Sales are continuing to struggle in this tight economy. Paired with stricter lending rules that are making it more difficult for people to get approved for a mortgage following a stress test, the Calgary market is not thriving. Supply levels have also not changed, which is putting more pressure on sale prices. Despite all of this, we are optimistic that now that the snow has melted and the spring market is in full swing, things will start to get better.
CREB® chief economist Ann-Marie Lurie says, "Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry. While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas of the city have been offset by declines in other areas.”
CREB® president Tom Westcott adds, “the reality is that there’s selection heading into the active spring market. For many sellers, they have to decide what price they are willing to accept for a lifestyle change. At the same time, buyers need to understand the supply dynamics and price movements in the specific area, as they may not align with their expectations.”
Here are some highlights and numbers for you to know:
- Total sales in April for 1518 units, 25% below long-term averages and 20% below last year's stats.
- City-wide benchmark prices have stayed relatively stable, totalling $436, 500 in April.
- The detached sector took the biggest hit, year-to-date sales totalling 2991 units which is 27% below the 10 year average.
There were 7,324 units on the market in April, which is 32% more than last year (Note: In 2008, there were 10129 units on the market in April!).Please feel free to reach out and call me anytime at 403-630-6363 with your questions! Have a great weekend!
Your Real Estate Professional,