Home buyers and sellers took a break during August as sales and new listings came in below July’s and last year’s levels, according to the Calgary Real Estate Board (CREB).
There were 1,660 sales in August, down from 1,904 sales in July and a 16% decline from August last year, while there were 3,141 new listings, down from 3,323 in July and down 10% from last year.
Higher priced homes recorded gains, says Ann-Marie Lurie, CREB’s chief economist.
“The pullback in sales has not occurred across all price ranges, as homes priced over $1,000,000 have recorded gains over last year,” says Lurie.
“These gains have mostly been driven by detached and semi-detached homes and are also consistent with where most of the supply growth has occurred.”
“While sales growth in the upper end of the market was possible thanks to improved supply choice, it also reflects longer-term confidence in our market, as some buyers are not shying away from taking advantage of the available supply.”
Lurie added the slowdown in lower priced homes could be attributed to favourable rental conditions slowing the transition to ownership.
Listings in Calgary dropped to 6,509 homes, down from 6,626, four months of supply city-wide. Supply varied by housing type, with close to a six-months supply in the apartment sector and three months of lower-density detached homes.
“The relatively balanced conditions in the detached and semi-detached sector have prevented any significant shifts in prices compared with the steady price declines occurring in the oversupplied higher-density segments of the market,” says Lurie. “As of August, the city-wide residential benchmark price was $569,800, a slight increase from $569,300 in July.
Here is Lurie’s breakdown of the Calgary market by housing type.
Single-family
Sales reached 875 homes, a 12% year-over-year decline while new listings were 1,635. The north and northeast districts had four months of supply, while other areas of the city had three months of supply. The benchmark price in August was $744,300, similar to July.
Semi-Detached
Sales were 1,516 units, just over a 2% drop from last year. Conditions remain relatively balanced, with the benchmark price reaching $690,500, with price gains in the city centre, northwest and west districts , offsetting pullbacks in other areas.
Row/townhomes
Sales were 284 homes, down 15% year-to-date, due to additional new-home supply and more rental product. Prices have been easing in all districts in the city, varying from 12% in the northeast to just over 1% in the northwest district. The August benchmark price was $415,200.
Apartment Condominium
The market is oversupplied with apartments with nearly six months of resale supply, with more rental supply slowing sales. The benchmark price was $295,400 down from the peak price of $341,300