1 week Ago By Joel Schlesinger, for the Calgary Herald
Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page. The spring thaw that unlocks a lot of home listings and unleashes many buyers could be a little frostier this year for Calgary’s resale real estate market.
“Tariffs, of course, create a lot of uncertainty, and as soon as uncertainty happens, consumer confidence wanes,” says realtor Doug Koop, broker/owner of Re/Max Realty Professionals in Calgary. “There is just a lot of uncertainty right now, and that’s probably the biggest deal with sales.” Already, demand seems to be waning with February market statistics showing sales declining year over year.
Calgary Real Estate Board numbers from last month reveal sales fell about 19 per cent year over year. New listings — homes that came onto the market last month — increased about four per cent, while inventory — the homes still on the market at month’s end — grew nearly 77 per cent. Driving supply growth is apartment-style condominiums — a result of new multi-family development bringing competition to the market, says Koop.
Demand has dried up as investors pull back from the housing segment given the higher competition from the new purpose-built rental market. Canada Mortgage and Housing Corp. statistics from last year show that the city had a record year for multi-family starts, most on the rental side.
The overall slowdown in Calgary’s activity reflects the national market where trade concerns weigh on buyers. Area vice-president Kingsley Ma at Re/Max Canada notes about 44 per cent of municipal markets across Canada favour sellers. Most are smaller municipalities, whereas larger cities are seeing balanced conditions or even buyer’s markets.
The Greater Toronto Area, for example, had a sales-to-new-listings ratio in February of 33 per cent down from 49 per cent last year. A ratio under 40 per cent is considered a buyer’s market, whereas ratios between 40 and 60 per cent are balanced. A ratio exceeding 60 per cent is considered a seller’s market.
Calgary’s ratio in February was 61 per cent, but year to date, the metric (55 per cent) reflects a market in balance. The conditions are relatively good news for first-time buyers, who have been challenged to enter Calgary’s once-hot market, especially for their housing type of choice, Koop says. “Detached homes often are their first choice.
” Sales are declining — 20 per cent year over year — for the most popular housing type in the city. Yet the benchmark price — the cost of the typical detached home — still increased five per cent year over year to $760,500. Koop says homes priced less than $600,000 are still seeing high demand.
Homes above that level see fewer buyers and more supply. For individuals moving to Calgary from large centres like Toronto, even the higher price ranges are relatively affordable..
