Housing market slows, prices down slightly amid pandemic

CALGARY (660 NEWS) — As expected, home sales are down sharply due to the COVID-19 pandemic.   However, prices remain fairly stable.

Across Canada sales are down between 50 and 70 per cent, with Calgary seeing a drop of about 60 per cent in March.

Corinne Lyall with Royal LePage said prices have decreased slightly as well with people not looking to buy or sell right now.

“Buyers are obviously waiting until hopefully the pandemic ends soon before they make a decision, which is understandable.  I think a number of them are probably a little concerned about employment and concerned about income,” said Lyall.

Reduced oil prices will also likely negatively impact the market in Calgary, but Lyall added that the risk right now is lower than it was during the 2014 oil price crash.

“The reason why the risk right now is lower than it was during the 2014 oil price crash is that we saw a price correction last year and Alberta and Calgary were supposed to be recovering from the recession and so we’ve already gone through a correction.  Because of that we’ve also seen less inventory on the market and that inventory has pushed into this year as well,” said Lyall.

“So I would say, year over year right now, we’re sitting at about 20 per cent less inventory and although we’re seeing fewer buyers, still what that’s been able to do is, …it’s pure supply and demand… is keep prices fairly stabilized.”

While average prices have declined moderately between 3 and 6 per cent, she said the better indicator of what’s happening is to look at the median price, which has only come down one or 2 per cent.

“A lot of this is going to depend on how long the pandemic lasts and what kind of impact that can have in the long term,” she said. “In our business, everything that happens today typically has a further impact down the road and so that would be our concern right now.”

If the pandemic lasts for the better part of the rest of the year, home prices will likely drop further in Calgary, but if it is contained in the summer then there may actually be a slight increase.

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