Economic pressures dampening demand for Calgary housing

A noticeable shrinkage in Calgary’s home sales last month was brought about by multiple economic pressures affecting household income, according to the latest market report from the Calgary Real Estate Board.

“Despite some positive momentum in some aspects of our economy, our job market has continued to struggle as of late, with some easing in total employment levels over the past few months and persistently high unemployment rates,” CREB chief economist Ann-Marie Lurie told the Calgary Herald.

969 single-family home sales were logged in Calgary in July, 4% lower than the volume during the same time last year.

Read more: Calgary is still one of Canada’s most desirable affordability hubs

The benchmark price for this housing type, while 2% lower on a year-over-year basis (down to $501,300), might prove problematic amid recent interest rate hikes, which Lurie stated is affecting the consumer base’s purchasing decisions.

“Rising costs, combined with a slow recovery, are weighing on the demand for resale homes in the city. At the same time, supply remains high and is resulting in an oversupplied market.”

The number of new home listings increased by 3% annually (up to 1,733), while the overall inventory of single-family homes grew by 39% during the same time frame (up to 4,578 listings).

 

Related stories:
Recreational property prices surge – report
Residential development to arise in former broadcast location in Calgary

 

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