Demand down with net migration

In step with City census data on declining net migration levels, housing sales activity totalled 1,741 units in July, a 12.6 percent decrease over last year and the 20th consecutive month of year-over-year sales declines.

“Continued pullback of sales activity is a sign of economic conditions,” said CREB® chief economist Ann-Marie Lurie. “The number of unemployed workers keeps rising and when you combine job losses with declining net migration, the result is going to be weaker housing demand.”

Slower sales were accompanied by declining new listings in July. This helped prevent further inventory gains and minimise the downward pressure on benchmark prices. By month's end, the residential benchmark price was $440,000, similar to last month, but 4.2 percent below July figures from the previous year.

While detached prices seem to be levelling, this is not the case for all property types. With over six months of inventory in the apartment sector, oversupply continues to create steep price declines.

The apartment benchmark price totalled $277,000 in July, a 0.4 percent decline over the previous month and 6.6 percent below last year’s levels.

City-wide benchmark prices for detached product totalled $502,300 in July, which is similar to last month, but 3.4 percent lower than last year’s levels. Meanwhile, semi and row attached product recorded a year-over-year decline of 3.1 and 5.5 percent for July prices of $385,200 and $310,300.

“To buyers and sellers that have been paying attention to the housing market in Calgary and surrounding areas, it should come as no surprise that we continue to see a slowdown in sales activity,” said CREB® president Cliff Stevenson. “Buyers are expecting further declines in sale prices, and sellers are adjusting to softer demand with price decreases. When these expectations intersect, we're seeing sales activity in the market, but not at the level realised over the last several years.”

- Source CREB