Persistent buyer's market continues
Calgary Real Estate Board (CREB) Market Update
With no change in the economic climate, Calgary's sales activity totaled 1,273 units in September, a 13% 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 8%. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand. At the same time, supply levels continue to remain high, resulting in persistent oversupply and price declines.
Inventories totaled 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 totaled $428,700 in September. This is nearly 1% below last month and 3% below last year's levels.
This is the new normal for Calgary's real estate. 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 ar some signs of improvment in the rental market, which could contribute to a slow reduction in overall housing supply.
For the entire CREB® forecast, visit creb.com.
Information was last updated October 2018.