Calgary real estate market feeling impact of COVID-19
City of Calgary, May 2020
After the first full month with social distancing measures in place, the housing market is adjusting to the effects of COVID-19.
April sales hit 573 units, a decline of 63 percent over last year. “The decline in home sales does not come as a surprise. The combined impact of COVID-19 and the situation in the energy sector is causing housing demand to fall,” said CREB® chief economist Ann-Marie Lurie. “Demand is also falling faster than supply. This is keeping the market in buyers’ territory and weighing on prices.”
Sales activity eased across all price ranges, but the largest declines were for homes priced above $600,000. With a greater share of the sales occurring in the lower price ranges, the average price decline was more than eight percent. Prices for the average home are also declining, reflected by the benchmark price, which fell by nearly two percent compared to last year.
New listings this month totaled 1,425 units, a decline of 54 percent compared to last year. Inventories also declined, but with 5,565 units available, they remained high enough to push the months of supply above nine months.
The economic impact of the situation is significant and early indications point toward more job losses and higher unemployment rates. Several government incentives will help cushion the blow, but challenges in the housing market are expected to persist throughout this year
Housing Market Facts
Detached Sector
- Detached sales eased by 15 percent this month, driven by pullbacks in all districts except the North, which remained flat compared to last year.
- The decline in sales was met with a larger decline in new listings, causing inventories to fall by 17 percent and keeping the months of supply slightly lower than last year’s levels.
- Detached benchmark prices have remained relatively unchanged compared to last year at $480,800.Price declines this month continue to be the highest for the City Centre, North East and West districts.
Apartment Sector
- With 217 citywide apartment sales in March, this was the only category to record a year-over-year gain. Much of the gain was due to improving sales in the South, South East and North West districts.
- New listings this month did ease, helping support a small decline in inventory levels.
- Persistent oversupply has resulted in continued downward pressure on prices. In March, the citywide benchmark price eased by more than two percent compared to last year for a total of $243,700.
Attached Sector
- Both semi-detached and row sales declined this month compared to last year. Like the other property types, there was also a significant reduction in new listings.
- The decline in new listings helped push down inventory levels for both property types, but it was not enough to prevent a rise in the months of supply.
- However, this segment was oversupplied prior to the recent changes, impacting prices. As of March, prices remained nearly one percent lower than last year’s levels for both semi-detached and row properties.
View the full report here: April 2020 Report
