Calgary’s real estate market seemed to go through a bit of an adjustment period in April. Last month saw sellers adjusting their expectations of the market which was apparent by the slightly lower benchmark price (for detached homes) declining 0.7 per cent from March. The number of new listings in April was down 18 per cent from the previous year, and the number of sales was down 22 per cent from last year. The median price has dropped 2 per cent to $420,000 while the average sale price is down by 1.5 per cent to $468,411.
“With fewer buyers making purchase decisions and improved selection for resale, new home and rental property, sellers have been either adjusting their expectations on price or delaying their plans about when to list their home,” said CREB® president Corinne Lyall. And while sellers make concessions, buyers are also adjusting. With the inventory still higher than normal, we’ve seen more options on the market and buyers taking their time to find exactly what they’re looking for.
Although the market has slipped since the beginning of 2015, it’s not the time to hit the panic button. Although we are experiencing a higher number of listings, it is settling out because sellers aren’t listing their homes at such a high rate.
“While conditions continue to favour the buyer, both the months of supply and the sales to new listings ratio, which represent measures of market balance, tightened in April,” said CREB® chief economist Ann-Marie Lurie. “If this trend continues, it should help prevent resale inventories from rising to previous highs and limit some of the downward price pressures we’ve been seeing.”
The expected slowdown in the rate of price growth in Calgary in 2015 has led the Canada Mortgage and Housing Corp. to report that overvaluation concerns in Calgary’s housing market are at a low overall risk, unlike Toronto and Montreal which was reported as moderate.