Sales on the Calgary MLS System in October were up six percent from September and up 10 percent from October 2018, according to the monthly report from the Calgary Real Estate Board (CREB).
New listings continued to decline, from 2,715 in September to 2,375 last month, contributing to a reduction in inventory to 6,493 homes in October, down from 6,912 in September.
The sales increase was driven primarily by apartments and attached homes, but not enough to take a meaningful bite out of Calgary’s oversupply problem, resulting in prices remaining below last year’s levels.
A change in job descriptions and lower wages has led to a majority of sales being homes priced at less than $500,000, says Ann-Marie Lurie, CREB’s chief economist.
“Employment has shifted in the city, with job growth occurring in our non-traditional sectors and often at a different pay scale. This is consistent with the shift to more affordable housing product,” says Lurie. “However, at the higher end of the market, the amount of oversupply is rising, as supply cannot shift enough to compensate for the reductions in demand.“This is likely causing divergent trends in pricing and preventing prices from stabilizing across the city.”
Signs of improvement in the market are not consistent across all product types and price ranges, says Lurie.
“Improvements in sales are occurring in the lower price ranges across all product types. This is not yet translating into price shifts, as persistently elevated supply levels continue to place downward pressure on prices,” she says.
The citywide unadjusted benchmark prices in October were $422,900, just below last month’s levels and two percent lower than last year’s levels.
Here’s a year-over-year comparison of sales by price range and benchmark prices in Calgary.
Oct. 18 Oct. 19 YTD 2018 YTD 2019
1,320 1,447 14,176 14,370
Sales under $500,000
904 1,007 9,222 9,930
Luxury sales ($1 million-plus)
46 44 529 465
Benchmark price (citywide)
$432,300 $422,900 $439,620 $423,420