Housing sales in Calgary decline for 20th consecutive month

Calgary’s housing market slump continued in July, with sales in the city down for a 20th consecutive month.

The number of homes sold was down 12.6 per cent from July 2015 levels, according to the latest numbers from the Calgary Real Estate Board. Meanwhile, the inventory of homes on the market remained elevated, with 551 more for sale than there were a year earlier, a 10.7 per cent hike.

Ann-Marie Lurie, the board’s chief economist said the numbers were a reflection of current economic conditions.

“The number of unemployed workers keeps rising and when you combine job losses with declining net migration, the result is going to be weaker housing demand,” Lurie said in CREB’s monthly report.

July’s average house price was actually up 1.8 per cent from 2015, to $484,998, but that was a reflection of more high-end homes selling. Fifteen homes sold for $1.5 million or more in Calgary, compared with nine in July 2015. The median price, however, was down 1.4 per cent to $429,000, while the benchmark price (the price of a “typical” Calgary home) was down 4.2 per cent to $440,000.

“Buyers are expecting further declines in sold prices, and sellers are adjusting to softer demand with price decreases,” CREB president Cliff Stevenson said in the report. “When these expectations intersect, we’re seeing sales activity in the market, but not at the level realized over the last several years.”

The weakest segment of the local market was apartments, which saw sales decline 21.6 per cent year-over-year. Attached housing sales declined 15.2 per cent, while detached housing sales were the closest to their year-ago levels, down 9.2 per cent.

source: Calgary Herald
Published on: August 2, 2016 | Last Updated: August 2, 2016 10:08 AM MDT

Gary Glover

Gary Glover

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