Calgary Real Estate November 2015 Monthly Housing Stats
The Calgary housing market was a buyers market during the month of November, with sales declining and inventory levels rising in response to troubled economic conditions.
According to the latest CREB report, monthly sales totaled 1,263 units during the month of November, representing a 28 percent drop when compared to the same time last year. The figures are also 20 percent below the 10-year average for the Calgary housing market.
Just as sales are on the decline, the number of new listings hitting the Calgary housing market has increased by five percent when compared to November 2014. This represents a five percent increase over the 10-year average.
As a result of the decline in sales combined with the increase in listings, the housing supply within the market has increased to more than four months. As such, November represents the third consecutive month that the housing supply has remained around the four-month threshold. Nonetheless, while the inventory levels are high, they still remain 27 percent below the November high record that was reached in 2008.
Some sectors within the market faired slightly better in November than others. The detached housing sector, for example, saw its supply increase to just 3.4. On the other end of the spectrum, the apartment sector took the hardest hit with months of supply reaching 6.9 in November.
Calgary Housing Pricing
As would be expected within a buyers market, housing prices also fell in November. The unadjusted benchmark price for the sector fell to $450,7000, representing a 0.5 percent drop when compared to the previous month and a two percent drop when compared to the same time last year. The detached housing sector experienced a 0.6 percent decline compared to October when it fell to $510,700, representing a 1.52 percent drop when compared to November 2014. The apartment sector say its benchmark price fall by 0.5 percent when compared to October to $287,000, with year-over-year prices being off by 4.6 percent.
Calgary’s Economic Conditions
Due to the slower activity in the higher-priced segments, which has a tendency to skew data, the average and median prices within the Calgary housing market had been dropping dramatically. It wasn’t until recently that the residential benchmark prices have started to show a drop. This is because benchmark prices represent changes in similar-type homes, thereby minimizing the impact they have on the figures. As such, it is important for sellers and buyers to understand the differences between indicators such as average, median and benchmark prices
The Calgary housing market conditions are directly related to other economic conditions within the market, namely those that are related to employment. The city has continued to post job losses within the energy sector, resulting in high unemployment levels, lowered wages and questionable recovery expectations.