Six months after the roll out of new Canada-wide mortgage regulations, Calgary’s housing market continued to cope with weak demand and declining prices in June.
Last month, a total of 1,896 units sold in the city — an 11 per cent drop from 2,136 units sold a year ago, according to the latest data from the Calgary Real Estate Board (CREB), published Tuesday. June’s sales total also represents a 12 per cent decline from long-term averages.
Reasons for the persistent declines in sales include the new mortgage regulations introduced in January and higher interest rates.
“While our economy is no longer in a recession, persistently high unemployment rates, concerns over long-term growth, rising lending costs and stricter qualifications are all weighing on the housing demand,” says CREB chief economist Ann-Marie Lurie, in a statement.
Here are 10 more stats that illustrate Calgary’s struggling housing market in June.
1. New listings continued to rise last month to a total of 3,869 units, up three per cent from a year ago. “Growth in new listings is starting to ease for some property types, but it is not enough to prevent continued supply growth and, ultimately, an oversupplied housing market,” says Lurie.
2. Months of supply hit 4.65 months in June, up roughly 49 per cent from 3.12 months in June 2017.
3. According to CREB, high inventories and weaker sales have caused more widespread buyers’ market conditions, resulting in downward pressure on prices. Last month, the city-wide benchmark price hit $436,500, down one per cent from $441,500 in June 2017.
4. The detached segment accounts for 54 per cent of Calgary’s overall inventory with 4,817 units — a 49 per cent uptick from 3,227 units in the same period last year.
5. A total of 1,210 detached homes changed hands in June, a 12 per cent drop from 1,381 units a year ago.
6. The benchmark price of a detached home was $503,100, down one per cent from June 2017.
7. In the condo segment, 292 units sold in June — a roughly three per cent decline compared 284 units sold last year.
8. Last month, the benchmark price of a condo hit $259,100, up roughly three per cent from $265,800 a year ago.
9. In the attached segment, 394 homes sold last month, a 16 per cent drop from 471 homes recorded in June 2017.
10. The benchmark price of an attached home remained relatively unchanged at $332,800, down 0.51 per cent from the same period last year.