High levels of supply suppress price growth in local markets
The City of Calgary accounts for 79 percent of resale home activity in the larger Calgary census metropolitan area (CMA), with three of the city’s larger neighbours adding to the CMA total. Here is the Calgary Real Estate Board’s report on these markets for January 2019.
• Sales in Airdrie totalled 65 units in January, just below levels recorded last year, but comparable to the average activity occurring over the past 10 years.
• Despite easing new listings compared to last January, inventory levels increased to 422 units. Higher inventories, given the sales activity, caused months of supply to remain elevated at 6.5 months. Persistently high levels of supply relative to demand continue to weigh on prices.
• The detached benchmark price was $354,300, 0.5 percent below December’s price and nearly five percent lower than January 2018.
• Due to a pullback in row/townhome sales, January sales activity slowed compared to last year and longer-term trends. At the same time, new listings eased, causing inventory gains and the months of supply to rise to nearly 14 months.
• The oversupply in the market has caused prices to trend down compared to December. However, on a year-over-year basis, the detached benchmark price of $408,600 was relatively stable comparable to January 2018 price levels.
• Sales activity in January declined over last year. While new listings in the market also declined compared to last year, there were still far more new listings than sales activity, causing inventories to rise and months of supply to remain above 10 months.
• Persistent oversupply has continued to weigh on benchmark prices with the third consecutive month-over-month decline. The detached home benchmark price was $416,900 in January, one percent lower than December and three percent lower than January last year.
from Calgary Sun http://bit.ly/2WQJYLo
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