Second-quarter home sales drop in Airdrie and Cochrane
The Calgary Real Estate Board’s report for the second quarter of 2020 also looks at some of the towns and cities orbiting Calgary. Here’s the Board’s overview of Airdrie and Cochrane.
Sales improved in June, but are still 14 percent lower than last year, a smaller decline than Calgary, due to more affordable housing available in Airdrie. A decline in new listings outpaced the decline in demand, causing inventories to fall well below last year’s levels and the months of supply to drop below four months.
If supply/demand balances remain in this range, it will help stabilize prices. At the end of the second quarter, benchmark prices remain one per cent lower than last year’s levels.
Sales improved in June, but enough to offset earlier declines, as second-quarter sales dropped by nearly 19 percent year over year.
With strong sales in the first quarter, year-to-date sales were only seven percent lower than last year. New listings in the area were down, pushing the market toward more balanced conditions.
Inventories declined compared to last year and the months of supply fell to just over five months, an improvement over both the first and second quarters of last year.
Prices in Cochrane had been easing prior to COVID-19, as the market was struggling with excess supply, with a drop in supply helping to prevent any further downward price adjustments. In fact, the pace of price decline eased from nearly three percent in the first quarter to two percent in the second quarter.
While many economic challenges continue to exist and Cochrane will not be immune to these changes, the adjustment in supply compared to demand has helped prevent more significant adjustments in prices.