Home prices have been dropping in Calgary since last fall but they continue to fall slowly. One per cent here, half a per cent there. Yet buyers continue to bide their time while sellers are anxiously waiting for the spring buying season to commence.
The Calgary Real Estate Board (CREB®) says reduced home prices haven’t fallen far enough to lure people into the market. The board’s monthly report released Monday reads the same as previous reports showing an increase in inventory in every market sector with a drop in benchmark prices.
Last month the benchmark fell by just 0.4 per cent 40 $441,000 which is not terrible all things considered. It’s just 3.4% short of April 2015.
However, sales volumes are suffering in the biggest way, so it seems there’s a remarkable imbalance in the residential resale market in Calgary as prices are dropping but perhaps not quickly enough with inventory continuing to rise – last month it was up over the April 2015 numbers by 10%.
CREB® president Cliff Stevenson’s comments in regards to April’s activities were all about the gap between what sellers and buyers are each expecting.
Sellers have a set price on what they want for their home and might need to readjust their expectations or to even re-think the decision to sell. Buyers, on the other hand, are thinking they should be getting better prices considering how much inventory there is and how much choice they have. After seven or so months of public conversation about how bad the economy is, neither side is moving quickly to bring the market back into focus.
Single family homes have held up significantly better in the Calgary market compared to attached homes and apartment condos. Sales in the detached sector were down by 4% over April 2015 and remarkably, there weren’t a significant number of homes that were put on the market.
However, apartment condos, townhomes and duplex home sales dropped by as much as 19% which is a tough hit compared to last year’s numbers. There’s just too much inventory in these sectors and prices have just not been able to hold their own so far this year.
In the last seven months, the unadjusted benchmark price on apartment condos has dropped by 7.6% and attached homes (semi-detached and townhomes) have fallen by 5.9% and 4.6% since April 2015.
CALGARY HOUSING MARKET STATISTICS: April 2016
Source: Calgary Real Estate Board
April 2016 YTY Comparative Analysis
COMBINED CALGARY RESIDENTIAL SALES
Sales: 1,764 (-10.14%)
New Listings: 3,216 (+4.96%)
Active Listings (Inventory): 6,242 (+ 10.73%)
Median Sale Price: $430,000 (+ 2.87%)
Average Sale Price: $476,427(+1.46%)
CALGARY DETACHED HOME
Sales: 1,134 (-1.39%)
New Listings: 1,821 (+2.88%)
Current # of Listings: 3,127 (+2.73%)
Average Days on Market: 44 (+14.26%)
Median Sale Price: $482,750 (+0.74%)
Average Sale Price: $540,624 (-0.81%)
YTD Median Price: $473,500 (-0.32%)
CALGARY METRO APARTMENT/CONDO STATS
Sales: 272 (– 22.73%)
New Listings: 665 (+9.38%)
Current # of Listings: 1,590(+16.31%)
Average Days on Market: 54 (+18.68%)
Median Sale Price: $278,750 (+1.46%)
Average Sale Price: $302,913 (+0.24%)YTD Median Price: $270,000 (0.00%)