Due to COVID-19 impacts in Calgary’s housing market and general economy, it is not business as usual.
This year was projected to be a time when Calgary would start to see some modest improvements, but the uncertainty surrounding the pandemic and the energy industry is expected to cause a dramatic decline in housing sales over the next quarter.
The decline in sales might ease by the third quarter as social distancing begins to soften. However, as many households have been hit hard financially and this will limit the growth in sales.
Many households have delayed listing their home during the pandemic. While this has helped with over supply, in situations of rising unemployment rates and job loss, we can see rising inventory levels. The ability for households to defer their mortgage will help prevent a steeper rise in supply when social distancing measure are relaxed and will help prevent home prices from collapsing.
According to CREB chief economist Annie-Marie Lurie: given the situation in the energy sector, weakness in our economy is expected to persist beyond the immediate impact of COVID-19. On this basis, our housing market is expected to struggle with excess supply and further price declines. On an annual basis, prices in 2020 are expected to decline by nearly 3%.
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