Calgary continues to be a buyers’ market as home sales fell 13% in September compared to a year ago.
There were 1,272 home sales last month, with the detached market leading the widespread decline according to new figures from Calgary Real Estate Board.
Year-to-date sales are 20% below 10-year averages for both detached and apartment properties and 14% below for attached homes.
"Calgary's economy continues to struggle with unemployment, which rose again last month to over 8%. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand," said CREB® chief economist Ann-Marie Lurie.
Inventory continues to exceed typical levels with 7,941 units available, amounting to 6.25 months of supply. For detached homes there was 5.5 months’ supply. Apartments saw fewer new listings than a year ago.
The oversupply has meant downward pressure on prices which fell 1% from August to a citywide benchmark of $428,700, a 3% decline year-over-year.
The “new normal”
CREB president Tom Westcott says this is the “new normal” of Calgary’s real estate.
"Some potential buyers may want to take advantage of the market conditions, but they face difficulties selling their existing home based on their expectations. This prevents them from purchasing something else," he said.
There are signs that the fall in sales may be easing with third quarter data showing a smaller decline and a slower pace of new listings.