While there is no way to know the future of any industry with complete certainty, many groups still do their best to predict how the real estate market will unfold in the new year. According to a real estate forecast from Calgary Real Estate Board, 2018 is expected to look much like the year prior in the Alberta City. That said, new laws and economic changes could have some influence on residential real estate pricing.
Downward pressure is expected on residential real estate pricing due to stricter lending criteria introduced in Jan. 2018. The Calgary Real Estate Board expects this to be offset by the upward momentum seen in Alberta as it continues to recover from the economic recession. Between these two factors, the forecast predicts a plateau in 2018 that will result in neither a major increase nor decrease in house sales.
The news is not the same across all types of real estate. Attached and detached sectors are expected to be balanced in the upcoming year, while apartment buildings continue to grapple with excess inventory. Although sales activity increased in 2017, the CREB's chief economist notes that these supply issues still plague the market overall, particularly with regard to condominiums.
The new laws governing mortgages now limit the amount people can borrow to purchase an Alberta home based on the Bank of Canada's five-year benchmark. Like many real estate laws, this is expected to impact the residential real estate market. Legal changes and standards can have various impacts on buying and selling a home, so working with a lawyer in any real estate transaction is a good idea.
Source: Calgary - CBC News, "Calgary's housing market to stay the same in 2018, real estate board predicts", Jan. 31, 2018