The challenging economic climate in Calgary is expected to persist into 2019.
Easing global oil prices, concerns regarding market access and easing investment activity are weighing on the energy sector and are expected to slow growth prospects in the province this year.
"Slowing growth, weak job prospects and lack of confidence are all factors that are contributing to the expected easing in sales activity this year," said Ann-Marie Lurie, CREB® Chief Economist.
"At the same time, our market continues to struggle with high inventory levels and further potential rate hikes, all of which is expected to cause additional price declines this year."
There are signs that supply in the market is starting to adjust to slower sales, but the pace of adjustment is expected to be slow. Overall, it will help reduce some oversupply in the market and put the industry in a more stable position by 2020.
Buyers' market conditions are expected to persist throughout most of the year, impacting prices across all property types. However, the pace of decline is expected to ease by the end of the year, as concerns over the economy ease.
While further easing in the housing market is expected, this will not likely be the case for all price ranges, as demand for affordable product is expected to continue to improve, given shifts in lending requirements and adjustments in expectations.
"In this market, buyers have the advantage of choice. A REALTOR® can help buyers find a home that best fits their lifestyle," said Alan Tennant, CREB® CEO.
"For home sellers, knowing all the data and facts surrounding their home is critical to maximize their selling price. Working with a real estate professional can take the guesswork out of the process."