Calgary Real Estate Market Under Pressure in 2008

The Calgary real estate market transitioned very quickly from hot to not hot in 2007. It came under increased negative price pressure during 2008 as there were many more home sellers than buyers. In 2008 we witnessed the median home price in Calgary start the year at $368,500, peak at $386,000 and finish the year at $340,000 for a sizeable annual decline of $28,500 or 7.7%. The Calgary real estate market peaked in July 2007 at a median price of $392,000 so we have now witnessed a drop of $52,000 or 13.3% over a 18 month period.

The Teranet - National Bank House Price Index data also bears these price decline numbers out.

Inventory is at elevated levels still and sales are quite low which gives the Calgary market little hope for any price appreciation during 2009. With over 10 months of inventory at the end of 2008, there may be a bright month or two but look for continued declines this year.

See the data for yourself here.