Energy sector continues to dampen housing demand in Calgary

by Steve Randall on 04 Dec 2018

Home sales in Calgary totaled 1,171 units in November with year-to-date sales of 15,349 nearly 20% below long-term averages.

Listings were down 7% last month compared to a year earlier, helping to ease the inventory glut which is 32% above normal November levels at 6,501 units.

CREB chief economist Ann-Marie Lurie says inventory levels are resulting in a buyer’s market and weakening prices.

The citywide benchmark price was $422,600 in November, almost 1% lower than last month and over 3% below last year’s levels.

“Recent challenges in the energy sector have weighed on consumer confidence over the past month. Combined with weakness in the employment market and further gains in lending rates, this is impacting ownership demand,” added Lurie.

Lower-priced homes in demand
Sales of homes priced below $200K improved and represented 6% of all home sales year-to-date, but all other price ranges have shown declining sales.

“In any market, affordable product is always desirable,” said CREB president Tom Westcott. “For buyers, it may mean being able to step into a home that was previously unattainable. It also means that sellers need to be keenly aware what is successfully selling in their neighbourhood and surrounding communities.”

Stats by housing type
Detached sales declined across all districts in November. With citywide sales of 679 units, activity remains 21% below typical levels for the month. Detached benchmark prices totaled $486,000 in November, a 1% decline over last month and a 3% decline over last year.

Despite year-over-year gains in sales in November, citywide apartment sales have totaled 2,557 units so far this year, 5% lower than last year and 21% below long-term averages. Price declines this year have ranged from a high of nearly six per cent in the East district to a low of two per cent in both the City Centre and North West districts.

Year-to-date attached sales totaled 3,344 units, a 16% decline over the previous year and 14% below long-term averages. Oversupply conditions have weighed on prices. In November, the semi-detached benchmark price totaled $400,700. This is a monthly and year-over year decline of 0.67 and 3.3 per cent, respectively.

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