The Royal Bank of Canada recently noted the stabilization of the resale housing market in Calgary. In a report from calgaryherald.com, the recent market activity is indicative that the worst is over for the city.
In the latest MLS data reviewed by the Calgary Real Estate Board showed that while total MLS sales declined by 18 percent to just 2,183 for the month of June, it was the lowest decline recorded on a year over year basis for 2015. The new listing had also declined by 18 percent to just 3,122 for the month of June. Other indicators that declined were the average sale price by 1.67 percent or average pricing of a home is at C$483,398. On the other hand, the median price increased by 0.7 percent to about C$430,000 per home.
The figures were echoed by Sotheby's International Realty Canada realtor Grace Yan, who said, "There's still a sense of uncertainty in the real estate market right now - the decline in oil prices and question about the economy are still influencing consumer sentiment."
While the figures still look gloomy, these are numbers that other players in the market are eyeing in order to make business. In other words, the current market has created conditions which allow seller's to dictate prices according to their whims.
This was reiterated by First Place Realty associate broker Mike Fotiou, in a statement published on theglobeandmail.com. Fotiou noted that the oil slump may have hindered sales growth, especially in the high end niche but the low availability of low end homes have caused the prices to rise in this niche.
Fotiou added, "Detached homes priced under C$450,000 are in a seller's market with less than one month's supply. There is over four month's supply for homes in the C$700,000 to C$1 million range."
