Employment numbers and housing costs have converged to pull down the Calgary market’s home sales activity, according to the latest report by the Calgary Real Estate Board.
“Job growth in this city remains a concern, as unemployment levels remain well above levels expected for this year. Rising costs of ownership also continue to weigh on housing demand,” CREB chief economist Ann-Marie Lurie said.
No asset class was left unscathed. Detached home sales fell by 8.6% compared to October last year, while condo apartments shrank by almost 7%.
Attached housing units posted the greatest decrease, falling by 15% year-over-year and 14% below long-term averages.
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The total number of homes sold in Calgary last month was 1,322. Meanwhile, inventory was at 7,345 – a near-record-high for the city’s housing supply.
“Housing supply levels are not adjusting fast enough to current conditions, resulting in price adjustments,” Lurie added.
The city’s benchmark home price also fell by 2.9% year-over-year to settle at $426,300. October 2018 was the 5th straight month of decline in the sale value of Calgary’s residential units.
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Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth.
Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance.
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