Calgary’s housing market remains “moderately” vulnerable due to evidence of overbuilding, the Canada Mortgage and Housing Corp. said Thursday.
In its quarterly housing market assessment, a report that identifies the level of housing market stability in Canadian cities, the CMHC said Calgary’s inventory of completed and unsold housing units increased in the second quarter of 2019. In addition, absorption of new housing units has been slowing compared to 2018, which has contributed to the oversupply.
The CMHC said Calgary remains a buyers’ market, and home prices are staying in line with market fundamentals. Apartment units continue to make up the largest proportion of overall housing inventory in Calgary, though the largest increase from the previous quarter was in single-detached units.
The CMHC report also identified evidence of overbuilding in Edmonton, Regina, Saskatoon and Winnipeg.
For the resale market, the Calgary Real Estate Board reported a nearly seven per cent, year-over-year uptick in sales activity in the third quarter of 2019. CREB said this improvement is being driven by homes at priced at the lower end of the market (under $500,000) where lower vacancy rates and easing housing starts are starting to reduce supply. However, CREB said the higher end of the market continues to see slower sales and rising supply.
“We are still in a buyers’ market,” said CREB’s chief economist Ann-Marie Lurie. “We are facing enough economic risk that it will prolong the time it takes to move the entire market to more stable conditions.”
AMANDA STEPHENSON, CALGARY HERALD