Calgary Condos Post Biggest Decline Since Financial Crisis

Calgary Condos Post Biggest Decline Since Crisis
  • Condo sales drop 38 percent to 3,000 units, Altus says
  • Inventories also rising, damping outlook for 2016 sales

Demand for new condominiums in Canada’s oil patch sank the most last year since 2008, according to data from Altus Group Ltd. Sales of condos in Calgary fell 38 percent to about 3,000 units from 4,805 units the prior year, according to the Toronto-based real estate consulting and advisory firm. That’s the biggest year-over-year drop since the financial crisis in 2008, when transactions fell 72 percent to 1,103 units.

The drop-off doesn’t bode well for 2016. Calgary, the biggest city in the oil-producing province of Alberta, ended 2015 with one of the highest inventories of unsold condos, at 3,356 suites in the fourth quarter, according to Altus.

Demand has dropped with the price of oil, which has slumped about 40 percent in the past 12 months and fueled more than 40,000 job cuts across the country.

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