Overbuilding drags down Calgary house prices CMHC report

Monday, November 12, 2018Norm Rousseauposted in CMHC

Calgary house prices are sliding and a new report from the Canada Mortgage and Housing Corporation indicates that trend could continue.

Amanda Stephenson, Calgary Herald Updated: October 25, 2018

Chart price changes and the symbolic house. Financial conceptCalgary house prices are sliding and a new report from the Canada Mortgage and Housing Corp. indicates that trend could continue.

In its quarterly Housing Market Assessment, released Thursday, the CMHC said Calgary’s housing market indicates a “moderate” degree of vulnerability as a result of overbuilding. Calgary is still a buyer’s market, with the inventory of unsold new homes outpacing demand.

HOUSING MARKET FACTS

Friday, November 2, 2018Norm Rousseau

Calgary - October 2018

Apartment

  • Year-to-date apartment sales have totaled 2,316 units, nearly seven per cent below last year. New listings have also eased by six per cent, helping reduce the amount of inventory in the market.
  • Despite the easing inventories, the months of supply remains elevated at 7 months.
  • Year-to-date apartment condominium prices have eased by 2.8 per cent and remain 14 per cent below 2014 highs. Declines occurred across all districts, with the steepest declines occurring in the North East, East and South districts.

Attached

  • The attached sector has recorded year-to-date sales of 3,098. This is 15 per cent below last year and 14 per cent below long-term averages.
  • Meanwhile, despite recent easing in new listings, October inventories are the highest level on record.
  • The oversupply is affecting both the semi-detached and row sectors, which have seen prices trend down over the past 5 months.
  • Year-to-date, row benchmark prices have averaged $298,140 this year, nearly two per cent below last year and nine per cent below previous highs.
  • However, prices have remained relatively flat in both the City Centre and North West districts.
  • As of October, semi-detached prices were $403,400, one per cent lower than last month and nearly three per cent lower than last year. Despite recent declines, year-to-date citywide prices remain relatively flat compared to last year. This was most due to gains in the City Centre, North East and East districts offsetting declines in the North West, South and South East.

HOUSING MARKET FACTS

Friday, November 2, 2018Norm Rousseauposted in CREB Market Statistics

Calgary October 2018

Detached

  • Detached sales in October totaled 829 units, for an 8.6-per-cent decline, resulting in a year-to-date decline of 15 per cent. This is the slowest level of detached sales since the late ’90s.
  • Year-to-date, the largest decline in sales occurred in the $600,000 – $999,999 price range, reflecting slow demand coming from move-up buyers.
  • For the second month in a row, new-listing growth eased, helping prevent further inventory gains. However, as this segment remains oversupplied, prices continue to trend down.
  • Detached benchmark prices totaled $490,200 in October. This is below last month and three per cent below last year. On a year-to-date basis, prices remain one per cent below last year’s levels.
  • As of October, year-over-year prices have eased across all districts, with the largest declines occurring in the North East, North West, South and South East districts. This is likely a result of added competition from the new-home sector.

Oversupplied market weighs on prices

Friday, November 2, 2018Norm Rousseauposted in CREB Market Statistics

City of Calgary, November 1, 2018 –

Elevated inventory levels compared to sales, are causing prices to ease further in Calgary’s housing market.
Citywide benchmark prices totaled $426,300 in October, trending down for the fifth consecutive month and resulting in a year-over-year decline of 2.9 per cent.
“Job growth in this city remains a concern, as unemployment levels remain well above levels expected for this year. Rising costs of ownership also continue to weigh on housing demand,” said CREB® chief economist Ann-Marie Lurie.

November 11

Tuesday, October 30, 2018Norm Rousseauposted in General

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