Inventory increases and sales drop in September, but overall sales

for the year remain higher than last year.

Sep. 2017

 

City of Calgary, October 2, 2017 – Strong gains in the first-half of 2017 has put

the Calgary year-to-date sales at seven per cent above last years’ levels and 11

per cent below long-term averages, but challenges remain with easing sales and

rising new listings.

Inventories rose across all property types to 6,861 units, while both apartment

and attached-style properties saw the highest inventory on record for the month

of September.

“The recent rise in inventories is preventing further price recovery as sales

activity has moderated over recent months. This does not come as a surprise as

sales activity is expected to remain modest by historical standards until more

substantial economic improvements take hold,” said CREB® chief economist Ann-

Marie Lurie.

“Some may consider this a setback, but it is important to note that recent

movements are balancing out the higher than expected gains that occurred in the

first-half of the year.”

New listings in September totaled 3,266 units, a year-over-year gain of nearly 10

per cent.

“There are several factors influencing new listings. Given the falling prices over

the past two years, some sellers were waiting for market conditions to improve

prior to listing their homes. More stability in the market has prompted many of

those sellers to no longer delay their listing decision,” said CREB® president David

P. Brown.

“In some segments, rising new home inventories are also impacting total housing

supply. Ultimately, prices are affected. However, this inventory also opens up

opportunity for buyers to step up into a home that was financially unattainable.”

As of September, unadjusted benchmark prices totaled $441,500. This is 0.2 per

cent below last month, but nearly one per cent above last year. Downward price

pressure this month occurred across most product types. However, year-to-date

benchmark prices in the detached sector remain comparable to last year.

Prices in the detached sector remain relatively stable compared to last year.

Condominium apartment prices remain four per cent below 2016 levels and

twelve per cent below 2014 highs. This sector continues to struggle with price

declines resulting from excess supply as months of supply pushed above eight

months.