Sluggish home sales in Calgary persisted in April, as new mortgage regulations and slow economic recovery continued to weigh on the market.
Last month, a total of 1,518 homes sold across the city, down 20 per cent from a year ago and 25 per cent below long-term averages, according to the latest data from the Calgary Real Estate Board (CREB), published Tuesday.
As demand remains relatively weak in Calgary, CREB notes that supply levels are elevated, preventing price recovery in the market.
“Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry,” says CREB chief economist Ann-Marie Lurie, in a press release.
“While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas of the city have been offset by declines in other areas,” she adds.
Here are 12 facts that illustrate Calgary’s slow housing recovery in April.
1. City-wide inventory totalled 7,324 units in April, a 32 per cent increase over last year. However, CREB notes inventory levels are well below the monthly high of 10,129 units recorded in April 2008.
2. As Calgary remains in a weaker demand environment, new listings inched up 8 per cent year-over-year to 3,569 units.
3. Months of supply hit 4.82 months in April, up from roughly three months a year ago.
4. By property type, months of supply hit 7 months and 5 months in the condo and attached segments, respectively. “[R]ising supply in both markets have pushed months of supply to the highest levels recovered over this four month period, which is preventing any significant shifts in pricing trends,” writes CREB.
5. Although overall supply compared to demand has risen in Calgary, city-wide benchmark prices have remained relatively stable at $436,500 in April — a monthly and annual gain of 0.21 per cent.
6. Out of all property types, the detached segment saw the largest decline in sales last month with a total of 908 units — a roughly 24 per cent decline from April 2017.
7. Year-to-date, detached sales totaled 2,991 units, 27 per cent below the 10-year average.
8. According to CREB, price changes in the detached market varied in each district. The benchmark price of a detached home was $504,500 in April, down 0.44 per cent from a year ago.
9. In the condo segment, a total of 262 units sold last month — a 7 per cent decline from 283 units sold in April 2017.
10. Elevated supply continued to weigh on condo prices in April. The benchmark price of a condo was $256,700, down roughly three per cent from the same period last year.
11. Soft sales continued in Calgary’s attached market with a total of 348 units sold last month, an 18 per cent drop from a year ago.
12. Similar to the condo segment, gains in supply prevented price recovery in the attached segment in April. The benchmark price of an attached home was $331,800, up 0.58 per cent from April 2017.