Experts believe higher-priced home market is not out for the count

Despite ongoing oil patch uncertainty that plagued the province's economy for much of 2014, Calgary's luxury housing market is still alive and well, say industry insiders.

While experts acknowledge the sector is going through a rough patch, they say the industry is undaunted, instead pushing ahead in hopes that Alberta's infamous cyclical economy is due for another upswing.

Weak sales activity relative to inventory places downward pressure on prices

Persistently high inventory levels within Calgary's residential resale housing market, combined with weak sales activity, contributed to buyers' conditions in November, according to CREB®'s monthly housing summary, released Tuesday.

Monthly sales totaled 1,263 units, a 28 per cent decline from last year and nearly 20 per cent below the 10-year average.

Meanwhile, the amount of new listings in the market increased by five per cent over last November, and moved five per cent above 10-year average.

Sales activity remains well below long-term averages  

Elevated inventory levels in October contributed to a second consecutive month of price declines in Calgary's resale residential housing market.

Benchmark prices declined 0.7 per cent from the previous month, and 1.2 per cent from the same time last year, to $453,100.

"Persistent weakness in the overall economy continued to impact housing demand in Calgary as October sales were nearly 16 per cent below long-term averages," said CREB® chief economist Ann-Marie Lurie. "In addition, new listings did not decline enough to prevent inventory gains and, ultimately, price contractions."

Higher inventory levels consistent throughout surrounding area

Alberta's economic downturn caught up with the residential housing industry outside of Calgary in the third quarter as price declined for the first time in 2015, says a new report from CREB®.

Despite the slight scale back, prices remained relatively resilient when compared to double-digit declines in sales that sparked a rise in inventory levels.

In its latest surrounding area quarterly summary, CREB® reported benchmark prices from July to September fell by 0.41 per cent from the previous quarter to $433,033. That compares to gains realized in the two previous quarters.

Conditions shift in September, according to CREB®

Housing statistics from September confirm that unbalanced conditions in some areas of Calgary's resale residential market are starting to push the entire sector into buyers' territory, according to CREB®.

Driven by excess inventory in the apartment sector, the overall market's sales-to-new-listings ratio — a key indicator of a buyer's market — declined further in September to 47 per cent, according to the board. That means less than five out of every 10 new listings sold during the month.

In August, the ratio hovered around 60 per cent, which was firmly in balanced conditions, according to CREB® chief economist Ann-Marie Lurie.

Airdrie's housing market on pace for record year

Housing affordability and changing lifestyle choices are fueling double-digit growth in Airdrie.

The city's residential resale housing market recently posted its best third quarter ever, with sales activity jumping 16 per cent to 455 units between July and September, according to CREB®. Year-to-date sales, meanwhile, have increased by 28 per cent to 1,354 units compared to the same period in 2013.

Calgary's million dollar market continues to shatter records

Just one month after setting the all-time record for luxury sales, Calgary's million dollar homes market has once again set a new mark.

June saw 104 sales of homes priced at $1 million or more, topping the previous record of 94 million-dollar plus sales, set in May. Prior to that, the previous record was 83, set in May 2013.