This year hasn’t been kind to Calgary home sellers. While 2017 was a slow year — with the total number of home sales dropping throughout the city — 2018 didn’t offer any respite, with sales activity dropping to the lowest records in over a decade.
According to Calgary’s Real Estate Board’s latest housing statistics report, Calgary’s total sales activity was an anemic 1,272 units in September. This represents a 13% decrease, year-over-year. While all housing types were affected, detached units suffered the highest decrease.
“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,” stated Ann-Marie Lurie, CREB’s Chief Economist.
“At the same time, supply levels continue to remain high, resulting in persistent oversupply and price declines.”
“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.”
With a growing inventory, there are no signs of the current buyers’ market ending any time soon in Calgary. As of October 1, 2018, the total housing inventory sat at 7,941 units, which is the equivalent of 6.25 months of supply. This oversupply has had a downward pressure on prices, with prices down by 1% from last month, and down 3%, overall, from September 2017.
Of course, current conditions present a great opportunity for buyers, since it allows them to be more choosy with the property they wish to acquire. But for current homeowners looking to upgrade, the process won’t be nearly as easy.
“Some potential buyers may want to take advantage of the market conditions, but they face difficulties selling their existing home based on their expectations,” said CREB’s president Tom Westcott. “This prevents them from purchasing something else.”