After starting 2010 w ith a bang — sales were up 40% in the first quarter, year-over-year — Calgary’s resale housing market fizzled out by the end of August, with sales down 11% from the previous year.
Expect more of the same through to the end of the year, says Richard Cho, senior market analyst for Canada Mortgage and Housing Corp.
“The decline in activity expected for the latter months of the year will offset the gains made in the first half of the year,” says Cho. “MLS residential sales in 2010 are forecast to decline 18% year-over-year to 20,300 units.”
As in the new home market, Cho expects a small turnaround in resale activity next year.
“The growth in sales will be modest as the economy steadily improves,” says Cho. “Sales in 2011 are expected to reach 20,700 units, up 2% from 2010.”
There are fewer buyers active in the market who have felt no pressure to buy because of a high number of active listings this year, says Cho.
“Prospective buyers are enjoying a generous selection of homes. Slowing sales and more new listings have pushed active listings to elevated levels,” he says. “In August, active listings surpassed 10,000 units, representing a 39% increase from the previous year.