City of Calgary, September 1, 2017 – Sales posted a modest gain in August, but

a rise in new listings kept inventory levels elevated.

Inventories totaled 6,624 units, where over half were comprised of attached and

apartment style properties. While inventories were 16 per cent higher than

August 2016 levels, the slight rise in sales prevented further gains in the monthsof-

supply, which remain just above four months.

“Employment growth is contributing to the stability in sales activity, but it is not

enough to meet the recent rise in listings and make a substantial dent in

inventory levels,” said CREB® chief economist Ann-Marie Lurie.

“Unemployment rates remain elevated and job growth is mostly occurring

outside the energy sector, slowing the recovery process. Broader economic

improvements will be required prior to it translating into substantial

improvements in the housing market.”

The second month of higher inventories compared to sales weighed on prices for

the month. The unadjusted city wide benchmark price totaled $442,300 in

August. This is 0.3 percent below last month, but remains nearly one per cent

above last year’s levels. Overall total residential prices remain four per cent below

peak levels.

“Buyers have several options in this market, and sellers need to continue to be

realistic regarding the price they expect to receive for their home,” said

CREB® president David P. Brown.

“While some of the buyers are re-entering the market, they are also considering

all of their options prior to making a commitment.”

The pace of growth in detached sales has closely matched new listings this year.

However, inventory levels continue to remain at 3,280 and months of supply

pushed up to 3.32. Recent gains in months-of-supply prevented further gains in

prices this month. Detached prices totaled $510,900 in August. This is slightly

lower than last month, but 1.5 per cent above last year’s levels.

With over seven months-of-supply, the excess supply continues to weigh heavily

on the apartment condominium sector. As of August, the benchmark price

totaled $263,300. This is one per cent below last month and three per cent below

last year’s levels. Downward price pressure in this sector is expected as supply

levels remain elevated in the new, resale and rental market.