According to the Calgary Real Estate Board consumer confidence is waning in the wake of low oil prices and January's housing sales reflected that with the lowest level of activity seen here in five years.

CREB says sales in January totaled about 880 units compared to over 1400 last January, a drop of 38.9 percent.

“This change is partly connected to continued low energy prices, which impact consumer confidence. A lack of recovery in oil has many concerned about their employment status and this concern is reflected through the weaker sales activity in Calgary’s January resale figures,” said CREB Chief Economist Ann-Marie Lurie.

Sales were over 35 percent lower than the 10 year average and declined across all three sectors in the city:

  1. Attached
  2. Detached
  3. Apartment

January is typically the slowest time of the year for sales but there was a rise in inventory in January as new listings increased by 39 percent compared to the same time last year.

“There are many reasons for consumers to list their home,” said CREB® president Corinne Lyall. “One reason may be that consumers are concerned about what will happen to Calgary’s economy and their personal exposure to this risk,” said Lyall.

CREB says new listing activity increased in all price ranges in January but it was mainly because of gains in the higher price ranges. Homes priced at over $400,000 in the detached sector increased by 32 percent relative to January 2014.

Even with an increase in supply, benchmark prices remained relatively stable in January and totaled $459,100, which is a 7.7 percent increase compared to January 2014.

CREB says residential prices remained stable but there were some variations in various sectors. For instance, new listings in the apartment sector recorded the largest gain relative to sales and inventory levels nearly doubled reaching 1,148 units.

“Housing decisions will likely continue to be postponed for many consumers until they can see what happens with the economic climate in the spring,” said Lurie. “Nonetheless, if supply levels continue to rise at levels that exceed the pace of demand growth, we can expect this will start to impact prices in the city.”

CREB says economic uncertainty in the energy sector, expected increases in lending rates and a drop in net migration are pointing to a pullback in Calgary’s regional housing market in 2015.

They say supply levels will likely rise and will push the market towards more balanced conditions.

CREB Monthly Sales Statistics *Note: Only includes properties within Calgary city limits.*

Monthly

      

Month to Date

Month to Date

  

City of Calgary

Jan-14

Jan-15

% change

Feb-14

Feb-15

% change

Total Sales

1,439

879

-38.92%

71

52

-26.76%

New Listings

2,396

3,288

37.23%

122

192

57.38%

Active Listings

2,181

4,655

113.43%

N/A

4,777

N/A

Median

417,500

422,000

1.08%

390,000

417,750

7.12%

Average Price

463,303

460,929

-0.51%

431,632

489,006

13.29%

Days on Market

40

41

2.50%

33

28

-15.15%

Click HERE for CREB’s 2015 economic outlook & regional housing forecast or scroll the document below.