Transactions in Calgary’s resale housing market continue to lag from year-ago levels.
According to the Calgary Real Estate Board, MLS sales so far this year of 10,353 are 15.47 per cent off the pace of activity a year ago for the same period.
New listings are up 4.68 per cent to 23,640 and, as of Tuesday, the number of active listings on the market has increased 24.82 per cent to 8,465.
The median sale price of a property this year in Calgary is down 2.28 per cent year over year to $429,000 while the average sale price has fallen by 0.96 per cent to $486,320.
“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,” says Ann-Marie Lurie, CREB’s chief economist.
“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.”
According to CREB, residential sales in Airdrie this year until the end of July totalled 732 units, which is 11 per cent lower than the same period last year. Sales are at the lowest level when compared to the same period in the past six years.
“Year-to-date new listings remain just above last year’s levels, totalling 1,600 units and reaching a new peak when compared to the same period in previous years. Total inventories in Airdrie have averaged 544 units this year, approximately 100 units higher than the same period in 2017,” says CREB.
“The rise in inventory, combined with easing sales, has caused months of supply to average over 5.2 months for the year, impacting prices. Detached benchmark prices have averaged $372,386 so far this year. This is 1.29 per cent lower than in 2017.”
In Cochrane, CREB says year-to-date residential sales until the end of July totalled 380 units.
“Compared to the same period in 2017, this number has declined. … However, total sales continue to be above long-term averages and levels during 2015-16,” it says.
“New listings are also at historical highs and have reached a new peak of 862 residential units. This has pushed year-to-date average inventory levels up to monthly levels of 390 units and causing months of supply to average six months for this year. Despite gains in supply on the market, detached benchmark prices in Cochrane remain relatively stable. Year-to-date detached prices averaged $425,714, just above last year but still nearly four per cent below peak levels.”
Total residential sales in Okotoks have totalled 320 units so far in 2018, a decline over the previous year and below long-term trends, according to CREB.
“New listings remain elevated and comparable to periods in previous years. This has kept inventories at near-record levels, with year-to-date average levels being totalling 248 units,” it says.
“Months of supply have averaged 5.4 months this year, higher than historical standards. However, the elevated levels have not prevented prices from starting to recover. Overall, year-to-date detached benchmark prices have averaged $436,786 this year, just above last year but nearly three per cent below peak levels.”
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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