Changes to the lending industry and a challenging economic recovery are weighing on sales activity in Calgary's housing market.
Supply levels have not adjusted to the weaker demand environment, and that is preventing price recovery.
"Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry," said CREB® chief economist Ann-Marie Lurie.
"While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas of the city have been offset by declines in other areas."
The easing sales trend persisted through April in Calgary's housing market. Calgary sales totaled 1,518 units in April, which is 20 per cent below last year and 25 per cent below long-term averages.
The detached sector has seen the largest decline, with year-to-date sales totaling 2,991 units, 27 per cent below the 10-year average.
Inventory levels in April totaled 7,324 units. This is a 32 per cent rise over last year, but well below the monthly high of 10,129 units recorded in 2008. Supply compared to demand has risen, but city-wide prices have remained relatively stable, totaling $436,500 in April, a monthly and annual gain of 0.21 per cent.
"The reality is that there's selection heading into the active spring market," said CREB®president Tom Westcott.
"For many sellers, they have to decide what price they are willing to accept for a lifestyle change. At the same time, buyers need to understand the supply dynamics and price movements in the specific area, as they may not align with their expectations."
So far this year, apartment and attached sales have eased to levels that are comparable to 2016. However, rising supply in both markets have pushed months of supply to the highest levels recovered over this four-month period, which is preventing any significant shifts in pricing trends.
Author:Manny Nkiwane Phone: 403-828-4750 Dated: May 3rd 2018 Views: 61 About Manny: I am dedicated to providing excellent customer service. My philosophy is simple: clients come first....
View our latest blog posts in your RSS reader. Click here to access.
I am dedicated to providing excellent customer service. My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. I also believe in keeping in contact with past clients and helping them understand how changes in the market could impact their buying or selling decisions.
I believe that if you're not left with an amazing experience, I haven't done my job. I dont measure success through achievements or awards but through the satisfaction of my clients. I take great pride in the relationships I build and always work relentlessly on my clients behalf to help them achieve their real estate goals.
Todays buyers and sellers need a trusted resource that can guide them through the complex world of real estate. With my extensive knowledge and commitment to providing only the best and most timely information to my clients, I am your go-to source for real estate industry insight and advice. Buying or selling a home is more than just a transaction: its a life-changing experience. Feel free to contact me for all your real estate needs.
Call me at 403-828-4750 or email me at firstname.lastname@example.org
Market Sumary The official forecast from the Chief Economis
"Manny is a patient and valuable Realtor who can help anyone get their dream home! He gave all his time when ever possible to listen and address our needs. He provides good feedback and communicates at all times."