Calgary home sales plummet as inventory skyrockets by 102%
Whether it’s jitters of economic uncertainty from U.S. tariff threats or the rising cost of living, one thing for certain is that Calgary home sales dropped sharply last month when compared year-over-year.
The Calgary Real Estate Board (CREB) released its regional monthly statistics package on Tuesday for the month of March, revealing that sales in our city sat at 2,159, an 18.8 per cent year-over-year decline and a 17.3 per cent drop so far this year.
Inventory in YYC is also up a whopping 102.4 per cent year-over-year, while the months of supply have shot up by nearly 150 per cent year-over-year to sit at 2.39 months.
The CREB said that ongoing economic uncertainty, driven by tariff threats, has weighed on consumer confidence and impacted housing activity in March. Sales slowed across all property types, with the steepest decline in higher-density segments.
Last month, the unadjusted residential benchmark price reached $592,500, relatively stable compared to both last month and prices reported last March.
The detached and semi-detached prices in Calgary sat at $769,800 and $691,900, respectively, consistent with peak prices and continue to rise.
CREB
“It is not a surprise to see a pullback in sales given the uncertainty,” said Ann-Marie Lurie, chief economist at CREB. “However, it is important to note that sales still remain stronger than anything reported throughout 2015 to 2020, where our economy faced significant economic challenges and job loss. Nonetheless, easing demand has been met with gains in new listings and rising inventories, helping our market shift back toward balanced conditions, following four consecutive years where the market favoured the seller.”
March reported over 4,000 new listings, causing the sales-to-new-listing ratio to drop to 54 per cent, low enough to support further inventory gains, according to the CREB.
While this is a significant change from last year, with limited supply options across all property types and price ranges, conditions reflect a better balance between a seller and a buyer today. However, the market significantly varies depending on location, price point, and property type. Improving supply has taken the pressure off home prices following the steep gains reported over the previous four years.