(Troy Media) Two weeks into a new year and some interesting trends are developing in Calgary’s resale housing market.
Demand continues to mirror what took place in 2018 with several economic headwinds impacting the number of MLS sales in the city.
According to the Calgary Real Estate Board website, as of Tuesday, month-to-date MLS sales of 246 are down 22.8 per cent compared with the same period a year ago. Pending sales of 43 are off by 48.19 per cent.
Demand in the city has been hit by several factors, including higher mortgage interest rates and tougher mortgage regulations introduced last year. But perhaps a bigger factor is the economy. When oil prices collapsed in the latter half of 2014, that dynamic sent the city into an economic recession in both 2015 and 2016.
While the economy has recovered, it is a very slow recovery punctuated with plenty of uncertainty. Optimism remains low in the business community and consumers are hesitant to make big ticket purchases such as real estate.
So far in January the number of new listings has risen from a year ago. After two weeks, there were 1,078 new listings for homes for sale which is up 6.63 per cent from a year ago. The number of active listings also remains elevated at 5,209 which is 15.35 per cent higher than what it was for the first two weeks of January 2018.
With lower demand and higher listings, it is taking longer to sell a home in Calgary these days. The average days on the market has risen from 61 last year to 73 today, representing an increase of 19.67 per cent.
And with lower sales and more homes for sale, you would expect that to impact prices. The numbers tell a very interesting story.
The median sale price in the city for the first two weeks of January was $402,500. That was a decline of 1.59 per cent from what it was last year.
However, the average MLS sale price has risen by 5.06 per cent to $473,024.