Okotoks provides potential residents with relative affordability and easy access to Calgary. In 2018, this housing market saw low levels of sales combined with elevated levels of inventory. However, benchmark prices for properties have been slow to respond to the imbalance in market conditions.
- In 2018, sales in Okotoks were significantly below 2014 highs and comparable to levels from 2010. Year-over-year sales were also lower across all property types.
- New listings have stabilized at 1,033 units, comparable to historical periods as well as long-run averages. However, the drop in sales caused inventories to rise close to the historical peak achieved in 2009. This has led to an increase in months of supply, with an annual average of six months.
- Excess supply did start to weigh on prices, as prices in the fourth quarter eased compared to third-quarter figures. However, it was not enough to offset early gains, causing annual prices to rise.
- In 2018, new-home starts and under-construction inventory declined significantly compared to 2017, which indicates a builder reaction to high inventory and easing demand levels.
- Until resale inventories ease, Okotoks could see some downward price pressure in 2019. However, adjustments in the new-home sector should help limit the impact on overall resale prices.