Welcome to Renzo Real Estate's quick recap of The Calgary Real Estate Board's (CREB) Forecast for 2018. This year is expected to be very similar to 2017 with modest growth.
Throughout the forecast, CREB's highly regarded, chief economist, Ann-Marie Lurie, highlighted that we are on a "bumpy" recovery. The ups and downs of the real estate market are no stranger to Calgarians, however, this recovery is expected to be much more gradual than in previous years.
This is perfectly displayed in net migration patterns. Net migration is one of the strongest indicators of price growth in real estate markets. Have a look at Calgary's expected net migration.
In 2010, there was a sharp decrease in net migration and sales eased dramatically, but look at the instant rebound in 2011.
In 2016, there was another year of negative net migration, but the growth is telling a different story than in previous cycles. This points to the bumpy recovery path.
CREB also drew attention to the changing mortgage rules and rising interest rates. Ann-Marie Lurie indicated that this could cause an increase in sales for the entry-level homes and attached sector. That said, the apartment sector is expected to continue to ease as the inventory levels are very high and more product is expected to come on the market in 2018.
Have a quick look at the Calgary Real Estate Forecasts Recap for 2018
Watch the quick recap below.