Although Canada’s housing market is cooling down in many major cities, Calgary’s is set to still see solid demand.
According to a new report on Canada’s housing market by RBC Economics, Toronto, Vancouver, Montreal, Ottawa, and Hamilton were among the areas experiencing significant pullbacks in home resale activity in May.
That’s not the case for Calgary or Edmonton, with home resale activity in May at 3% and 4.1%.
The report states that home resales in Calgary continue to hover well above pre–pandemic peak levels and supply remains far insufficient to meet demand.
Canadian Real Estate Association, Calgary Real Estate Board, RBC Economics
Nonetheless, the report cautions that local buyers aren’t immune to rising interest
rates and this may be dialing down the degree of competition between them. Home prices were little changed in May with the MLS HPI rising only marginally from April, marking a sharp deceleration from previous months’ gains.
Experts expect that price trends will moderate in the period ahead yet stay well supported by solid fundamentals, thanks to the outlook for Alberta’s economy being bright thanks in part to a tremendous turnaround in the energy sector.
In–migration is rebounding in a significant way as well and despite eroding in the past year, housing affordability remains good in Calgary, especially compared to other large Canadian cities.