Prices Remain Stable Amid Economic Challenges
City of Calgary, May 1, 2018 – Calgary's real estate market continues to experience challenges as mortgage lending policy changes and ongoing economic recovery struggles impact sales. Weakened consumer demand and increasing inventory levels have prevented price recovery, maintaining a sluggish market.
CREB® Chief Economist Ann-Marie Lurie explained:
"The slowdown in sales is not surprising, as the economic recovery has not been strong enough to offset the impact of mortgage policy changes. While inventory levels have risen, prices have remained relatively stable, with some areas seeing price increases while others experience declines."
Market Performance
April sales remained weak, totaling 1,518 transactions, representing a 20% decrease from 2017 and 25% below the long-term average. The detached home segment experienced the most significant decline in 2018, with 2,991 units sold year-to-date, 27% below the 10-year average.
As of April’s end, active inventory stood at 7,324 units, marking a 32% increase compared to 2017. However, this remains significantly lower than the 10,129 units available during the 2008 market peak. Despite the growing supply, prices have remained relatively stable, with the city-wide benchmark price at $436,500, reflecting a 0.21% increase from both April 2017 and March 2018.
CREB® President Tom Westcott noted:
"The reality is that buyers now have more choices during the traditionally busy spring market. For sellers, they need to decide on their pricing strategy based on their individual circumstances and motivations. Meanwhile, buyers must understand that different locations and property types vary significantly, or they may misjudge their negotiation leverage."
Segment-Specific Trends
Condominium and townhouse sales have dropped to 2016 levels, while inventory in these segments has surged. This has resulted in properties remaining on the market for an average of over four months, significantly restricting price growth.
As Calgary's real estate market navigates economic headwinds and policy shifts, both buyers and sellers must remain strategic in their decision-making to adapt to evolving market conditions.