Calgary housing market shows continued stability

by Steve Randall02 Oct 2019

There was further stabilization of the Calgary housing market in September as sales improved while a build-up of supply eased with fewer new listings.

Calgary Real Estate Board’s figures released this week show that condo apartment sales were up 16% year-over-year to 246 sales while detached homes gained 4.8% to 826.

The citywide unadjusted benchmark price of $424,900 was 2% lower than last year’s levels and appears to have piqued the interest of homebuyers.

“Price declines have likely brought some buyers back into the market,” said CREB chief economist Ann-Marie Lurie, noting improvements in the market continue to be driven by homes priced below $500,000.”

But she added that despite improvement in the figures and a modest rise in housing demand, the market remains subdued.

“The market is moving toward more stable conditions, but this is mostly related to supply adjustments in the city.”   

There were 2,714 new listings in September, down 12% year-over-year but supply remains elevated with 6,889 units, although this is down 13% from a year ago.

Stats by property type

Detached

  • Improvements in sales over the past three months were not enough to offset pullbacks that occurred earlier in the year, as year-to-date sales remain nearly one per cent lower than last year’s levels. Despite citywide declines, sales improved in both the North West and South districts, thanks to significant gains in sales of homes priced below $500,000.
  • The months of supply remains elevated at over four months, although this is an improvement compared to the same time last year.
  • Benchmark prices in September ranged from a year-over-year decline of more than 4% in the South district to general stability in the North East, North and West districts.

Apartment

  • Sales improved by 16% this month, making it the best September recorded in the past three years. Despite recent improvements in sales, year-to-date levels remain stable compared to last year, but well below longer-term trends.
  • Condominium apartment sales were varied across the city. Significant growth was reported in the North and South East districts. Both districts have seen significant new-home development which could be influencing resale activity.
  • Oversupply continues to weigh on prices in this segment, as unadjusted prices remain 17% below 2014 highs.

Attached

  • Sales increases for both semi-detached and row product have improved year-to-date attached sales by more than 5% compared to last year. It is the only product type that has recorded significant gains year-over-year.
  • New listings continue to ease, reducing inventory and the months of supply.
  • Despite some annual reductions in the months of supply, buyers’ market conditions persist and prices continue to ease. Year-to-date benchmark price declines ranged from a high of nearly 6% in the City Centre to a low of 3% in the North East.

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