The slide in Calgary’s resale housing market continues.
About halfway through July, MLS activity remains the way it’s been for awhile this year – decreased sales and increased listings defining the real estate industry.
As of July 15, MLS sales of 711 were down 7.54 per cent compared with the same period a year ago, according to the Calgary Real Estate Board website.
At the same time as sales are declining, listings remain elevated and growing.
New listings for the month of July are at 1,373. They have risen by 0.66 per cent from a year ago and active listings are up by 31.4 per cent to 8,854.
Pending sales are down 34.23 per cent to 73. And the average days on the market to sell a home have jumped from 42 last year to 51 this year, representing a hike of 21.43 per cent.
Typically, a drop in sales combined with increasing listings would impact prices in a negative direction.
The median price of $421,500 is up 0.6 per cent year over year.
Ann-Marie Lurie
CREB’s chief economist
The average MLS sales price has increased by 2.45 per cent to $488,402.
“While our economy is no longer in a recession, persistently high unemployment rates, concerns over long-term growth, rising lending costs and stricter qualifications are all weighing on the housing demand,” said Ann-Marie Lurie, CREB’s chief economist, in a recent statement following the release of June’s monthly data.
“Growth in new listings is starting to ease for some property types, but it is not enough to prevent continued supply growth and, ultimately, an oversupplied housing market.”
Weak sales activity in Calgary continued into June, as residential sales for the month totalled 1,896 units. This is 11 per cent below last year and 12 per cent below long-term averages. New listings continued to rise, with further inventory gains and months of supply now at 4.7 months.
The months of supply indicate the amount of time it would take for the current level of inventory to be completely sold given the current level of sales activity.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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