Calgary’s resale housing market took another beating in January with MLS sales continuing to slide, listings growing and prices falling.
“The slow start to the year does not come as a surprise, as concerns about job losses and the state of the energy sector weigh on consumers. We anticipate that the slow market conditions will persist throughout much of the first quarter,” said CREB’s chief economist Ann-Marie Lurie.
According to the real estate board, there were 804 MLS sales in January which was down 16.16 per cent from January 2018.
The dollar volume of sales fell by 19.17 per cent from a year ago to $362.8 million.
While demand is decreasing, the supply is heading in the opposite direction. New listings for the month were 4.85 per cent higher than a year ago, rising to 2,575 which boosted the month-end inventory of homes listed for sale to 5,473, up 17.95 per cent.
Naturally because of lower demand and higher inventory it’s taking longer to sell a home in Calgary. The average days on the market for a home to sell rose by 18.28 per cent year-over-year jumping from 61 days last year to 72 days today.
Also, the months of supply, a measure used to determine how long it would take to sell all the inventory at the current level of demand, jumped to 6.81 per cent which is 40.69 per cent higher than a year ago. The sales to new listings ratio was also down by 7.82 per cent to 31.22 per cent.
With these market conditions, of course, prices are starting to take a beating. No matter how you measure them prices in the city were down substantially in January compared with the year ago.
The benchmark price, which the board says reflects the typical property in a market, fell by 4.07 per cent to $414,800. The median price was down 5.6 per cent to $391,750 and the average MLS sale price dropped by 3.59 per cent to $451,210.
CREB said the January MLS sales figure was 21 per cent below long-term averages for the month.
– Mario Toneguzzi for Calgary’s Business