Calgary housing market prices hold, but sales fall.

City of Calgary, March 1, 2018- The new year opened predictably, with monthly figures close to the Januarys of the past three years.

Residential home sales declined in February, but a decline in new listings helped keep prices steady this month.

Sales totaled 1,094 units in February; 18 per cent below last year’s activity. Easing sales occurred across all property types this month, which outpaced the sales growth that occurred in January. After the first two months of the year, sales activity remains well below longer term averages.

“Housing market conditions are still adjusting to rising lending rates and changes in lending requirements. This process is expected to be bumpy, with demand adjustments leading the changes,” said CREB® chief economist Ann-Marie Lurie. “However, it is important to remember that it is early in the process and the impact on prices will ultimately be dependent on the supply response.”

A decline in new listings was not enough to prevent further gains in inventory levels, but it offset some of the impact of slower sales activity. In the detached sector, activity in the $600,000 – $999,999 range recorded the largest gains in supply relative to sales. “This is a market where the fundamentals of a sound pricing strategy need to be understood by sellers. At the same time, savvy buyers typically have a clear understanding of how much of a mortgage they can get,” said CREB® president Tom Westcott.

“With all the recent changes, potential purchasers should be obtaining pre-approvals so they understand exactly what they can afford prior to making an offer on a home. It also provides them flexibility in this market.”

Year-to-date sales activity remained below long-term norms for all districts within the city, but year-over-year price adjustments ranged from over six per cent declines to four per cent gains, depending on district and property type.

After the first two months of the year, detached sales totaled 1,240 units. This is 12 per cent below last year and 22 per cent below long-term averages. When considering supply levels in the market, conditions have remained relatively unchanged, as months of supply continues to sit just below four months. Detached benchmark prices this year have averaged $501,100, similar to levels recorded last year.

The apartment condominium market continues to remain oversupplied, with months of supply averaging nearly eight months so far this year, which is higher than the average of seven months recorded over the same time last year. Elevated supply levels are preventing any price recovery, as the benchmark price has averaged $256,300 this year, three per cent below last year.

Semi-detached and row product continue to demonstrate different levels of oversupply, impacting price recovery. Semi-detached prices have averaged $417,300 so far this year, over one per cent higher than levels recorded last year. Meanwhile, row prices continue to ease and are averaging $296,050 over the same time frame.

For anyone who is interested in buying or selling during this interesting market period we would love to help!

Click below to view the how the following sectors performed for February 2018:

Download: Calgary Real Estate Statistics – February 2018

As expected, Calgary sales activity similar to last year.

City of Calgary, February 1, 2018- The new year opened predictably, with monthly figures close to the Januarys of the past three years.

With new mortgage rules and rates officially in effect, sales activity in January remained comparable to last year, as rising sales for attached properties were not enough to offset declines in both the apartment and detached sector.

Overall January sales totaled 958 units, nearly two per cent above last year and 11 per cent below long-term averages. “2018 was kicked off with higher rates and the official implementation of the new mortgage requirements. While it is too early to see the impact of these changes, so far, January levels are consistent with what we saw last year,” said CREB® chief economist Ann-Marie Lurie “The recovery will be bumpy, and we will continue to monitor the impact of the lending changes relative to the overall economic climate.”

Stable sales were met with rising new listings, causing further gains in inventory levels and impacting prices. Citywide, unadjusted prices totaled $432,300, 0.21 per cent below last month and 0.25 per cent below last year’s figures. Prices eased across all product types compared to last month, but price declines were more pronounced in the apartment and attached sectors.

In the detached sector, new listings rose with declining sales activity for product priced over $500,000. However, product priced between $300,000 and $399,999 saw an increase in activity. This will be an adjustment to the new reality buyers and sellers face, as pockets of the market will experience a mismatch between supply and demand.

“Sellers needs to be aware of the competing supply in the market. This can influence the timing of their decision, along with setting realistic expectations regarding time on the market and selling price,” said 2018 CREB® president Tom Westcott. “For buyers, getting pre-approved for a mortgage is essential, along with getting advice from a REALTOR® to get into a home they will be happy with.”

For those who are considering taking advantage of the still low interest rates to invest in real estate there are several market segments with lower absorption rates to choose from.  If you are interested in an investment strategy specific to your needs please contact us.

Detached sales totaled 583 units, similar to last year and 13 per cent below long-term averages. Easing sales were met with rising new listings. Months of supply rose to 3.75, slightly higher than last year’s levels at 3.18 months. Overall detached benchmark prices totaled $499,400, similar to levels recorded both last month and in January 2017.

Apartment sales eased to 145 units, well below long-term averages, but consistent with the slower activity seen over the past three years. New listings eased modestly compared to last January, but it was not enough to cause any meaningful change in inventory levels. Elevated supply compared to demand continued to weigh on pricing.

The attached segment of the market saw a rise in sales, but was met with a stronger gain in inventory levels. This caused the months of supply to push above last January’s figures. The elevated inventory relative to sales continued to weigh on prices. Attached prices totaled $328,000 in January 0.64 per cent below last month and 0.33 per cent below last year.

For anyone who is interested in buying or selling during this interesting market period we would love to help!

Download: Calgary Real Estate Statistics – January 2018