Prices to take a hit in already struggling market

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The latest data confirms agents’ fears in one hard-hit market.

Housing in Calgary will be “weak,” according to the Calgary Real Estate Board which cites continued economic volatility as the reason.

“As we move into the second year of this environment, we expect to see additional housing supply pressure and further price declines,” CREB Chief Economist Ann-Marie Lurie said in a release. “Weakness in the energy sector is overshadowing all aspects of our economy and with more people looking for work and fewer opportunities; we could see some families making adjustments to their housing situation.”

Sales activity is expected to decline 2.2% to 18,416 units, according to the association. The average price is expected to decline by 3.44% to $438,652.

“Market intelligence really matters in today’s operating environment. Pricing trends have and will continue to vary depending on product type, price range and location,” CREB president Cliff Stevenson said. “Sellers in this market need to have a good understanding of activity within their specific niche of the market. This is where a real estate professionals can really help navigate market conditions and real estate options, which are always unique to each consumer.”

These predictions echo concerns from agents in the area.

“What can we expect next year in Alberta? That’s a good question; I wish I had a crystal ball,” George Bamber, broker/owner of Century 21 Bamber Realty, recently told REP. “I’d expect sales to be similar to 2015; I don’t see them being much more depressed, but I don’t see them returning to pre-2014 levels.”