Hello there, 2019! Here are the latest housing market updates for areas covered by the Calgary Real Estate Board (CREB)!
In their latest media release, CREB has highlighted that job market weakness and lending restrictions was a common thread in 2018’s housing market.
As of December 2018, an oversupply continues in Calgary’s housing market. Prices for the month were lower compared to both the previous month, as well as the previous year.
According to CREB Chief Economist Ann-Marie Lurie,
“Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year. This contributed to elevated supply in the resale market, resulting in price declines.”
Regarding sales, a total of 794 units were recorded for the month, which shows a decline of 21% compared to December 2017. Overall year-to-date sales in the city totaled 16,144 units, which is 14% lower than the total in 2017, and is also almost 20% below long-term averages.
Meanwhile, inventory levels in December 2018 sat well above levels recorded last year, and was 30% above typical levels for the month. Elevated resale inventories in 2018 were caused by gains in the detached and attached sectors.
CREB President Tom Westcott notes,
“Both buyers and sellers faced adjustments in expectations this year. Sellers had to compete with more choice in the resale market, but also the new-home market. With less people looking for a home, it became a choice between delaying when to sell or adjusting the sale price. However, buyers looking for more affordable product did not find the same price adjustments that existed in some of the higher price ranges.”