Real estate agents are considered essential service providers during the COVID-19 pandemic by the Alberta provincial government. However, this does not mean that real estate continues as normal.
Calgary real estate had a reasonably strong start in 2020 but, as expected, the COVID-19 pandemic has had a massive impact on the housing market.
The March stats show that sales activity had fallen 11 percent compared to 2019 putting it 37 percent lower than long-term averages. Sales levels for March haven’t been this low since 1995.
Due to the oversupply in the market, prices were forecasted to decline this year and declines will likely be higher than originally expected due to the combined impact of the pandemic and energy sector crisis.
HOUSING MARKET FACTS – City of Calgary, April 1, 2020.
- Detached sales eased by 15 per cent this month, driven by pullbacks in all districts except the North, which remained flat compared to last year.
- The decline in sales was met with a larger decline in new listings, causing inventories to fall by 17 per cent and keeping the months of supply slightly lower than last year’s levels.
- Detached benchmark prices have remained relatively unchanged compared to last year at $480,800. Price declines this month continue to be the highest for the City Centre, North East and West districts.
- With 217 citywide apartment sales in March, this was the only category to record a year-over-year gain. Much of the gain was due to improving sales in the South, South East and North West districts.
- New listings this month did ease, helping support a small decline in inventory levels.
- Persistent oversupply has resulted in continued downward pressure on prices. In March, the citywide benchmark price eased by more than two per cent compared to last year for a total of $243,700.
- Both semi-detached and row sales declined this month compared to last year. Like the other property types, there was also a significant reduction in new listings.
- The decline in new listings helped push down inventory levels for both property types, but it was not enough to prevent a rise in the months of supply.
- However, this segment was oversupplied prior to the recent changes, impacting prices. As of March, prices remained nearly one per cent lower than last year’s levels for both semi-detached and row properties.
For the detailed market statistics from the Calgary Real Estate Board for March 2020 click HERE.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.