This year’s census data has shown a major decline in net migration. While families already in Calgary are growing, the number of people coming to Calgary from other places has decreased. This has affected the housing market by sales activity dropping.
CREB® chief economist Ann-Marie Lurie explains, “continued pullback of sales activity is a sign of economic conditions. 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.”
One thing that worked in favor of this was a decline in new listings. Less buying activity was matched with less inventory on the market, which significantly helped prevent pressure on benchmark prices. CREB® notes that the “residential benchmark price was $440,000, similar to last month, but 4.2 per cent below July figures from the previous year.”
This decline in inventory levels has not been across the board. The apartment sector continues to see major inventory gains, making benchmark prices fall significantly. If you are in the market for a new lease on an apartment, now is a great time to be looking to get locked into something long-term. CREB® writes, “the apartment benchmark price totaled $277,000 in July, a 0.4 per cent decline over the previous month and 6.6 per cent below last year’s levels.”
Overall, prices and inventory levels are declining in response to fewer individuals seeking housing in Calgary. This is a trend that was not expected in past future forecasts for the Calgary real estate market, but Calgary continues to push forward towards a better future.
“ 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 sold 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 realized over the last several years.”
For more information on what happened in July, head to www.creb.ca for an in-depth report of the housing market.
Your Real Estate Professional,