Calgary home prices are continuing to drop, according to recently released data from he Canada Mortgage and Housing Corp. Detailed in its quarterly Housing Market Assessment, the CMHC suggests the local housing market is still moderately vulnerable due to overbuilding throughout the area.
Right now, Calgary is still a strong buyer’s market, and inventory of unsold, newly-built homes continues to outpace demand. As of September of this year, Calgary had 2,087 finished new construction homes that remained unsold, of which half were apartments and condos.
Despite taking more time than projected, however, the recovery is still moving in the right direction and economic growth continues to trend upward.
Another problem negatively impacting the housing market specifically, though, are rising interest rates and stricter mortgage rules that have undoubtedly had an effect on home and condo sales. Last month, Calgary saw 1,272 sales overall, which represents an alarming 13% decline compared to September 2017.
The good news moving forward, though, is that the most recent census revealed more people moved to Calgary last year, which could help put a dent in inventory heading into 2019.