With increased unemployment and steady increase of inventory, Calgary’s real estate market saw another month of slow home sales in the month of March. Current listings are seeing price reductions (especially for homes valued over $700,000) however, sales are still slow. Experts believe that home buyers are waiting for even further reductions before buying, ultimately waiting for the market to bottom out. With that said, let’s take a look at the numbers for the month of March.
Calgary Real Estate Numbers
- Benchmark price totaled $442,800
- Benchmark down 0.49% from February and down 3.51% from 2015
- Total home sales 1,588
- Total home sales down 11% from March 2015 and down 28% than long-term averages for the month
- Apartment sales totaled 554, down 17% from last year
- Apartment benchmark price totaled $281,000
- Home prices for Detached & Attached sector are down 4%
Supply & Demand
- Housing supply gains in most price ranges
- Inventory levels increased 7% (6,084 units)
- Increased inventory leading to price reductions
What Does It All Mean?
Essentially, it’s going to remain a buyer’s market. Alberta’s unemployment rate (7.9%) is at the highest levels since the early 90’s and Calgary’s unemployment rate (8.4%) is even higher than the provincial average. All the industries in the city are feeling the effects of the slumping economy and the housing market is no exception.
Calgary’s real estate market continues to remain a buyer’s market, a theme that has continued for the past five months. Another positive for home buyers is that the current market is an opportunity to move-up into higher end homes, which have seen large price reductions. Whether it’s real estate or stocks, trying to get into any market at the bottom is tricky. With low listing prices and price reductions new home buyers and move-up buyers have a everything to gain in this market.
If you’re looking to buy a new home or a home owner that wants to move-up, feel free to email me today at firstname.lastname@example.org