After years of being one of the hottest real estate markets in the country, Calgary’s real estate market has certainly felt the chill of winter in 2015. Things have cooled off remarkably, with November 2015 seeing 30% less sales than the previous year. This continues the trend established in October, when 33% fewer sales were seen than in October of 2014. This steep decline in the housing market has resulted in a price drop as well, which means that for buyers looking to purchase a home in Calgary, there may be some great opportunities available, with potentially more to come down the road.
Prices Dropping Alongside Sales
The average sale prices in the city are dropping right along with overall sales numbers, although not quite as precipitously. In November, the average price of all homes in Calgary dropped roughly 5% to $460,565, compared to the average price of $484,784 in November the year previous. October saw a similar drop, with the average price of $457,507 in 2015 being 6.1% less than the average price in October of 2014.
Detached homes in Calgary have seen some of the most significant price drops in the area. A detached home has been selling for an average price of $524,413 this November. At the same time last year, homes were averaging a sale price of over 7% more at $564,768. While detached houses might be leading the plunge to more affordable housing in the city, condos are getting in on the action as well. The average price of a condo in November of 2014 was $319,067, but this year that has dropped 6.2% to just under the $300,000 mark.
Different Trends in the Suburbs and Surrounding Areas
While it might be true that home sales are down and that prices are dropping in Calgary itself, the opposite trend seems to be taking place in the surrounding areas. Sales are down, but not nearly as drastically as they are in the city itself. Throughout the month of November, sales only dropped 14% in the areas surrounding Calgary compared to the 30% drop-off seen in the city.
Prices are actually trending the opposite direction in the areas surrounding Calgary. Although prices in October were down compared to the previous year, November brought about a slight increase compared to 2014. This year, the average home in the surrounding area sold for around $460,000 compared to $433,768 in November of 2013.
It should be noted that homes are also staying on the market in Calgary (and those in surrounding areas) a lot longer than they were last year. Calgary itself is seeing homes stay on the market for an average of 45 days, while in the surrounding area the average has reached 67 days on the market.