The economy is moving in a positive direction, but the house market is slow to respond, according to CREB statistics

Mario ToneguzziWondering what’s happening in the Calgary resale housing market these days?

Here’s a sneak preview of what to expect on Thursday when the Calgary Real Estate Board officially releases its monthly MLS stats package for October.

And it’s more of the same following a pattern that has been set this year: lower sales, elevated listings and declining prices.

According to CREB’s website, MLS sales for the month of October, up to and including Sunday, have fallen by 12.87 per cent compared with the same period a year ago to 1,164. Pending sales of 51 are also down by 46.32 per cent.

Demand in the market continues to be lukewarm as the city’s economy continues to slowly recover from the depths of the recession in 2015 and 2016, which was triggered by the collapse in oil prices beginning in the latter half of 2014.

The economy is moving forward in a positive direction now but it’s still at a much slower pace than in 2017 and in the year immediately leading up to the oil price collapse.

For the month of October so far, new listings have dropped by 9.17 per cent from a year ago to 2,248 but the number of active listings on the market remain high at 7,843, which is 13.98 per cent higher than it was at this time last year.

Lower demand plus a higher number of listings has pushed Calgary into a buyers’ market as homes are taking much longer to sell these days. The average days on the market for a listing to sell has jumped by 22.45 per cent to 60.

All those factors are naturally having an impact on prices. So far in October, the median sale price has dropped by 0.60 per cent from a year ago to $412,500 while the average MLS sale price has declined by 1.17 per cent year-over-year to $473,112.

Year-to-date MLS sales in Calgary have declined by 14.11 per cent compared with 2017.

Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald, including 12 years as a senior business writer.

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