Glut forces Calgary home prices lower
November 9, 2018
Calgary’s high housing inventory is causing home prices to fall further as sales crater.
Detached sales in October totalled 829 units, a decline of 15 per cent from October 2017. This is the slowest level of detached sales since the late ’90s. Detached benchmark prices were $490,200 in October, down 3 per cent from a year earlier, according to the Calgary and District Real Estate Board (CREB).
Citywide benchmark prices were $426,300 in October, trending down for the fifth consecutive month and resulting in a year-over-year decline of 2.9 per cent.
“Job growth in this city remains a concern, as unemployment levels remain well above levels expected for this year. Rising costs of ownership also continue to weigh on housing demand,” said CREB chief economist Ann-Marie Lurie.
“At the same time, housing supply levels are not adjusting fast enough to current conditions, resulting in price adjustments.”
Home inventories and sales totalled 7,345 and 1,322 in October, respectively. This has resulted in 5.6 months of supply, well above levels typical for October.