Market remains balanced despite easing in absorption rates while supply gain in apartment sector threatens to impact price!
Declines in residential housing sales activity eased in July, creating, when combined with stable inventory levels, no change to the month-over-month price.
Year-over-year sales fell by 14 per cent to 1,995 units in July, compared to a 17.8 per cent decrease the previous month. Despite the decline, sales activity during the month was consistent with the 10-year average.
While sales declines eased, so too did the decline in new listings, causing the unadjusted sales-to-new listings ratio to edge down to 67 per cent in July and months of supply to increase to 2.53 months.
“As weakness in the energy sector continues, this is trickling into several other aspects of our local economy including our housing market,” said CREB® chief economist Ann-Marie Lurie.
Despite weaker absorption rates, market conditions remained relatively balanced and helped maintain monthover-month stability in benchmark prices, which remained unchanged from the previous month at $455,400. “Often, the focus is on home prices. In fact, Calgary has recorded significant gains in home prices over the past several years,” said Lurie “And despite the recent retraction, we have not seen all those previous gains eroded.”