Unlike most other major Canadian cities, this year, the real estate prices in Calgary, Alberta, is either continuously dropping or staying the same. This is good news for people who are looking to purchase real estate in Calgary. As of August 2016, the real estate sales in Calgary dropped for the 20th consecutive month, which is a stark contrast to the hot markets of Vancouver and Toronto.
How have this affected sales?
Predictably, in a very buyer-friendly market, sales of real estate in Calgary are ever declining. Sellers are less inclined to sell as they are unlikely to make significant profits, if any, on houses being sold this year. It would seem more advisable to hold onto your property and wait for a spike in house prices if that ever comes to fruition.
What are the figures on sales?
As of August 2016, only 6,908 houses have been sold in Calgary this year. This real estate activity is a whopping 22% below the average sales of the last 10 years at the same time. Sales have not been this low since 1996. The Calgary Real Estate Board estimated 17, 321 sales of all types this year. However, this looks to be highly unlikely as the economy of the city continues to plummet.
Why is the market so bad?
Calgary’s unemployment rate has nearly doubled in the last two years. Wages all across the city are decreasing. Consumer spending is the lowest it has been in 20 years. The prices of homes are more or less the same they were two years back, but the significant impact on the economy of Alberta is being felt right now. Home vacancies are skyrocketing all over Calgary, and the home vacancy rate is currently about 4.3%, a level that has not been observed for nearly a decade. Fewer people are also moving to Calgary in search of work due to the statewide crash in oil prices.
Calgary’s real estate situation is unlikely to change significantly this calendar year, and sales are likely to fall below expectations once again.