party, they all influence the Calgary housing market to some extent. Understanding how and why that happens could provide an advantage when planning a home sale or purchase.

“In many cases the impact is indirect,” said Ann-Marie Lurie, chief economist for CREB®.

One part of that impact relates to demand.

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Mid-year market update shows stability

CREB® forecasts a process of recovery for the remainder of 2017

The first-half of 2017 marked a shift in Alberta’s economy from recession to recovery, with conditions supporting stability rather than expansion.

“Economic challenges continue to exist, as high unemployment rates, weak migration levels and more stringent lending conditions are weighing on the housing market,” said CREB® chief economist Ann-Marie Lurie.

“This will continue to cause some adjustments in the housing market for the remainder of this year. However, this is not expected to offset earlier gains supporting general stability in 2017.”

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The auction block

It’s the latest real estate trend and it’s catching on quickly in Alberta – selling luxury properties on the auction block.

Although selling real estate through an auction process might seem like a new idea here in North America, Murray Lange, Alberta and British Columbia business development officer for New York-based Concierge Auctions, says the practice has actually been around for a long time.

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