The latest Calgary market figures might point to an easing in oversupply, as well as a much better balance for lower-cost homes.
On an annual basis, the market’s sales volume declined by 6%, and the number of new listings in the city dropped by almost 19%, according to the Calgary Real Estate Board.
Fortunately, signs of recovery are evident, much of which is driven by the sub-$500,000 price bracket. This sector has seen its supply getting depleted and its sales activity steadily accelerating.
“That under $500,000 segment, with it moving into much more balanced conditions, I would expect that you're going to start to see not just price stability, but we might move into price recovery,” CREB chief economist Ann-Marie Lurie told CBC News.
Increased competition in the segment will also attract even greater activity from bargain-seekers.
“Most of what I’m seeing when I do an open house or I'm going out there, I’m seeing a lot of renters, which is very encouraging. So it’s people that are getting off the fence and are finally looking at purchasing a home,” Doug Hayden of Exp Realty noted.
In her recent analysis of the latest home sales numbers, Dominion Lending Centres chief economist Sherry Cooper stated that both Calgary and Edmonton, along with Victoria in BC, are enjoying “encouraging bursts of activity.”
Resale volume grew by 6.6% month-over-month in Calgary last June.
“These are early signs that the cyclical bottom has been reached in that region of the country,” Cooper said. “Market conditions are still soft, though. Property values remain under downward pressure for now with the MLS Home Price Index down from a year ago in May.”
The Index fell by 4.3% in Calgary and by 3.7% in Edmonton.
“That said, the rate of decline moderated in Calgary and Edmonton, which is a further sign that these markets are stabilizing,” Cooper added, assuring that this stability is feeding into the national economy’s much better prospects for both the near-future and the medium-term.