Household income pressures are stifling demand for the city’s single-family homes
Fresh data from the Calgary Real Estate Board indicated that 969 transactions involving single-family homes took place in the market last month, representing a 4% year-over-year decline in sales volume.
CREB chief economist Ann-Marie Lurie attributed the July shrinkage to various economic pressures affecting household income.
“Despite some positive momentum in some aspects of our economy, our job market has continued to struggle as of late, with some easing in total employment levels over the past few months and persistently high unemployment rates,” Lurie told the Calgary Herald.
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Lurie added that the Bank of Canada’s recent interest rate hike is also affecting the consumer base’s purchasing decisions.
“Rising costs, combined with a slow recovery, are weighing on the demand for resale homes in the city. At the same time, supply remains high and is resulting in an oversupplied market.”
The supply of new homes for sale grew by 3% annually, up to 1,733 listings. Overall inventory of single-family homes shot up by 39% year-over-year, up to 4,578 listings.
The benchmark price for Calgary’s single-family properties in July was at $501,300, which was 2% lower compared to the level during the same time last year.
