There is some good news for Calgary’s long-depressed real estate market.
According to new data from the Calgary Real Estate Board (CREB), home sales in May 2019 across the city were 11% higher compared to the same period in 2018, representing 1,921 units sold for the month. But this is still 10% below long-term averages.
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Growth in sales last month was primarily propelled by homes priced under $500,000.
Furthermore, the month finished with a decline in new listings, and it pushed down inventory levels, with 7,467 units listed — a 12% drop compared to last year.
The disparity between sales relative to inventory levels has improved, but the market is still oversupplied.
“While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing their homes,” said CREB chief economist Ann-Marie Lurie, in a statement.
For detached homes, sales for this housing type reached 1,182 units in May, which is a 12% increase over the same month last year, but still 13% below long-term averages. Inventories for detached homes fell from 4,504 units last May to 3,921 units this month, and it is the first time since May 2017 that year-over-year inventories declined.
Attached homes also saw improved sales activity; year-to-date sales for attached went up by 2%, making this the only home type to see a year-to-date improvement.
Apartment sales, however, continued to struggle, with the year-to-date sales sitting at 1,030 units, representing a 7% decrease over the same month in 2018 and 28% below long-term averages. Continued oversupply could cause prices to further drop.
As of May, the benchmark price for apartments was $246,900 — 0.6% lower than the previous month and nearly 3% lower than last year’s levels. Since 2014, prices for this home type have dropped by 17%.
Overall, the benchmark price for the month across all three home types was $423,100, which is a slight month-over-month improvement but 4% lower than 2018 levels.