After months of experiencing continuous rising house prices, the Calgary market is seeing a slowdown in price growth. The main reason for the slowdown is improving inventories, which have helped ease the pressure for price growth.
The growth in new listings has been outpacing sales gains. On a year-over-year basis there was a 22% rise in inventories when compared to the numbers recorded last November with a total of 3,849 units on the market. These inventories, however, still remain lower than the November long-term averages.
Sales in November remained strong across all of the housing sectors with substantial gains reported in the condo and townhouse categories. They experienced a combined growth of more than 19% and have both reached record levels for sales.
Buyers that are searching for homes that are priced lower than $400,000 will have trouble finding something in the single-family sector. Townhomes and condominiums offer a wider choice and selection in this price range.
There were 1,181 sales of single-family homes recorded in November, which was a decline of 1% on a year-over-year basis. At the same time, however, 16,481 single-family units have been sold since the beginning of 2014. This is a 6.2% increase when compared to the statistics recorded last year. New listings on a year-to-date basis increased 5.9% to 23,207 units.
The unadjusted benchmark price for a single-family home in November was $511,300, which was an 8.7% increase when compared to last November. The unadjusted benchmark price for a townhouse was $338,600 while condos had a price of $300,700.
The price gains in Calgary have been attracting national attention during the past year. The slowdown in price growth promises more stable conditions and will lower the risk of an overheated market.