Minding the gap - Sellers continue to adjust pricing expectations
• Year-to-date detached sales improved in the City Centre, North West, West and East districts, helping prevent gains in months of supply.*
• April’s detached price of $501,500 was 0.2 per cent lower than the previous month and three per cent lower than last year’s levels.
• Monthly prices across all districts were lower than April levels recorded last year.
• Some of the steepest yearto-date price declines across all product types have occurred in City Centre.
• Apartment inventories have risen to levels not seen since 2010.
Source: CREB® Calgary, May 2, 2016 – Market imbalance in Calgary’s residential resale housing market continued to weigh on citywide prices in April.
Much like the previous month, year-overyear sales fell while new listings increased, resulting in inventory gains across all sectors of the market.
As a result, benchmark prices in the city declined by 0.4 per cent from last month, and 3.4 per cent from last year, to $441,000.
For sellers, the reality of seven consecutive months of price declines has started to sink in, said CREB® president Cliff Stevenson.
“From re-considering the listing of their home to lowering expectations on price, sellers are beginning to adjust to the current market reality,” he said. “However, some buyers in the market are still not willing to pull the trigger because they expect even bigger discounts. And so that gap between buyers’ and sellers’ expectations still persists across many product types and locations.”
Despite this, the detached sector fared better relative to the other sectors of the market. While detached sales activity has fallen by over four per cent so far in 2016 compared to last year, the sales to new listings ratio improved in April. This prevented sharper inventory gains and caused months of supply to move toward more balanced levels.
The same cannot be said of other market sectors. Year-to-date apartment and attached sales declined by a respective 19 and 13 per cent compared to last year. Slower sales, combined with rising inventories, ensured that market conditions continue to favour buyers in these segments.
“While the weak economic climate is influencing demand, the apartment and attached sectors are further impacted by increased supply in the competing new home sector and rental markets,” said CREB® chief economist Ann-Marie Lurie. “This is one of the contributing factors to the steeper price declines recorded in the apartment sector.”
Since the start of the price declines monthly unadjusted benchmark apartment prices have declined by 7.6 per cent, while semi, row and detached have declined by a respective 5.9, 4.6 and 4.1 per cent.
To see the entire monthly summary issued by The Calgary Real Estate Board, check here: http://www.creb.com/~/media/Public/CREBcom/Statistics_Package/2016/April_2016.pdf