Despite a double digit year-over-year decline, the number of home sales in Calgary in June was only five per cent below the 10 year average for the month.
According to data from the Calgary Real Estate Board (CREB), 2,184 homes changed hands across the Multiple Listing Service (MLS) in June, representing an 18 per cent drop from a year ago, but compared to sale figures in May, transactions were virtually flat.
“We’ve seen less concern from consumers lately,” said CREB president Corinne Lyall in a release. “One of the main reasons is that we haven’t seen the worst case scenarios play out in the energy and housing sectors.”
Taking a broader view, CREB says that sales activity in the second quarter of the year points toward “more stability in the market.” The year-over-year decline in sales activity eased from 32 per cent in the first quarter to 22 per cent in the second quarter. Meanwhile, the level of pullback of new listings outweighed the gains recorded in the first quarter, resulting in a year-to-date decline of nearly eight per cent.
The composite benchmark price — which considers all property types — ended the month at $455,400, representing a year-over-year increase of 0.13 per cent.
“Even though city-wide prices were essentially unchanged in June, it’s important to note that activity can vary significantly depending on community, property type and price range,” said Lyall.
Indeed, for detached homes, the benchmark priced landed at $515,500 in June, slightly higher than the previous month and 0.4 per cent higher than June 2014. Meanwhile, the year-to-date benchmark price for detached properties remained 3.44 per cent above last year’s figures.
Against this backdrop, the year-to-date average and median detached home price for Calgary has reported declines of 2.26 and 1.54 per cent city-wide. This doesn’t come as a surprise, CREB says, given that the share of sales activity has declined in the higher price ranges.
“The housing market is showing some signs of stability right now,” said CREB chief economist Ann Marie Lurie. “However, there are several risk factors that could influence the market in the second half of the year.”
CREB’s mid-year forecast update is due out at the end of July.