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
