Unemployment impacting housing activity

Home prices declined further in March as economic conditions weigh on Calgary's housing market, according to CREB®, which released its monthly housing summary today.

Calgary's benchmark price totaled $442,800 in March, a 0.49 per cent decline over February and 3.51 per cent lower than levels recorded last year.

"With no improvement in the labour market, it's no surprise that we continue to face downward pressure on housing sales activity and prices," said CREB® chief economist Ann- Marie Lurie.

Homeowners don't have to sacrifice with new townhome development in southeast Calgary

The elusive trifecta of location, luxury and livability has long eluded downsizers in Calgary – until now.

Brookfield Residential has developed the Holy Grail of compact living with Mosaic Riverstone in Cranston's Riverstone, a 64-unit stacked luxury townhome development in southeast Calgary with two- and three-bedroom floor plans ranging in size from 1,400 to 1,600 square feet and priced from the mid-$400,000s.

"Cranston's Riverstone is an absolutely amazing and beautiful community," said Kelly Halliday, Brookfield Residential's business development manager for Calgary Homes.

Monthly prices decline for fifth consecutive month: CREB

February sales totaled 1,127 units in Calgary, a 6.63 per cent drop over last year and 37 per cent lower than long-term averages for the month, according to CREB®.

In its monthly housing summary, CREB® reported citywide unadjusted benchmark prices totaled $445,000 last month, a 0.63 per cent decline over January and 3.45 per cent lower than levels recorded last year.

"Slow sales and elevated housing inventory has resulted in further price declines," said CREB® chief economist Ann-Marie Lurie. "Given the current economic environment, it is no surprise that consumer confidence and housing demand is being impacted."

Inner-city homeowners look up, not out

Good things come in threes – or so goes the superstition.

Calgary's homebuilding industry seems to have taken this to heart, with three-storey infill homes emerging as a solution to what experts say is growing demand for "vertical" detached living options in inner-city communities.

"It is very cost effective to build up versus build out," said Ron Butler, president of New West Luxury Estate Homes, which builds about 10 infills per year. "And building out is not an option given the limits of the lot."

The City of Calgary currently limits the amount of land a home can occupy in a given lot, ranging from 40 to 50 per cent, depending on its zoning and size. Three-story homes provide a solution to providing additional living space where that ratio is already being tested, said Butler.

Attached sector reacting similar to others during downturn

Softness in the city's attached housing market is creating opportunities for would-be buyers as increased selection is resulting in more competitive pricing, according to local housing officials.

Sales of row-type housing and semi-detached properties, which make up the city's attached market, decreased last month by 10.5 per cent compared to the same time last year, according to CREB®'s regional housing market report.

Listings also declined, yet by a more moderate 5.2 per cent. When combined with existing listings, year-over-year inventory levels jumped in January by more than 20 per cent.

More product on the market has meant sellers have had to be more competitive with their pricing. According to CREB®, the attached benchmark price was $345,600 last month, a 1.65 per cent decline from last month. Looking back on 2015, it slid 1.29 per cent from the start to the end of the year.

Housing stats indicate some buyers still sitting on the sidelines

Calgary's resale residential housing market picked up where it left off in 2015, with buyers' conditions prevailing through every major category last month, according to CREB®.

Yet with many homebuyers still sitting on the fence, local housing officials caution that historically it's been difficult to find a utopian moment to enter the market.

"Buyers, especially first-time buyers and investors, will do their best to time the bottom, but I think that will be really difficult," said CREB® president Cliff Stevenson, noting that few were able to do so during the last recession in 2008/09 when the upturn happened quickly. "I think this year it will be a guessing game as to when will be the best time to get into the market."

A cloud of uncertainty hangs over top of Calgary's housing market in 2016. To help anxious buyers and sellers, here are a few key numbers from CREB®'s 2016 Economic Outlook & Regional Housing Market Forecast that will shed some light on what's to come.

18,416
After posting 25,543 sales in 2014 and 18,830 in 2015, CREB® is predicting Calgary's resale housing market to decline slightly in 2016 to 18,416 – below the 10-year average. Sales are expected to be down 2.5 per cent in the detached sector, 1.5 per cent in attached and two per cent in apartments. According to CREB® chief economist Ann-Marie Lurie, the beginning of the year will find Calgary in a buyer's market.

Resale housing market expected to navigate ominous conditions in 2016

The year was 2014. The price of oil was soaring sky high, and, like so many other sectors, Calgary's housing market was along for the ride.

What a difference a few years make.

Following the collapse of worldwide oil prices and subsequent cooling of the city's once red hot housing market, the arrival of 2016 now finds Calgary in a time of uncertainty.

In its 2016 Economic Outlook & Regional Housing Market Forecast, CREB® expects resale sales activity to decline by 2.2 per cent from 2015 levels to 18,416 units, and the benchmark price by 3.44 per cent to $438,652.

Elevated supply levels placed downward pressure on prices in December  

With the focus shifting toward the holiday season, December sales activity slowed to 878 units in the city, 18 per cent below last year at this time and well below the five- and 10-year averages, according to CREB®'s final monthly housing summary of 2015.

As a result, the unadjusted benchmark price dipped to $448,800, a 0.42 per cent decline over the previous month and 2.33 year over year.

CREB® chief economist Ann-Marie Lurie noted December followed a pattern established early on in 2015, which was characterized by slower housing demand.

Weak sales activity relative to inventory places downward pressure on prices

Persistently high inventory levels within Calgary's residential resale housing market, combined with weak sales activity, contributed to buyers' conditions in November, according to CREB®'s monthly housing summary, released Tuesday.

Monthly sales totaled 1,263 units, a 28 per cent decline from last year and nearly 20 per cent below the 10-year average.

Meanwhile, the amount of new listings in the market increased by five per cent over last November, and moved five per cent above 10-year average.