While the recent drop in oil prices has caused speculation about implications for the housing sector, stable conditions are expected given current forecasts for employment and migration.
While employment and migration are expected to support housing demand, estimates could change depending on the extent and duration of oil price declines. Concerns over the potential impact will influence consumer confidence. This is expected to cause supply and demand to ease in 2015, maintaining resale market balance and keeping prices relatively stable.
The risk lies with the potential severity and duration of the pullback in the energy industry, which would have a lagging effect on the housing sector. While the current situation has some comparing today’s market to
Improving inventories help ease price growth pressure.
Calgary’s residential resale housing market posted relatively strong November activity reaching 1,782 units, a 3% increase over the previous year, and nearly 13 per cent above long term averages.
Meanwhile, new listings growth continues to outpace the gains in sales, supporting a 22 per cent year-over-year rise in November inventories to 3,849 units. While inventories have recorded significant gains, they remain below long-term averages for the month.
Over the past year, inventories have been low in the city, limiting some of the choice for consumers. Availability in specific segments and price ranges vary, on the whole, the recent rise in inventories will be welcome news for many buyers.