Sales slowed again in July, for the 20th consecutive month. Not surprising given that there has not been a rebound in the labour market and net migration continues to slide.
The good news is that fewer new listings for the month helped prevent further inventory gains and minimized the downward pressure on benchmark prices.
While detached prices seem to be levelling (and account for 63% of the sales activity thus far in 2016), this is not the case for all property types. With over six months of inventory in the apartment sector, oversupply continues to create steep price declines. With the city-wide benchmark for detached homes down only 3% from 2015 to $502,300, the apartment benchmark was down 7% to $277,000, and the semi-detached and row housing benchmark declined 3% and 6% respectively to land at $385,200 and $310,300.
To anyone that has been paying attention to the housing market in Calgary and surrounding areas, it should come as no surprise that we continue to see a slowdown. Buyers are expecting further declines in sold prices, and sellers are adjusting to softer demand with price decreases. When these expectations intersect, we’re seeing sales activity in the market, but not at the the same level as the last few years.
