National Bank: “Record Monthly Drop in Calgary House Prices” in May

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.

Calgary price growth has reverted to negative territory for the first time since 2011

Calgary price growth has reverted to negative territory for the first time since 2011

May 2015 Statistics (Source: housepriceindex.ca)

May 2015 Statistics (Source: housepriceindex.ca)

Calgary Index Level

Calgary Index Level

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