Easing sales, gains in new listings and elevated inventory levels continue to slow Calgary’s recovery in the housing market in August. (more…)
It’s been a challenging year for Calgary’s resale housing market, which is still feeling the effects of two recession years in 2015 and 2016.
While the economy has rebounded, it has been at a slow pace, and this has been evident in the real estate industry. As of the end of June, year-to-date MLS® System sales in the resale market totalled 8,553 units, down 17.1 per cent in the city compared with the same period a year ago.
Many Canadian energy-related municipalities within Alberta and Saskatchewan have seen housing markets struggle over the past few years, resulting in price declines.
The recent mortgage rule changes and higher lending rates are factors weighing on demand and prices across some of those areas.
May sales activity continued to ease, with the largest declines occurring in the detached sector. Additional gains in new listings continued to increase inventory levels.
Citywide sales activity in May totalled 1,726 units, 19 per cent below last year’s levels and 24 per cent below longer-term averages. Sales activity in the detached sector declined to levels not seen in over a decade.
“The impact of rising lending rates and stricter qualification levels is causing demand to ease across all product types,” said CREB® chief economist Ann-Marie Lurie.