CREB released their 2017 Economic Outlook and Regional Housing Market Forecast this week, full of forecasts and insights on what the housing industry will have in store this year. Contrary to last year, the overall sentiment for 2017 is actually far more positive with a fairly consistent outlook towards stabilization.
We read the 24-page report so you don’t have to, and we’ve highlighted some of the key predictions industry experts have for the new home market, economy, resale sector and more.
Overall housing:
- Calgary’s housing market is expected to show signs of stability in 2017, with sales to increase by three per cent. This will help reduce supply levels and support some price stability in the second half of the year.
- Recent mortgage industry changes will shift risk from the government to financial lenders and institutions.
- Indicators point towards modest improvement in Calgary’s resale market.
- Airdrie has recorded tremendous population growth in the last few years.
The worst might be over for Calgary’s housing market, according to CREB®, which is forecasting transitional conditions throughout this year on the back of renewed optimism in the oil patch. [CREB]
New home market:
- Housing starts in Calgary are forecasted to be between 8,300 and 9,3000 units.
- Single-family housing starts are expected to improve by a minimum of six per cent this year, to 3,400.
- Multi-family housing starts are expected to remain fairly close to 2016 levels, around 5,250 units.
- With population growth set to ease in 2017, this will reduce household formation numbers, therefore impacting the demand for new construction.
- Elevated new listings in Airdrie contributed to rising inventory levels last year, 412 units in 2016 (second highest on record).
Airdrie Economic Development team leader Kent Rupert said despite trying economic times, people continue to move to Airdrie, so the need for additional housing also continues. [CREB]
- Alberta’s two-year recession is expected to end in 2017.
- GDP is forecasted to grow by 2.2 per cent.
- The Canadian Association of Petroleum Producers (CAPP) expects spending improvements in Western Canada, up to $22 billion.
