Sobering stats for agents in one flagging market

by Justin da Rosa29 Apr 2016
Things just keep getting worse for real estate professionals in this once-hot market.

Calgary’s housing market continues to take a beating -- and so too do its workers, according to recently released statistics.

“Earnings in Alberta fell 3.4% to $1,118 in the 12 months to February, continuing a trend of year-over-year declines that began in the summer of 2015,” Statistics Canada said in its Payroll employment, earnings and hours report., “February 2016 Employment losses in the high-earning mining, quarrying, and oil and gas extraction sector contributed the most to the decline in average earnings for the province.

“Earnings in the professional, scientific and technical services sector also declined markedly compared with February 2015.”

That news broke a day after the Canada Mortgage and Housing Corporation released its Q2 Housing Market Assessment, which argued the Calgary’s housing market is facing some significant challenges.

“There is strong evidence of problematic conditions in Calgary’s housing market due to overvaluation and overbuilding. House prices have not been supported by economic and demographic fundamentals, due to higher unemployment rates, slower income growth, and decreased migration,” Richard Cho, principal market analyst at CMHC, said. “Overbuilding is also a concern because of a pronounced increase in the vacancy rate caused by higher supply and lower demand.”

The average home sales dollar volume fell 14.1% year-over-year to $2.049 billion in March 2016.

The average price fell 1.7% to $398,856 and overall sales fell 12.7% to 5,131.

All of this doom and gloom can be traced to the pressure being placed on the energy sector by tumbling oil prices.

Key employment facts:

Payroll employment in mining, quarrying, and oil and gas extraction, Alberta

Payroll employment in mining, quarrying, and oil and gas extraction, Alberta

February 2008: $109,057
February 2009: $111,245
February 2010: $100,755
February 2011: $116,077
February 2012: $118,323
February 2013: $124,980
February 2014: $129,776
February 2015: $126,336
February 2016: $104,472
Statistics Canada

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