Market sees modest inventory gains, but overall prices inch up.
City of Calgary, August 1, 2017 – Sales exhibited stable growth through the first half of the year in the Calgary housing market, but the number of transactions slowed slightly in July compared to last year.
“Modest improvements in the labour market and net migration were necessary to support the turnaround in the housing market,” said CREB® chief economist Ann-Marie Lurie. “However, current inventory levels and changes in the lending market continue to weigh on housing demand. Easing demand growth combined with elevated levels of supply will slow the pace of price recovery in our market.”
City-wide sales totaled 1,637 units, six per cent below July 2016 levels. Year-to-date sales activity totaled 11,957 units, nine per cent above last year. Easing sales were met with higher new listings, causing further gains in inventory levels. City-wide months of supply rose to four months, as inventory levels reached 6,675 units this month. This is 17 per cent higher than last year, but still below July highs recorded in 2008.
In all market segments except for the MD of Rockyview the absorption rate dropped during the month of July.
This is normal during the summer season but as we ease further into this recovery both buyers and sellers need to be aware of current market conditions.
For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with lower absorption rates to choose from. If you are interested in an investment strategy specific to your needs please contact us. We would love to help!
Susanita de Diego
