Slow Septem­ber sales in Cal­gary close out third quar­ter

Calgary Sun - Homes - - Homes - Myke Thomas CALGARYSUN

Septem­ber was an­other de­flat­ing month for Cal­gary’s re­sale homes mar­ket, with a de­cline in sales in each of the three sec­tors — sin­gle-fam­ily, at­tached and apart­ments.

Sales on the MLS Sys­tem in Cal­gary were 1,273 homes, down 14 per­cent from Septem­ber 2017 as the per­fect storm con­tin­ues to lash the mar­ket.

“Cal­gary’s econ­omy con­tin­ues to strug­gle with unem­ploy­ment, which rose again last month to over eight per­cent. Con­cerns in the em­ploy­ment mar­ket, higher lend­ing rates and shaken con­fi­dence are weigh­ing on hous­ing de­mand,” said Ann-Marie Lurie, chief econ­o­mist at the Cal­gary Real Es­tate Board (CREB). “At the same time, sup­ply lev­els con­tinue to re­main high, re­sult­ing in per- sis­tent over­sup­ply and price de­clines.”

The to­tal in­ven­tory at the end of Septem­ber was 7,941 homes, re­sult­ing in months of sup­ply ris­ing to 6.25, and putting the mar­ket firmly in the hands of buy­ers.

The sin­gle-fam­ily sec­tor saw a 24 per­cent year-overyear rise in in­ven­tory, while the at­tached sec­tor in­ven­tory rose 23 per­cent.

How­ever, the apart­ment sec­tor saw in­ven­tory fall by nine per­cent.

The over­sup­ply is also putting down­ward pres­sure on prices, with the un­ad­justed city-wide bench­mark price de­clin­ing three per­cent last year to $428,700.

By sec­tor, the sin­gle-fam­ily bench­mark price was $493,100, down three per­cent; the apart­ment bench­mark de­clined three p e rcent to $257,200; the at­tached sec­tor came in at $324,700, also a drop of three per­cent.

“This is the new nor­mal of Cal­gary’s real es­tate,” said CREB pres­i­dent Tom West­cott. “Some po­ten­tial buy­ers may want to take ad­van­tage of the mar­ket con­di­tions, but they face dif­fi­cul­ties sell­ing their ex­ist­ing home based on their ex­pec­ta­tions. This pre­vents them from pur­chas­ing some­thing else.”

Even with the drop in Septem­ber sales, third-quar­ter fig­ures gen­er­ally point to­wards a slower de­cline in sales and some eas­ing in new list­ings growth, but not enough to im­pact in­ven­tory lev­els in the quar­ter.

The Cal­gary econ­omy con­tin­ues to strug­gle, but there might be some signs of po­ten­tial im­prove­ments in the fu­ture with a de­crease in va­can­cies in the rental mar­ket, which could con­tribute to a slow re­duc­tion in over­all hous­ing sup­ply.

POSTMEDIAFILE

There have been an in­creas­ing num­ber of signs like this one in the Cal­gary area. To­tal in­ven­tory at the end of Septem­ber was 7,941 homes, with 6.25 months of sup­ply.

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