Calgary’s housing market is expected to see fewer new builds, fewer sales, and lower prices by the end of this year, followed by little to no growth in any of those measures for at least a year, if not two.
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The pace of work on new homes will fall to 178,150 units in 2016 from 186,900 this year, Canada Mortgage & Housing Corp. said Monday from Ottawa, and again to 173,650 units in 2017. “In 2017, total housing starts are forecast to increase slightly with support provided by gradual improvements in job creation, income growth and net migration”.
The report said new construction of single-detached homes in 2015 and 2016 is forecast to reach its lowest level since 1988, with 4,000 starts per year.
Multi-family starts will go from a record high of about 10,600 last year to slightly less than 8,000 this year and 6,000 units next year.
“Starts will increase as builders respond to pent-up demand for smaller units by smaller households wanting to downsize”, stated Warren Philp, CMHC Market Analyst. (CMHC) forecasts demand for the city’s red-hot real estate will slow in 2016 and 2017.
National housing prices are expected to plateau and favour moderately priced homes.
By 2017, the CMHC forecasts MLS sales will fall to 37,400 across the region.
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CMHC provides a range for 2015 for average existing home prices of $417,000 and $459,000.
