1 week Ago By Joel Schlesinger, for the Calgary Herald
March is traditionally a busy time for real estate resales in Calgary, but this March saw dampening demand compared with last year, indicating a market leveling off from its frenzied heights in recent years. “It’s much more balanced than it has been,” says Ann-Marie Lurie, chief economist with the Calgary Real Estate Board. Resales in March fell nearly 19 per cent year over year, and the 2,159 transactions were the lowest level of activity since April 2020.
She notes some of the decrease can be attributed to worries about trade and the economy, but the decline in activity year over year isn’t unexpected, given the market had been so strong for so long. As sales declined, inventory increased substantially to 5,154 listings, about 102 per cent higher than last spring. New listings — which represent homes that came onto the market last month — also grew nearly 27 per cent to 4,019 homes for sale.
That resulted in a 55 per cent sales-to-new-listings ratio, which indicates a market in balance between supply and demand. Even with falling demand and rising supply, prices edged higher. The combined benchmark price for all homes was flat at $592,500.
But by segment, price increased modestly. Semi-detached — the segment with the least supply — saw the largest jump at five per cent to $691,900. Single-family detached homes’ benchmark saw the next highest rise at four per cent to $769,800.
Apartment condominiums’ benchmark grew three per cent to $336,100. Row’s benchmark grew two per cent to $454,000. While demand is slowing and price growth leveling off, the statistics do not tell the full picture.
“Conditions remain really tight for anything under $700,000,” Lurie says about single-family homes, which still account for the most sales. Exceeding that price, buyers have much more choice, including supply from the new homes market, which are typically higher in price. Canada Mortgage and Housing Corp.
statistics show that the average price of a new single-family home in Calgary was nearly $860,000 in February. New supply has come onto the market even for in-demand homes below $700,000, says Doug Cabral, broker/owner of Royal LePage Benchmark in Calgary. “There were a lot of buyers that I was working with who had been frustrated,” he says.
“They were craving new listings, and now they’re seeing them.” That could lead to improving sales as spring continues along with more price growth, especially if interest rates fall further, he adds. “We have lower demand than this time last year, but it’s still healthy.
” Over the last 15 years, this past March is about the sixth strongest for sales, based on CREB data. Still, the market is showing strong indications of cooling, which could simply be a matter of economics, Lurie says. “Having the uncertainty (over the economy) going into spring has had an impact.
” Furthermore, first-time buyers and even move-up buyers can only afford higher prices so much before they find themselves priced out. That’s one reason why inventories for single-family detached homes more than $700,000 are rising, while homes priced less are still in short supply, she adds. Slowing migration from record heights, an influx of new condos and purpose-built rentals, and leveling rents are other dampening factors this spring.
“At some point the market has to level off to a place much more normal, and that’s what we’re transitioning to,” Lurie says..
