Lower demand and higher listings are starting to put pressure on prices in Calgary’s resale housing market.
The statistics on the Calgary Real Estate Board for the first two weeks of November follow the pattern of much of this year. But now that supply and demand dynamic is really starting to show up in prices for the city’s housing market.
In the first two weeks of the month, the median sale price of $389,900 had dropped by 6.05 per cent compared with the same period a year ago.
The average MLS sale price has also declined by 5.81 per cent to $433,830.
Calgary’s resale housing market continues to struggle – feeling the lingering effects of the oil price collapse that began in the latter half of 2014.
That led to two years of recession in the city – 2015 and 2016. It was a period of time when thousands of people were laid off, particularly those in high-paying occupations in the oilpatch.
That harsh reality has taken its toll on the housing market with decreased demand.
For the first two weeks of November, MLS sales of 525 are down 13.51 per cent from a year ago and pending sales have dropped by 23.81 per cent to 64.
In that dynamic of slower demand, the market has also been experienced elevated listings throughout the year. Active listings as of Thursday were 7,195 throughout the city which is 12.83 per cent higher than it was a year ago. The good news for sellers is that number has been going down. So far this month, for example, new listings have fallen by 11.10 per cent in Calgary to 985.
But the listings remain elevated and that’s having an impact on the average number of days it is taking people to sell their homes in this market. So far in November, that average has climbed to 59 days – an 18 per cent hike from last year.