For the past few years, the Calgary housing market has been struck by a variety of market conditions that include low oil prices, high unemployment, high vacancy rates for residential and commercial properties, and oversupply. Continued regulatory hurdles due to the cancellation of the Energy East and Northern Gateway Projects since the Trudeau government took control in 2015 haven’t helped the economic situation in Alberta.
According to most economic outlooks, the Calgary housing market will stay flat and similar to the conditions of 2018. House prices are expected to fall further, and the market continues to be geared towards buyers. Buyers are expected to continue to be able to get good deals on properties they once wouldn’t have access to.
That said, the mortgage stress test introduced and implemented by the Trudeau Government continues to be a contentious issue in Alberta because it imposes rules across the country regardless of how it affects individual markets. The stress test has made it much harder for the average Albertan to qualify for homes they once could be eligible previously.
As a direct result, we are seeing the rental rates across the province increase because people are now deciding to hold off on purchasing a home. This has caused upward pressure on the rental market and increased the prices landlords can charge for a property because rental demand has gone up due to inventory levels dropping for the first time in years.
In Calgary, areas such as Beltline, Mission and the Downtown Core have seen the biggest increases in people looking to rent rather than buy because of the high number of affordable condos and apartments that have hit the market for rentals. Other areas further out from the Downtown Core, especially in the detached and attached sectors have not been so lucky. An oversupply of inventory, coupled with the mortgage stress test and unemployment, have continued to put downward pressure on this market, and it is expected to stay the same throughout 2019.
If you are looking to buy, sell or even rent in the Calgary market in 2019, we would welcome you to contact Jesse Davies & Associates any time. Our group of experienced housing professionals will help walk you through what options are available and how you can achieve your future housing goals.
Please don’t hesitate to visit https://www.jdrealestatecalgary.ca or call us directly for a FREE confidential consultation at 403-969-2363.