OVERSUPPLY IS SLOWING, BUT A BUYER'S MARKET REMAINS
New listings coming onto the market continued to decline in June, which is helping to reduce the oversupply of homes in Calgary. Year-over-year, new listings saw a decrease of nearly 19%. Sales activity slowed this month compared to last year by 6%, but the pullback in new listings was enough to cause inventories to fall by 15% compared to last years elevated levels.
So far, the housing market has generally behaved as expected this year. Sales activity remains just below last year's levels, prices have eased and supply is starting to adjust to the lower level of sales. However, it is mostly product priced under $500,000 that is trending towards more balanced conditions. While the market still favours the buyer-with 4.2 months of supply-the amount of oversupply has eased and is slowing the decline in prices. As of June, the benchmark price in the city was $425,700, nearly 4% below last year's levels and comparable to unadjusted prices recorded last month.
Detached sales in June declined by 9% compared to last year, causing year-to-date sales to ease by nearly 3%. The decline in sales was mostly driven by homes priced above $500,000. Detached homes priced under $500,000 have recorded improvements in sales and oversupply reductions. The tightening in the lower end of the market will likely start to support price growth in this sector of the market. Despite city-wide year to date sales declines, activity improved in both the South and North West districts of the city. Sales did ease across other districts, but in some of the most affordable disctricts (NE and East) supply-to-demand ratios are improving compared to last year. This is pushing those markets toward more balanced conditions. Prices have remained relatively stable over the past few months, with some modest monthly improvements. However the oversupply scenario has left prices nearly 4% below last year's levels.
Apartment condominium sales eased in June, causing year-to-date sales total 1,292 units. This is over 7% below last year's levels. Over the same time frame, new listings eased by over 15%, helping reduce some of the resale inventory in the market.
Unlike other property types, sales activity for the attached product continued to improve in June. Year-to-date sales total 1,955 units, nearly 3% above last year's levels. Improvements were driven mostly by growth in demand for semi-detached product. Attached sales improved across all districts except NW and W.
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Information was last updated July 2019.