Prices have been dropping for seven straight months but the decline hasn’t been enough to lure buyers back to the market in any noticeable way, says the Calgary Real Estate Board.
Its year-to-date data show detached home sales are down four per cent, while apartment sales and attached home sales are down 19 and 13 per cent respectively during the same period.
The sales slump continued in April, with sales for the month down more than 10 per cent from 2015, it said.
The CREB statistics show while 1,764 homes were sold in April, down 10.1 per cent, new and active listings in the city both rose. New listings were up about five per cent, with 3,216 homes hitting the market in April. Total inventory was 6,242, an increase of 10.7 per cent.
“From re-considering the listing of their home to lowering expectations on price, sellers are beginning to adjust to the current market reality,” CREB president Cliff Stevenson said in a release.
Average prices actually rose for the month, climbing to $476,427, up 1.5 per cent. But, according to the board, the benchmark price — the price of a typical Calgary home — was down 3.4 per cent from April 2015, to $441,000.
“Some buyers in the market are still not willing to pull the trigger because they expect even bigger discounts,” Stevenson said.
Since prices started dropping seven months ago, apartment prices have declined 7.6 per cent, while detached homes are off 4.1 per cent.
With supply increasing and sales falling, homes in the city are remaining on the market for nearly a week longer, on average, according to CREB’s numbers. Homes were remaining on the market for an average of 46 days in April, up from 40 in April 2015.
The biggest decreases in sales came in the apartment and attached housing categories, down 22.7 per cent and 22.3 per cent, respectively. Detached housing sales were down just 1.4 per cent from April 2015, with 1,134 homes sold.
“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,” CREB chief economist Ann-Marie Lurie said in a release.
With files from Garry Marr, Financial Post
CALGARY HERALD I Published on: May 2, 2016 | Last Updated: May 3, 2016 3:15 PM MDT