Calgary home prices trend down in 2015 as demand diminishes
Published Monday, January 4, 2016 2:55PM MST
New numbers released by the Calgary Real Estate Board on Monday reflect the effect of the economy on homes sales in the city and show a significant drop in all sectors compared to the year before.
According to the report, sales activity for detached homes dropped by 24 percent in 2015 and in the apartment and attached sectors, sales saw a decrease of 33 and 28 percent respectively.
Total sales volume for the year was at about $8.8B compared to about $12.3B in 2014, which is down by over $3B.
CREB says the housing market in Calgary is characterized by slow demand and that December followed a similar pattern to what was set out earlier in the year.
“Economic uncertainty, followed by weak economic conditions and job losses, contributed to slowing housing demand throughout the year,” said chief economist Ann-Marie Lurie.
“December showed that buyers in this market are continuing to be much more cautious as the impact of further oil price declines weighs on their confidence,” said CREB president Corinne Lyall.
Supply in 2015 trended higher in all sectors and inventory totals were up 29.96 percent, from 4,069 to 5,287 units, by the end of the year.
“Some sellers, meanwhile, are concerned about what supply levels may look like next year and are not delaying their decisions,” said Lyall.
“While aggregate prices trended down in 2015, it was not to the same extent as some had speculated. Supply levels were low moving into this cycle and thus provided some cushion to absorb the inventory gains,” said Lurie.
In the apartment and attached home sectors inventory levels were up in 2015 and neared the highest December total on record.
CREB says the apartment segment was the only one to record an annual decline in average benchmark price, by 0.82 percent.
December prices for detached and attached homes were 1.91 and 1.29 percent lower than levels recorded at the beginning of 2015 and they remained 1.35 and 1.84 percent above 2014 numbers on an annual average basis.
The report shows total sales in December 2015 slowed to 878 units in the city compared to 1,073 in 2014.
CREB says the 18 percent decrease is well below the five and 10 year averages and resulted in a 2.33 percent dip in the unadjusted benchmark price year over year to $448,800 from $459,500.
To view the complete report, click HERE or scroll the document below.