Calgary existing home sales fell and inventory increased in October, a continuation of past monthly trends in what the city’s real estate board believes is a slow-paced recovery.
Last month, a total of 1,467 sales were recorded in the city, an 11 per cent decrease from a year ago, according to the Calgary Real Estate Board’s (CREB) latest data, published on Wednesday.
Meantime, city-wide inventory totalled at 6,463 units, up 19 per cent from October 2016.
“While economic activity has improved in 2017, it will take some time for this to translate into housing market growth,” says Ann-Marie Lurie, CREB chief economist, in a statement.
“We also continue to face weak migration, higher lending rates and changes to lending policy. The combination of these factors is impacting housing demand, which is prolonging the pace of recovery,” she adds.
Even though sales have dropped, CREB says October’s activity was not enough to derail stronger than expected gains that happened earlier in the year. However, inventory continues to rise in the market.
Last month, increases in resale inventory occurred in each housing segment and across most districts in the city.
Sixty-two per cent of units were priced below $500,000 citywide.
“There is far more product availability in the lower price ranges now compared to several years ago,” says David P. Brown, CREB president, in a statement.
Here are 10 more facts from CREB’s latest market data release that explain how Calgary continued its gradual path to recovery in October:
1. Months of supply hit 3.57 months, up 43 per cent from a year ago.
2. The condo segment had the highest months of supply at 7.03 months, up 14 per cent from October 2016. CREB says most of this inventory is located within the city centre but there have also been gains in most districts.
3. There were a total of 2,604 new listings in October, an increase of 10 per cent compared to the 2,361 new listings recorded in October 2016.
4. The sales-to-new listings ratio dropped 16 per cent year-over-year to 61.35 per cent.
5. The benchmark price of a home was $438,900, up roughly 1 per cent from a year ago but down 0.6 per cent from September. According to CREB, several months of elevated supply and less demand has put downward pressure on prices over the past few months.
6. In the condo segment, the benchmark price was $261,600, down 3 per cent from a year ago.
7. CREB says the largest monthly price change occurred in the condo segment, which saw a decline of 0.8 per cent from September, resulting in a 13 per cent spread over monthly highs recorded in 2014.
8. Prices in the detached and attached segments remained relatively stable compared to a year ago. The benchmark price of a detached home was $506,200, up 0.62 per cent compared to October 2016.
9. Meantime, the benchmark price of an attached home rose 1.42 per cent year-over-year to $334,600.
10. According to CREB, the semi-detached segment continues to see the best annual price improvements in the market. The benchmark price was $419,400, a 0.10 per cent decrease from September and three per cent above last year’s level.