Temperatures have been bitterly cold in the first week of February in Calgary and there’s also been a chill in the city’s resale housing market.
Demand for homes keep falling while the number of properties for sale remains at an elevated level.
The first week of February has followed a pattern that has been established for several months now.
As of Friday, according to the Calgary Real Estate Board website, MLS sales in the city of 213 so far in February are down by 24.20 per cent compared with the same period a year ago. Pending sales of 74 are down by 14.94 per cent year over year.
The demand side of the housing equation has been affected by the city’s economy, which is slowly recovering from the depths of the recession of 2015 and 2016 after oil prices collapsed in the latter half of 2014. The economy has been moving in a positive direction since 2017 but many challenges still exist.
New listings of 641 so far in February are down by 8.43 per cent from a year ago. Active listings of 5,698 are still 16.31 per cent higher than they were a year ago.
Because of the elevated listing and the decreased demand, it’s taking a lot longer for people to sell their homes. The average days on the market for a home to sell in Calgary has jumped to 68 from 55 days a year ago. That’s a hike of 23.64 per cent.
But one strange thing is happening in the market after one week in February. Prices have actually risen. Usually in any market where there’s low demand and high supply, you would see prices go down. But in Calgary, the median price so far this month of $408,000 is 0.74 per cent higher than a year ago and the average MLS sale price has climbed by 4.34 per cent to $491,954.
– Mario Toneguzzi for Calgary’s Business