Calgary Real Estate Projection: Home Sales and Prices to Fall Severely in 2016

In the recently released annual outlook of the Calgary Real Estate, the company predicted the fall of home buying costs this year. Moreover, Calgary suggests that there will be fewer houses that will be bought this 2016.

Almost similar to last year, the board who focus on real estate suggests that housing rates in 2016 would undoubtedly be weak. They mentioned that the local economy will maintain its state, however.

According to CBC News, CREB also has a similar prediction to that of Calgary. The annualized benchmark price may likely to fall for about 3.44 percent. Higher density units are more likely to have the greatest decline in their price.

Although home sales were relatively low last year, the real estate agents expect a 2.2 percent fall in their total sales activity. In 2015, there was a 26.3 percent plunge from the total home sales of 2014.

Royal LePage, on a similar note, suggested that Calgary may have the weakest real estate market among all the cities in Canada this year. This company projects the possibility of 3 percent decrease every year in the aggregate price of Calgary homes, while Edmonton will have a yearly 2 percent decline.

Yahoo! News explains that there will be no change in the housing business landscape this year. In addition, CREB's Ann Marie Lurie, the chief economist, deemed that, "Weakness in the energy sector is overshadowing all aspects of our economy and with more people looking for work and fewer opportunities, we could see some families making adjustments to their housing situation."

Royal LePage saw that with the recent oil price decrease, there is a greater tendency that the prices of homes in the energy-centric regions of Canada will be more resilient again. This is a similar case in 2015, as mentioned by CEO Phil Soper from Royal LePage.

He added that the impact of the slowing economy will more likely be delayed, while unemployment will continue to rise this year.