Average home prices in one key Canadian market have declined by nearly one per cent in the first quarter of 2015 – new stats confirming a buyer’s market.
“Based on current sales activity and rising supply levels, the change in pricing does not come as a surprise,” said Ann-Marie Lure, chief economist of the Calgary Real Estate Board, which released its latest figures today.
“However, the recent price adjustments have not eroded all the higher than expected price gains recorded last year. While conditions likely tempered growth in new listings, further near-term price adjustments will be dependent on changes to inventory levels.”
The first three months of 2015 witnessed low sales and elevated inventory levels, causing unadjusted benchmark prices to ease by 0.44 per cent in March, relative to the previous month, for a total average price of $454,300.
The sales to new listings ratio also dropped to 41 per cent and months of supply averaged 4.03 for the quarter. This is a significant change from one year ago when the market was facing inventory shortages and price gains.
Sales activity fell by nearly 30 per cent in March, compared to this time last year, and remains well below 10-year averages. City of Calgary sales totaled 3,843 units at the end of the first quarter.
“In this market, buyers and sellers should be thinking about their short term and long-term objectives,” said CREB president Corinne Lyall. “This is a challenging economic time and people need to know their long game, so they can make the right real estate choices for today and tomorrow.”