Calgary home prices “are effectively flat lining, not correcting more sharply as some feared,” according to the BMO Economics research note released yesterday. An RBC Economics report concurs, stating that “downward price pressures remain contained in Calgary.”
However, BMO cautions Calgarians to “stay tuned…with WTI oil prices testing the low-$40 range.” RBC also acknowledges that while the benchmark price was unchanged month-over-month, annual price growth slowed further in July.
It’s been oft-repeated that overall market conditions mask differing trends which vary by property type, price range, and neighborhood. But in general, the year-over-year price trend is unmistakable, both in terms of new housing and the MLS® benchmark. Price growth is shrinking and dipping below year ago levels, albeit slowly.
Sales so far in August are below historical averages, but then again, so are new listings. It’s very much a subdued but balanced market.
New housing starts plummeted in July, which should keep supply in check and help shore up the resale market, unlike in 2008 when inventory skyrocketed and depressed prices. On the flip-side, there are many jobs associated with residential construction that may be impacted depending on the duration of a downturn. Add those to the ever growing number of energy workers laid off and we’ll see the labour market begin to have a larger influence on housing in the months ahead.