Calgary’s home sales dropped in February despite an increase in average sale prices.
According to yesterday’s Calgary Real Estate Board (CREB) report, 1,127 units were sold in February, indicating a 6.63% drop from one year ago. The report states that sellers are lowering their asking prices, but not enough to increase more transactions.
“Slow sales and elevated housing inventory has resulted in further price declines,” said CREB chief economist Ann-Marie Lurie in a press release. “Given the current economic environment, it is no surprise that consumer confidence and housing demand is being impacted.”
According to the report, a high volume of inventory has sellers looking at their pricing expectations realistically.
“The high volume of inventory that we’re seeing has pushed sellers to be more realistic about their pricing expectations and the amount of time their properties may be on the market,” said CREB president Cliff Stevenson in a press release.
“Buyers are less likely to submit an offer if there’s a big gap between the listing price and what they are willing to pay. A solid selling strategy can really make the difference in this market.”
According to the Lurie, the decrease in home sales can also be attributed to Calgary’s unemployment rates.
“Calgary has seen employment fall for eight consecutive months, while unemployment rates have reached levels higher than the previous recessions.”