A small rise in Calgary home sales last month was no match for the surge in new listings, which pushed inventory levels even higher in the city.
In August, the city’s inventory totaled 6,624 units, up 16 per cent from levels recorded a year ago, according to the Calgary Real Estate Board (CREB)’s latest data, published on Friday.
More than half of the available homes in August were either attached or apartment-style properties.
“Employment growth is contributing to the stability in sales activity, but it is not enough to meet the recent rise in listings and make a substantial dent in inventory levels,” says Ann-Marie Lurie, (CREB)’s chief economist, in a statement.
The level of inventory increased across all districts in the city last month, with the largest number of units added in the city centre and all north districts.
Although there was a gain in supply last month, sales did experience a modest uptick allowing the city’s months of supply to remain steady at just over four months.
After the city’s nearly three-year recession, economic conditions are slowly improving, but the market’s road to recovery will be a gradual.
“Unemployment rates remain elevated and job growth is mostly occurring outside the energy sector, slowing the recovery process. Broader economic improvements will be required prior to it translating into substantial improvements in the housing market,” says Lurie.
As Calgary’s market evolves, here are 12 more key stats you should know about CREB’s latest market data release:
1. A total of 1,602 units sold in the city last month, up 2 per cent from the 1,570 units sold in August 2016.
2. However, August was the second month of higher inventories compared to sales, a development CREB says impacted prices.
3. The benchmark price of a home in the city was $442,300 last month, down 0.3 per cent from July but nearly 1 per cent above August 2016’s benchmark.
4. Overall, home prices in August remain 4 per cent below peak levels seen in 2014, which Lurie says gives homebuyers many options in the market.
5. In the detached segment, recent increases in months of supply (3.32 months in August) stopped further gains in prices last month.
6. The benchmark price of a detached home totaled $510,900, a 1.5-per-cent increase over last year’s levels.
7. Out of all property types tracked (attached, condo and detached), condos had the most months of supply in August at 7.13 months, a 20.7-per-cent increase from August 2016.
8. Last month, the benchmark price of a condo hit $263,300, which represents a 1-per-cent drop from July and a 3-per-cent decline from a year ago.
9. CREB expects condo prices will continue to experience downward pressure as supply levels in the new, resale and rental market remain elevated.
10. Attached-home prices remained relatively stable in August at $336,300, a 1.5-per-cent increase from last year.
11. Months of supply for attached homes stayed unchanged from a year ago sitting at 4.29 months.
12. New listings in Calgary totaled 3,008 last month, a nearly 9-per-cent increase from August 2016 levels.