Danielle Kubes is a contributor to Zoocasa.com, a leading real estate company that combines online search tools and a full-service brokerage to empower Canadians to buy or sell their homes faster, easier and more successfully. Home buyers can browse real estate listings on the website or the free iOS app.
It was a grim year for the Calgary real estate market — a job market already reeling from low energy prices, added pressure of the new federal lending rules and years of oversupply combined to lead to slipping prices across all property types in 2018.
An average Calgarian property now costs about $418,500, a decrease of 3.4 per cent from 2017, or a dollar value average of $14,800.
The city now has 5.2 months of available inventory, meaning it would take that amount of time to completely sell off all MLS listings in Calgary if no new ones cropped up. With such an abundance of supply, demand would have to rise sharply before prices would rise.
Although all market segments faced a challenging year, the most expensive home type, detached homes, plunged the furthest, while the least expensive home types – condos – fared the best across the city, according to a recent price analysis from Zoocasa.
Detached House Prices Fell -3.5%
All regions saw detached house prices slip in 2018; the average price for a house fell the most of any home type, down 3.5 per cent to an average of $481,400. Tighter mortgage rules that the federal bank regulator put into place on January 1, 2018 was likely a major contributor as they reduced the amount prospective buyers could borrow, potentially pushing them into more affordable housing types.
Detached houses in the South declined the most, dropping 5.7 per cent to $441,900. The North West fared almost as badly, with single-family homes dropping 5.1 per cent to $513,800. The North and North East held their value the best, slumping only by 1.6 per cent to $420,400 and 2.1 per cent to $367,600, respectively.
Nevertheless, sales for single-family homes were brisk in 2018. Most, or even more than all new listings sold, meaning, despite the price depreciation, that most detached markets remained to the sellers advantage. A notable exception is City Centre, which remained balanced, advantaged neither to the seller or buyer.
Condo Prices Fell -2.4%
In contrast to detached houses, condos for sale in Calgary emerged from 2018 only slightly ruffled. Not only did they post the smallest decline, some neighbourhoods also saw increases in unit prices. This is likely a result of condos being the only property type that many prospective buyers can afford, along with a new appreciation for the ease of high-density living; apartment prices in Calgary slipped just 2.4 per cent to $251,500 in 2018.
The biggest decrease was seen in the West, with units plummeting 8.5 per cent to $229,700. The North posted the next biggest decline, down 6.1 per cent to $206,400.
In sharp contrast, the North East saw an increase of 2.9 per cent, with prices rising to $230,000. The South East and East also saw improving prices, up 1 per cent to $234,800 and 0.8 per cent to $189,000, respectively.
Apartment sales were uneven across the city, with the tightest competition in the East, and the least in the North West. Balanced conditions prevailed in the City Centre, North and North East.
Want more details on Calgary’s 2018 real estate market? Check out the infographic below.