Across all housing types, January sales were 35 per cent lower than the 10 year average in Calgary, Alta., due to weakened economic conditions and a resulting lack of consumer confidence. At the same time, new listings rose 39 per cent, year-over-year, greatly impacting inventory levels.

“Economic conditions this year are expected to be weaker than original estimates provided in December 2014,” says Ann-Marie Lurie, CREB chief economist. “This change is partly connected to continued low energy prices, which impact consumer confidence. A lack of recovery in oil has many concerned about their employment status and this concern is reflected through the weaker sales activity in Calgary’s January resale figures.”

According to CREB, total January sales reached a mere 880 units, far below typical activity for the month. Condo apartment sales decreased by 41.06 per cent, year-over-year, and new listings rose by 52.04 per cent. As a result, inventory levels increased by a whopping 128.69 per cent, to 1,148 units.

The average price of a condo apartment also fell from the same time last year, to $305,092, representing a 3.14 per cent decline.

“Housing decisions will likely continue to be postponed for many consumers until they can see what happens with the economic climate in the spring,” says Lurie. “Nonetheless, if supply levels continue to rise at levels that exceed the pace of demand growth, we can expect this will start to impact prices in the city.”