An unexpectedly large inventory brought about by relatively timid sales numbers is pushing down the value of Calgary’s residential properties, according to the latest report by the Calgary Real Estate Board.
The city’s benchmark home price (taking into account all housing asset classes) went down for the 5th straight month in October, falling by 2.9% year-over-year to reach $426,300.
“Housing supply levels are not adjusting fast enough to current conditions, resulting in price adjustments,” CREB chief economist Ann-Marie Lurie said.
Inventory stood at 7,345 homes last month, compared to the 1,322 completed sales during that period. This was a near-record-high level for supply in the city, according to the CREB study.
“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.
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The sales decline was felt across all housing types. Detached homes had 8.6% fewer transactions compared to October last year, while condo apartments suffered an annual decline of nearly 7%.
The attached sector experienced the greatest losses in activity, falling by 15% year-over-year and 14% below long-term averages.
“With these types of market conditions, many potential buyers should be able to find the home that they are looking for with well priced listings appearing in certain price ranges,” CREB president Tom Westcott warned. “Sellers need to manage expectations and have accurate data in order to be aware of what is selling in their community.”
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