January Kicks Off 2019 with Sluggish Home Sales
The economic challenges of 2019 continue into the New Year with Calgary’s housing market still moving at a snail’s pace.
Home sales in January reached only 804 units, which is 16% lower than January 2018 and 21% lower than the long-term January averages.
New listings just coming on the market were comparable in number to 2018, however, those far outnumbered sales. This just added to inventory levels, which led the months of oversupply to reach almost seven months.
The buyers’ market still persists and is definitely affecting prices. Residential benchmark prices across the city in January softened to $414,800, which is 1% below December figures and 4% lower than January 2018.
UPDATES IN THE HOUSING MARKET
· Sales of detached homes in Calgary softened by 17% compared to 2018 figures. But, declines were not seen in all districts, with the North East and North West districts showing an improvement in sales activity. The West and North districts experienced the most substantial declines in sales.
· The number of new listings rose in all districts, with the exception of the South East, North East and North districts. The North East was the only district that recorded a softening in months of oversupply when compared to 2018.
· Benchmark prices for detached homes came to $476,500, which is a 1% decline from December and more than 4% below January 2018 figures.
· Prices softened across all of Calgary, with the highest year-over-year declines being seen in the City Centre, North West and South districts.
Condominiums & Apartments
· The total number of apartments sold in January was 126 units, which is 14% lower than January 2018 and more than 20% lower than long-term January averages.
· With slower than average sales and fewer new listings, inventory levels softened. Inventory is currently at 1,173 units in Calgary, which is 9% below January 2018.
· Despite the inventory level adjustment, months of oversupply were at nine months, which has affected prices. Although prices stayed fairly flat compared to December, they went down by 2% when you compare them to January 2018 prices.
· Prices for condominiums and apartments are still much lower than previous highs, however, in the South East and North East districts, there were some improvements in price compared to 2018.
· In January, row and semi-detached homes both experienced a decline in sales. The number of new listings rose at the same time, leading to higher inventory levels for both types of homes.
· Buyers’ market conditions continue in the attached home sector with prices softening by more than 4% and a benchmark price for attached homes in January of $313,700.
· Prices for semi-detached homes softened by almost 5% compared to 2018, totalling $393,100. The South and City Centre districts experienced the steepest declines in price, with adjustments of more than 6%.
· Prices for row homes declined by 4% compared to 2018, totalling $284,300. There were price declines across all districts, but the City Centre experienced the sharpest price declines, with prices almost 8% below last year’s levels.
REGIONAL MARKET UPDATES
· Total sales in January 2019 came to 65 units in Airdrie. This is slightly lower than 2018 sales levels, but comparable to sales activity averages over the last decade.
· Despite a softening in the number of new listings when compared to January 2018, there was an increase in inventory levels, which brought it up to 422 units. The sales activity combined with higher inventory levels led to the months of oversupply to stay elevated at 6.5 months. The continuing oversupply compared to demand has led to a softening of prices.
· Prices for detached homes in January came to $354.300, which is 0.5% lower than December’s price and almost 5% below prices in January of last year.
· Due to Row sales pulling back, sales in January slowed down when compared to 2018 as well as longer-term figures. While this was happening, new listings softened, which led to gains in inventory and the months of oversupply rising to almost 14 months.
· Because the market is oversupplied, prices are trending down compared to December’s figures. But, when you look at detached benchmark prices year-over-year, the $408,600 price was fairly stable when compared to price levels in January 2018.
· January sales activity in Okotoks was down compared to January 2018. Although the number of new listings that came on the market in January also declined from 2018 levels, the number of new listing far exceeded the number of sales, which led to a rise in inventories and months of oversupply to continue above 10 months.
· With the problem of continuous oversupply, benchmark prices remain lower having declined for the third consecutive month. Prices for detached homes in January came to $416,900. This is 1% below last month’s benchmark prices and 3% lower than in January 2018.