With no change in the economic climate, Calgary’s sales activity totalled 1,272 units in September, a 13 percent decline over the previous year, and well below long-term averages. There was a pullback in sales across all product types, most notably the detached market.
“Calgary’s economy continues to struggle with unemployment, which rose again last month to over eight percent. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand,” said CREB® chief economist, Ann-Marie Lurie.
“At the same time, supply levels continue to remain high, resulting in persistent oversupply and price declines.”
Inventories totalled 7,941 units, pushing the months of supply to 6.25. This continuation in oversupply is placing downward pressure on prices. The unadjusted citywide benchmark price totalled $428,700 in September. This is nearly one percent below last month and three percent below last year’s levels.
“This is the new normal of Calgary’s real estate,” said CREB® president Tom Westcott.
“Some potential buyers may want to take advantage of the market conditions, but they face difficulties selling their existing home based on their expectations. This prevents them from purchasing something else.”
September sales have dipped, but third-quarter figures generally point towards a slower decline in sales and some easing in new listings growth. This was not enough to impact inventory levels this quarter.
The Calgary economy continues to struggle, but there are some signs of improvement in the rental market, which could contribute to a slow reduction in overall housing supply.
The real estate market in Calgary is particularly rough in this complex climate. While it may appear a good time to buy with the prices of homes for sale in Calgary, selling a home is different story. There is no doubt you need a Calgary realtor to guide you through the turbulent process. The current Calgary real estate stats indicate you should choose a real estate agent with experience in the Calgary market and extensive knowledge about real estate trends. You don’t have to be discouraged by the waning prices and sales when you talk to a top-rated Calgary realtor.
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