Job market weakness and lending restrictions a common thread in 2018’s housing market
City of Calgary, January 2019
As over-supply continues I Calgary’s housing market, December prices eased by one per cent compared to last month and are over three per cent below last December.
“Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year,” said CREB® chief economist Ann-Marie Lurie.
“This contributed to elevated supply in the resale market resulting in price declines.”
December sales totaled 794 units, a 21% decline over the previous year. Overall year-to-date sales in the city totaled 16,144 units. This is a 14% decline over 2017 and nearly 20% below long term averages.
Throughout 2018, the months of supply remained elevated and averaged 5.2 months. Price declines occurred across all product types and have caused city wide figures to remain over 9% below the monthly highs recorded in 2014.
Housing Market Facts
Detached
- Detached sales declined across all districts in 2018. With citywide sales of 9,945 units, activity remains 21 per cent below typical levels for the year.
- Detached inventories were higher than last year’s levels for each month of the year, including December. Slow sales caused the market to be oversupplied through most of 2018.
- Detached benchmark prices totaled $481,400 in December, a one per cent decline over last month and a three per cent decline over last year. Overall, 2018 prices declined by 1.5 per cent compared to last year.
- Prices have eased across most districts in 2018. The largest declines this year have occurred in the North East, North West and North districts.
Apartment
- Apartment sales totaled 2,663 units in 2018. While the decline is less than other product types, levels are 22 per cent below long-term averages.
- The apartment condominium sector has struggled with oversupply for almost three years and 2018 was no exception.
- However, supply has been easing, as inventories this year averaged 1,584 units, one per cent below last year’s levels.
- Despite slowing supply growth, the market remained oversupplied, causing further price declines. In December, benchmark prices were $251,500, over two per cent below last year. Annually, prices have declined by nearly three per cent for a total decline of 14 per cent since 2014.
- Price declines this year have ranged from a high of nearly six per cent in the East district to a low of two per cent in both the City Centre and North West districts.
Attached
- Declines for both row and semi-detached product resulted in 2018 attached sales of 3,536 units, a 15 per cent decline over the previous year and 14 per cent below long-term averages.
- Slower sales activity prompted some pull-back in new listings, but this was limited to the row sector. Row new listings declined by four per cent and semi-detached new listings rose by nearly 15 per cent in 2018.
- Despite some adjustments to new listings, inventory levels remained elevated, keeping the market in buyers’ market territory and putting downward pressure on prices.
- In December, the semi-detached benchmark price totaled $397,500. This is a monthly and year-over-year decline of 0.8 and 3.8 per cent, respectively. Recent price declines have caused this sector to erase any of the gains that occurred last year, as 2018 prices remain just below 2017 levels. Overall, annual prices remain 1.4 per cent below 2014 peak levels.
- Row prices have also been edging down. As of December, row prices were $288,400, a 1.5 per cent decline from last month and nearly four per cent below last year’s levels. Overall, 2018 prices remain two per cent below last year’s levels and nearly 10 per cent below previous highs.
For anyone who is interested in buying or selling during this interesting market period we would love to help!
Download: Calgary Real Estate Statistics – December 2018
