Despite an economic pummelling from faltering oil prices that’ll cool the city’s housing market, real estate analysts are predicting some modest growth in the sector.

 

While numbers in the city’s housing industry will fall from record-setting figures of 2014, prices should increase by 1.58% this year, the Calgary Real Estate Board (CREB) said Wednesday. But sales are predicted to fall by 4% in 2015 compared to an extraordinarily hot 2014, said CREB Chief Economist Ann-Marie Lurie, who added that modest price increase is more hold-the line than anything.

 

“In fact, that’s actually level to the end of last year,” she said. There’s no denying the role of tumble in the price of oil that’s dropped by more than 50% since last June, said Lurie. “The housing risks lie mainly with employment levels and net migration, both of which can be more severely impacted by a prolonged period of weakness in the energy sector,” said Lurie, adding if energy prices falter longer, housing forecasts could change. “Those estimates on employment might reverse, it could hit harder.”

 

Last year, total housing starts were up in Calgary by 36.7% over 2013, said the Canada Mortgage and Housing Corp. (CMHC). But the agency has predicted a 16.7% decrease in that activity this year.  Lurie said the market shouldn’t be impacted as badly as it was in the last recession because the broader economic fundamentals are more sound now.

 

“It’s not the losses we saw in 2009,” she said.  Meanwhile, Royal LePage also said falling oil prices will substantially cool a red hot housing market that should still see gains in 2015. Housing prices should increase by 2.4% this year, due largely to a limited supply facing buyers, said broker Ted Zaharko, owner of Royal LePage Foothills.

 

“While we expect price rises may moderate in 2015, the upward trend we’ve seen over the past few years is unlikely to reverse without a meaningful increase in inventory,” said Zaharko.

 

He called the impact of tumbling oil prices “worrying” that should have some immediate effect, but said their ultimate impact might not be dramatic.  “There would need to be prolonged low oil prices for any spillover into the housing market to be significant,” said Zaharko.

 

Some economic analysts are predicting a lengthy swoon for oil prices that could lead to a prolonged economic downturn, particularly in Alberta and the West. On Tuesday, the Conference Board of Canada predicted Alberta will fall into recession this year. But Premier Jim Prentice said that while the province is taking a major hit, its economy shouldn’t suffer to that extent.

 

Original article by Bill Kaufmann, Calgary Sun

bill.kaufmann@sunmedia.ca

on Twitter: @SUNBillKaufmann

Read full post
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Despite an economic pummelling from faltering oil prices that’ll cool the city’s housing market, real estate analysts are predicting some modest growth in the sector.

 

While numbers in the city’s housing industry will fall from record-setting figures of 2014, prices should increase by 1.58% this year, the Calgary Real Estate Board (CREB) said Wednesday. But sales are predicted to fall by 4% in 2015 compared to an extraordinarily hot 2014, said CREB Chief Economist Ann-Marie Lurie, who added that modest price increase is more hold-the line than anything.

 

“In fact, that’s actually level to the end of last year,” she said. There’s no denying the role of tumble in the price of oil that’s dropped by more than 50% since last June, said Lurie. “The housing risks lie mainly with employment levels and net migration, both of which can be more severely impacted by a prolonged period of weakness in the energy sector,” said Lurie, adding if energy prices falter longer, housing forecasts could change. “Those estimates on employment might reverse, it could hit harder.”

 

Last year, total housing starts were up in Calgary by 36.7% over 2013, said the Canada Mortgage and Housing Corp. (CMHC). But the agency has predicted a 16.7% decrease in that activity this year.  Lurie said the market shouldn’t be impacted as badly as it was in the last recession because the broader economic fundamentals are more sound now.

 

“It’s not the losses we saw in 2009,” she said.  Meanwhile, Royal LePage also said falling oil prices will substantially cool a red hot housing market that should still see gains in 2015. Housing prices should increase by 2.4% this year, due largely to a limited supply facing buyers, said broker Ted Zaharko, owner of Royal LePage Foothills.

 

“While we expect price rises may moderate in 2015, the upward trend we’ve seen over the past few years is unlikely to reverse without a meaningful increase in inventory,” said Zaharko.

 

He called the impact of tumbling oil prices “worrying” that should have some immediate effect, but said their ultimate impact might not be dramatic.  “There would need to be prolonged low oil prices for any spillover into the housing market to be significant,” said Zaharko.

 

Some economic analysts are predicting a lengthy swoon for oil prices that could lead to a prolonged economic downturn, particularly in Alberta and the West. On Tuesday, the Conference Board of Canada predicted Alberta will fall into recession this year. But Premier Jim Prentice said that while the province is taking a major hit, its economy shouldn’t suffer to that extent.

 

Original article by Bill Kaufmann, Calgary Sun

bill.kaufmann@sunmedia.ca

on Twitter: @SUNBillKaufmann

Read full post
Categories:   | Abbeydale, Calgary Real Estate | Airdrie, Airdrie Real Estate | Alberta Housing Market | alberta housing market forecast 2012 | Alberta Housing Market, housing projections, cmhc | Alberta Housing Market, housing projections, cmhc, Calgary housing market, chestermere homes for sale | Alberta Land Tax | Android | April Market Update | April Market Updates for Calgary | Arbour Lake, Calgary Real Estate | Bowness, Calgary Real Estate | Bragg Creek, Bragg Creek Real Estate | Bridlewood, Calgary Real Estate | Calgary cash incentives | Calgary Economic Recovery | calgary economy | Calgary Economy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Econonomy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Grants | Calgary home market | Calgary Home Prices | Calgary home sales | Calgary Homes For Sale | Calgary Housing | Calgary Housing Market | Calgary Housing Market Outlook 2012 | calgary housing market statistics | Calgary Housing Market Update | Calgary Housing Stats | Calgary Housing Trend | Calgary Market Forecast | Calgary Market Outlook 2012 | Calgary Market Update | Calgary Open House | Calgary Properties | Calgary Real Estate | Calgary Real Estate Forecast | Calgary Real Estate Market | Calgary Real Estate Stats | Calgary Relocation | Canada Housing Market | Canada Mortgage Update | Cardston, Cardston Real Estate | Chestermere | Chestermere home for sale | Chestermere Homes | Chestermere Housing Market | Chestermere Open House | Chestermere Real Estate | Chestermere Real Estate Stats | Chestermere Realtor | Chestermere, Chestermere Real Estate | Cityscape, Calgary Real Estate | CMA, Market Analysis, Selling Price, Fair Market Value, Home Value, home price | CMHC | Connaught | Connaught, Calgary Real Estate | Country Hills | Country Hills, Calgary Real Estate | Coventry Hills, Calgary Real Estate | Deer Ridge, Calgary Real Estate | Deer Run, Calgary Real Estate | economic recovery | Economy | Evanston, Calgary Real Estate | Executive Home for Sale | Falconridge, Calgary Real Estate | Finance | First Time Home Buyers | foreclosure | Garrison Green | Garrison Green, Calgary Real Estate | Harvest Hills, Calgary Real Estate | Hawkwood, Calgary Real Estate | Hillhurst, Calgary Real Estate | Housing Trends | Inglewood, Calgary Real Estate | IPhone | January 2013 Market Update | Lakeside Home For Sale | Langdon | Langdon, Langdon Real Estate | Mahogany, Calgary Real Estate | Market Trends | Market Update | Market Value | Marlborough Park, Calgary Real Estate | Martindale, Calgary Real Estate | Mayland Heights, Calgary Real Estate | McKenzie Towne, Calgary Real Estate | MLS QR Code | MLS Search | MLS Search, Personal Real Estate Office, Real Estate, home search, compare homes, search for homes | Monterey Park, Calgary Real Estate | Mortgage | Mortgage Fraud | Mortgage Rates | Mortgage Registration | Mortgages | New Listing | Okotoks, Foothills Real Estate | Okotoks, Okotoks Real Estate | Open House | Pineridge, Calgary Real Estate | Pricing Your Home For Sale | QR Code | Real Estate | Real Estate App | Real Estate Forecast | Real Estate GPS QR Code | Real Estate Integrity | Real Estate QR Code | Real Estate, Chestermere Real Estate, Calgary, Buy, Sell, home | Recession | Redcarpet_Mountview, Calgary Real Estate | Rent vs Buy | Rental Property | Rental Property, Calgary Rental, First Time Home Buyers | Rosscarrock | Rosscarrock, Calgary Real Estate | Rural Rocky View MD, Rural Rocky View County Real Estate | Rural Rocky View MD, Rural Rocky View MD Real Estate | Rural Rocky View MD, Rural Rockyview County Real Estate | Rural Wheatland County, Rural Wheatland County Real Estate | Sage Hill, Calgary Real Estate | Secondary Suite | Sell Your Home | Selling Your Home | Shawnessy, Calgary Real Estate | Somerset | South Calgary, Calgary Real Estate | Southview, Calgary Real Estate | Spruce Cliff, Calgary Real Estate | Strathmore | Strathmore, Strathmore Real Estate | Suite | Sundance, Calgary Real Estate | Temple, Calgary Real Estate | Turtle Lake Real Estate | Tuscany, Calgary Real Estate | Victoria Park, Calgary Real Estate | Whitehorn | Whitehorn, Calgary Real Estate
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