Peter Kusch

Tel.: 403-990-7990

May 2020

CALGARY'S HOUSING MARKET HIT HARD BY COVID-19

Social distancing and other restrictions brought on by the coronavirus has taken a huge bite out of Calgary's housing market. April sales hit 573 units, a decline of 63% over last year.

New listings this month totalled 1,425 units, a decline of 54% compared to last year. Inventories also declined, but with 5,565 units available, they remained high enough to push the months of supply above nine months.

Home sales were also very slow in a number of communities surrounding Calgary. Only 60 homes were sold in Airdrie, 29 changed hands in Cochrane and only 17 were sold in Okotoks.

The economic fallout from the COVID-19 pandemic has forced hundreds of thousands of Canadians off the job and without the stability they may require for big purchases, such as a new home. While moves by the Bank of Canada to lower interest rates and inject liquidity into the financial system are helping with mortgage rates, the cost of borrowing is always secondary in an environment of low confidence, increased unemployment, and slower income growth. If somebody doesn't have a job, no matter what the interest is, they're not able to afford to buy a home or keep one they have. Some homeowners will be forced to sell, increasing supply to the point it could outweigh the effects caused by a reduced supply of new listings.

I expect no miracles. The market will be weak with lower resale prices.

The average number of days on the market (Calgary Metro)

	Average days on the market in April 2020	Average days on the market in April 2019
Detached	50	49
Apartment	64	68
Attached	63	62

Attached category includes condominium townhouses and duplexes.

Median price (Calgary Metro)

	Median price in April 2020	Median price in April 2019	Percentage change
Detached	$450,000	$475,000	-5.3%
Apartment	$228,000	$230,000	-0.9%
Attached	$317,000	$325,000	-2.5%

The median price is where half sell for more and half for less.

Months of supply (Calgary Metro)

January 2015	5.31
February 2015	4.57
March 2015	3.19
April 2015	2.85
May 2015	2.44
June 2015	2.32
July 2015	2.53
August 2015	3.16
September 2015	3.85
October 2015	3.93
November 2015	4.21
December 2015	4.94
January 2016	6.57
February 2016	5.04
March 2016	3.83
April 2016	3.54
May 2016	3.20
June 2016	2.95
July 2016	3.26
August 2016	3.61
September 2016	3.97
October 2016	3.30
November 2016	4.06
December 2016	4.04
January 2017	4.36
February 2017	3.35
March 2017	2.71
April 2017	2.90
May 2017	2.95
June 2017	3.12
July 2017	4.12
August 2017	4.15
September 2017	4.71
October 2017	4.41
November 2017	4.03
December 2017	4.29
January 2018	4.83
February 2018	4.73
March 2018	4.64
April 2018	4.82
May 2018	4.91
June 2018	4.65
July 2018	5.46
August 2018	5.47
September 2018	6.28
October 2018	5.56
November 2018	5.55
December 2018	6.18
January 2019	6.81
February 2019	6.03
March 2019	4.96
April 2019	4.57
May 2019	3.89
June 2019	4.24
July 2019	4.36
August 2019	4.45
September 2019	5.02
October 2019	4.49
November 2019	5.05
December 2019	5.30
January 2020	5.87
February 2020	4.59
March 2020	4.91
April 2020	9.71

Source: Calgary Real Estate Board

Calgary Metro-within Calgary City Limits