The Canadian Real Estate Association (CREA) released the May figures yesterday which was followed by commentary from bank economists.
Below is a round-up of excerpts regarding the Calgary market:
Perhaps even more encouraging were developments in Alberta and Saskatchewan where confidence appears to be returning.
Successive monthly gains in resales, significant reductions in the number of new listings and, as of May, evidence that prices are picking up again in Calgary lead us to believe that the healing process has begun in those markets.
Thus, the good news is that conditions are improving among Canada’s softer markets.
Price gains in Calgary continued to slow, with the MLS HPI up only 1.2% y/y, although prices did rise slightly in May.
Looking ahead, given the increase in government bond yields recently – which influence mortgage rates – mortgage rates could move higher later this year, dampening demand in Canada’s housing market.
Overall, though, we expect the regional divide to continue. While sales in oil-related markets of Edmonton and Calgary have risen off their January lows, price gains remain modest.
“The prairies continue to face the toughest conditions in the wake of lower oil prices. Calgary, Edmonton, Saskatoon and Regina are all seeing sales down in the 10%-to-28% range versus a year ago, though they have also shown signs of turning around (or at least stabilizing) in the latest two months.
In Calgary, a deep dive in new listings has helped rebalance the market and stem the price decline (the
seasonally-adjusted HPI is now down a modest 3% from its 2014 high).
Energy-sector cutbacks and reduced population inflows have cooled housing demand in Alberta and Saskatchewan, especially for high-end homes.
At the same time, sales and listings appear to be stabilizing through the spring, as buyers take advantage of greater selection and a more competitive pricing environment.