“Slower sales were accompanied by declining new listings in July. This helped prevent further inventory gains and minimize the downward pressure on benchmark prices,” Claire Fraser, a Calgary-based agent with RE/MAX, said in a monthly Alberta feedback report, which was obtained by Canadian Real Estate Wealth. “By months end, the residential benchmark price was $440,000, similar to last month, but 4.2 per cent below July figures from the previous year.
“While detached prices seem to be leveling, this is not the case for all property types,” she continued. “With over six months of inventory in the apartment sector, oversupply continues to create steep price declines.”
According to the Calgary Real Estate Board’s mid-year forecast, released Friday, benchmark prices are expected to fall 3.8% this year.
“While the market as a whole continues to be challenging for home sellers, the highest price declines are typically in the neighbourhoods and sectors where the largest amount of supply has built up, either from the resale market or the competing new home market,” CREB President Cliff Stevenson said in a release. “In this kind of market, both buyers and sellers continue to be forced to adjust their expectations. Not all districts and product segments are reacting the same way.”
According to Glenn Herring, an agent with Ken Eddy Glenn Herring Real Estate Group, July marked the 20th
consecutive month of year-over-year sales declines.
Herring also noted oversupply plaguing certain segments of the market.
“Prices in the detached property type segment of the market continue to be the most level while prices in the apartment property type continue to decline due to oversupply -- there is currently over six months of supply,” he said.
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Oversupply continues to plague one previously-booming market, according to professionals.