Slow sales activity and inventory gains place downward pressure on prices.

Calgary’s housing market is starting 2016 firmly in buyers’ market territory much the same as last year ended.

City wide, January sales totaled 763 units, 13 per cent below last year and 43 per cent below long-term averages. While new listings declined by 16 per cent compared to January 2015, the number of new listings far outpaced the sales, causing inventory gains. January’s city wide months of supply levels rose above six months.

“The recent slide in energy prices has raised concerns about near term recovery prospects for the city,” said CREB® chief economist Ann-Marie Lurie. “Energy market uncertainty and a soft labour market are weighing on many aspects of our economy, including the housing sector.”

“As expected, the imbalance between housing supply and demand is continuing to place downward pressure on prices,” said Lurie. “However, the recent price retraction has not erased all the gains recorded in recent years, as the benchmark price remains 4.41 per cent above the January 2014 price of $428,400.”

While all property types have recorded price contractions from recent highs, the largest price declines have occurred in the apartment sector as this segment has had elevated months of supply since the second quarter of 2015. The apartment benchmark price totaled $281,900 in January, a year over-year decrease of 6.35 per cent and 2.12 per cent lower than the previous month’s price. In fact, apartment sector prices have once again fallen below the 2007 monthly high of $301,500.

For those who are selling, it is vital to know how the market is performing for your specific type of property! For those who are interested in investing in real estate, this is an ideal market! Interest rates continue to favour borrowers.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – January  2016

Hope this helps!

Susanita de Diego

Elevated supply levels placed downward pressure on prices in December.

With the focus shifting toward the holiday season, December sales activity slowed to 878 units in the city, 18 per cent below last year at this time and well below the five and 10-year averages.

As a result, the unadjusted benchmark price dipped to $448,800, a 0.42 per cent decline over the previous month and 2.33 year over year. CREB® chief economist Ann-Marie Lurie noted December followed a pattern established early on in 2015, which was characterized by slower housing demand. “Economic uncertainty, followed by weak economic conditions and job losses, contributed to slowing housing demand throughout the year,” she said.

On an annual basis, sales activity declined by 24 per cent in the detached sector and 33 and 28 per cent in the apartment and attached segments, respectively.

While December prices for both the detached and attached sectors were 1.91 and 1.29 per cent lower than levels recorded at the beginning of 2015, on an annual average basis, they remained 1.35 and 1.84 per cent above 2014 numbers.

Anyone who has been following the media reports on real estate knows that the Calgary Real Estate Market in general has corrected. However the data shows that some market segments are less affected than others. In the City of Calgary the Apartment sector has been the hardest hit with less than 9% of available apartments selling in the month of December.

For those who are selling, it is vital to know how the market is performing for your specific type of property!

Please feel free to contact us with any questions you may have.

Download Calgary and Area Real Estate Statistics – December 2015

If you are curious about the current market value of your home, or market conditions in general, please feel free to contact us.

Hope this helps!

Susanita de Diego