Photo: Chad Goddard/Flickr
Slowly but surely the housing inventory in Calgary is beginning to decline. For the fourth consecutive month, the total number of homes for sale in the city have recorded year-over-year declines. In January, 4,112 homes were available, 18 per cent below 2016 levels.
Despite this sign of progress, the Calgary Real Estate Board (CREB) says in their latest report the market still has a long journey to go until balanced conditions are met to stabilize house prices. CREB Chief Economist Ann-Marie Lurie says even though conditions have improved, last year’s market was one of the weakest on record.
“Despite the appearance of a major shift in activity, the transition in the housing market is going to be a slow process,” she says.
With 947 units sold, January saw a 24 per cent increase in sales compared to 2016. Compared to the 10-year average for the month, it is 21 per cent below the mark. Even though sales showed strong improvement in January, those levels are being compared to the near record lows that occurred in January 2016.
CREB President David P. Brown says, “the market isn’t expected to be as unpredictable in 2017, but it’s early in the year and there are still lots of unknowns that will shape decision-making for consumers.”
Even though there’s room for further advancement, the detached segment of the market has shown significant improvement. In January, 584 units sold compared to 466 last year. With more demand, inventories have declined pushing the months of supply to 3.2 months compared to 5.4 months in January 2016.
The average home price in January was at $437,400, which is 0.16 per cent lower than last month and 2.82 per cent lower than 2016 levels.