August 2017 – Market Update

The housing market in Calgary has been quite stable the first half of 2017, however there were fewer transactions last month when compared to July 2016.

Across Calgary there were sales totaling 1,637 units, which is 6% below the number of units sold in July of last year. At the same time, the number of units sold year-to-date came to 11,957, which is 9% higher than last year’s numbers.

David Brown, president of CREB^® noted; The growth in sales has so far surpassed expectations in 2017. Clients who have been delaying home buying decisions in Calgary have begun to re-enter the market. They were waiting for signals that showed the economy was improving.

Economic recovery is going to take time. There are so many options for consumers in terms of home ownership, both new and resale, resulting is less urgency to make a decision.

The slow-down in sales was accompanied by more listings for new homes, which further increased inventory. The citywide supply of units on the market reached 6,675 in July, which is 17% higher than inventory levels were last year, yet still lower than the July highs of 2008.

Moderate gains in the job market as well as net migration were instrumental in the recovery of the housing market in Calgary, according to Ann-Marie Lurie, chief economist for CREB^®.

But, the current level of inventory and recent changes in lending continue to affect the demand for housing. The slower gains in demand combined with higher supply levels will slow down the rate of price recovery in Calgary’s housing market.

Driven by the sales of attached and detached housing citywide, prices were higher in July over June and over July 2016. However, the figures still remain 4% lower than in previous high-sale months. Year-to-date averages are still 0.44% below 2016 levels.

Calgary’s detached housing sector does show a more balanced picture when compared to 2016, despite July’s sales activity.

Apartment and condominium homes are still in oversupply status when it comes to the new home and resale sector, leading to further declines in price. The average price in July for an apartment was $266,200, which was 3% lower than 2016 and almost 12% lower than peak prices.