Lending Rates Weigh On Sales

Elevated lending rates are expected to weigh on sales in 2023, bringing levels down from the record high in 2022, says the Calgary Real Estate Board (CREB) in its ‘2023 Forecast Calgary and Region Yearly Outlook Report.’ However, with forecasted sales of 25,921 in 2023, levels are still expected to be higher than the activity reported before the pandemic. “Higher commodity prices, recent job growth, record high migration and relative affordability are expected to help offset some of the impacts higher lending rates are having on housing demand. At the same time, we are entering the year with low supply levels which are expected to prevent significant price declines in our market,” says Ann-Marie Lurie, its chief economist. Supply levels declined to the lowest levels seen in over a decade as gains in higher price properties did not offset the supply declines occurring in lower-priced homes. This has left the market in a situation where lower-priced properties still face sellers’ market conditions while higher-priced homes are more balanced to buyers' market conditions.