This report is becoming a broken record of sorts. Market conditions in Calgary continue to be challenged due to higher than normal unemployment rates, higher lending rates, and continued challenges in the oil patch which so greatly affects many facets within our city. According to the latest stats from the Calgary Real Estate Board, there were just 1,172 sales in November which totals just 15,348 units sold for the entire year to date. This is a 14 per cent decline from last year and 20 per cent below long term averages.
New listings eased for November compared to last year, which assisted with further inventory gains in this buyer’s market. There were 6,501 units for sale in November, but this is 32 per cent above typical November levels and well above the 5,683 units available for sale at this time last year. This continues to drive price declines within the market.
On the flip side, the rental market is improving. There was a 6.3 per cent vacancy rate in October of 2017 for the city of Calgary, but as of October 18, there is a vacancy rate of 3.9 per cent. The average rent in Calgary is $1,272/month while the Canadian average sits at $1,059/month. This is good news. The lower that vacancy rate goes, the more likely home sales will increase and head towards improved market conditions, but we will have to be patient before we see any hard evidence of that turn around.
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