21 Sep Calgary Market Update – September 2015
September is a month of new beginnings, marking the start of a new season and the new school year. However, in Calgary it also marked the continued chill of the real estate market. Throughout 2015, the real estate market in Calgary has seen a significant slowdown from the unprecedented growth of previous years. With lawns signs staying up bit longer than usual and sales of single family homes slowing down, this month’s market update will not show the signs of a renewal that many potential buyers and sellers are looking for.
According to the Calgary Real Estate Board (CREB), August saw sales in the city decrease by 27 percent compared to the same time last year, and 12 percent below the 10-year averages. The report revealed that sales have remained below the most recent averages in the last 10 years. Those living and working in the Calgary area know that much of the declines can be blamed on the energy sector. Over the last year more than 12,000 Albertans having been let go in group layoffs , marking a huge change in the purchasing power of locals and a desire to keep the status quo.
This was affirmed in the most recent CREB market update where chief economist Ann-Marie Lurie, stated “persistent weakness in the energy sector weighed on sales activity this month, which once again retracted to levels well below the norm for the city.”
Although the numbers look somewhat disheartening, they are fairly skewed due to the inclusion of figures that represent the apartment sector. This area of real estate has a very large number of available options, which in turn inflates the number of properties on the market.
“The combination of price declines and higher inventory levels in some segments of the market are influencing buying patterns in Calgary,” says CREB President Corinne Lyall.
Above all, the market dips that we’ve seen over the last year will have an effect on any future plans you may have in terms of buying or selling real estate. Combined with the federal elections taking place next month and the continued uncertainty of the energy sector, the real estate market will continue to fluctuate. However, always keep in mind that changes in the market are constant – you just have to be prepared for them.