Housing markets in some surrounding areas experienced rising listings and inventory gains coupled with easing sales, limiting price recovery. Important to consider in these areas are the new-home-market effects, which often place a greater weight on resale pricing. Due to unique fundamentals and data variability attributed to the small size of each area, we often focus on the larger centres within the region.
Surrounding areas account for 22 per cent of total regional sales, with most of the activity occurring in Airdrie, Cochrane and Okotoks. Overall sales activity in surrounding areas totalled 4,782 units in 2018, a 10 per cent decline over the previous year and five per cent below long-term averages.
New listings were comparable to last year and just above typical levels. However, this was elevated compared to sales, causing inventories to reach an annual historical peak at 3,215 units and pushing prices down. However, not all surrounding areas faced price declines.
As local and provincial economic conditions are not expected to change much this year, many of these areas could continue to experience weak demand and easing prices in 2019. Price movements in these areas will ultimately depend on:
- Supply of product in the resale market
- Competition from the new-home market
- Supply availability within Calgary, along with other surrounding areas