Calgary Real Estate Market Statistics February 2016
Due to slow sales and an elevated housing inventory, prices continued to fall within the Calgary housing market in February. With the state of the current economic environment, consumer confidence and housing demand have both been negatively impacted.
Unemployment Continues to Affect the Calgary Housing Market
Over the past eight months, unemployment rates have continued to rise in Calgary. As such, unemployment rates have reached higher levels than they reached during the previous recession. Unfortunately, these conditions are expected to continue over the next several months, which means unemployment is likely to continue to have a negative impact on the Calgary housing market.
During the month of February, sales within the Calgary market reached 1,127 units. This represents a 6.63 percent drop when compared to the previous year. These figures are also 37 percent lower than the long-term averages for the month of February. Furthermore, the number of new listings in Calgary is also declining, resulting in inventory levels that have remained elevated at 5,681units. As such, the market continues to favor the buyer with a five month supply of units.
Prices Falling in the Calgary Housing Market
Just as the number of units sold has fallen within the Calgary housing market, so have prices. In the month of February, city-wide unadjusted benchmark prices were $445,000. This figure represents a 0.63 percent drop when compared to January and a 3.45 percent decline when compared to the previous year. With the current high level of inventory in the market, sellers are being forced to consider more realistic prices when putting their properties on the market. Furthermore, buyers are becoming less likely to make an offer if there is a big gap in what they are willing to pay and the listing price.
Examining Various Sectors
Both the apartment and attached sectors saw a noticeable shift in their share of sales during the month of February. While the apartment sector dropped to 15 percent, the attached market saw an increase of 24 percent. Overall, the apartment sector typically represents 17 percent of the market, while the attached sector represents 22 percent. Some of these shifts are likely due to the fact that there are more options available in the attached market.
Overall, the attached market was the only segment with a year-over-year increase in sales activity. This is partially due to the fact that February had an extra day this year. Nonetheless, the overall activity did remain higher that the lows recorded in February 2009. At the same time, both the apartment and detached sector saw a drop in sales when compared to last year’s activity, representing the lowest levels recorded for the month in more than a decade. Detached benchmark prices also fell by 0.71 percent when compared to the previous month at $504,000.
Due to the current market conditions, sellers must have a solid selling strategy if they hope to get their home sold within a reasonable timeframe.