It's that time of year again! The annual Calgary Real Estate Board Housing Forecast.
2020 was a year of surprises, with the slumpped oil prices and a world wide pandemic, many speculated that the Calgary housing market was poised to take a hit. While Calgary did not break any records, it did hold steady, and even posted a stronger than expected rebound the 2nd half of the year.
Going forward into 2021, it is expected that some of the momentum will continue. Driven by low interest rates, low inventory levels, and high buyer demand.
“It is expected some of the momentum recorded at the end of 2020 will continue into 2021, fueled by exceptionally low lending rates and pent-up demand,” “While sales are expected to rise by nearly five per cent on an annual basis in 2021, persistent economic challenges are expected to prevent stronger growth in our housing market.” said Ann-Marie Lurie, CREB® Chief Economist.
As 2021 continues, I would expect to see inventory levels start to rise again. As Canada continues with COVID-19 vaccinations and spread of the virus starts to ease, markets should begin to return to balance.
Growth in supply is expected to offset some of the gains in sales, pushing our market to the upper bounds of balanced conditions and slowing price recovery. However, the price gains that occurred at the end of 2020 are not expected to be eroded and 2021 annual prices are forecasted to improve by over one per cent.
Here is a link to the entire CREB® 2021 Forecast.
“This year has been filled with twists and turns all over the world. The Calgary housing market was no exception,” said Alan Tennant, CREB® President and CEO.