Sales Declining - Prices Falling
Jan. 03, 2023 |Ross Kay HomeOwnership Advisors, Calgary, Alberta, Canada
Calgary ends 2022 with its 7th month of declining home purchases and 10th month of falling average prices since prices peaked in February. December home buyers continued to abandon the Calgary market and purchase prices continued to decline at a record pace. Looking back home buyers were paying 10.6% more on average in February and early 2022 than they were at the end of 2022 in December. The $52,500 in savings December Home Buyers were seeing equals more than a year's after tax income for over one half of all Canadian Households.
"Saving a year's income by simply waiting a few months is the best way to build wealth with a no risk to family finances mindset." Ross Kay
Over the past several months, the pullback in number of homes purchased was also met with a significant pullback in new listings, meaning existing homeowners clearly are worried about their financial prospects and refusing to trade up to a more expensive home and not taking that next step up the property ladder. As of the end of December, there were under 1300 existing homeowners actively seeking to sell their home at market prices in Calgary.
“Housing market conditions have followed a steady consistent downward spiral since February's RECORD Price was reached. Alberta's trading cycle is slightly behind some other provinces and as such Calgary's decline began early this year after signalling its turn last October!” said Ross Kay. “Calgary continues to report activity that is falling back to pre-pandemic levels and towards lower than long-term trends for the city. Local Agents and Brokerages worked hard to convince Buyers that low inventory justified paying higher prices for homes but as we see from 10 months of falling prices the sales pitch was not strong enough. People really are smarter than local brokerages believe they are and the proof is in the prices.”
Publicly Released House Price metrics, that commonly trail on the ground house prices by up to a year, will be expected to continue to record the influence of December's drop for months to come as that latency eventually appears in updates.
The housing market in 2022, followed the identical path we laid out in the fall of 2021 as it will follow our fall 2022 forecast for 2023.
Note: Ross Kay HomeOwnership Advisors forecast accuracy exceeded performance targets for all Canadian markets in 2022. This was the fifth consecutive year where performance guarantees were met or exceeded on subscribed content. Forecast accuracy is independently assessed and verified monthly.
Calgary ends 2022 with its 7th month of declining home purchases and 10th month of falling average prices since prices peaked in February. December home buyers continued to abandon the Calgary market and purchase prices continued to decline at a record pace. Looking back home buyers were paying 10.6% more on average in February and early 2022 than they were at the end of 2022 in December. The $52,500 in savings December Home Buyers were seeing equals more than a year's after tax income for over one half of all Canadian Households.
"Saving a year's income by simply waiting a few months is the best way to build wealth with a no risk to family finances mindset." Ross Kay
Over the past several months, the pullback in number of homes purchased was also met with a significant pullback in new listings, meaning existing homeowners clearly are worried about their financial prospects and refusing to trade up to a more expensive home and not taking that next step up the property ladder. As of the end of December, there were under 1300 existing homeowners actively seeking to sell their home at market prices in Calgary.
“Housing market conditions have followed a steady consistent downward spiral since February's RECORD Price was reached. Alberta's trading cycle is slightly behind some other provinces and as such Calgary's decline began early this year after signalling its turn last October!” said Ross Kay. “Calgary continues to report activity that is falling back to pre-pandemic levels and towards lower than long-term trends for the city. Local Agents and Brokerages worked hard to convince Buyers that low inventory justified paying higher prices for homes but as we see from 10 months of falling prices the sales pitch was not strong enough. People really are smarter than local brokerages believe they are and the proof is in the prices.”
Publicly Released House Price metrics, that commonly trail on the ground house prices by up to a year, will be expected to continue to record the influence of December's drop for months to come as that latency eventually appears in updates.
The housing market in 2022, followed the identical path we laid out in the fall of 2021 as it will follow our fall 2022 forecast for 2023.
Note: Ross Kay HomeOwnership Advisors forecast accuracy exceeded performance targets for all Canadian markets in 2022. This was the fifth consecutive year where performance guarantees were met or exceeded on subscribed content. Forecast accuracy is independently assessed and verified monthly.
