In its latest report, the Calgary Real Estate Board (CREB) said that the city’s housing market has experienced yet another month of market imbalance in April, with the number of new listings far outstripping demand.
Total sales volume actually declined by 10.1 per cent on a year-over-year basis, dropping to 1,764 transactions last month. Meanwhile, available properties for sale grew by 5.0 per cent over the same period, with the number of new listings shooting up to 3,216 in April 2016.
Calgary’s supply level now sits at 3.54 months, up by 23.2 per cent compared to a year ago.
CREB officials said that these developments reflected the drastically revised expectations on the part of would-be buyers, who are now taking advantage of the trend of gradually falling prices.
“From reconsidering the listing of their home to lowering expectations on price, sellers are beginning to adjust to the current market reality,” CREB president Cliff Stevenson said in a news release, as quoted by CBC News
“[Some] buyers in the market are still not willing to pull the trigger because they expect even bigger discounts. And so that gap between buyers’ and sellers’ expectations still persists across many product types and locations,” he added.
The benchmark value of an average home in Calgary fell by 3.4 per cent from 2015, down to $441,000. This represented the seventh straight month of decline for this price, CREB officials said.