Over-supplied apartment sector behind falling housing prices

Resales for detached and semi-detached homes remained resilient in Calgary.

We independently select everything we recommend. Buying through us may earn us a commission, which supports our work. Too many condos and too few buyers best described Calgary’s resale real estate market woes in June.

Recent statistics from the Calgary Real Estate Board revealed that resales fell nearly four per cent year over year, while the aggregate benchmark price dropped about two per cent to $572,500. That said, prices have been rising modestly month over month since the start of the year when the benchmark price was $553,400. Yet an ongoing slump in condominium apartment sales has weighed on the city’s market.

By comparison, resales for detached and semi-detached homes remained resilient in the city. Single-family detached home sales in June were up one per cent while semi-detached sales grew 10 per cent over the same month last year. In contrast, sales for row homes fell three per cent, and apartment condominiums dropped 20 per cent year over year in June.

In its most recent report, CREB noted that new supply on the market — driven by previously high demand and low supply, especially for rental units — has put downward pressure on apartment pricing over the past year. In June, the benchmark price for a condominium apartment was $299,000, down nine per cent year over year. That is the largest percentage decline among housing types.

Row’s benchmark decreased six per cent to $424,100, while the single-family detached home benchmark was off one per cent. Its benchmark price of $750,500 continued to be the highest among all segments. Only semi-detached homes did not see a decrease in the benchmark price last month.

Yet this housing type saw no growth either. Its benchmark price of $694,600 was flat last month compared with June of the previous year.