Weak sales persist in Calgary and beyond City of Calgary, July 3, 2018 – Many Canadian energy-related municipalities within Alberta and Saskatchewan have seen housing markets struggle over the past few years, resulting in price declines. The recent mortgage rule changes and higher lending rates are factors weighing on demand and prices across some of those areas. “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,” said CREB® chief economist Ann-Marie Lurie. “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
“Lending conditions weigh on housing demand” City of Calgary, June 1, 2018 May sales activity continue to ease with the largest declines occurring in the detached sector. Additional gains in new listings continue to increase inventory levels. City-wide sales activity in May totaled 1,726 units and is 19 per term averages. Sales activity in the detached sector declined to levels not seen in over a decade. “The impact of rising lending rates and stricter qualification levels causing demands to ease, chief economist Ann-Marie Lurie. Economic conditions have improved from a year ago, but the pace of recovery has not been enough to outweigh months of supply to 4.9 months. Elevated supply relative to demand prevented any further price recovery in
Soft Sales Continue in April Prices steady, but struggles in Alberta economy weighs on housing! City of Calgary, May 1, 2018 – Changes to the lending industry and a challenging economic recovery are weighing on sales activity in Calgary’s housing market. Supply levels have not adjusted to the weaker demand environment, and that is preventing price recovery. “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,” said CREB® chief economist Ann-Marie Lurie. “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.” The easing sales
Prices remain stable compared to last year! City of Calgary, April 2, 2018 – As expected, slow sales this quarter have persisted through March in the City of Calgary. This is not a surprise, after stronger growth in sales at the end of last year following the announced changes to the lending market. First quarter sales totaled 3,423 units, nearly 18 per cent below last year’s levels and 24 per cent below long-term averages. Easing sales and modest gains in new listings caused inventories to rise and months of supply to remain above four months. “Economic conditions are slowly improving, but it has not been enough to outpace the current impact of higher lending rates and more stringent conditions,” said
A Bumpy Road to Recovery Calgary housing market prices hold, but sales fall Feb. 2018 City of Calgary, March 1, 2018 – Residential home sales declined in February, but a decline in new listings helped keep prices steady this month. Sales totaled 1,094 units in February, 18 per cent below last year’s activity. Easing sales occurred across all property types this month, which outpaced the sales growth that occurred in January. After the first two months of the year, sales activity remains well below longerterm averages. “Housing market conditions are still adjusting to rising lending rates and changes in lending requirements. This process is expected to be bumpy, with demand adjustments leading the changes,” said CREB® chief economist Ann-Marie Lurie.