As economic woes persist, Calgary’s housing market once again had trouble regaining its footing in September.
Some 1,272 homes changed hands in Calgary last month, down 13 per cent from September 2017, while prices sunk on both a monthly and year-over-year basis.
The benchmark price of a Calgary home in September was $428,700, representing a 1-per-cent decline compared to August and a drop of 3 per cent from a year before.
Looking only at detached houses, the benchmark price was $493,100, down about 3 per cent annually. For condos, the benchmark sunk roughly 2.7 per cent to $257,200.
“Calgary’s economy continues to struggle with unemployment, which rose again last month to over eight per cent. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand,” says CREB Chief Economist Ann-Marie Lurie in a statement.
“At the same time, supply levels continue to remain high, resulting in persistent oversupply and price declines,” she continues.
Available resale housing inventory numbered 7,941 last month. If sales persisted at the current rate and no new listings appear, it would still take more than half a year for all the homes to be purchased.
“This is the new normal of Calgary’s real estate,” CREB President Tom Westcott says in a statement.
“Some potential buyers may want to take advantage of the market conditions, but they face difficulties selling their existing home based on their expectations. This prevents them from purchasing something else,” Westcott adds.
If there is a silver lining, it may be in the quarterly sales figures, which CREB says “generally point towards a slower decline in sales and some easing in new listings growth.”
That improvement wasn’t enough to reduce the level of inventory in the third quarter, though.