Further fall for Calgary home prices

Posted by Justin Havre. on Monday, November 2nd, 2015 at 3:30pm.

Second month in a row for slowing sales 

The Calgary Real Estate Board (CREB®) reports that sales activity in Calgary and surrounding area fell far below long-term averages in the month of October.

Higher than normal inventory levels last month are a contributing factor to this second month of declining prices in the residential sector. There are currently 5,578 residential units on the market in Calgary.

Benchmark prices in October were down 0.7% from September and 1.2% from October 2014.  Last month’s benchmark price was $453,100.

Ann-Marie Lurie, chief economist with CREB® pointed towards unflagging weakness in Alberta’s economy as a whole.  In a press release Lurie stated that last month’s sales were 16% less than long-term averages.

There was no decline in new residential listings in October to balance out inventory, which contributed to the benchmark price drop.

The sharpest fall happened in apartment condo prices.  The benchmark dropped to $288,300, down 0.8% over September and 4% over October 2014.  CREB® analysists blame the decline to increased levels of supply.  The supply of apartment condos in Calgary was estimated at three months from June 2015 to almost six months as of last month.

With so many new condo projects under construction, more rental units on the market and a rise in the number of attached residential units for sale in Calgary, inventory levels remain very high.   There are fewer buyers looking for apartment condos and those that are looking are discovering a favourable buyer’s market.

There were also drops in detached and attached residential units but not as significant as in the apartment sector. 

As a rule, detached homes account for 60% of all sales in Calgary.  Of those detached homes sold last month, half were purchased for $500,000 or less.  With demand and inventory more balanced in this price segment, the most significant price drops occurred in higher priced homes.

Total number of sales in October were 1,421 which is 33% fewer than October of last year.  From January to October of this year, sales are down by 26% over the same time period in 2014.

Corinne Lyall, president of CREB® encouraged anyone currently or perhaps considering buying or selling their home to have a serious discussion about their financial objectives with the professionals they’ve hired to conduct the transaction.  She recommended sellers take a hard look at how their homes are positioned in the real estate market in Calgary considering the immense competition from the rentals currently available and new homes just coming to market. 

CALGARY HOUSING MARKET STATISTICS:  October 2015 

Source: Calgary Real Estate Board

October 2015 YTY Comparative Analysis 

COMBINED CALGARY RESIDENTIAL SALES 

Sales:  1,421 (-33.29%)

New Listings: 2,680 (-7.94%)

Active Listings (Inventory):  5,578 (+ 20.14%)

Median Sale Price: $419,000 (-2.56%)

Average Sale Price: $457,513 (-6.1%) 

CALGARY DETACHED HOME 

Sales:  872   (-32.4%)

New Listings:  1,443 (-11.25%)

Current # of Listings:  2,922 (+15.04%)

Average Days on Market: 38 (+6.09%)

Median Sale Price:  $470,250 (-4.71%)

Average Sale Price:  $518,956 (-7.32%)

YTD Median Price:  $480,000 (- $1.69%) 

CALGARY METRO APARTMENT/CONDO STATS 

Sales:  237 (– 38.92%)

New Listings:  587   (-5.63%)

Current # of Listings: 1,366(+19.61%)

Average Days on Market: 50(+22.93%)

Median Sale Price:  $286,000   (+.83%)

Average Sale Price: $318,210   (-1.48%)

YTD Median Price: $273,000 (- 4.21%)

 

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