Home sales continued to grind down in Calgary in May, with sluggish condo and row house activity being the main culprit, says the Calgary Real Estate Board.
Due to “steep pullbacks” in the condo sector, total residential sales in Calgary declined by 17 per cent compared to May of last year, says CREB.
Despite the significant drop, last month’s 2,568 sales were 11 per cent higher than the long-term trend for May, and improved over the prior month.
“Compared to last year, easing sales and rising inventories are consistent trends across many cities, as uncertainty continues to weigh on housing demand,” said Ann-Marie Lurie, chief economist at CREB.
Prior to the economic uncertainty, Calgary was dealing with seller market conditions, said Lurie, and the recent pullbacks in sales and rising inventory have “helped shift us toward balanced conditions, taking the pressure off prices.”
“This is a different situation from some of the other larger cities, where their housing markets were struggling prior to the addition of economic uncertainty,” she added.
The benchmark price in Calgary dipped to $589,900, slightly lower than April and two per cent below May 2024 levels.
Sales and inventory balance out
Calgary saw 4,842 new listings in May, contributing to rising inventory levels, which doubled year-over-year to 6,740.
The monthly gain in both inventory and sales prevented any significant change in the months of supply compared to April. With 2.6 months of supply, conditions are still “relatively balanced,” said CREB.
New listings divide markets
Recent inventory gains are segmenting the market into pockets that are either oversupplied or in a listing drought, said CREB.
Both detached and semi-detached home prices remained relatively stable in May and are still higher than last year’s levels.
Meanwhile, row and apartment-style homes have reported modest monthly price declines, and May prices remain below last year’s levels, as improved new home and rental supply weigh on resale prices.
