The coronavirus has had a massive impact on real estate sales in Calgary from mid-March through April.
March sales volume started quite strong, however, the closing of stores and services combined with social distancing measures dramatically decreased real estate activity. April 2020 saw a 63% decrease in sales volume compared to April of 2019.
The actions that were taken to flatten the curve successfully slowed the spread and enabled our health system to handle the confirmed cases and this has lead to plans to (carefully) begin to reopen the economy and created a positive sentiment. And sales follow sentiment.
Week over week we’ve seen a decrease in sales except for the last week of April. It increased to 140 sales compared to 113 the previous week. Yes, this is still very low comparatively but if the positive sentiment continues we can expect sales to increase as well.
There are additional factors to consider of course when planning to buy or sell real estate. Supply is continuing to increase faster than demand leading to an oversupply of inventory. The oversupply, currently at nine-month levels, is continuing to put pressure on pricing and Calgary remains a buyers market.
The economic impact of Covid-19 and the decline of the energy sector is significant and it is likely to create additional job losses and higher unemployment rates as it is likely that many small businesses will not survive the pandemic. The government incentives will help and there will be improvements compared to the numbers we are seeing today, but the challenges in the Calgary real estate market will likely continue throughout the year.
For the detailed market statistics from the Calgary Real Estate Board for April 2020 click HERE.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.