The segment of Calgary's housing market with the greatest influence on the overall market is showing signs of pricing stability. The detached benchmark price totalled $503,400 in September, which is 3.3% below last year, but the second consecutive month at price level.
Well overall economic conditions remain soft, for now the detached sector is demonstrating some steadiness in terms of pricing.
"The decline in demand has caused many people to anticipate steeper price declines for detached homes." said CREB* chief economist Ann-Marie Laurie. "That hasn't happened in a large part because detached supply levels haven't climbed as sharply as many expected. There was a limited amount of supply in the overall market when this cycle began, and while levels did rise and remain somewhat elevated, they were well below previous highs,"
The level of detached new listings also eased compared to last year, helping push down year-over-year inventory levels for the second consecutive month,
"Consumers are really starting to come to terms with the current environment." said CREB* president Cliff Stevenson. "Most sellers have adjusted their expectations at the same time that many buyers are realizing the price of a home is influenced by factors like location, supplying specific price ranges and condition of the property."
Residential inventory levels totalled 5,877 in the month of September, 5% higher than last year, due to gains in both the apartment sector and attached sector. City wide months of supply neared 4 months, but ranged from a low of 3 months in the detached sector to a high of 8 months in the apartment sector
Sales were equally inconsistent, improving by 4% in the detached market while declining 23% in the apartment sector. Nonetheless. in every category, sales activity year-to-date sale activity has declined over over levels recorded last year and remains below long term averages,
The resale apartment market has recorded large inventory gains and a sharp pullback in sales. This, combined with additional competition for new builds, is resulting in steeper price adjustment in this sector,
Condominium apartment prices totaled $274,700 in September, 0.1% below last month and 6.8% below last years price.
Disclaimer: This article was provided by the Calgary Real Estate Board (CREB) October 3, 2016.