If you’re in the market for a new home in Calgary, you’re in luck: Inventory is at an all-time high, with very little competition from other buyers.
According to the Calgary Real Estate Board’s (CREB) report for April, sales for all types of homes were down by 20% on a year-over-year basis, from 1,900 sales in 2017 to 1,518 sales in April.
The decline was led by single-family homes (-23.83%), followed by semi-detached homes (-23.53%), attached homes (-18.12%), row and townhomes (-13.12%), and apartments (-7.42%).
In contrast, inventory rose to 7,324 homes in April, a 33% increase from April 2017.
Seismic shifts in the lending industry—such as OSFI’s new mortgage stress test and interest rate hikes—have contributed to the cooling of Calgary’s residential real estate market.
“Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry,” said Ann-Marie Lurie, chief economist at CREB. “While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas of the city have been offset by declines in other areas.”
The city-wide benchmark price actually registered a marginal year-over-year increase, from $435,600 to $436,500, with only apartments and semi-detached homes showing a year-over-year decline in benchmark prices of 3% and 1.2% respectively.
“The reality is that there’s selection heading into the active spring market,” said Tom Westcott, president of CREB. “For many sellers, they have to decide what price they are willing to accept for a lifestyle change. At the same time, buyers need to understand the supply dynamics and price movements in the specific area, as they may not align with their expectations.”
Also read: Calgary home prices still struggling to recover
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