July 04, 2016 | CREBNow
Home prices down, not out
Resiliency in the detached and semi-detached markets temper price fluctuations
Calgary home prices continue to slide in most areas of the market, but not at the rate that many might expect, reported CREB® in its June housing summary. (Click here
for the full report.)
CREB® partly attributed June's stats to resiliency in the detached and semi-detached sectors of the market, where sales compared to new listings and standing inventory started returning to more balanced levels.
"The detached market has been gradually moving towards more balanced conditions, helping to prevent price levels from declining at the faster rates we saw in the previous two quarters," said CREB® chief economist Ann-Marie Lurie. "While this is welcomed news for sellers, it's very likely that pricing challenges will persist in the housing market until economic conditions start to improve."
Detached benchmark prices totaled $502,400, which is 0.4 per cent higher than last month, but 3.4 per cent lower than last year's levels, said CREB®. This is the first time in eight months that detached prices recorded a monthly gain, helping ease the quarterly decline from 2.2 per cent in the first quarter to 0.7 per cent in the second quarter.
"The price adjustments that we've seen in the past year have allowed some buyers to get into homes that were previously unattainable."
Overall sales activity remained relatively weak in June, falling by seven per cent to 2,028 units, reported CREB®. Inventory levels went in the other direction and continued to climb in June to 5,973 units, 16 per cent higher than last year.
Both the attached and apartment segments of the market have recorded inventory gains around 30 per cent, far greater than the year-over-year increase of five per cent in the detached sector, noted CREB®.
Higher inventories and weaker demand continued to have a larger impact on pricing in the apartment and row sectors. June apartment prices slid by another 0.1 per cent over last month, pushing the average year-to-date benchmark price down 5.3 per cent below last year.
Attached product experienced a monthly slide of 0.3 per cent, mostly due to steeper price declines in row style product.
"The price adjustments that we've seen in the past year have allowed some buyers to get into homes that were previously unattainable," said CREB® president Cliff Stevenson. "This is especially true for homeowners with financial stability and a good amount of equity in their home. With so much choice out there, it's giving consumers an opportunity to find their ideal home at a price they can afford."
Other updates from June's housing market:
- Overall year-to-date sales declined across all areas of the city. However, we continue to see detached sales growth in the City Centre, West and North West areas of the city.
- Despite some recent quarterly improvements, most districts have recorded year-to-date price declines for each property type, relative to last year.
- Price declines have been highest in the City Centre, North West and West districts of the city this year.
- City-wide June inventory gains were limited to product priced under $600,000.
- YTD apartment and row sales have declined by 21 and 16 per cent. In comparison, the detached and semi-detached market declined by 6.4 and 4.4 per cent.
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