Download CREB®’s May 2016:
CREB® commentary: Housing supply swells in cool spring market. Calgary’s housing inventory was on the rise once again in May as new listings climbed and sales slowed to 1,923 units. in Calgary’’s residential resale housing market continued to weigh on citywide prices in April.
“While recent oil price gains may have some feeling optimistic, weakness in the labour market continues to impact housing demand,” said CREB® chief economist Ann-Marie Lurie. “Job losses are spreading into other sectors, wages are declining and unemployment levels remain high. At the same time, we’re seeing housing supply levels rise in the rental, new home and resale markets.”
Inventory levels rose by 14 per cent in May to a total of 6,148 units. Every product type is experiencing these gains, but the largest inventory growth has occurred in the apartment and attached categories. Together, these sectors represent half of all resale inventories in Calgary.
“The resale apartment market has been the most difficult for sellers,” said CREB® president Cliff Stevenson. “They are competing with improved selection in the lower price ranges of the detached and attached markets, and facing increased competition from the new home sector, where builders are offering incentives to attract potential buyers.”
While apartment resale supply remains 22 per cent below the May high of 2,055 units in 2008, the combination of rising supply in the apartment sector and steep declines in sales activity has elevated months of supply to nearly six months.
The apartment sector of the market has experienced buyers’ conditions for more than 10 months, so the impact on pricing is more dramatic, compared to the detached and attached sectors.
In May, the apartment benchmark price totaled $278,500, a monthly and year-over-year decline of 0.7 and 5.6 per cent. In the detached and attached markets, home prices totaled $500,500 and $332,100, a year-over-year decline of 3.4 and 4.3 per cent.
HOUSING MARKET FACTS
- Total residential inventories increased across each district. However, detached inventory levels are trending down in the city centre, west and east area of the city.
- Year-to-date detached sales declined by seven per cent. The decrease was caused by slower sales in the North East, North, South and South East areas of the city.
- Year-to-date apartment sales totaled 1,101 a 20 per cent decline from last year. Unlike the detached, semidetached and row sectors, each district recorded a pullback in apartment sales.
- Year-to-date, city centre benchmark prices have recorded some of the steepest declines across the city for detached, semidetached, row and apartment style product.