Amid a constant barrage of negative economic news these days, Calgary’s resale housing market is seeing some dramatic swings in listings and MLS sales so far in January.
According to the Calgary Real Estate Board website, January MLS sales are down 34.8 per cent from the same period a year ago (from 842 to 549), while new listings have risen by 42.8 per cent to 2,262 and active listings are up by 75.2 per cent to 4,311.
That dynamic has affected the average sale price, which is down by 0.6 per cent to $457,853. The median price has dropped slightly as well by 0.3 per cent to $412,500.
Pending sales of 87 are down by 62.7 per cent.
Buyers who are expecting that there might be an opportunity to purchase a home for a discount over recent value. So they’re delaying transactions in the hope that they see some movement in prices.
Volatility is a natural reaction to the sharp and unexpected drop in the price of oil.
The impact to the overall resale housing market of increased listings is relative to what is happening in sales activity.
What could happen is if you have the listings rise it gives more choice in the market but because of that if the demand isn’t there that can impact obviously that balance in the market and could push it closer towards that buyer’s territory.
If that demand falls and that pace of fall continues, and you still have these listings and they don’t tend to ease off, it impacts the balance in the market and obviously influences pricing as well.