Economic conditions together with the cost and tighter mortgage lending conditions are dampening recovery for the Calgary housing market.
"While our economy is no longer in a recession, persistently high unemployment rates, concerns over long-term growth, rising lending costs and stricter qualifications are all weighing on the housing demand," said CREB chief economist Ann-Marie Lurie.
The region’s real estate board says the market is oversupplied despite an easing in listings for some property types. Overall new listings continued to rise though with months of supply now at 4.7.
Inventory of homes below $500,000 are well below peak.
Sales for June remained weak with 1,896 units, down 11% year-over-year and 12% below long-term averages.
The detached segment of the market accounts for over 60 per cent of overall sales activity and makes up over 54 per cent of the inventory, with 4,817 units as of June.
The high levels of inventory and challenges for buyers mean that prices weakened last month with a city-wide benchmark price of $436,500. That is a slight dip from May and 1.13% lower than June 2017.
More market update: