The slumping economy continues to impact Airdrie’s housing market, according to data from the Canada Mortgage and Housing Corporation (CMHC).
Since the start of 2016, Airdrie saw 417 new starts of all dwelling types – down from 726 over the same period in 2015. Single-family starts are down from 316 to 154, according to Richard Cho, principal of market analysis for the Calgary area with CMHC.
“We’ve seen a decline in housing construction, and we’ve seen that right across the Calgary region,” he said. “Generally, (construction) is being impacted by low oil prices and effects on things like employment.”
Multi-family starts, including apartments, townhomes and duplexes, are down by 36 per cent in Airdrie from 410 to 263.
Despite the slowdown, Cho said he expects the market to gradually improve by 2017.
“We’re expecting relatively flat activity in 2016. Housing starts are forecasted to come down,” he said. “But (next year), we expect things to improve as the price of oil stabilizes at a higher level. That will help support employment and investment.”
Airdrie realtor Trenton Pittner said though prospective homebuyers are being cautious with spending, he has remained busy throughout the slowdown.
“At a certain price point, there is a large inventory compared to previous years, but the higher price ranges we’re starting to see some trickle-down in sales,” he said. “I have a lot of clients that are downsizing to a little more manageable mortgage. That seems to be the trend right now, but there are some people taking advantage of this market and doing a move up.”
Pittner attributed the decrease in starts in Airdrie to homebuilders “taking the reigns in a little bit” after previously building to forecasted demand.
“Now, the builders are sitting back and more so building per spec if they have a buyer. They’re not necessarily building homes to have an inventory,” he said. “I can’t complain. I’ve been very busy. I see us kind of riding out this wave until the end of the year.”
