As of November, Calgary remained a buyer’s market amid oversupply, while home prices dropped by 2% (down to $419,100) on an annual basis, latest data from the Canadian Real Estate Association indicated.
Sales levels last month were also only a little above 2018 levels. Detached home transactions remained almost flat, but around 20% than long-term trends.
“Like some of the other sectors, the detached market is slowly moving toward more balanced conditions. However, it is still oversupplied, and this trend continues to weigh on prices,” CREA stated in its most recent market report, as quoted by CBC News.
“Achieving more stable conditions will take time. Sales activity has been settling in at lower levels and is likely being influenced by the economic conditions and uncertainty weighing on our market,” CREA chief economist Ann-Marie Lurie added.
Weaker purchasing power is a major component of the phenomenon. Despite some promising signs of recovery earlier this year, Alberta continues to struggle with the economic impact of oil sector weakness.
The province lost 18,000 jobs in November alone. University of Calgary economist Trevor Tombe noted that this was the worst monthly drop in employment in five years, as well as the second-largest monthly decline ever registered in the province.
“Over the past year, employment has remained roughly flat but population kept growing,” Tombe told the Calgary Sun.
Overall, Alberta has lost approximately 60,000 jobs in the last five years. The province’s unemployment rate is currently at 7.2%.