Canada Mortgage and Housing Corporation’s (CMHC) latest assessment of the Calgary housing market concludes there is still low evidence of an overheated market.
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In their latest report, analysts say housing demand remains below historical levels, and the sales-to-new-listings ratio is well below the critical threshold of overheating.
The low ratio has also created buyers’ market conditions, with house prices moving lower.
“Data for the second quarter of 2019 from the Calgary Real Estate Board indicates that price acceleration is unlikely to be present in the second quarter of 2019 as prices continue to adjust downward and the market seeks a balanced state,” reads the report.
“There continued to be low evidence of overvaluation in Calgary in the first quarter of 2019. Declining house prices has led to valuations that are largely in line with predicted levels.”
While the city’s labour market has improved from population and employment growth, the unemployment rate is still fairly high and real personal disposable income growth has been flat or negative throughout the past year.
There is also persisting evidence of “moderate overbuilding,” although inventories in the new home market are moving towards more balanced levels. CMHC says the number of completed and unsold units per 10,000 people saw a decrease for the second consecutive quarter, mostly due to declining apartment inventory.