CMHC's 2015 Calgary Housing Outlook Conference: What Will Drive Tomorrow's Housing Market?
CALGARY, ALBERTA--(Marketwired - Nov. 26, 2015) - Key insights and forecasts for Alberta's housing markets will be shared by Canada Mortgage and Housing Corporation (CMHC) economists and market analysts at today's 22nd annual Housing Outlook Conference in Calgary. CMHC experts will present to hundreds of housing industry experts on economic, demographic and other factors impacting Alberta's major markets, including Edmonton, Calgary, Lethbridge, Medicine Hat and Red Deer.
"Lower oil prices have had an impact on Alberta's economy this year affecting capital investment, energy exports and consumer spending, and in turn, the province's housing starts," says Lai Sing Louie, CMHC's Regional Economist for the Prairie and Territories Region. "New construction declined by about 20 per cent in 2015. However, oil prices are forecasted to rise next year and in 2017 as US crude oil production declines. This will help Alberta's economy return to growth in 2016 and 2017," says Louie.
In Calgary, total housing starts in 2015 are expected to decline by 30 per cent to 11,900 units after reaching a record high in 2014. The impact of lower oil prices on Calgary's labour market has weakened employment growth, slowed net migration, and increased uncertainty among prospective homebuyers.
"Housing starts in 2016 are forecast to decline an additional 16 per cent from 2015, but increase slightly in 2017," says Richard Cho, Principal, Market Analysis for Calgary. "Calgary's labour market conditions, income growth and net migration are not expected to improve in the next two years. Inventories in the new home market will rise moderately while the resale market will be well supplied. Collectively, this will limit the pace of new construction and keep housing starts from posting a strong rebound," says Cho.
"Strength in the multi-family sector will push total housing starts to 16,400 units in 2015 in Edmonton," says Christina Butchart, CMHC's Principal, Market Analysis for Edmonton. "However, this strength will dissipate in the closing months of 2015, and throughout 2016 as slower economic growth and reduced net migration lead to softer housing demand," says Butchart.
CMHC's annual Calgary Housing Outlook Conference helps housing market participants understand trends in the market place, identify new opportunities, and make sound business decisions. With more than 65 years of experience, consumers and the housing industry trusts CMHC to deliver reliable, impartial and up-to-date housing market information.
For more information, visit www.cmhc.ca or call 1-800-668-2642.
Source: Marketwired (Canada)
(November 26, 2015 - 9:30 AM EST)
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