Buyers’ market offers plenty of property options
Prices fall to 2014 levels due to ‘glut’ of resale listings, struggling economy
Calgary’s resale housing market continues to be rattled by the sputtering economic engine, growing supply levels, declining sales, mortgage stress and sagging prices, according to those in the industry.
From a price perspective, Gary MacLean, a 32-year realtor with ReMax Central, says prices at the end of September were sitting at 2014 levels.
He says the median price of a condo is currently $30,000 below where it stood at the beginning of 2014, and the median for singlefamily homes has not moved up nor down.
MacLean says prices peaked in February of that year and oil crashed in June.
“That is not good news for homeowners, but great news for those buying. I can think of nowhere you can buy a home in 2018 at 2014 prices,” he says.
His figures show that at the end of September there were more than 7,900 properties listed for sale on the MLS system.
“And that figure does not count all the homes being built and thousands of condos under construction,” he adds.
The sales-to-listings ratio for condos, according to MacLean, has one unit selling for every 7.7 on the market; the ratio for singlefamily homes is one sale for every 5.6 listed on MLS.
“This is not a time to be testing the market,” MacLean adds. “With this glut of homes on the market, it is so important that sellers price their home correctly. It’s a buyer’s market and they have lots to choose from.”
For its part, the Calgary Real Estate Board says sales totalled 1,272 in September, down 13 per cent from the same month a year ago and “well below” long-term averages.
“Calgary’s economy continues to struggle with unemployment, which rose again last month to over eight per cent. Concerns in the employment market, higher lending rates, and shaken confidence are weighing on house demand,” says CREB chief economist Ann-Marie Lurie.
“At the same time, supply levels remain high, resulting in persistent over-supply and price declines.”
The board reports its inventory of homes is just over 7,900, pushing the months of supply to 6.25, and that continuing over-supply is putting downward pressure on prices.
Lurie reports the unadjusted citywide benchmark price was at $428,700 at the end of September, nearly one per cent below the previous month and three per cent below year-ago levels.
Describing this as the “new normal” for Calgary ’s real-estate market, CREB president Tom Westcott says some potential buyers looking to move in the marketplace may find their sales expectations might prevent them from purchasing.
“It has been four years and nine months since housing prices peaked, and though they seem to be levelling off, I cannot predict when they will rise again,” says MacLean.
“So this is an opportunity for buyers to purchase homes at prices that have not risen in years.”