Calgary Real Estate Board Reports 27% Drop
The Calgary Real Estate Board today reported a 27% drop in number of home sales on an year-over-year basis. There were 2,250 homes exchanged in 2014, versus only 1,644 in 2015.
However, it is key to note that although there was volume pressure downwards, the average price dipped by just 2%, from $475,000 to $466,000.
According to CREB President Corinne Lyall, the homes priced under $500,000 continue to sell well, where as the apartments and luxury homes suffer.
“With more options in the higher-end of the market, sellers will need to consider their competition as well as their goals regarding a sell date,” said CREB president Corinne Lyall.
“This will influence the pricing strategy they agree upon with their real estate professional.” Lurie added that despite challenges near the top of the market, absorption rates in the under-$500,000 detached sector remained relatively tight and is likely causing some price trend discrepancies.
Unfortunately, CREB’s chief economist Ann-Marie Lurie says that the market in Calgary is not expected to improve anytime soon because of the weak energy prices, and job market as a result.
“There should be some further downward pressure on the housing market. Ultimately the amount of pressure there’ll be on prices will depend when the energy sector does recover,” Lurie noted.