The Calgary housing market started 2016 the same way it ended 2015: with a double-digit drop in sales and a small dip in prices.
According to statistics compiled by the Calgary Real Estate Board, 763 properties changed hands in January, 13 per cent below the total for the same month a year ago and 43 per cent below long-term averages.
While new listings declined by 16 per cent compared to January 2015, the number of new listings far outpaced sales, causing inventory gains. Calgary remains a buyer’s market, says CRB.
“Selection for buyers in all product types and price ranges has improved,” said CREB president Cliff Stevenson in a release. “More choice and low interest rates have encouraged some potential buyers to start window shopping. So far, this hasn’t translated into sales activity as many are waiting for steeper price declines from motivated sellers.”
The benchmark price for all property types ended the month at $447,300, 1.21 per cent lower than the previous month and 3.27 per cent below the January 2015 price of $462,400.
“As expected, the imbalance between housing supply and demand is continuing to place downward pressure on prices,” said CREB chief economist Ann-Marie Lurie in a release. “However, the recent price retraction has not erased all the gains recorded in recent years, as the benchmark price remains 4.41 per cent above the January 2014 price of $428,400.”
Condo prices take the biggest hit
While all property types have recorded price declines from last year’s highs, the largest price drop occurred in the apartment/condo sector, which has seen “elevated months of supply” since the second quarter of 2015.
The benchmark price of a Calgary condo was $281,900 in January, down 6.35 per cent from a year earlier and 2.12 per cent lower than the previous month’s price. In fact, apartment sector prices have once again fallen below the 2007 monthly high of $301,500.
The benchmark price of a single-family home fell 2.6 per cent year-over-year in January to $509,300 while townhome prices dipped 0.8 per cent to end the month at $345,600.
For more, CREB’s complete January statistics package can be downloaded here (PDF).