Calgary sales activity weakens despite easing prices

by Ephraim Vecina on 14 Nov 2018

The Calgary market’s troubles are showing no signs of letting up, with the city’s detached home segment suffering an 8.6% year-over-year sales decline in October, and condo apartments exhibiting a similarly troubling drop of nearly 7%.

Townhomes and other attached housing types saw the largest losses, with activity weakening by 15% year-over-year and 14% below long-term averages.

This is despite the city’s benchmark home price falling for the 5th consecutive month in October, shrinking by 2.9% year-over-year (to $426,300).

“With these types of market conditions, many potential buyers should be able to find the home that they are looking for with well priced listings appearing in certain price ranges,” Calgary Real Estate Board president Tom Westcott said. “Sellers need to manage expectations and have accurate data in order to be aware of what is selling in their community.”

Read more: Homeownership rates decline after almost 50 years of continuous growth

A large inventory is also working against the market’s aims towards stability. Supply stood at 7,345 homes in October – a near-record high, especially when compared to the 1,322 sales transactions during the month.

“Housing supply levels are not adjusting fast enough to current conditions, resulting in price adjustments,” CREB chief economist Ann-Marie Lurie said.

“Job growth in this city remains a concern, as unemployment levels remain well above levels expected for this year. Rising costs of ownership also continue to weigh on housing demand.”

 

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