The real estate market of Calgary is heading in the opposite direction in compared to what is happening in the national market. The Canadian Real Estate Association has pointed out that the MLS sales in the Calgary area fell by 28.1 per cent to 2,139 in August from the level a year ago while the sales nationally rose by four per cent to 42,679.
It is not only in the sales category that Calgary is heading the opposite direction. Even in pricing, Calgary is having different numbers. Calgary Herald disclosed, "The MLS Home Price Index Benchmark Price of $451,600 was flat in Calgary. Data given by the MLS showed that there are 12 markets surveyed, and it was up 6.4 per cent to $502,600."
Corinne Lyall, the President of the Calgary Real Estate Board, stated that, 'a combination of price declines and higher inventory levels in some segments of the market are influencing buying patterns in Calgary.' This could also be the reason why Calgary's numbers are different from the other regions.
Despite the policies undertaken by Canada to manage the housing crisis and the current recession, it still continues to affect the real estate industry most especially Calgary. CBC previously reported, "Calgary's once-sizzling housing market is now offering something of a blueprint for what might happen to prices in other cities with seemingly indomitable markets, when an eventual turn finally arrives."
It stands out that even the Prairies' adjustments and dealings will continue to be harder as these regions face the toughest circumstances due to the declining oil prices. Diana Petramala, economist with TD Economics, stated that 'markets in commodity-driven provinces have weakened considerably this year, including Calgary, Edmonton, Regina and Saskatoon.' These are the regions where sales and prices of homes have been in the doldrums.
The better-quality selection in these segments is leading purchasers to be more careful about their purchase decisions in Calgary. With the recession on the horizon, purchasers are weighing their options between sales, resale, along with what the community in general can bring to the table.