Calgary Market Update
As we approach the end of the year, it should come as no surprise that the Calgary housing market has taken a bit of a beating in 2015, but by no means is it down for the count. The change in the market simply means that the way we look at real estate will have to change and adapt. There are three key factors that are shaping the current Calgary market, the oil industry, market availability and affordability.
The Oil industry remains an influential
Prices are holding steady, as the Alberta economy is less reliant on the oil industry than most people believe. Only about a third of Calgary’s economy is dependent on the petroleum industry, down from about 55% in the 1990s. The drop in oil prices, which brought layoffs and lower consumer confidence, have been the largest factor in today's market conditions, but prices held steady due to a lack of real desperation to sell.
This means that the buying power of potential buyers remains somewhat the same, but they are just being more cautious. Combined with the fact that the Alberta government expects oil to steadily rise by 2019/2020, this means that a slight increase in oil prices over the next couple years could see more confidence from potential home buyers moving forward.
Buyers are moving towards the condo market
The entry level side of the market is still very healthy and strong, however first-time home buyers are not buying detached suburban homes as much, they are now moving to the condo market. Calgary, like many major Canadian markets, is starting to see a shift in preference towards urban projects among young buyers. The biggest reason for the shift is affordability.
Another change in the market is that it’s creating many “accidental landlords”. The rental market has increased as many are still hesitant to buy; therefore those who were initially looking to sell their property are now forced to rent instead. It’s an option that has seen exponential growth, particularly in higher-end homes.
Overall, there has been a significant drop-off in new and resale housing sales volumes, and volatility in the energy sector and the oil price markets will definitely continue to weigh on the minds of potential home buyers. But this doesn’t mean that the market won’t eventually adjust, it just takes time. Whether you’re in the market to buy, or are planning to sell your home, get an experienced realtor to help you navigate this ever changing market.
Are you buying or selling a home in Calgary? Do you want an agent who has the enthusiasm and energy to get things done, with your best interests in mind at all times? Contact me at 403-617-8758, kelmacdonald@gmail.com or www.kellymacdonald.ca and let's make good things happen!
Are you buying or selling a home in Calgary? Do you want an agent who has the enthusiasm and energy to get things done, with your best interests in mind at all times? Contact me at 403-617-8758, kelmacdonald@gmail.com or www.kellymacdonald.ca and let's make good things happen!
About Kelly Macdonald
Kelly Macdonald is a Realtor® with The Real Estate Company in Calgary, where she has been living (and loving it!) since she was 10. Kelly offers her clients a unique mix of youthful vigor, creativity and technical and design savvy on one hand, and professionalism and transactional expertise from her business degree and strong administrative background on the other. Kelly is also a devoted wife and mother of two, with whom she finds time from her busy schedule to play scrabble and walk by the beautiful lake of their home in Southeast Calgary.
THIS ENTRY WAS POSTED ON December 13th, 2015 BY Kelly L. Macdonald | POSTED IN General
