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Sales and registrations fell for the seventh straight month and benchmark prices were down slightly from September
A home for sale in Calgary in June. Photo by Azin Ghaffari/Postmedia
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The Calgary housing market slowed again in October, with sales and new listings falling for a seventh straight month and benchmark prices falling slightly from September.
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Total sales fell to 1,857 units for the month, down from 1,901 in September and 2,184 in October last year, according to figures released Tuesday by the Calgary Real Estate Board (CREB).
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Despite the slowdown, home sales are on track for a record year. So far, 26,823 units have been sold in 2022, with just two months remaining, leaving the city just short of the record 27,686 units sold in 2021.
The median home price rose in October, but the city’s benchmark price fell 0.6 percent to $523,900 from $527,400 in September.
“Although our city is not immune to the impact of inflation and higher rates, strong job growth, positive migration flows and a stronger commodity market are helping to offset some of those impacts,” CREB chief economist Ann-Marie Lurie said in the report .
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Calgary’s single-family housing sector bore the brunt of higher interest rates, with October sales down 29 percent from a year earlier, even as sales in the $700,000+ price bracket increased. The limited growth in supply in the lower price segments continues to keep conditions for cheaper single-family homes rigid.
While some markets appear cheaper for buyers, the townhouse sector continued to benefit sellers due to declining inventories. According to the report, sales of townhouses continue to rise year-on-year. This is due to new listings falling and the sales to new listings ratio falling to an “exceptionally scarce” 106 percent.
In October, the reference price for a townhouse was $361,200, less than 1 percent below the $363,700 peak reached in June of this year.
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Meanwhile, strong condo sales are an ongoing trend, contributing to the year-to-date rise of over 56 percent.
In October, the reference price for a condo was $277,800 compared to $252,200 a year ago.
“As we move forward, I think that given the higher rates and the state of the economy, we expect sales to continue to fall. That’s our expectation for next year,” said Lurie.
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