Calgary, Edmonton housing inventory up, prices down

Canadian Real Estate Association report says pricing will likely remain weak until demand and supply return to better balance

Across the Prairies, MLS residential supply remains elevated relative to sales and home prices remain below year-ago levels, according to a report released on Monday by the Canadian Real Estate Association.

The report said the benchmark price in Calgary fell in June to $416,400. That was down 4.03 per cent from a year ago.

Edmonton’s benchmark price was off 3.34 per cent year over year to $319,500.

“The home pricing environment will likely remain weak in these cities until demand and supply return to better balance,” said the national association.

Nationally, the benchmark price for all major Canadian centres surveyed was $616,600, which was down 0.35 per cent from last year.

CREA said home sales recorded through Canadian MLS systems were little changed in June following a string of monthly gains recorded in March, April and May.

“Although running close to its 10-year average and up nearly 10 per cent from the six-year low reached in February 2019, activity remains well below levels recorded over much of 2015, 2016 and 2017,” it said.

Actual (not seasonally adjusted) sales activity edged up 0.3 per cent compared to June 2018, with gains in Greater Toronto (GTA) and Montreal offsetting declines in B.C.

Jason Stephen
Jason Stephen

“Sales activity is strong in New Brunswick, where I do business, but it’s a very different story in B.C., Alberta and Saskatchewan,” said Jason Stephen, CREA’s president. 

“There’s a growing divergence in Canadian housing market trends between eastern and western Canada,” said Gregory Klump, CREA’s chief economist.

“While sales activity in Canada’s three westernmost provinces appears to have stopped deteriorating, it will be some time before supply and demand there becomes better balanced and the outlook for home prices improves.”

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