Housing market set for favourable lead into spring
Detached prices stabilize as city-wide inventory trends down
City of Calgary, April 3, 2017 – After a long period of disconnect between supply and demand, Calgary’s detached housing sector is firmly in balanced territory. Sales were still 10 per cent below long-term trends in March, but above levels seen in recent years, while average inventory declined compared to last year, supporting price stability in the detached market.
Unadjusted detached benchmark prices totaled $503,900 in March, 0.4 per cent above last month and similar to levels recorded last year. Meanwhile, Apartment and attached prices continue to remain well below levels recorded last year.
“Market conditions are quite different in the apartment sector,” said CREB® chief economist Ann-Marie Lurie. “The additional supply coming from the new home sector is not easily reversed and the added competition is continuing to weigh on prices in the higher density sectors of the market.”
Months of supply is trending down for all product types, but has remained elevated in the apartment sector, averaging 6.1 in the first quarter of the year compared to the 2.4 average in the detached sector.
It’s nice to see a continued improvement in the absorption rate in almost every market segment.
The city of Calgary Detached market segment still continues to out-perform all other segments with a whopping 31%! Great to see a return to balanced conditions for the City of Calgary Detached market, which will hopefully lead the way for the other reported market segments.
For those who are considering taking advantage of the low interest rates to invest in real estate there are still 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. We would love to help!
Susanita de Diego
Download: Calgary & Area Real Estate Statistics – April 2017
