Housing market feels the chill as oversupply continues
City of Calgary, March 2019
The effects of Calgary’s economic climate continue to create weak sales activity and elevated inventory in the city’s housing market. As a result, prices are being affected.
“It is not a surprise that slowing activity in the housing market has persisted into February,” said CREB® chief economist Ann-Marie Lurie. “There has been no substantial change in the economic climate and concerns regarding potential layoffs in the energy sector are weighing on confidence.”
As of February, citywide benchmark prices were $414,400. This is nearly five percent below last February, slightly lower than last month’s figures and over 10 percent below highs recorded in 2014. While the market remains oversupplied, slower sales and price declines do appear to be influencing sellers. New listings this month eased by eight percent compared to last year for a total of 2,211 units. However, the 976 sales this month were not enough to substantially impact inventories levels, which remain elevated at 5,885 units.
Housing Market Facts
Detached
- After the first two months of the year, detached sales were 1,079 units. This is 13 percent below last year’s levels and nearly 30 percent below long-term averages. Sales eased across all city districts except the North West. Activity remained well below normal levels across all districts of the city.
- The adjustments in new listings ranged from a 15 percent increase in the North West district to a decline of 23 percent in the North district. Overall, year-to-date new listings were 2,544 units, nearly two percent below last year’s levels.
- Despite some adjustments in new listings, average inventories in the detached sector so far this year rose by 25 percent compared to last year. However, some of the most affordable detached areas, including the North East and East districts, have seen inventories fall compared to last year.
- With detached months of inventory remaining above five months, prices continue to trend down. In February, citywide detached benchmark prices were $475.600, 0.2 percent below last month and over five percent below levels recorded last February.
Apartment
- Despite the relative affordability of apartment product, sales activity remained slow with 149 sales.
- Unlike the detached sector, the seventh consecutive year-over-year decline in new listings is starting to have an impact on inventory levels.
- In February, inventory levels totaled 1,301 units. This is nine percent below levels recorded last year. Inventories did ease, but slow sales in February kept the months of supply near nine months. Apartment condominium prices were $252,300 in February, a 1.7 percent decline compared to last year, but similar to levels recorded last month.
- Apartment condo prices have fallen by 16 percent over the previous monthly highs.
- Citywide benchmark prices have eased, but some districts of the city have recorded modest gains. This is not enough to erase previous declines, but points toward price stability in parts of the market.
Attached
- Conditions remained relatively unchanged in the attached sector, as months of inventory remained near seven months and prices have remained unchanged from last month, but over four percent below last year’s levels.
- Like the apartment sector, activity can vary significantly depending on location. Benchmark prices for semi-detached product eased by over five percent compared to last year, with the steepest declines occurring in the South and City Centre districts.
- Prices slightly improved in the North district.
- Row prices declined by nearly four percent compared to last year. Unlike the semi-detached sector, prices eased across all districts.
For anyone who is interested in buying or selling during this interesting market period, we would love to help!
Download: Calgary Real Estate Statistics – February 2019
