CREB links slowing resales to city’s high jobless rate
August was the seventh consecutive month to see fewer sales of previously owned single-family homes in Calgary than the same time in 2017.
There were 927 single-family homes sold through the city’s resale market last month, marking a decline of nearly six per cent from the 983 that changed hands in August 2017, says the Calgary Real Estate Board.
Last month’s activity was also a setback from the 969 such transactions a month earlier. Year to date, single-family resale is 16 per cent short of the same days in 2017.
Economic factors are playing a role in the slowdown, says CREB’s chief economist Ann-Marie Lurie.
“Calgary’s employment market has persistently high unemployment rates at 7.9 per cent and recent job losses in full-time positions,” she says. “The struggles in the employment market are one of the factors weighing on our local housing market.”
“A slow recovery in the energy sector combined with tighter lending conditions and competition from the new home sector are also contributing current housing market conditions,” Lurie adds.
Leading last month’s resale of single-family homes were neighbourhoods in an area CREB defines as southeast Calgary, which had 164 of these sales on the books. Northwest Calgary and South Calgary followed with 156 and 155, respectively.
The single-family segment last month also recorded its lowest benchmark price since January 2017. It was $497,000, which was down 2.5 per cent from $510,200 in August of last year.
Benchmark prices are that of a typical home based on a formula that uses various factors to ensure accurate comparisons.
“Both buyers and sellers need to be realistic about their objectives,” says CREB president Tom Westcott.
“Buyers need to be aware that price changes differ depending on what and where you are buying,” he adds. “The decline in sales does not mean price declines across the board.”
The sales to list price ration last month was 96.62 per cent, a 0.8 per cent dip year over year.
Selection of single-family homes through the resale market picked up in August, with growth in both inventory and new listings.
Supply of single-family homes last month soared 35 per cent from August 2017, with 1,823 listings compared to 1,674. South Calgary carried the pace with 837 previously owned single-family homes available, followed by 665 in north Calgary, 606 in the city centre, and 602 on the southeast end.
The benchmark price in south Calgary last month was $470,300. The priciest end of the city was west Calgary at $731,200, says CREB.
New listings of single-family homes in August jumped nine per cent from the same month in 2017. There were 1,823 additions to the market compared to 1,674 a year earlier. South Calgary paced the city in new listings last month with 348.