As recently as December, Calgary led the nation in annual house price appreciation as measured by the Teranet-National Bank House Price Index. May figures released today showed Calgary once again was tops, however, this time for the largest annual & monthly decline.
Calgary prices were lower than the year before for the first time since July 2011, falling -1.4%.
Between April and May, prices fell -3.3%, the largest monthly drop recorded for the region. This rolled back Calgary prices to the lowest level since April 2014. Since peaking in October 2014, the index has dropped -5%.
National Bank provides us with this insight:
“The record monthly drop in Calgary house prices was concentrated in dwellings other than condos. This is consistent with anecdotic evidence that so far, Calgary’s market for high-end expensive homes has borne the brunt of the collapse in oil prices. Historically low mortgage rates mostly support demand for lower-priced homes.” (Source)
Interesting sidepoint: Edmonton is still 1.9% below their 2007 peak whereas Calgary remains above 2007 levels even with the recent slide.