Prices steady, but struggles in Alberta economy weighs on housing
City of Calgary – Changes to the lending industry and a challenging economic recovery are weighing on sales activity in Calgary’s housing market.
Supply levels have not adjusted to the weaker demand environment, and that is preventing price recovery.
“Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry,” said CREB® chief economist Ann-Marie Lurie.
“While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas of the city have been offset by declines in other areas.”
The easing sales trend persisted through April in Calgary’s housing market. Calgary sales totaled 1,518 units in April, which is 20 per cent below last year and 25 per cent below long-term averages.
The detached sector has seen the largest decline, with year-to-date sales totaling 2,991 units, 27 per cent below the 10-year average.
Inventory levels in April totaled 7,324 units. This is a 32 per cent rise over last year, but well below the monthly high of 10,129 units recorded in 2008. Supply compared to demand has risen, but city-wide prices have remained relatively stable, totaling $436,500 in April, a monthly and annual gain of 0.21 per cent.
“The reality is that there’s selection heading into the active spring market,” said CREB®president Tom Westcott.
“For many sellers, they have to decide what price they are willing to accept for a lifestyle change. At the same time, buyers need to understand the supply dynamics and price movements in the specific area, as they may not align with their expectations.”
So far this year, apartment and attached sales have eased to levels that are comparable to 2016. However, rising supply in both markets have pushed months of supply to the highest levels recovered over this four-month period, which is preventing any significant shifts in pricing trends.
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CREB® is one of the largest real estate boards in Canada. Now in its 75th year, the organization represents a professional body of more than 5,500 licensed brokers and registered associates across 290 member offices. CREB® oversees the operation of the Multiple Listing Service®(MLS®) System and is a trusted source for local housing statistics and real estate news.