Calgary - Flat Line! House Prices Predicted

Calgary Home Prices Remained Static 2015

House prices in Calgary were unchanged for the last quarter of 2015 according to the Statistics Canada New Housing Price Index report. BUT what does the first quarter of 2016 look like? Well there's not a big change.

Down But Not Big Change

According to Calgary Real Estate Board CREB statistics, single-family homes in general were more affordable in Calgary over the first two months of 2016 compared to the same time a year earlier. The benchmark price for a house dipped to $506,200 from $521,950. While overall Calgary new home prices were down around 3 percent from year ago levels, land prices were still growing on an annual basis.

Numbers Not Surprising

According to the latest sales and prices figures from CREB, less than 1,600 units sold last month, a drop of 11 per cent compared to March 2015. "The numbers aren’t surprising," says Ann-Marie Lurie, chief economist with CREB. "This is influencing our market. Another factor pushing real estate prices is a continuing rise in listings."

People Wait and See

“Homebuyers continue to wait and see if there are going to be further declines in home prices before making an offer,” said CREB president Cliff Stevenson. “Timing the bottom of the market is proving to be quite a challenge in the housing market we are faced with now. As we move into spring, we are starting to see more foot traffic at open houses and showings from potential buyers.”

Prices Lower or Higher?

Some builders predict higher prices due to the higher costs in construction to cover the new building code regulations that came into effect from 2015. However the increase may be off-set by lower negotiated selling prices due to the economic downturn.

Flat-Line for Now

At this point, nobody can accurately predict when the market might bottom out, and sales activity and prices will begin to rebound. In a news release, Diane Scott, broker and owner of Royal LePage Solutions said, “Calgary’s housing market has been more resilient than most expected amid declining oil prices.”

Need some help deciding when to buy or sell? Give Chris a call #403-680-4479