All Points has seen a hesitation among some transferees moving to Calgary, because they believe that house prices are going to fall and they do not want to purchase a depreciating asset.
The Calgary Real Estate Board (CREB) has recently reported a significant year over year drop in the total sales of homes in Calgary. December 2015 saw 26% fewer homes sold than in December 2014. But, a drop in the volume of sales does not necessarily or immediately drive pricing changes.
CREB chief economist Ann-Marie Lurie has said that “While aggregate prices trended down in 2015, it was not to the same extent as some had speculated.” In fact, the same CREB report notes that December prices for detached and attached homes were only 1.91 and 1.29 percent lower than levels recorded at the beginning of 2015. These are small adjustments only at this time. This reflects All Points’ observations, but we do predict declines to continue and perhaps pick up pace in 2016.
For instance, Re/Max predicts a price decrease of 4% in Calgary and 3.5% in Edmonton in 2016.
So, in other words, it would not be illogical for an employee to want to try to time his/her relocation to Calgary for a favourable home purchase. However, employers want their employees to be productive in the new location as much as possible and waiting a year for prices to correct is not tenable in most cases. Human Resource professionals must remind their employees of this as well as:
• Market timing is very difficult and the company cannot delay the transfer because of it
• This permanent relocation is meant for the long-term, not the short-term
• Employees can always choose to rent initially instead of purchase. Vacancy rates have improved in all major Albertan centres including Calgary and Edmonton
An All Points’ Account Manager is always available to assist you with statistical information about real estate markets or other issues relevant to employee relocation. If you encounter resistance to a relocation to a particular city or town, contact us via our website: www.allpointsrelocation.com . Send a message using “Contact Us” and we will get back to you as quickly as we can.