July 2018 was yet another month where we watched the Calgary real estate market strive against continuing issues with the job market and with an interest rate increase. Residential sales for the month totalled 1,547 units which are 5% lower than last year. New listings continued to rise slowly which led inventory numbers to 8,450 units.
Prices keep dropping due to high inventory levels and resulting in a city-wide benchmark price of $435,200 in July. We see a decline of 0.30% compared to June and a 1.89% decline compared to 2017.
“Despite some positive momentum in some aspects of our economy, our job market has continued to struggle as of late, with some easing in total employment levels over the past few months and persistently high unemployment rates,” said CREB® chief economist Ann-Marie Lurie.
“Also, the Bank of Canada raised rates again in July. Rising costs, combined with a slow recovery, are weighing on the demand for resale homes in the city. At the same time supply remains high and is resulting in an oversupplied market.”
The detached segment has close to 5 months of supply and the apartment segment close to 7 months which therefore has impacted prices in the Calgary. Home prices for the detached segment totalled $501,300 in July which is 0.4% lower than June’s and 2% higher than 2017’s.
Compared to 2017, this year’s average benchmark prices in the detached segment are just below levels.
The apartment segment has seen the biggest decline with benchmark prices at $257,343 which is 3% lower than 2017 and almost 14% lower than 2014 highs.
“In a buyers’ market, it’s critical for all parties to have the most up-to-date information to make a fully informed decision, whether you are buying or selling,” said CREB® president Tom Westcott.
“A REALTOR® can help make an accurate determination on how much to sell a home for or how much is too much when purchasing one.”
Now more then ever it is extremely important to consult with an experienced real estate agent. Contact me today whether you are buying or selling so we can help navigate your real estate experience.